After Product: Packaging · 2012-01-30 · © Donald Jenner 2000 MKT100 1 After Product: Packaging...

© Donald Jenner 2000 MKT100 1

After Product:

Packaging

To some extent,

the package is the product


Purchase Decisions

Between 50 and 70 percent of all

purchase decisions are made in the store.

Two-thirds of those decisions are

unplanned.

(Alexander Hiam)


Decision time...

Product

Category

Length

of View

# of

Options

View time

Breakfast

Cereal

25 sec. 65 .38 sec.

Tooth-

pastes

10 sec. 25 .40 sec.

House-

plants

6 min. 650 .55 sec.

Catalogue

Clothing

8 min. 700 .69 sec.

A/C units 7 min. 8 52.5 sec.

Visibility is important...


The “Package”

� Is the “wrapping”

� Is the totality of outer appearance and inner content

� Presents the content – (we hope, attractively)

� Explains the significance and utility-to-user of the content

� Creates an interface to something that may be bland– Is soap powder attractive?


All Products are Packaged in

Several Ways

Consumer Products:

� Advertising/promotional packaging

� On-product and promotional artwork

depicting product

� Company contacts about the product

� Actual product container(s)



Several Ways

Wholesale and Industrial:

• Corporate/Brand reputations and

salepersons’ projection of it

• Trade-pub appearances

• Support services

• Actual product and shipping container(s)



Several Ways

People:

• Clothing (Dress for Success)

• Associates

• Contexts (parties, offices…)

• Expression (facial, “body language”)

• PR (in the case of more widely known

people, anyway…)


Things packaging can do

� Protect the contents

� Make the contents easy to store and display

� Make the contents easy to carry and store

� Make the contents easy to use

� Make disposal easy

� comply with legal restrictions

– Package size, ingredients, sale price elements,

“slackfill”, standard size aspects, &c.


Does the package...

� Tell the story? Is it likely that the story

told will meet targeted needs?

� get to the emotional aspect of the

product? The romance…

� extend to the product and its

repurchase?


The Packaging Cycle


Marketing Communications

Advertising & PR —

Telling Your Story

Is Part of the Package


Objectives of Promotional

Strategy

� Providing Information

� Positioning the Product

� Increasing Sales

� Stabilizing Sales

© Donald Jenner 2000 MKT100 13MKT100© Donald Jenner 2000

Placement

Where the rubber hits the road —

getting the product out the door

and selling it.


What Intermediaries Do

� Consumer research

� Buy and sell

transactions

� Bulk-ship to resale

repackaging

� Setting prices, product-

bundling

� Point-of-sale

promotions

� Product transshipment

� Inventory management

� Purchase Finance

� Locating, qualifying

customers

� Local “pull” advertising

� Customer

service/support

� Sharing risk


Intermediary

Pluses & Minuses

Intermediaries simplify the transaction process for the

customer and the manufacturer. Fewer steps often

means an easier sale and may reduce costs of doing

business.

BUT

Multiple intermediaries may actually confuse

transactions, increase exposure, and add costs.

Multiple layers increase system complexity. Many

distributors are “de-layering” (Hiam).


Channel Design Issues

� Market coverage:– Relation of distributor to target

– Overcome limits of direct marketing?

� Intensity of coverage:– Can every potential customer get at your

product? (Intensive strategy)

– Can the most desirable targets get at your product? (Selective strategy)

– “Cherry picking” - only the best (exclusive strategy)

© Donald Jenner 2000 MKT100 18MKT100© Donald Jenner 2000

Promotion

Advertising & PR —

what you thought this course

was about...


A little history

These are old These are old

ads. Notice that ads. Notice that

twotwo of these

products are still

going strong. An

effective strategy

works really hard

and well….


Where ads & PR fit and how…

� After a product has been determined…

– What it is

– To whom it is directed

– At what price

– Sold where

� Advertising presents the product your way.

� PR seeks to get “influential others” to present

your product


Advertising is

� Company-controlled

� Based (ideally) on marketing data

interpreted through current value

systems

� Variable depending on the type of

product and medium in which the ads

are to appear


Public Relations is…

� A way of presenting a story to influential

people, whose retelling of that story has

apparent independence.

� A way of controlling damaging or

unfavorable information.

� Is unpaid-for in the usual way.


Advertising & Public Relations

� Both present the product and its source.

� Both aim to enhance the marketing

program

� Are most effective as part of an

integrated, articulated program

� Are data driven — with advertising more

“objective” and PR more “subjective”


Classic Screwups

� Choosing to do it yourself when you need outside counsel

� Trying to ride out unfavorable data

� Assuming that it can all be done with ads, without solid independent approbation

� Assuming it can all be done with PR, with no paid advertising


Factors Influencing the Promotional Mix

High unit value

Intro, early phases

Custom-made or

complex,

Heavy service need,

Industrial

Trade-in negotiable

Limited

well-defined,

concentrated,

industrial

Personal Selling

Lowest unit valueLower unit valuePrice

Established

product (end of

ramp-up, mature

and decline)

Early and at

change-points in

life cycle

Point in Product

Life Cycle

Fairly standard

“off-the-shelf”

Obvious and

already understood

Complex,

Not obvious, needs

explaining

Industrial

Product• Complexity

• Service needs

• Type

• Trade-in?

Larger numbers,

Dispersed

End users (retail)

Larger numbers,

dispersed,

Commercial buyers

(retail),

Disgruntled buyers

Market

• # buyers

• Concentration

• Customer type

AdvertisingPublic RelationsFactor


Just to make life interesting…

The Advertising & PR mix of just five years ago is

already obsolete. Communications changes very fast,

for a variety of reasons. We know more about how

people tick. Society is changing. Options are

changing. Change the way people form and

exchange information, and commercial

communication changes as well.

After Product: Packaging · 2012-01-30 · © Donald Jenner 2000 MKT100 1 After Product: Packaging...

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Transcript of After Product: Packaging · 2012-01-30 · © Donald Jenner 2000 MKT100 1 After Product: Packaging...