Packaging

Lesson 10.
Packaging
PACKAGING
Packaging refers to all activities involved in designing and producing the

container or wrapper for a product. The package may include up to three levels of
material briefly described as follows:
1. The primary package which is the product's immediate container.

2. The secondary package which protects the primary package.
3. The shipping package which contains the secondary package or packages. It
provides ease of storage, identification, and shipping
Reasons for Packaging
There are several reasons for packaging products. Among them are:
1. 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.
2. It provides convenience to the user. Many products are now neatly packaged
which provide convenience for use just anywhere. The effort exerted from date of
purchase too actual use of the product is greatly diminished.
3. It provides safety. Products like insecticides may cause considerable harm unless
they are contained in suitable packages.
4. It provides economy to both the seller and the user. Buyers have different
quantity requirements for products. 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
5. 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.
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.
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.
Types of Labels
There are four types of labels:
1. The brand label. This label identifies the product or brand.

2. The descriptive label. This label provides information about the product: who
made it, where and when it was made, its contents, how it is used, and how to use
it safely.
3. The grade label. This label identifies the product's judged quality with a letter,
number, or word like "grade A”, grade 3", or "premium grade."
4. The promotional label. This label provides attractive graphics to help promote the
product.
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.
Variations of Warranty
Warranties may either be: (1) express; or (2) Implied.
1. Express warranties are written statements of a manufacture liabilities for product

deficiencies. Express warranties may be: (1) limited-coverage warranty; or (2) full
warranty.
a. A limited-coverage warranty is a manufacturer’s statement indicating the
bounds of coverage and no coverage of any deficiency found in the product.
b. A full warranty is a statement of liability by a manufacturer that has no limits
of no coverage.
2. Implied warranties are those that assign responsibility for product deficiencies to a
manufacturer even if the item was sold by a retailer. Warranties of whatever
variation help the consumer make his purchasing decision.
PRODUCT LIFE CYCLES

Products, like human beings, have a life cycle which is referred to as the Product
Life Cycle or PLC. The PLC refers to a products 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 a product.
The PLC consists of four distinct stages: (1) introduction; (2) growth; (3) maturity;
and (4) decline. These stages are actually manifestations of the effects of various forces
affecting the life cycle namely: (1) consumer demand; (2) competition; and (3)
government rulings. These forces are beyond the control of the firm an influence of its
marketing efforts.
The Introduction Stage
In this stage, the product is introduced to the public. It is generally characterized

by the following:
1. slow growth of sales;
2. heavy promotional expenditures in relation to sales;
3. relatively high prices for the products; and
4. Limited product offerings, like limited variations in sizes, color, and the like.
The slow sales growth is attributed to the following:
1. delays in the expansion of production capacity;

2. technical product problems that have to be worked out;
3. difficulty in gaining widespread distributions; and
4. Inertia on the part of consumer in trying the new product.
Heavy promotional expenditures are attributed to:
1. heavy sales costs involved in obtaining distribution; and

2. the need for heavy advertising to create consumer awareness and trial.
High prices are caused by:
1. the need to recover investment costs in plant and equipment; and

2. low volume of sales.
Limited product offerings are caused by insufficiency of initial sales volume to

justify variations in the product.
The Growth Stage
The growth stage in the PLC follows a successful introduction stage. The growth
stage is characterized by the following:
1. Sales start climbing rapidly as distribution increases and the consumers are
persuaded to try the product.
2. The ratio of promotional expenditures to sales decreases. This is due to the rapid
increase in sales but without a corresponding increase in promotional expenses.
3. Prices tend to remain high except when demand stimulation is required and entry or
competitors is discouraged.
4. New forms of the product appear the new colors, new models, and new sizes.
The Maturity Stage
When the growth in sales slows down, the maturity stage begins to take over.
This stage is characterized further by the following:
1. Sales settle down as the product becomes well-known

2. price reductions are used as a tool of competition;
3. competition is intensified; and
4. the market becomes saturated.
The Decline Stage
The decline stage begins with a permanent drop in sales. The stage is further
characterized by:
1. a pruning of product models and variations to eliminate those not producing profit;
2. promotional expenses are reduced; and
3. plans for phasing out the product is made.
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.
Knowledge of the PLC concept may be useful in many aspects of decision-

making in marketing. For example, it can be used as a basis for harvesting reasonable
earnings from weak products. Suffice it to say that the PLC concept may be used
extensively to assist the marketer in achieving his marketing goals.
Activity for Lesson 10 – Week 14
1. Why is packaging important?
2. Differentiate express warranty and implied warranty
3. What is the most critical stage in the product life cycle?
4. Why is PLC important?
Note for ODL : Send your answers to jojie.deramos@yahoo.com
Email subject should include your full name and week number.
To be submitted on or before November 28, 2020
Wag sulat kamay nakatype po 

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Lesson 10.

Packaging refers to all activities involved in designing and producing the

1. The primary package which is the product's immediate container.

Reasons for Packaging

Packages must be made to assist in the marketing effort. Defective packaging

There are four types of labels:

1. The brand label. This label identifies the product or brand.

One of the product components that attract customers to patronize a product is

Warranties may either be: (1) express; or (2) Implied.

1. Express warranties are written statements of a manufacture liabilities for product

PRODUCT LIFE CYCLES

The Introduction Stage

In this stage, the product is introduced to the public. It is generally characterized

The slow sales growth is attributed to the following:

1. delays in the expansion of production capacity;

Heavy promotional expenditures are attributed to:

1. heavy sales costs involved in obtaining distribution; and

High prices are caused by:

1. the need to recover investment costs in plant and equipment; and

Limited product offerings are caused by insufficiency of initial sales volume to

The Growth Stage

1. Sales settle down as the product becomes well-known

The Decline Stage

The Importance of the Product Life Cycle Concept

Knowledge of the PLC concept may be useful in many aspects of decision-

1. Why is packaging important?

2. Differentiate express warranty and implied warranty

3. What is the most critical stage in the product life cycle?

4. Why is PLC important?

Note for ODL : Send your answers to jojie.deramos@yahoo.com

To be submitted on or before November 28, 2020

Wag sulat kamay nakatype po 

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