Marketing Essentials

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Marketing Essentials
n Chapter 31 Branding, Packaging, and Labeling
Section 31.2 Packaging and Labeling
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SECTION 31.2
Packaging and Labeling
What You'll Learn

• The principal functions of product packaging
• The main functions of labels

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SECTION 31.2
Packaging and Labeling
Why It's Important
While branding gives a specific brand
personality, packaging puts a face on a product.
Effective packaging creates a good impression,
helps to sell the product, and communicates
benefits to customers.
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SECTION 31.2
Packaging and Labeling
Key Terms

• package
• label

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SECTION 31.2
Packaging and Labeling
Packaging
A package is the physical container or wrapping
for a product. 10 percent of a product's retail
price is spent on package development and design
and the package itself.
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SECTION 31.2
Packaging and Labeling
Functions of Packaging

• A package is a selling tool. Its functions
  include
• promoting and selling the product
• defining product identity
• providing information
• meeting customer needs
• ensuring safe use
• protecting the product

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SECTION 31.2
Packaging and Labeling
Functions of Packaging
Promoting and Selling the Product Customer
reaction to a package and brand name is an
important factor in determining marketplace
success or failure. Defining Product Identity
Packages can invoke prestige, convenience,
status, or other positive attributes.
Slide 1 of 3
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SECTION 31.2
Packaging and Labeling
Functions of Packaging
Providing Information Packages give directions
for product use, information about contents,
guarantees, nutritional information, and
potential hazards. Meeting Customer Needs
Various sizes meet the needs of different market
segments family packs meet the needs of larger
families smaller packages are made for
individuals.
Slide 2 of 3
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SECTION 31.2
Packaging and Labeling
Functions of Packaging
Ensuring Safe Use Plastic packaging,
tamper-resistant packaging, and childproof
containers protect customers. Protecting the
Product Packages protect a product during
shipping, storage, and display, prevent
tampering, and sometimes help prevent shoplifting
of the product.
Slide 3 of 3
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SECTION 31.2
Packaging and Labeling
Contemporary Packaging Issues

• Product packaging offers companies unique
  opportunities to address lifestyle changes as
  well as social and political concerns. Companies
  often consider using
• environmentally friendly packaging
• packaging that makes social and political
  statements

Slide 1 of 2
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SECTION 31.2
Packaging and Labeling
Contemporary Packaging Issues

• Environmental Packaging Some customers are
  willing to pay more for products with packages
  that are reusable, recyclable, less wasteful, and
  safer for the environment.
• Cause Packaging Some companies use packages to
  promote social issues.
• Example Ben Jerrys Homemade ice cream
  cartons promote saving the rain forest.

Slide 2 of 2
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SECTION 31.2
Packaging and Labeling
Labeling

• A label is an information tag, wrapper, seal, or
  imprinted message that is attached to a product
  or its package. A labels purpose is to
• inform about a products contents and direction
  for use
• protect companies from legal liability
• contain a brand name, logo, ingredients, special
  promotional messages, and other useful information

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SECTION 31.2
Packaging and Labeling
Labeling Laws
Many package labels must meet local, state, and
federal standards to prevent manufacturers from
misleading consumers.
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SECTION 31.2
Packaging and Labeling
The Federal Food and Drug Administration
The FDA administers the Federal Nutrition
Labeling and Education Act passed in 1990, which
protects consumers from deceptive labeling and
establishes standards for use of terms and health
warnings.
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SECTION 31.2
Packaging and Labeling
The Federal Trade Commission
The FTC passed the Care Labeling Rule in 1972 to
require that care labels be placed in
clothing. The FTC also released guidelines for
making environmental claims on labels, such as
made from recycled materials or recyclable.
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ASSESSMENT
31.2
Reviewing Key Terms and Concepts
1. What is a package? 2. List the principal
functions of product packaging. 3. What is a
product label? 4. What are the main functions of
labels?
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ASSESSMENT
31.2
Thinking Critically
Many popular products have symbols on their
packages telling consumers how to cook, clean,
and wash the products. Why have symbols and
graphic directions been placed on many packaged
products?
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Marketing Essentials
End of Section 31.2