Issue Date 12 April 2021

Unity University Keranyo Campus

Course Titles Fundamentals of Marketing
For Ext ACC & Finance Department
Assignment ………………….Term Paper Academic Year 2021 Semester I

1. Managing Products Product Lines and Brands (G4)

1.1 Definition of a Product

What Is a Product?

In general, a product is defined as a ―thing produced by labor or effort‖ or the ―result of an

act or a process. ‖ The word ―product‖ stems from the verb ―produce‖, from the Latin
prōdūce(re) ―(to) lead or bring forth. ‖ Since 1575, the word ―product‖ has referred to
anything produced.

In marketing, a product is anything that can be offered to a market that might satisfy a want
or need. In retail, products are called merchandise. In manufacturing, products are purchased
as raw materials and sold as finished goods. Commodities are usually raw materials such as
metals and agricultural products, but the term can also refer to anything widely available in
the open market. In project management, products are the formal definition of the project
deliverables that form the objectives of the project.

Goods, Services, or Ideas

2 Goods are a physical product capable of being delivered to a purchaser and involve the
transfer of ownership from seller to customer.
3 A service is a non-material action resulting in a measurable change of state for the purchaser
caused by the provider.
4 Ideas (intellectual property) are any creation of the intellect that has commercial value, but is
sold or traded only as an idea, and not as a resulting service or good. This includes
copyrighted property such as literary or artistic works, and ideational property, such as
patents, appellations of origin, business methods, and industrial processes. (Lumencandela)

This is a fundamental question for every company — and definitely for product managers. What
is a product? A product is any item or service you sell to serve a customer‘s need or want. This
definition might seem simple, but as you will learn in this guide, there is a lot more to a product
than its at-first-glance attributes and what the customer thinks they are paying for.

5 A product can be physical or virtual. Physical products include durable goods (such as cars,
furniture, and computers) and nondurable goods (such as food and beverages). Virtual
products are offerings of services or experiences (such as education and software). A product
may be a hybrid and include both physical and virtual elements. Hybrid products are
becoming more common, as traditionally analog products are incorporating digital
technology as a way to better reach and serve customers.

1.2 Five Levels of a Product

The Five Product Levels model provides a way to show the different
levels of need customers have for a product. These needs range from
core needs to psychological needs. At each product level, more
customer value is added.

History
The Five Product Levels model was developed by Philip Kotler in the 1960s.
Kotler‟s book, Marketing Management (15th Edition), was voted one of the 50
best business books of all time in the mid-1990s by the Financial Times.
Before Kotler, marketing existed within a silo, the marketing department.
Kotler was instrumental in making marketing an organization-wide activity.

What is a Product?
For Kotler, the definition of a product goes way beyond being a physical object
or a service. He defines a product as anything that can meet a need or a
want. This means that even a retail store or a customer service representative
is considered a product.
The model considers that products are a means to an end to meet the various
needs of customers. The model is based on there being three ways in which
customers attach value to a product:
 Customer Need: the lack of a basic requirement.
 Customer Want: a specific requirement for a product or service to meet a
need.
 Customer Demand: a set of wants plus the desire and ability to pay to have
them satisfied.
Customers will choose a product based on their perceived value of it. The customer is satisfied if
the product‘s actual value meets or exceeds their expectations. If the product‘s actual value falls
below their expectations they will be dissatisfied.

What are the Five Product Levels?

The Five Product Levels are given in the diagram below:

Let‟s consider each of the levels in turn.

1. Core Benefit
The core benefit is the fundamental need or wants that the customer satisfies
when they buy the product.

For example, the core benefit of a hotel is to provide somewhere to rest or sleep when away from
home.

2. Generic Product
The generic product is a basic version of the product made up of only those
features necessary for it to function.

In our hotel example, this could mean a bed, towels, a bathroom, a mirror, and
a wardrobe.

3. Expected Product
The expected product is the set of features that the customers expect when they buy the product.
In our hotel example, this would include clean sheets, some clean towels, Wi-
fi, and a clean bathroom.

4. Augmented Product
The augmented product refers to any product variations, extra features, or
services that help differentiate the product from its competitors.
In our hotel example, this could be the inclusion of a concierge service or a
free map of the town in every room.

5. Potential Product
The potential product includes all augmentations and transformations the product might undergo
in the future. In simple language, this means that to continue to surprise and delight customers
the product must be augmented.
In our hotel, this could mean a different gift placed in the room each time a
customer stays. For example, it could be some chocolates on one occasion,
and some luxury water on another. By continuing to augment its product in
this way the hotel will continue to delight and surprise the customer.
Five Product Levels Example: Coca-
Cola
It can be easy to see how the Five Product Levels apply to the hotel industry,
but what about a company like Coca-Cola?

Let‟s examine what each level might be for this company:

1. Core Benefit
The core benefit of Coca-Cola is to quench a thirst.

2. Generic Product
The generic product is a burnt vanilla smelling, black, carbonated, and
sweetened fizzy drink.

3. Expected Product
The expected product is that the customer‟s Coca-Cola is cold. If this isn‟t the
case then expectations won‟t be met and the drink will not taste its best in the
mind of the customer.

4. Augmented Product
Coca-Cola‟s augmented product is that it offers Diet-Coke. How does Coca-
Cola exceed customers expectations with this product? By offering all the
great taste of Coca-Cola, but with zero calories.

5. Potential Product
One way in which Coca-Cola delights customers is by running competitions.
The prizes in these competitions are often things that, “money can‟t buy”, such
as celebrity experiences. To continue to delight customers over time the
competition prizes change frequently.
 Five Product Levels Advantages
The real advantage of the model is that it enables an organization to identify
the needs and wants of customers. The organization can then:
 match the features they create to what the customer wants.

 match operational processes to what customers want. In our hotel example,

this would mean strict processes around cleaning each room.

 match marketing efforts to appeal to customers wants.

The model ultimately helps organizations differentiate themselves from their

competitors in a way that aligns with the wants and needs of their customers.

Five Product Levels Template

If you‟d like to use the model to understand your market and product better,
you can download a free template here.
The template looks like this:
Summary
The Five Product Levels model provides a way to show the different levels of
need that customers have for a product.
It can be useful in helping organizations understand their customers. From
there, they can structure themselves to best serve those needs and wants. In
this way, they can differentiate themselves from their competitors. Philip
Kotler in the 1960s. Kotler‟s book, Marketing Management (15th Edition),

Three levels of product can be identified. Each level adds more customer value. The first and most
basic level is called the core customer value. The first one of the levels of product, the core
customer value, answers the question: What is the buyer really buying? When a marketer designs a
product, he should first think of the core problem. What does the consumer really seek? If you buy a
car, the most basic core value you seek is transportation. For others, it might be status or glamour. If
you buy a smartphone, the core customer value might be communication. Likewise, if you buy an
iPad, you buy more than a mobile computer or a personal organiser. The core customer value you
buy is freedom and on-the-go connectivity. A woman buying a lipstick seeks more than just a
colourful cosmetic. In fact, she might seek hope. You see that already the first one of the three levels
of product is much more than the product itself. Always ask yourself first when developing a product:
What benefit does the customer really seek? What is the problem that needs to be solved?
The second one of the three levels of product is the actual product. Marketers should turn the core
benefit, the core customer value they identified into an actual product. This involves developing
product features, design, a quality level, a brand name and even a packaging. The smartphone you
finally buy as well as the car are actual products. You buy the phone, the packaging, the functionality
and so on. All these factors at the second one of the levels of product relate to the core customer
value. This reveals that the levels of product build up on each other. The smartphone‟s name, parts,
styling, features, packaging and other attributes all have been carefully combined to deliver the core
customer value of staying connected.
Finally, the levels of product are completed with the augmented product. The augmented product
rounds of the three levels of product, being built around the core value and the actual product. It
simply offers additional consumer services and benefits. If you buy an iPad, you get more than the
core customer value (e.g. communication), and also more than the actual product. These are only
two levels of product. The augmented product you get is the complete solution to your connectivity
problems as defined by the core customer value. This complete solution might take the form of a
warranty, after-sale service, product support, instructions on how to use the device and so further.
As we have learned, a product is more than what you actually see when you buy it. Three levels of
product are involved in any purchase. The levels of product include the core customer value, the
actual product and the augmented product. What you buy is a complex bundle of benefits that aim to
satisfy your needs. This also means that when marketers develop products, they first must identify
the core customer value. What does the customer really need and want, what problem does he
have? Then, they must design the actual product and in addition find ways to augment it in order to
create customer value and the most satisfying experience. written by Maximilian Claessens 27th
April 2015

