This concept holds that consumers will favour or go for products that are widely available and low in cost Management should select products that are economical to produce and set up a marketing department to distribute these goods (wide distribution coverage). The concern in production concept is on achieving production efficiency resulting in lower cost of production and lower prices in order to attract customers.
This concept holds good or can work in at least two situations:
i. Where the demand for the product exceeds supply-in this case, the management should look for ways of increasing production.
ii. Where the production cost is high and can be brought down through increased productivity to expand the markets.