Under which philosophy of marketing, efforts are made to bring down the cost of production to the minimum?

Production concept

The correct answer is option 1- Production concept.

Under Production philosophy of marketing, efforts are made to bring down the cost of production to the minimum.

The Production Concept: During the earlier days of industrial revolution, the demand for industrial goods started picking up but the number of producers were limited. As a result, the demand exceeded the supply. Selling was no problem. Anybody who could produce the goods was able to sell. The focus of business activities was, therefore, on production of goods. It was believed that profits could be maximised by producing at large scale, thereby reducing the average cost of production. It was also assumed that consumers would favour those products which were widely available at an affordable price. Thus, availability and affordability of the product were considered to be the key to the success of a firm. Therefore, greater emphasis was placed on improving the production and distribution efficiency of the firms.

OTHER OPTIONS

• Product Concept- As a result of emphasis on production capacity during the earlier days, the position of supply increased over period of time. Mere availability and low price of the product could not ensure increased sale and as such the survival and growth of the firm. Thus, with the increase in the supply of the products, customers started looking for products which were superior in quality, performance and features. Therefore, the emphasis of the firms shifted from quantity of production to quality of products.
  

• Selling concept- With the passage of time, the marketing environment underwent further change from product to selling concept. The increase in the scale of business further improved the position with respect to supply of goods, resulting in increased competition among sellers.

• Marketing concept- Marketing orientation implies that focus on satisfaction of customer’s needs is the key to the success of any organisation in the market. It assumes that in the long run an organisation can achieve its objective of maximisation of profit by identifying the needs of its present and prospective buyers and satisfying them in an effective way.