1.3 Product Classifications

In every part of the world there are different systems

of product classification. The concept of “product classification” consists of
dividing products according to specific characteristics so that they form a
structured portfolio. In general, manufacturers use an informal product
classification system but there are also many standardized methods of
product classification devised by various industry organizations.

Some examples of such standardized methods of classification of products

are are the GS1 Global Product Classification, the International (Nice)
Classification of Goods and Services, North American Product Classification
System, etc. A very well known system for classification of products is the
Harmonized Commodity Description and Coding System (HS) created by the
World Customs Organizations.
 The main reason for using such kind of system can vary from
registering trademarks to numerous different purpose.

A basic product classification can be made based on consumer and business

products. The consumer products are afterwards divided based on preference
for shopping habits or durability and tangibility. The business products are the
industrial goods.

Below, we are going to present the informal classification of products based

on variables such as shopping habits, durability and tangibility as well as
industrial goods.

Table of Contents
 Product Classification on the basis of Shopping habits.
 Classification of products on the basis of durability and tangibility.
 Classification of products based on industrial consumption
 Video on Product Classification
Product Classification on the basis of Shopping habits.

Based on the first variable, the shopping habits, the products can be classified
into convenience goods, shopping goods and unsought goods.
At the end of the week when you go to the supermarket to complete the
necessary shopping for the next week, you probably buy condiments, soap,
etc. This kind of product, which has become a habit and for which you don‟t
think too much before buying are part of the convenience goods category.
Common examples are FMCG products.

Another example would be when you enter into a shop, and when going to the
cash machine you see some umbrellas and take one just because outside
was raining and you went out unprepared. This is also an excellent example
of impulse buying. Generally for convenience goods, once customers makes a
choice for their preferred brand, then stay loyal to that brand because it is
convenient to keep repeating the choice over time. Other examples of such
convinience purchases include bread, cold drinks, chewing gum, etc

The shopping goods are another category of products. Compared with the
convenience goods, the shopping goods are not so frequent. A relevant
example can be clothing, electronics, etc.. This category relies heavily
on advertising and trained sales people who can influence customer‟s
choices.

For the unsought goods consumers don‟t put much thought

into purchasing them and generally don‟t have compelling impulse to buy
them. An example in this category would be life insurances.

Classification of products on the basis of durability and tangibility.

Based on the second variable of durability and tangibility there are non-
durable and durable goods as well as services.

The non-durable category consists of tangible goods that are low priced and
purchased frequently such as shampoos, deodorants, etc. Compared with
these ones, the durable goods are also tangible goods but are targeted for
many uses. For this category, more personal selling is required as well as
guarantee to be provided, resulting in higher margin. Relevant example can
be the couches or chairs. About the third category, i.e services, we are going
to speak in another article – service classification.

Classification of products based on industrial consumption

The last category of products mentioned as the industrial goods classification

involves the materials ( raw materials such as wood, cooper, aluminum) and
 parts (tiers, computer chips) , capital items such as installations and
equipment (cranes, bulldozers), accessory equipment ( hand tools,
computers, calculators), process materials (food preservatives),
operating supplies ( papers, pencils, oil). January 6, 2021 By Hitesh Bhasin Tagged
With: What is Product classification

The Classification of Products in Marketing

 Small Business

 Advertising & Marketing

 Marketing Products

ByStan MackUpdated February 12, 2019


 RELATED
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 What Are the Four Types of Utility Marketing?
 Descriptive Vs. Behavioral Marketing
 Business Plan Marketing Analysis
 What are Specialty Products in Marketing?

Classifying products into meaningful categories helps marketers decide which

strategies and methods will help promote a business‟s product or service. Many types
of classification exist. For example, marketers might categorize products by how often
they are used. One-time-use products, such as vacation packages, require completely
different marketing strategies than products customers use repeatedly, such as
bicycles.

Disposable consumer products are marketed differently than white goods like
refrigerators. Product classification helps a business design and execute an effective
marketing plan.

Convenience Products Classification

Convenience products involve items that don‟t require much customer effort or
forethought. These are your everyday items like toilet paper and dish soap. Food
staples often fall into this category, because customers can buy them nearly
everywhere and at roughly the same prices.

Convenience products are heavily marketed because so much consumer spending

goes towards their purchase. At the same time, marketing convenience products can
be a challenge if there are many similar products competing for the customer‟s
attention and driving down the price.

Shopping Products Classification

Customers are willing to invest time and effort to buy shopping products. This category
is closely related to convenience products, but is differentiated by the amount of time
and attentions consumers tend to give their purchases.

For example, a customer might compare ingredients, prices and safety information for
a variety of deodorants before making a final purchase. Often, the most effective
marketing approach is to use advertising and heavy promotions to develop brand
preference and loyalty among customers, according to the book “Principles of
Marketing,” by Ashok Jain.

Specialty Products Classification

Specialty products require an even great amount of thought or effort on the part of the
shopper and are typically purchased infrequently. For example, a well-known luxury
car model might be available at just a few local dealerships, meaning an interested
customer has restricted options. Specialty products tend to be expensive, durable
goods, such as jewelry or major appliances, and often involving authorized
dealerships and personal selling.

Unsought Products Classification

Unsought products are items customers aren‟t aware of or don‟t often think about.
New products that have no brand recognition fall under this classification, as do
certain types of insurance. Unsought products have to be deliberately introduced to
the consumer, who might otherwise remain unaware of them.

The marketing problems presented by an unsought product are as follows. First, you
must make consumers aware of your existence. Secondly, convince customers they
need the product or service. Lastly, you must convince customers to buy the product
or service from you and not your competitor.

Considerations in Categorizing Products

The key is to categorize your products in ways that make sense for your business.
This allows you to, for example, design separate marketing campaigns for each
category of product you offer. The alternative – using a one-size-fits-all marketing plan
– is often less effective than implementing several highly targeted plans.

No simple recipe exists for categorizing products and services, but there are some
common product classifications in marketing: convenience, shopping, specialty and
unsought products, according to “The Advanced Dictionary of Marketing,” by Scott
Dacko.
 1.4 Product Mix

What is Product Mix?

Product mix, also known as product assortment or product portfolio, refers to
the complete set of products and/or services offered by a firm. A product mix
consists of product lines, which are associated items that consumers tend to
use together or think of as similar products or services.

Dimensions of a Product Mix

#1 Width
Width, also known as breadth, refers to the number of product lines offered
by a company. For example, Kellogg’s product lines consist of: (1) Ready-to-
eat cereal, (2) Pastries and breakfast snacks, (3) Crackers and cookies, and (4)
Frozen/Organic/Natural goods.

