Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e

9. Elements of Product
   Planning for Goods and
   Services

Text © The McGraw−Hill

Companies, 2002

Elements of Product Planning for Goods and Services 267

Consumers benefit from the battle. Competition has already narrowed price

differences between manufacturer brands and well-known dealer brands. And big

retailers like Wal-Mart are constantly pushing manufacturers to lower prices—because

national brands at low prices bring in even more customers than store brands.^19

Packaginginvolves promoting, protecting, and enhancing the product. Packag-

ing can be important to both sellers and customers. See Exhibit 9-7. It can make a

product more convenient to use or store. It can prevent spoiling or damage. Good

packaging makes products easier to identify and promotes the brand at the point of

purchase and even in use.

A new package can make theimportant difference in a new marketing strategy—

by meeting customers’ needs better. Sometimes a new package makes the product easier

or safer to use. For example, Quaker State oil comes with a twist-off top and pour-

ing spout to make it more convenient for customers at self-service gas stations. And

most drug and food products now have special seals to prevent product tampering.

Clever packaging is an important part

of an effort by Dean’s Foods to pump

new life into an old product—milk. Just

as Bird’s Eye did with frozen vegetables,

Dean wants to make milk something

more than a cheap commodity. Dean is

selling six-packs of chocolate-flavored

milk in bottles called chugs—light-

weight plastic bottles designed like

old-fashioned milk bottles with a wide

mouth, but with resealable twist-off caps.

The shape of the new package also helps

Exhibit 9-7 Some Ways Packaging Benefits Consumers and Marketers

Promotion Link product to promotion The bunny on the Energizer battery package is a

reminder that it “keeps going and going.”

Branding at point of Coke’s logo greets almost everyone each time the

purchase or consumption refrigerator is opened.

Product information Kraft’s nutrition label helps consumers decide which

cheese to buy, and a UPC code reduces checkout

time and errors.

Protection For shipping and storing Sony’s MP3 player is kept safe by Styrofoam inserts.

From spoiling Tylenol’s safety seal prevents tampering.

From shoplifting Cardboard hang-tag on Gillette razor blades is too

large to hide in hand.

Enhance product The environment Tide detergent bottle can be recycled.

Convenience in use Squeezable tube of Yoplait Go-Gurt is easy to eat on

the go and in new situations.

Added product functions Plastic tub is useful for refrigerator leftovers after the

Cool Whip is gone.

Opportunity to Add Value Some Decision Factors Examples

The Strategic Importance of Packaging

Packaging can

enhance the product