A production orientation dominated business thought from the beginning of capitalism to the mid 1950's. Business concerned itself primarily with production, manufacturing, and efficiency issues. This view point was encapsulated in Says Law which states Supply creates its own demand (from the French economist Jean-Baptiste Say. To put it another way, If a product is made, somebody will want to buy it. The reason for the predominance of this orientation is there was a shortage of manufactured goods (relative to demand) during this period so goods sold easily.
The implications of this orientation are:
- Product lines were narrow
- Pricing was based on the costs of production and distribution
- Research was limited to technical product research
- Packaging was designed primarily to protect the product
- Promotion and advertising was minimal
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