#2 Length

Length refers to the total number of products in a firm’s product mix. For
example, consider a car company with two car product lines (3-series and 5-
series). Within each product line series are three types of cars. In this example,
the product length of the company would be six.

#3 Depth

Depth refers to the number of variations within a product line. For example,
continuing with the car company example above, a 3-series product line may
offer several variations such as coupe, sedan, truck, and convertible. In such a
case, the depth of the 3-series product line would be four.

#4 Consistency

Consistency refers to how closely related product lines are to each other. It is
in reference to their use, production, and distribution channels. The
consistency of a product mix is advantageous for firms attempting to position
themselves as a niche producer or distributor. In addition, consistency aids
with ensuring a firm’s brand image is synonymous with the product or service
itself.

Illustration of a Product Mix

In the illustration above, the product mix shows a:

 Width of 3
 Length of 5
 Product Line 1 Depth of 2
 Product Line 2 Depth of 1
 Product Line 3 Depth of 2

The mix is considered consistent if the products in all the product lines are
similar.

Example of a Product Mix

Let us take a look at a simple product mix example of Coca-Cola. For

simplicity, assume that Coca-Cola oversees two product lines – soft drinks and
juice (Minute Maid). Products classified as soft drinks are Coca-Cola, Fanta,
Sprite, Diet Coke, Coke Zero, and products classified as Minute Maid juice are
Guava, Orange, Mango, and Mixed Fruit.

The product (mix) consistency of Coca-Cola would be high, as all products

within the product line fall under beverage. In addition, production and
distribution channels remain similar for each product. The product mix of
Coca-Cola in the simplified example would be illustrated as follows:
Importance of a Product Mix

The product mix of a firm is crucial to understand as it exerts a profound

impact on a firm’s brand image. Maintaining high product width and depth
diversifies a firm’s product risk and reduces dependence on one product or
product line. With that being said, unnecessary or non-value-adding product
width diversification can hurt a brand’s image. For example, if Apple were to
expand its product line to include refrigerators, it would likely have a negative
impact on its brand image with consumers.

In regard to a firm expanding its product mix:

 Expanding the width can provide a company with the ability to satisfy
the needs or demands of different consumers and diversify risk.
 Expanding the depth can provide the ability to readdress and better
fulfill current consumers.

Summary

Successfully expanding a product mix can help a business adjust to changing

consumer demand/preferences while reducing product risk and reliance on a
single product or product line. This, in turn, generates substantial profits for
the firm. On the other hand, poor product mix expansion can result in a
detrimental impact on a company’s brand image and profitability.

January 17, 2021 Marketing Essentialsby Aashish Pahwa

What Is Product Mix?

Product mix, also known as product assortment, refers to the total
number of product lines that a company offers to its customers. The
product lines may range from one to many and the company may have
many products under the same product line as well. All of these product
lines when grouped together form the product mix of the company.
The product mix is a subset of the marketing mix and is an important
part of the business model of a company. The product mix has the
following dimensions

Width
The width of the mix refers to the number of product lines the company
has to offer.

For example – if a company produces only soft drinks and juices, this
means its mix is two products wide. Coca-Cola deals in juices, soft
drinks, and mineral water, and hence the product mix of Coca-Cola is
three products wide.

Length
The length of the product mix refers to the total number of products in
the mix. That is if a company has 5 product lines and 10 products each
under those product lines, the length of the mix will be 50 [5 x 10].

Depth
The depth of the product mix refers to the total number of products within
a product line. There can be variations in the products of the same
product line. For example – Colgate has different variants under the
same product line like Colgate advanced, Colgate active salt, etc.

Also Read: What is Marketing Myopia? Definition and Examples

Consistency
Product mix consistency refers to how closely products are linked to
each other. Less the variation among products more is the consistency.
For example, a company dealing in just dairy products has more
consistency than a company dealing in all types of electronics.

Product Mix Vs Product Line

A product mix is a group of everything a company sells.

However, the product line is a subset of the product mix. A product line
refers to a unique product category or product brand a company offers.

For example, Patanjali deals in different categories of products which

include shampoo, flour, toothpaste, etc. Shampoo, here, forms a
different product line, flour forms a different product line as well, and so
does toothpaste. However, when they all are grouped together, they
form the product mix of Patanjali.

Product Mix Example

Coca-Cola has product brands like Minute Maid, Sprite, Fanta, Thumbs
up, etc. under its name. These constitute the width of the product mix.
There are a total of 3500 products handled by the Coca-Cola brand.
These constitute the length. Minute Maid juice has different variants like
apple juice, mixed fruit, etc. They constitute the depth of the product
line „Minute Maid‟. Coca-Cola deals majorly with drinking beverage
products and hence has more product mix consistency.

Product Mix depends on many factors like

 Company Age
 Financial Standing
 Area of Operation
 Brand identity, etc.
Many new companies start with limited width, length, depth, and high
consistency of the product mix, while companies with good financial
standing have wide, long, deep, and less consistency of the product mix.
The area of operation and brand identity also affects its product mix.
What is Product Mix in Four Ps of Marketing
Mix
All the products and services that a company decides to offer its customers is known
as product mix. The product is a curial part when development marketing mix
strategy that includes price, promotion and place.
Many companies offer several product lines and items which is called a company
product mix also product assortment. In other words, a combination of a company‘s
products is known as product mix.

For example, a cosmetic brand has three main products lines i.e. cosmetics, artificial
jewelry and fashion. Each product line is divided in sublines. Cosmetics may have
lipstick, nail polish, base pounder and so on. Each of its line and sub-line may have its
own products.
Four Dimensions of Product Mix
There are four important product mix dimensions i.e. width, length, depth and
consistency.

 Width. It means the number of product lines the company offers to its customers.
 Length. Length of the product mix means total number of products a company is
offering. For understanding, if a company has 3 product lines and each product
line comprises 5 products it means have 3 x 5 = 15 products.
 Depth. Product mix depth means a total number of products within a specific
product line. The depth is all the products within the product line.
 Consistency. Product mix consistency means the linkage within each other. Less
variation lead to more consistency in the mix.
Product Mix Vs Product Line
In overall product mix means set of all products a company is offering to sell. On the
other hand, product line refers to those products closely related. Different companies
have product mix because it diversifies the company offerings. Instead of one product
company focuses on a range of products to stratify its target market. By doing this,
one type of products unable to capture market share the other types can perform well.

Product Development
There are two ways to get a new product. One way is through acquisition – buying the
entire company or patents rights and then produce that company product. The other
way is to get a new product through new product development using your company‘s
R&D. Using these two ways, you can approach newly targeted markets and niche in
the market.
New Product Development
Philip Kolter in principles of marketing describes 8 Steps in New Product
Development.

