Difference Between Producer & Consumer

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No matter where you look, an entity of some kind is producing something. This is true for large corporations as well as individuals. The relationship between the producer and the consumer is a symbiotic one, though there are differences between the two.

Identification

Frequently, a producer services the wants and needs of a specific consumer base or target market. This is evident in the example of a clothing store producing seasonal wear for plus-size women. The store -- operating as a self-contained entity -- creates products (i.e., plus-size seasonal wear) to meet the wants and needs of a consumer base or target market (i.e., women of a size 14 to 26).

Tangibles and Intangibles

A producer can create tangible products and services as well as intangible ones -- products that cannot be touched, such as an idea or message. This is evident in an advertising firm that produces a marketing message to promote or increase consumer awareness about a new brand or marketing campaign. In this case, the producer is producing a tangible product (i.e., edited commercial footage) as well as a non-tangible service (i.e., consumer awareness and market “buzz” for the product).

The Producer's Objective

A producer exists to create a product or service that addresses existing consumer needs and desires. One way to effectively achieve this end is to request and analyze marketing research about consumer preference. Using this information, a producer can create the products and services consumers confess to want and need. Consumer preference is communicated in and illustrated by those products and services that sell versus those that do not.

Consumer Demand

The consumer communicates dissatisfaction for products and services in one of two ways: 1) The consumer can outright refuse to purchase or consume an existing product or service, or 2) The consumer can purchase or consume an existing product or service but in limited quality until a change to the product or service is made. The consumer can communicate this demand for change through marketing research surveys, communications with producers and word-of-mouth feedback to producers. For example, a consumer can refuse to purchase a product in high volume or on a regular basis until the product becomes more affordable or demonstrates a higher level of performance or usefulness.