To what extent can improvements in productive flow and product quality Essay - 2

To what extent can improvements in productive flow and product quality lead to an increase in sales and profit - Essay Example To meet the growing demand, it is viable to move production to a larger facility like a manufacturing plant. This can reduce the cost of production and increase the volume of sales. Increased production can reduce the cost of manufacturing per unit, and this can enable the company to lower the price of products thereby increasing sales. In order to earn more profits, it is necessary to boost sales and this can be done by producing better quality goods at reduced costs. This paper discusses how productive flow and product quality lead to an increase in sales and profit. Production and quality In any business, the traditional concept of enhancing sales and increasing profit is to increase the volume of production with innovative technologies so as to produce quality goods that will satisfy the demands of the consumers. Sales can increase when products become easily accessible and affordable for consumers. Therefore, the main focus of the management should be on increasing production an d also distribution efficiency. This concept of production is applicable in two different situations. In the first situation the demand of a product is so high that it exceeds the supply i.e. production of the product is below the quantity in demand. In this case, management should apply plans and strategies to increase production while keeping the cost of production per unit low. ... However, this same concept which is know as production concept may not work for other companies if the consumers do not find the product attractive in terms of quality, performance and innovative characteristics. In such case, it is required to follow the product concept. Under this concept the business organization should focus on improving production techniques to continuously increase the quality of products. However, there is a disadvantage, for instance, producing better mousetraps may not satisfy the consumers’ need for eliminating mice. The demand may be for other types of solutions like a chemical spray or an exterminating service. Moreover, even a good quality product cannot boost sales unless the packaging is done attractively, pricing is affordable and distribution processes are efficient. Also a good deal of promotion and advertising is required in order to convince the buyers that it is a better quality product. This calls for selling concept which implies that co nsumers will not respond to enhanced quality unless rigorous selling and promotion efforts are made by the business organization. Then there is the marketing concept which indicates that the objectives of business enterprises of increased sale volumes and enhanced profit structure can be achieved by understanding the demand curve of the target markets, and by providing quality goods for consumer satisfaction more efficiently than the competitors. The selling concept holds an inside-out perspective, which means it focuses on heavy selling of the existing products by rigorous promotions and advertisements. Contrary to this the marketing concept holds an outside-in perspective, which means it puts emphasis on consumer demand, coordinates all marketing