1. Idea Generation
2. Idea Screening
3. Concept Development and Testing
4. Marketing Strategy
5. Business Analysis
6. Product Development
7. Test Marketing
8. Commercialization
Umar Farooq September 12, 2018

1.5 Product-Line Length

2 Product line length

3 Firms generally increase their product line length
4 One of the key decisions that a firm needs to make is the length of its product line. That
means, how many products varieties should the firm offer. Generally, firms look to increase
the product line length – the number of similar products offered.
5 As we know, and effective way of usually growing a firm‘s business is to expand its product
range and develop products for existing channels and existing target markets.
6 Don’t overfill the product line
7 But firms need to be careful not to overfill their product line. One of the dangers of having
too many products in the product line is that some products will not sell well and will not
recover the manufacturing costs – primarily due to product cannibalization.
8 As an example let‘s consider a bank that is offering credit cards. A large bank may have 15
to 20 different credit cards available in the product line. These would offer different fees,
rates, flexibility and rewards programs and would probably be tailored to different patterns of
financial behavior.
9 But there would probably be little point in expanding the product line to 100 different credit
card offerings. Many of these would not be sold and it would create confusion at the point-
of-sale and make it awkward in terms of clearly communicating to customers the range of
suitable offers.
10 Product line replacement

As a result of the concerns above with having too many products in the
product offering, firms will make the decision to replace products as
new ones are developed. For example, a manufacturer of furniture may
introduce a new set of tables and chairs to their product line, but at the
same time remove a number set of tables and chairs from a their
offering. This is

What is Product Line [Length, Width and

Extension] What do you understand by the
term product line? The length, depth, width
of a product line or the product portfolio of a
brand is a strategic and significant dimension
of brand building. Marketeers often find it
hard to realise the intricacies behind brands
adopting new products and gradually
phasing out other products. In this article,
you can hope to gain a clearer picture about
these concepts, and I plan to explain it with
the help of real-life examples for better
results.
Tamal Sarkar April 21, 2021

known as product line replacement.

1.6 Branding

What is Branding in Marketing?

Branding is the process of creating a strong, positive perception of a company, its products or
services in the customer‘s mind by combining such elements as logo, design, mission statement,
and a consistent theme throughout all marketing communications. Effective branding helps
companies differentiate themselves from their competitors and build a loyal customer base.

In a Zendesk survey, 87% of consumers said consistent branding across all online and traditional
platforms was important.

This means that customers expect that your tone of voice is the same over email, your website,
customer service, and every other touchpoint in your business. If you rebrand, you need to
change your logo, and styling everywhere both online and offline. Make sure you create a
consistent brand so that your customers revel in your omni-channel presence.

Branding in store can be very different to online branding as in store you have to worry about
positioning of products and props that can effect how a customer experiences your brand.
Branding in store is more experiential as people can walk around and pick things up, whereas
customers online are experiencing a two-dimensional scene. Of course certain elements of
branding are consistent with both online and in store. These include consistent imagery and
logos.

Why is Branding Important?

A unique brand can have a huge impact on your bottom line by giving you a competitive
advantage over your rivals and helping you acquire and retain customers at a much lower cost. In
eCommerce, where new companies (and therefore, new competitors) are springing up every day,
an established brand can be an invaluable asset in bringing customers and generating profit.

Regardless of whether you‘re investing time and effort into crafting a compelling brand or
paying no attention to it whatsoever, your business still has a brand. However, it may be
completely different to how you intended to be seen.

By carefully constructing your brand through stories, relationships, marketing messages and
visual assets, you have the opportunity of shaping your customers‘ expectations and creating a
unique bond that goes beyond the buying-selling relationship.

Good branding is strategic, while marketing is tactical. When you establish the higher objectives
and clearly define your brand promise, you can start crafting a marketing plan that‘s geared
towards achieving those goals.

The Importance of Branding in eCommerce

Branding is a complex process that requires careful planning and calculated approach. Ideally,
you should have your branding strategy worked out before you launch your online store to avoid
working backwards to try to aligned your store with customer expectations. A strong brand is
easy to relate to and draws on values that resonate well with the target audience. For an
eCommerce shop, a strong brand can also be a safety net protecting a business from having to
compete on price.

So how do you go about building a brand for an online shop? Here are the key steps in
eCommerce branding:

 Understand your customers. To communicate effectively, you have to identify the

elements that influence your target customers and focus on leveraging them. What do
they like? What motivates and attracts them? What do they like about your brand?

 Define your brand persona. A brand persona is the personality of your business in
which you will deliver customer experiences. It will be strongly influenced by the
insights you manage to gather about your target customers. What tone of voice will suit
this audience? What type of language will have the greatest effect? What images will
attract their attention.

 Crystalize your brand promise. What is the ultimate promise you‘re making to your
customers? How will your products/services make their life better? How are you going to
deliver this promise. 66% of consumers think transparency is one of a brand‘s most
attractive qualities.

 Perfect your visual assets. Online shoppers don‘t have the luxury of touching and
feeling the products they buy, so the visual experience is extremely important. A brand‘s
visual assets are all the front facing elements, such as the website design, fonts and
typography, color palette, logo and ad designs as well as the packaging and unboxing
experience you create. It‘s a powerful branding tool that reaches its peak when all the
different moving parts are consistent and work harmoniously. Research shows that
having a memorable signature color will increase the chance of customers recognizing
your brand by 80%.

 Refine customer experience. Although you have little control over how your customers
will ultimately feel about your brand, you should do your best to make sure every
interaction and touch point you have with your customers is aligned with your brand
promise and follows your brand guidelines.
69% of consumers say that the most important thing brands can do to improve their
experience is ―knowing them‖. This will encompass everything from your return policies
to shipping arrangements to email marketing communications and more.

What is the definition of branding in marketing?

Branding is the process where a business makes itself known to the public and differentiates
itself from competitors. Branding typically includes a phrase, design or idea that makes it easily
identifiable to the public.
How to build a brand
In order to build a brand, businesses should complete these four steps:

1. Define your company’s identity

Knowing what you want your company to represent and what you want its purpose to be is the
first step in building a brand. By envisioning what you want your company to be, you can start
planning to make it a reality. For example, the owner of a makeup line might decide that they
want their identity to be based around three principles: environmental responsibility, value and
versatility. With your company‘s identity in mind, you can plan marketing strategies for your
products. In the case of the makeup line owner, these strategies might include an advertisement
that promotes organic ingredients or tutorial videos that show three different ways to wear blush.

Related: Business Storytelling: Three Key Skills for Leaders

2. Highlight your target audience

Honing in on your audience is important when cultivating your brand identity. Consider your
audience‘s age, gender, socio-economic status, culture and even geographic location. These
factors will help influence the way you present your company to the public. For example, if you
own a car dealership in Albany, New York, you may identify your audience as men and women
between the ages of 25-65 who are typically middle and upper class and live in and around
Albany, New York.

3. Organize your company around desired identity

Structuring your company in accordance with your brand can help ensure that the promises you
promote are being upheld. For example, a national bank says that they provide quality customer
service 24 hours a day. To uphold this claim, they need to make sure that they have experienced,
well-trained customer service representatives available day and night.

4. Don’t be afraid to revise

Once you commit to a certain company image, don‘t be afraid to revise it. Your brand can evolve
as your company grows and as you establish yourself within your industry. For example, a travel
agency has branded itself as an aid for domestic and international vacations. However, after
seeing a trend in study, work and volunteer abroad programs, they expand their services to
helping people plan and execute educational experiences abroad.

Why is branding important?

Branding is important for the following reasons:

 Establishes your company within an industry: The right brand identity can potentially
help you get established within your industry. This can also help you compete with those
who offer similar services as your brand gets more recognition.
 Conveys your purpose to consumers: Your brand is also important because it helps
convey the value that your products or services can provide for consumers. For example,
if your cleaning products company has the slogan: "Less time for cleanup, more time for
fun," then you imply to consumers that your product line helps clean up messes fast so
customers can do more of what they enjoy.
 Increases company awareness: Having a strong and recognizable brand could
potentially attract new customers.
 Reminds existing customers of your products and services: Your brand can also help
remind existing customers about what you have to offer. For example, if you own a pest
control business, running advertisements or revamping your logo could remind previous
customers that you provide organic pest control for their lawn.

What makes a good brand?

