7.

8 PACKAGING AND LABELING • Brands simplify decisions: The decision to buy is made easier by
brands. A person may not know a lot about every product he is interested
Packaging may be defined as all the activities of designing and
in, but a brand makes it easier for him to choose. Consumers can decide
producing the container for a product. Packages might include up to three
more quickly if they recognize brands.
levels of material. Primary packaging is for immediate holding of the
• Brands give quality assurance: Consumers are likely to choose quality
product like the tube holding toothpaste with the Colgate brand and other
products and services wherever and whenever they can. Once they
information; Secondary packaging is the paperboard container holding
experience a brand, they automatically equate the experience with a certain
the tube and flashing brand related information; Shipping or transportation
degree of quality. A good experience makes for a good brand recall.
packaging is done to distribute the products to distributors and large
Therefore, consumers will move towards brands that they know provide
retailers. For example, a brand of mineral water may come in bottle (primary
high quality standards.
package), in a cardboard box (secondary package) and in a corrugated
• Brands facilitate risk avoidance: Most consumers even with slightest
box (Shipping package) containing six dozen boxes.
doubt about the performance of a product may not opt to buy. An experience
A label provides written information about the product. Labeling helps
the buyer to understand the nature of the product, its distinctive features, of a brand, if positive, gives consumers reassurance and comfort in

its composition, its performance, etc. Labeling may include different purchasing even if expensive.

dimensions. There are grade labels and descriptive labels. In grade labeling, • Brands provide a means of self-expression: Brands generate
product classifications are based on quality. Products may be classified opportunities for people to express themselves in different ways. They can

into A, B, C or 1, 2, 3 categories based on quality. But, among branded help people to express their socio-psychological needs like:
products, mostly descriptive labeling is used, furnishing detailed information • Social status
about product attributes, qualities and usage related information. For several • Success
products, statutory labeling requirements are laid down and marketers are • Aspiration
bound to follow these requirements. • Love and Friendship
• Personality
7.9 BRANDING
7.10 BRAND EQUITY, BRAND POSITIONING AND
Brand name is one of the brand elements which help the customers
BRAND SELECTION
to identify and differentiate one product from another. The American Marketing
Association defines a brand as “a name, term, sign, symbol, or design, or Brand equity is defined in terms of marketing effects uniquely
a combination of them, intended to identify the goods or services of one attributable to a brand. Brand equity is the sustainable value added to brand
seller or group of sellers and to differentiate them from those of competitors.” name in the market and/or in the consumers mind. Major factors that
Examples: Dettol, Fiat, and Pond’s etc. contribute to brand equity are: brand awareness, brand associations,
Branding is very important for the following. perceived quality and brand loyalty.
• Brands provide choice: Consumers prefer to have choice, and brands • Brand awareness
give them the liberty to choose. Brands can provide choice, allowing Customers buy brands if only they are aware of a particular brand as their
consumers to distinguish between the various company offerings. general assumption is that, a brand that is familiar is probably reliable and
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