Core Concepts of Marketing

PRODUCT PLANNINGANDSTRATEGYFORMULATION 163

ages.Commonusesofpackagingincludeprotection,t:ontainment,communication,andutil-
ity/easeofuse.^6
Consideringtheimportanceplacedonthepackage,it isnotsurprisingthata great
dealofresearchis spentonmotivationalresearch,colortesting,psychologicalmanipula-
tion,andsoforth,inordertoascertainhowthemajorityofconsumerswil1reacttoa new
package.Basedontheresultsofthisresearch,pastexperience,ardthecurrentandantic-
ipateddecisionsofcompetitors,themarketerwillinitiallydeterminetheprimaryroleof
thepackagerelativetotheproduct.Shouldit includequality, safety,distinction, affordability,
convenience,oraestheticbeauty?Fortheautomobileoilindustry,thepackagehasbecome
moreimportanttopromotethanproductperformance.Toa lesserextent,thisisalsotrue
forproductssuchaspowdereddrinks,margarine,softdrinks,perfrmes,andpetfoods.In
thecaseofPringles,rrocter&Gamblehadtodesigna packagethatwouidprotecta very
delicateproduct.Italsofacedtheuncertainresponseofretailerswhchavenev~rstocked
stackedpotatochipsbefore.Recallthemanyshapesandsizesketchupcontainershavetaken
duringthelasttwentyyears.
Clearlydelineatingtheroleoftheproductshouldleadtotheactualdesignofthepack-
age:itscolor,size,texture,locationoftrademark,name,productinformation,andpromo-
tionalmaterials.Marketleadersinthedryfoodarea,suchascakemixes,haveestablished
a traditionofrecipesonthepackage.However,thereareotherpackage-relatedquestions.
Dothecolorscomplimentoneanother?Areyoutakingadvantageofconsumerconfusion
byusinga packagedesignsimilartothatofthemarketleader?Cantheproductbemade
foranacceptablecost?Canit betransported,s:ored,andshelvedproperly?Istherespace
forspecialpromotionaldeals?Finally,variousversionsoftheproductwillbetestedinthe
market.Howrecognizableis thepackage?Isit distinctive?Aestheticallypleasing?Accept-
ablebydealers?

Branding Anybrandname,symbol,design,orcombinationoftheseconstitutesa
brandingstrategy.Theprimaryfunctionofthebrandistoidentifytheproductandtodis-
tinguishit fromthoseofcompetitors.Inaddition,fromtheperspectiveofthebuyer,it may
simplybeconsistentqualityorsatisfacLion,enhanceshoppingefficiency,orcallattention
tonewproducts.Fortheseller,selectinga brandnameis oneofthekeynewproductdeci-
sions,andreflectstheoverallpositionandmarketingprogramdesiredbythefinn. Itisthrough
a brandnamethata productcan:( 1) bemeaningfullyadvertisinganddistinguishedfron:
substitutes,(2)makeiteasierforthecustomertotrackdownproducts,and(3)begiven
legalprotection. Also,brandingoftenprovidesaninterestingcarryovereffect:~atisfiedcus-
tomerswillassociatequalityproductswithanestablishedbrandname.
Beforegoinganyfurtheritisnecessarytodistinguishseveralterms:

• Brand:a name,term, sign,symbol,design, ora combinationofthesethatisintended
  toidentifythegoodsorservicesofonesellerorgroupofsellersandtodifferenti-
  atethemfromthoseofcompetitors.


• Brandnames:thatpartofa brandwhichcanbevocalized-theutterable.


• Brandmark:thatpartofa brandwhichcanberecogrnzed'Jutisnotutterable,such
  asa symbol,design,ordistinctivecoloringorlettering.


• Trademark:a brandorpartof a brandthatisgivenlegalprotectionbecauseit is
  capableof exclusiveappropriation^7
  Aswasthecasewithproductdesignandpackagingdecisions,brandingrequ;resa
  systematiceffortatgeneratingaiternativebrandnames,screeningthem,ane'selectingtile
  bestalternative. However,beforethisprocessbegms, a morebasicdecisionmustbemade.
  Whatisthebasicbrandingstrategytobeemployed?Threeviableoptionsareavailabie.