Here are two key components that help contribute to a good brand:

 Logo: Your logo is an important part of your brand because it‘s a visual representation of
your company. A logo typically includes a specific color scheme, shape or image. In
some cases, a logo can be your company name with a font and color that reflects your
company culture.
 Slogan: A slogan is a brief, clear message that showcases your company‘s values. Your
slogan should help establish an emotional connection to your company. You can have
more than one slogan if you offer a variety of different services.

Brand Strategy

Your brand is more than your logo, name or slogan — it‘s the entire experience your prospects
and customers have with your company, product or service.

Your brand strategy defines what you stand for, a promise you make, and the personality you
convey. And while it includes your logo, color palette and slogan, those are only creative
elements that convey your brand. Instead, your brand lives in every day-to-day interaction you
have with your market:

 The images you convey

 The messages you deliver on your website, proposals and campaigns
 The way your employees interact with customers
 A customer’s opinion of you versus your competitio

1.7 Packaging

What is Packaging in Marketing: Meaning, Classification, Functions, Essentials,

Attributes, Packaging Cost and Consumer Problem

Contents:

1. Meaning of Packaging
2. Classification of Packaging
3. Functions of Packaging
4. Essentials of Packaging
5. Attributes of Packaging
6. Packaging Cost
7. Packaging Strategies
8. Requisites of a Good Package
9. Factors Affecting Packaging Decisions
10. Significance of Societal View of Packaging
11. Consumer Problems with Packaging

What is Packaging in Marketing – Meaning

Once the decision is taken on the brand, we have to consider the design and the make-up of the
package and the labelling of the package. Branding, packaging and labelling are distinctly
specialised activities, demanding the services of advertising experts. In reality it is not the
product which is displayed and sold but it is the brand together with the package and the label
which are sold or which enable to sell the product. In a sense your brand, package and label
represent your product.

Modern methods of packaging are valuable to the manufacturer to establish his branded products
as distinct from those of his rivals. The more effectively a product is packaged the more effective
is its identity and individuality. Package is advertising on the shelf, a means of attractive display
in the retailers‘ shops. Packaging alone makes possible branding and advertising of products e.g.,
tea, soap, cosmetics etc.
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Packaging may be defined as the general group of activities in the planning of a product. These
activities concentrate on formulating a design of the package and producing an appropriate and
attractive container or wrapper for a product. The container itself can act as a forceful though
silent and colourful salesman at the point of purchase or an effective medium of advertisement
encouraging impulse buying. Many a time, package design itself can act as a registered brand.

Almost every article has to be packed to make a trip to the ultimate consumer. But packing is
merely a physical action and provides a handling convenience, e.g., wheat, cotton, etc. Packing is
necessary to prevent flowing out of such liquids as milk, drinks, etc. It is essential to maintain
freshness and quality, e.g., ghee, sauce, etc. It can prevent the danger of adulteration, e.g., butter,
cheese, spices, edible oil, etc.

However, packaging is much more than mere packing. Packaging is a marketing necessity. The
public does not want just the product. It wants explanation, assurance, encouragement,
confidence and praise, i.e., pat-on-the-back, all integrated or combined with a pleasant and eye-
catching get-up or appearance on the top to gain action, i.e., close the sale- Thus, a good package
ensures ultimate success of the product as a commercial venture.

Package is an invaluable aid to decision-making by the customers. Under keen competition the
consumer needs an effective means to recognise a difference and establish preference that will
ensure repeated repurchases. Packaging does this job in a competitive market. That is why
millions of rupees are spent on packaging and branding. Such huge expenditure is made for the
simple reason that packaging and branding alone can sell your products. In fact, the amount
spent on packaging is more than that poured into advertising. Packaging completes the sales
cycle triggered by advertising.

In the present age of consumer-oriented marketing approach (i.e. Buyers‘ Market), packaging
has gained unique importance. The utility reasons for packaging, viz., protection, identification
and convenience are themselves exploited in selling and some features of the package may serve
as a sales appeal, e.g., a reusable jar. Message on the label is a constant reminder to the user of
the product. Packaging decorates and beautifies the product so as to lead the consumer to
impulsive buying.

Thus, the package serves in most cases as a vehicle by which the brand of the product is carried
through to the consumers. In modern self-service stores, with mass display, well-designed
packages attract attention, and through silent sales talk increase the sales volume. Packaging
itself is a device of sales promotion.

A customer will pay more just to get the special package—even though the increase in price
exceeds the additional cost of the package, e.g., Supreme Lux Soap sold in an attractive re-usable
box for lunch or tiffin. In short, packaging is an advance stage of packing and it demands the
services of experts. It has assumed a specialised status in the process of marketing.
What is Packaging in Marketing – Classification: Family Packaging, Re-Use Packaging and
Multiple Packaging

Kinds or methods of packaging will depend largely upon the nature of the contents in terms of
their value, physical composition, and durability. The length of the distribution channel, the
amount of handling which the container will receive, and variations in climatic conditions which
may be encountered between the point of manufacture and sales are also to be taken into
account.

For example, liquid products require containers made of glass or plastics. Generally, electrical
appliances require tin sheet containers. Similarly, for fragile (i.e., easily breakable or
damageable) articles, wooden containers may be used.

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Packaging may be classified into three categories as follows:

1. Family Packaging:

When the product of a particular manufacturer is packaged in an identical manner, it is known as

family packaging. The size, shape, colour, etc. of the packages will be similar for all his
products. ―Family brands‖ are made meaningful by using family packaging also. In such cases,
packaging methods, materials used for packaging, the appearance, etc. will be one and the same
for all the products of a firm.

2. Re-Use Packaging:

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Packages that could be used for some other purpose after the packed goods have been taken out
or consumed, fall under the re-use packaging. Vegetable oils, and wellness drinks are being sold
in re-usable plastic containers of different shapes. Reuse packaging can increase the sales value
of the product considerably.

3. Multiple Packaging:

It is the practice of placing several units in one container. For example, liquor industry uses
multiple packaging.

What is Packaging in Marketing – 8 Important Functions: Containment, Protection,

Identification, Convenience, Attractiveness, Promotional Appeal and a Few Others

Packaging is aimed at attaining two basic functions, the first to protect the product and the
second to promote the product. According to Philip Kotler ―protection, convenience and
economy were the three traditional purposes attached to package.‖ But in this modern era, we
need to add all the modern functions of packaging.
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Following are the functions of packaging:

a. Containment:

Packaging performs the basic functions of providing a container for a material. For example-
consumer durables like televisions, refrigerators, washing machines, etc. are packed in cardboard
cartons, vegetables, fruits and milk are packed in plastic cover. Beer and Milkmaid is packed in
cans which are easy to open.

Thus, the utilitarian function of packaging has the following advantages:

1. It protects the products from deterioration, spilling, spoilage and evaporation during its transit
from manufacturer to consumer.

2. It enhances product use and convenience by keeping the contents clean and undisturbed.

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3. It helps easy brand identification.

4. It makes product handling easier and safer to exhibit in super markets.

b. Protection:

Goods are to be transported from the place of manufacture to the ultimate consumer. This
involves several types of risk. Packaging helps protect the goods from damage during transport
and warehousing. It also removes the hindrance of risk by keeping goods safe and free from
spoilage. Thus packaging helps make the transporting of goods easier and safer.

c. Identification:

Packaging helps to distinguish from one brand to another. It is mandatory that packages contain
the name of the product, the maker, the ingredients, date of manufacture, expiry date, etc.

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This function of packaging has the following advantages:

1. Packaging makes product identification and differentiation both easy and effective. In a
competitive market, unique presentation makes products look different from competing brands.

