There are five marketing philosophy or concepts. A company should choose the right one according to their and their customers needs.
(i) Production Concept
(ii) Product Concept
(iii) Selling Concept
(iv) Marketing Concept
(v) Social Marketing Concept
Production Concept
This concept works on an assumption that consumers prefer a product which is inexpensive and widely available. This view point was encapsulated in Says Law which states ‘Supply creates its own demand’. Hence companies focus on producing more of the product and making sure that it is available to the customer everywhere easily.
Increase in the production of the product makes the companies get the advantage of economies of scale. This decreased production cost makes the product inexpensive and more attractive to the customer.
Low price may attract new customers, but the focus is just on production and not on the product quality. This may result in a decrease in sales if the product is not up to the standards.
This philosophy only works when the demand is more than the supply. Moreover, a customer not always prefers an inexpensive product over others. There are many other factors which influence his purchase decision.