Chapter 31 Branding, Packaging, and Labeling 1

Marketing EssentialsMarketing Essentials

Chapter 31 Branding, Packaging, and Labeling

Section 31.2 Packaging and Labeling

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What You'll LearnWhat You'll Learn

Packaging and LabelingPackaging and Labeling

The principal functions of product packaging

The main functions of labels

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Why It's ImportantWhy 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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Key TermsKey Terms

package

label

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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.

Packaging

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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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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.

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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.

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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.

Functions of Packaging

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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

Contemporary Packaging Issues

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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 & Jerry’s Homemade ice cream cartons promote saving the rain forest.

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Labeling

A label is an information tag, wrapper, seal, or imprinted message that is attached to a product or its package. A label’s purpose is to:

inform about a product’s 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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Labeling Laws

Many package labels must meet local, state, and federal standards to prevent manufacturers from misleading consumers.

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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.

The Federal Food and Drug Administration

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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.

The Federal Trade Commission

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31.2 ASSESSMENTASSESSMENT

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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31.2 ASSESSMENTASSESSMENT

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 EssentialsMarketing Essentials

End of Section 31.2