2. Package features communicate the product message and motivate consumers to buy the
product.

d. Convenience:
Wholesalers, retailers, middlemen, warehouse keepers and consumers demand convenience in
packaging i.e. they should be light-weight and conveniently packed so as to be carried by hand.
For example- Amul Mithai Mate is packed in an aluminum container in an easy to open form.
Similarly, ten tablets of Crocin are packed in a strip and soft drinks are packed in a glass bottle
with lift off caps that required a bottle opener. These have also evolved to non – returnable,
unbreakable aluminum cans.

e. Attractiveness:

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Packaging enhances the appearance of the product. The design, colour, label, printed matter,
picture etc. all add value to the packaging. For example- chocolates are always packed in
attractive packets and displayed to attract the target group.

f. Promotional Appeal:

Products must sell themselves. This is possible, if they are placed in more attractive and eye –
appealing packages. This has resulted in a number of innovations which appeal to the consumers.
For example- Nescafe, Boost, Horlicks, etc. are now available in attractive glass jars.

g. Re-Use:

Nowadays several companies aim at providing ―re – useable container‖, once the product have
been completely used. For example- health drinks like Boost, Horlicks, Nescafe, Pickles, Jams,
etc. are sold in glass bottles that can be used for storing provisions in the kitchen. If not, they can
be sold as scrap.

h. Economy:

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Packaging should not create a financial burden for the company. Consumers prefer economical
packaging options, because the packaging cost is included in the cost price. Hence, the
packaging should be made attractive, appealing and economical.

What is Packaging in Marketing – Important Essentials: Protection, Dependable, Ease in

Heading, Easy Identification, Convenience, Reasonable Cost and a Few Others

From the seller’s point of view:

1. Packaging is a sales tool,

2. It identifies the maker as well as the product and carries the brand name,

3. The package label informs the buyer about inner contents and how to use them.
4. It is the biggest advertising medium.

5. It moves the product at the point of purchase.

6. It encourages impulse buying,

7. It establishes a product image, and

8. It identifies the product with advertising.

The following are the important essentials of packaging:

1. Protection:

This is the fundamental function of packaging. The product demands protection until it is used or
consumed. Package prevents damage or loss during transport and warehousing. Foreign trade
without sound packaging is impossible. Air-tight package protects the quality of inner contents.
Package can prevent the disappearance of volatile or gaseous articles, e.g, spirit, acid, gas, etc.

2. Dependable:

Truthfulness and honest representation is the most important function and quality of packaging.
Consumers rely on the package itself for the quality of the product inside the packing

3. Ease in Handling:

Modern packaging facilitates easy handling and movement during the process of distribution.

4. Easy Identification:

Identification is an important function of packaging, following closely protection and ease in

handling. Your product can be identified by a consumer from the rival‘s because packaging
creates individuality and helps quick identification. Packaging enables branding and advertising.
The product gains special and separate existence due to branding and packaging.

5. Convenience:

Convenience in packaging is not simply a matter of customer service. Middlemen, wholesalers,

retailers and warehouse-keepers, i.e., all agencies in the machinery of distribution, demand
convenience. The size and shape of the package will determine the function of convenience, viz,
adaptability.

6. Reasonable Cost:

Costly package may be needed for fragile and very valuable products. It may be good for goods
bought as gift. But in general cost of package must be reasonable. Lighter but sturdy packages
can reduce cost of transport also.
7. Attractiveness (Selling Tool):

Attractiveness is a major consideration in modern packaging. The design and the label on the
package, printed matter, picture, layout or get-up of the package, colour combination, all these
are special aspects of the package and act as selling points of the package. Package must have an
artistic appeal. Picture on the package adds to the attention value by drawing and holding the
onlooker‘s eyes on it.

Prominent, clear and attractive advertising message given on the package label plays the role of a
silent salesman—performing the functions of salesman— attracting attention, arousing interest,
creating desire and gaining action (A.I.D.A. Formula). Promotional potency of packaging is
tremendous. Packaging should be looked upon as a powerful tool of promotion just like other
devices of promotion, e.g., salesmanship and advertising. Attractiveness, convenience of use and
reusability are its significant demand creating factors. Reusable packages or containers
encourage repeat sales through -refill packages.

What is Packaging in Marketing – 2 Major Attributes: As a Product and As a Medium of

Communication

This can be divided into two heads, i.e. as a product and as a medium of communication.

As a Product:

1. It should protect the content from spoilage or breakage.

2. It should be easy to open, close, and dispense from.

3. It should be safe to use.

4. It should keep the product from deteriorating.

5. It should be of proper size and shape.

6. It should be reusable or be sold as a scrap.

7. It should be economical cost wise.

8. It should be available in sizes, appropriate to the market segment reserved.

As a Medium of Communication:

1. Packaging should be attractive.

2. It should project a favourable image of the product.

3. It should sell itself, i.e. it should play the role of a salesman.

4. It should be readily identifiable in a shopping situation.

5. It should act as a unique selling proposition.

6. It should have labels with the information, like date of manufacture, contents, net weight,
expiry date, date of packaging, etc.

7. It should communicate on the usage of the product, precautions, benefits of the product, etc.

8. Lastly, it should not be deceptive or misleading in size, content, etc.

What is Packaging in Marketing – Types of Packaging Cost: Material Cost, Storage and
Handling Cost, Packaging Operation Costs, Storage of Filled Packages and a Few Others

Various types of packaging cost are as follows:

i. Material cost:

It means the cost of the pack and quality control cost.

ii. Storage and Handling Cost:

This include the handling cost of bulky packages, heavy materials of construction, drums etc.

iii. Packaging Operation Costs:

This includes the cost involved in operations like, cleaning the package product filling – closing,
labeling – unitizing, stenciling, handling cylindrical slums etc.

iv. Storage of Filled Packages:

This includes the cost incurred to shift the goods from one form of packaging to another.

v. Transportation Cost of Filled Packages:

This involves the transportation cost by sea, air etc. it depends on the size and volume of
packages.

vi. Loss and Damage Cost:

It is related to the loss and damage during operation, transportation delivery etc.

vii. Insurance Cost:

It varies depending on the vulnerability of package, to cover the risk in transportation.

viii. Obsolescence Cost:

This cost involves when changes in the packaging materials, packages and labels happen.

ix. Package Developmental Cost:

This include the evaluation cost, pilot test cost, field testing cost, consumer research cost,
feedback cost, final trial cost etc.

What is Packaging in Marketing – Packaging Strategies and Policies: Transit Packaging,

Consumer Packaging, Protection Packaging, Multiple Packaging and a Few Others

Every producer adopts a certain policy or strategy. There may be different types of packaging
policies and strategies and a producer has to select any one of them. Use of a particular policy
depends upon the needs, requirements and circumstances of the producer.

Some of the important packaging policies and strategies are:

1. Transit Packaging:

Every producer has to deliver the goods to its real consumers. Delivery of a product from
producer to the consumer is the process involving many activities. One of these activities is the
transportation of the product from the place of producer to the place of the consumers. Product
must be packed in a manner that it may reach to the consumer in original conditions. Such
packaging of the product is called transit packaging.

Thus, transit packaging is that form of packaging which is meant to keep a product safe in the
process of physical distribution. It is thus also known as ―distribution packaging‖. The materials
generally used for transit packaging are the drums, wooden containers, tins, jute sacks,
hardboard, etc. Main stress in this type of packaging is upon the safety of the product during
transit.

2. Consumer Packaging:

The packaging in which the product is finally delivered to the consumers is known as consumer
packaging. Material used for consumer packaging may be a bottle of glass or plastic, jar, tin,
plastic box, hardboard box, polythene bags, etc. Main stress in this type of packaging is upon the
attraction of packaging. Packaging must attract the attention of consumers and it must be
convenient for consumer to handle.

