The Production Concept: Production concept holds that consumers will favor   products   that   are   available   ad   extremely affordable and that management should, so, the focus on improving production and distribution efficiency.  It is one of the oldest philosophies that guide sellers. 

The production concept is helpful when:

1.      Demand of a product exceeds the supply.

2.      The product's cost is too high and improved productivity is needed to carry it down. The risk through this concept is in focusing too narrowly company operations. The production concept holds that consumers will favour products that are available and affordable, and hence management's major task is to improve production and distribution efficiency and bring down cost.