3. Packaging
Packaging refers to all activities involved in designing and
producing the container or wrapper for a product.
The container or wrapper is the package.
4. The package may include up to three levels of material
briefly described as follows:
The primary package which is the product’s immediate
container. The 370ml. can containing Carnation milk is its
primary package.
6. The shipping package which contains the
secondary package or packages. It provides ease of
storage, identification and shipping.
7. Reason for Packaging
There are several reasons for packaging products. Among them
are :
•It provides protection to products before and after
they are in the possession of the intended users.
Products need to be protected from the harmful effects
of outside elements. Packaging serves to eliminate this
problem.
8. •It provides convenience to the user. Many products are now
neatly packaged which provide convenience for use just anywhere.
The effort exerted from the date of purchase to actual use of the
product is greatly diminished.
9. •It provides safety. Products like insecticides may cause
considerable harm unless they are contained in suitable
packages.
10. •It provides economy to both the seller and the user. Buyers
have different quantity requirements for product. Some will need
more in a single purchase, while some will need less. In any case,
purchasing in various quantities is made possible by packaging.
11. •It allows sellers to effectively promote the product. The
package can be made to attract the attention of the
prospective buyer and further provide vital information about
the product. Children are oftentimes attracted by fancy candy
wrappers which motivates them to buy the product .
12. What Makes a Good
Package
Packages must be made to assist in the marketing effort.
Defective packaging may contribute to lost sales and
product damage. Too much packaging, on the other hand,
may be costly and will eat up profits.
13.
14. Labeling
That part of the product which provides information about
the product and the manufacturer is called the label.
It may be a part of the package, or a tag attached to the
product.
17. This label provides information about the product:
who made it, where and when it was made, its content,
how it is used and how to use it safely.
18. This label identifies the product’s judged quality with a letter,
number, or word like “grade A”, “grade 3”, or “premium
grade”.
19. • This label provides attractive graphics to help
promote the product.
20. Product Warranty
One of the product components that attract customers to
patronize a product is the warranty, which is a statement
explaining what the seller promises about the product.
It is actually a manufacturer’s written promise as to the extent
of the repair, replacement, or otherwise compensation for detective
goods
21. Variation of Warranty
Express warranties are written statements of manufacturer liabilities for
product deficiencies. Express warranties may be limited-coverage
warranty or full warranty.
A limited-coverage warranty is a manufacturer’s statement indicating
the bounds of coverage and noncoverage of any deficiency found in the
product.
A full warranty is a statement of liability by a manufacturer’s that has
no limits of noncoverage
22. Implied warranties are those that assign responsibility
product deficiencies to a manufacturer even if the item was
sold by retailer.
Warranties of whatever variation help the consumer make
his purchasing decision.
23. Product Life Cycles
Product, like human beings, have a life cycle which is referred to as the
Product Life Cycle or PLC.
The PLC refers to a product’s sales growth from the beginning to its
peak, followed by a decline and its eventual withdrawal from the market.
In more simple term, PLC is the period between the birth and death of
product.
24. WARRANTY
IMPLIED
Warranty obligation not
expressed by the manufacturer
LIMITED COVERAGE
WARRANTY
Liability coverage is limited
EXPRESS
Obligation of the manufacturer
stated in written or spoken
words
FULL WARRRANTY
Liability coverage is not limited
25. The PLC consist of four distinct
stages:
Introduction
Growth
Maturity
Decline
26. These stage are actually the manifestations
of the effects of various forces affecting
the life cycle, namely:
Consumer demand
Competition
Government rulings
27. In this stage, the product is introduced to the public.
It is generally by the following :
•Slow growth of sales
•Heavy promotional expenditures in relation to sale
•Relatively high prices for the products
•Limited product offering, like limited variations in sizes, color and
the like.
28. The Slow sales growth attributed to the following:
•Delays in the expansion of production capacity
•Technical product problems that have to be worked out
•Difficultly in gaining widespread distribution
•Inertia on the part of consumer in trying the new product.
29. Heavy promotional expenditures are attributed to :
•Heavy sales cost involved in obtaining distribution
•The need for heavy advertising to create consumer awareness
and trial.
High prices are caused by:
•The need to recover investment cost in plant and equipment
•Low volume sales.
Limited product offering are caused by insufficiency of initial
sales volume to justify variations in the product.
30. The growth stage in the PLC follows a successful introduction
stage. The growth stage is characterized by the following:
•Sales start climbing rapidly as distribution increases and the
consumers are persuaded to try the product.
•The ratio of promotional expenditures to sales decreases. This is
due to the rapid increase in sales but without corresponding
increase in promotional expenses.
•Prices tend to remain high except when demand stimulation is
required and entry of competitors discouraged.
•New forms of the product appear, like new colors, new models, and
new sizes .
31. When growth in sales slowdown, the maturity stage begins
to take over. This stage is characterized further by the
following:
•Sales settle down as the product becomes well known
•Price reduction are used are used as a tool of competition
•Competition is intensified
•The market becomes saturated
32. The decline stage begins with a permanent drop in sales.
The stage is further characterized by:
•A pruning of product models and variation to eliminate those not
producing profit.
•Promotional expenses are reduced
•Plans for phasing out the product is made
33. The Importance of the Product Life Cycle Concept
The concept of the PLC is important to the marketer in the
sense that it provides him with a guide in adapting
appropriate marketing strategies.
The marketing action required in the introduction stage, for
instance, will be much different than what is required in the
growth stage.