3. Product Line Packaging or Family Packaging:

When a producer uses identical packaging for all the product items of a product line, it is called
product line packaging or family packaging. This type of packaging is widely used by the
producer of consumer goods and generally by the producers producing a large number of product
items in particular product line. The best example of family packaging is packaging of shoes,
slippers, etc. mainly by the producer of repute such as Bata, Liberty, Khadims, etc.

4. Protection Packaging:

The basic function of packaging is to protect the product form breakage, pilferage, theft,
evaporation etc. Packing of the food items, medicines are done in such a way so as to protect it
from moisture, sunlight and high temperature.

5. Multiple Packaging:

In this packaging strategy closely related products used by a single consumer are packed
together. This strategy is economical and it also saves consumer‘s time in buying different
products. By packing different products in a single package, manufacturer saves packing material
of different items and thus it is economical. Also consumer saves much time as he gets all the
required items in one package. For example, pencil box contains pencil, pen, rubber, eraser, ruler
etc.

6. Re-Use Packaging:

Here the goods are packed in such a package which can be used again after consuming the
product. This strategy promotes economy in the use of the product and also promotes repeat
purchase by consumer. It helps in reducing pollution caused due to used packages. Re-use
packaging, thus preserves the physical environment by increasing the life of packages.

7. Kaleidoscopic Packaging:

Kaleidoscopic packaging is concerned with printing suitable and attractive cut-out figures, toy
and cartoons on the package in order to attract the consumer and stimulate the demand. Pictures
of fresh and juicy vegetables, fruits on ready to eat items give an impression of a healthy
product. A healthy smiling child picture shown on various baby products signifies that the
products will keep our child healthy.

What is Packaging in Marketing – Requisites of a Good Package: Suitability, Protective,

Requirements of Consumers, Packaging Materials, Cost and a Few Others

Packaging is an important device of sales promotion. It acts as a colourful and silent salesman. It
gives full information about the uses and features of the product to the users. It helps in giving
individuality to the product. It may be noted that branding is not possible without packaging.

Both are interlinked. Brand name and mark are to be printed on the package to make the product
easily identifiable by the customers. In other words, the package must tell the product story at a
glance.

The basic purpose of packaging is to provide protection to the goods and to facilitate their easy
handling and storage. But in the modern age of competitive marketing, packaging has assumed
certain other objectives also. Packaging is used as a medium of publicity and as a silent
salesman. It helps in preventing adulteration of goods and ensures their safety.

In order to achieve its objectives efficiently, a good package should possess the following
features:

1. Suitability:

A package should suit the requirements of the goods to be packed in. That means the package
designed should consider the size and quality of the product and the quantity to be packed in the
container.

2. Protective:

The package must be so designed that it protects the contents contained in it. Articles subject to
deterioration in quality such as medicines, powders, acids, and edible oils require a special type
of packaging. Wherever required, the package must protect its contents from sun, moisture,
germs, etc.

3. Requirements of Consumers:

The same product might meet the requirements of different segments of consumers who have
different levels of income. The package may be more attractive and costly for selling the product
to affluent users. It should be quite economical for selling the product to the users of the lower
income group. For instance, polythene bags have become quite popular with the manufacturers
of Ghee for selling it in small quantities, say 1 Kilogram, to the customers from low and middle
income groups.

4. Packaging Materials:

This factor is very important as it influences the cost of packaging. Materials to be used in
packaging depend partly on the nature of goods and partly on its appealing power to customers.
For instance sugar, food grains, cement, etc. are traditionally packed in gunny or jute bags and
now in HDPE bags. Biscuits are packed in air tight containers or packets; so that they remain
fresh, crisp and original in taste and flavor. Oils, Ghee, Jams, Pickles, etc. are stored in glass jars,
metallic jars or tins.

Materials used in packaging industry include glass, aluminium paper, tin, paper and card boards,
cellophane, plastic, polythene and gunny bags. Their relative merits and demerits in terms of
cost, utility, customer appeal have to be analysed before choosing any of the above materials for
packaging.

5. Cost:

The cost of package is to be considered in the context of nature and value of article and the
nature of buyers. As a general rule, articles of common use such as sugar, soap, tea leaves,
cereals, etc. should be packed in low cost containers. Articles of high value and catering to the
requirements of high income group such as cosmetics, jewellery, etc. should be packed in
attractive and durable packages.

6. Attraction Value:

As far as possible, the package must possess attraction value. Design and label of the package,
and the colour combination of the package are all important. Attractive packages earn reputation
and increase sales and profits of the manufacturer. The use of a picture on the package is made
quite often to attract the attention of people.

The picture and other information printed on the package should be suggestive of the contents
and its characteristics inside. It should be ensured that there is maximum information in
minimum words. Attractive packaging is not always costly. Even the low cost packages can be
made very attractive. It depends upon the imagination of the designer.

7. Size and Shape:

The size and shape of packaging depends upon the type and value of product to a large extent.
Size and shape of the package do add to its attraction value. They also facilitate proper display of
the product at retail stores.

8. Durability:

Durability of packages is also an important consideration. If a package is durable, it will be

reusable even after the product has been consumed. For example, plastic containers of ghee,
coffee jars and pickle jars are reusable. From publicity point of view also, such packages are
quite useful.

What is Packaging in Marketing – Factors Affecting Packaging Decisions: Size, Shape, Colour,
Material, Text, Brand Name and Cost

The following factors are to be considered while making packaging decisions.

a. Size – The size of the package should be convenient and handy for the customer. For example-
soft drinks are available in 100ml, 200ml, half a litre, one litre, one and a half litre, etc.

b. Shape – The nature of the content determines the shape of the package. Moreover, it should be
convenient and attractive to display in retail stores.

c. Colour – The colour of the package also plays a significant role in marketing decisions. The
colour should be attractive, eye – catching and at the same time relevant to the contents of the
package.

d. Material – The packaging material also needs careful consideration. The most commonly used
packaging materials are metal, cardboard, aluminum foils, sack cloth, etc. But now, due to the
growing importance of environmental protection, plastics are being used less frequently for
packaging. Instead, environment friendly packaging materials are being used.

e. Text – Usually, some form information is communicated to the consumers through the
package. Now, it is mandatory to give the statutory warning, date of manufacture, expiry date,
contents, date of packing etc.; for example ―This fairness cream is only for external use‖, or
―Alcohol consumption is injurious to health‖.

f. Brand Name – The brand name should be prominently displayed on the package. The brand
name differentiates a product from its competitive products. Hence, the package should contain
the distinguishing brand name or brand label.

g. Cost – Packaging cost is added to the cost of production. Hence, the packaging cost should be
economical and minimum, so that the consumers are not over charged. Moreover, the cost of
packaging also affects the cost of transportation, handling, storage, etc.

What is Packaging in Marketing – With Significance of Societal View of Packaging

The various types of plastics have not only helped conserve or utilise the depleted natural
resources but also revolutionised the concept of packaging. Plastics have proved to be much
better substitutes to wood, cotton, metal, card board, paper, glass and so on.

The new rigid PVC now manufactured by modern, computerised and automatic process both in
the normal and non-toxic grade with printability and metallizing property is going to
revolutionise the packaging systems for medical and food sectors and for consumer and
industrial usage by thermoforming and twist wrapping process.

In the Food Processing Industry the new plastic package offers strength, protection, presentation
and consumer appeal. The recycling process of plastics right from collection of the garbage to
segregation and conversion in prime form for reprocess and reuse has solved the problem of
pollution. In India rag pickers contribute enormously to the estimated 40 per cent of plastic
which is recycled.

