PACKAGING, LABELING, WARRANTIES, AND GUARANTEES Most physical products have to be packaged and labeled.

Many marketers have called packaging a fifth P. Most marketers, however, treat packaging and labeling as an element of product strategy. I. Packaging Meaning of Packaging: We define packaging as all the activities of designing and producing the container for a product. Or it is an art, science and technology of preparing the goods fro transport and sale. A) Various factors have contributed to the growing use of packaging as a marketing tool: ! "elf#service $! %onsumer affluence &! %ompany and brand image '! (nnovation opportunity B) )rom the perspective of both the firm and consumers, packaging must achieve a number of ob*ectives: ! (dentify the brand $! %onvey descriptive and persuasive information &! )acilitate product transportation and protection '! +ssist at#home storage ,! +id product consumption C) -ests for an effective packaging ! .ngineering tests are conducted to ensure that the package stands up under normal conditions. $! Visual tests are used to ensure that the script is legible and the colors harmonious. &! /ealer tests are performed to ensure that dealers find the packages attractive and easy to handle. '! %onsumer tests ensure favorable consumer response. Packaging and Sa e! P"o#o$ion a! Money#Off pack: + message of a reduced price is flashed in distinctive colour on the package. b! %oupon pack: %oupon can be made an integral part of the package or can be placed inside it separately. )or instance, 0ohnson and 0ohnson put coupons for redemption in its sanitary napkins packages. c! Pack#in premiums: + premium or gift is placed in the package

d! Premium package: (t is a specially designed package. e! "elf#li1uidator: -he buyer preserves either package or their parts as evidence of buying the product. (n return, he is given reduced prices at the time of repeat purchase or is rewarded with a different product. f! Other applications of packaging as a marketing tool: "elf life can be improved by using special packaging materials. II. La%e ing A) "ellers must label products B) 2abels perform several functions ! -he label identifies the product or brand $! -he label might also grade the product &! -he label might describe the product '! )inally, the label might promote the product through attractive graphics C) 2abels eventually become outmoded and need freshening up D) %ompanies with labels that have become icons need to tread very carefully when initiating a redesign. E) -he )air Packaging and 2abeling +ct of 345, set mandatory labeling re1uirements, and allows federal agencies to set packaging regulations in specific industries. &) -he )ood and /rug +dministration 6)/+! sets other labeling re1uirements. G) %onsumerists have lobbied for additional labeling laws to re1uire: ! Open dating $! 7nit pricing &! 8rade labeling '! Percentage labeling III. Wa""an$ie! and G'a"an$ee! Warranties are formal statements of e9pected product performance by the manufacturer. Warranties, whether e9pressed or implied are legally enforceable. A) Many sellers offer either general guarantees or specific guarantees. B) 8uarantees reduce the buyer:s perceived risk. C) 8uarantees are most effective in two situations: ! Where the company or the product is not well#known. $! Where the product:s 1uality is superior to the competition.