The ‗re-use‘ culture is more prevalent in India, where plastic containers are reused several times
before they are discarded. If environmentalists believe that less plastics would mean less waste, a
German study indicates that without plastics the weight of packing materials would be 300 per
cent higher, the volume of waste 150 per cent higher and energy consumed by packaging at least
100 per cent higher. Plastic recycling has reduced substantially problem of waste disposal and
environmental degradation due to packaging.

Social View of Packaging:

Significance of societal view of packaging is summarised below:

1. Pollution control is a burning issue in packaging particularly in Western countries. Broken

bottles, crushed cartons, and bent cans litter the streets and choke municipal dumps. This has
created the solid waste problem in those countries. All packaging programmes must weigh
environmental and ecological issues.

2. Resource scarcity is another problem. The same precious natural resources that are being
wasted on non-returnable (disposable) containers, e.g., soft drink bottles and beer bottles, later
create litter and pollution problem. Such a consumption pattern cannot be tolerated now.

3. Among the resources which are being wasted, energy sources are the most critical at present.
Throwaway bottles use three times the energy of returnable bottles. The efficient, energy-saving,
returnable bottles must be introduced.

4. Nutrition labeling, open dating (how fresh is the product), unit pricing, and grade labeling are
the latest demands of consumers on all food products.

What is Packaging in Marketing – Consumer Problems with Packaging

1. Unless the package is transparent, the buyer cannot judge the contents by appearance. If
quality information on the package label is absent, the buyer has to purchase almost blindly.

2. If the consumer wants a specific quantity, he may not have that amount when goods are sold in
packages.

3. There is no feasible way to check weight and volume of the contents unless a buyer opens the
package to ascertain the weight. Prepackaged shortages amount to about 20 per cent.

4. Package sizes and designs inflate the contents. ‗One Rupee off‘ labels proclaim price
reduction which may not be real.

5. Deceptive packages have several room-mates in trade practices. They are hidden declaration
of contents, fine print, glorified illustrations, unexplainable fractions (3-7/8 Kilograms) etc.
Consumers think that they are getting more when in fact they may be getting less due to the
cunning package design.

6. Packages are same, contents are reduced and apparently same prices are charged. This method
is popular in a period of rising prices.

7. Packages may create health hazards for consumers. Certain plastic food packaging has been
shown to cause cancer (vinyl chloride inhaled by humans). Packages stored in godowns are
susceptible to infection (rodents and insects nesting in packages).

The Total Product Image:

Image means a mental picture drawn by a fancy. A product image is the sum total of- 1. Inner
value of the product, 2. Its ability to perform and give service and safety to user, 3. Packaging, 4.
Branding, 5. Labeling, 6. Product warranty, and 7. Product services. The product image also
indicates the goodwill of the product and its producer.
In the product planning and development, we have to consider branding, packaging, labeling,
warranty and services as these constitute the vital parts of marketing programme and these are
closely interconnected in building up a bright product image in the market.

Pricing decisions have strategic importance in any enterprise. Pricing governs the very feasibility
of any marketing programme. Because it is the only element in a marketing mix accounting for
demand and sales revenue. Other elements are cost factors. Price is the only variable factor
determining the revenues or income. A variety of economic and social objectives came into
prominence in many pricing decisions. We now come to the most absorbing question of pricing.

1.8 Labeling
2 Packaging is essential as it is used for the identification of the products in marketing. It
enhances the appearance of the label for promoting the product. This is the major importance
of labeling in marketing. In addition, labeling also helps to provide the information about a
product to the prospective customer. This function fulfills informative purpose of using a tag.
3 Importance of labeling in marketing
4 Marketers use labeling to their products to bring identification. This kind of labeling helps a
viewer to differentiate the product from the rest in the shelves of the market. There are
several used of the label for the products in the market.
5 Labeling is used for packaging the product. In marketing, a marketer can also use a sticker
inedible products to impart knowledge of the ingredients of the food items. This helps to
spread awareness among the customers about the item they are consuming and labeling also
helps to mention ingredients.
6 Types of labeling in marketing
7 There are various types of labeling in marketing. Let us check out:
8 Branded Product Labels
9 Products need to be branded to help with identification and play a key role in company
brand building programs. Branded Product Labels need to be securely bonded to the
product surface in a way that is best suited to that product.
10 There are two types of branded labels:
• Removable and
• None Removable labels
11 With permanent labels, the bonding has to be permanent and the label must be difficult to
remove and resistant to a number of factors.
12 Removable product labels, on the other hand, need to adhere to the product only until they
need to be removed.
13 Eco or Information Labels
14 Information Labels or Eco-Labels are used on consumer products such as foodstuff and fast
moving consumer goods. They are used to impart information to the consumer about the
product. Often these types are made out of eco-friendly substances so that they do not
interfere with the products they are associated with.
15 Other Product Label Types
16 There are a number of different label types that are in common usage around the world that
are regular mass produced by specialist printing services.
17 What is product labeling?
18 Product Labeling is a key feature in marketing. It helps to market the product allowing
customers to know about the item and give necessary messages including ingredients,
instructions, and uses.
19 Product labeling can be done in a variety of sizes, materials, and shapes. It plays a key role as
a point of sale display in the market shelves. They can also communicate information about
how to handle a product or how to dispose of it. You can use the labeling for security reasons
so that a product should not be misused. It is for these purposes the labeling having the logo
or the trademark of the company. All these are different types of uses of the label for a
product in the world of business.
20 What must you include in your label?
21 A label needs to comply with the Competition and Consumer Act 2010 (CCA). This Act is
required to give information to consumers, such as:
• The mandatory consumer product information standards under the CCA
• Industry specific regulations, such as the Food Standards Code
• Labels required by customs for some imported products under the Commerce (Trade
Descriptions) Act.
22 Importance of labeling and packaging
23 Another main purpose of the use of labeling and packaging is to exaggerate the product. A
marketer needs to grab the attention of a viewer to purchase the product. Labeling and
packaging should be ablSe to beautify a product to add to its visual appeal.
24 This can instantly grab a viewer‘s attention towards a product. You can arouse interest in the
mind of a customer towards a product through an attractively designed label. It is essential to
use a good quality material for the sticker.
25 Importance:
• The role of packaging and labeling has become quite significant as it helps to grab the
attention of the audience.
• Labelling and packaging can be used by marketers to encourage potential buyers to
purchase the product.
• Packaging is also used for convenience and information transmission. Packages and
labels communicate how to use, transport, recycle or dispose of the package or product.

2. Pricing (G3)
2.1 Definition and Importance of Pricing

2.2 Setting the Price

2.3. Factor to consider When Setting Price

2.4 Select an Appropriate Level

2.5 Legal and Regulatory Aspect of Pricing
3. Marketing Channels (G2)
3.1 Marketing Channel Function and Flows
3.2 Channel Structure
3.3 Variable Affecting Channel Structure
3.4 Channel Management Decisions

4. Promotion (G1)
4.1 Promotion Mix

4.2 Advertising

4.3 Sales Promotion

4.4. Personal Selling

4.5 Direct Marketing

4.6 Public Relations

4.7 Factors in Setting the Promotion Mix

General Directions

 Prepare a neat Term Paper on the given topics provided to you

 Use font size 12 for main body and 13 or 14 for titles
 Use Arial or century Gothic
 Try to refer at least 5 books or reference materials
 use justify and1.5 Line spacing
 Use proper citation and reference methods.
 Maximum mark 20 pts
 Group members from 4 to 6
 Use Harvard style of citation and reference methods
 Ranges of Submission dates may be from 15 to 20 May, 2021
 You can send your final work through Telegram after converting into PDF
or you can submit it in hard copy.