Commercial Applications
Answer
Packaging plays an important role in the marketing of goods. Its importance can be highlighted as follows:
- Protection — A good package protects the product from damage and deterioration during transportation and storage.
- Identification — The package helps to identify the product by indicating its nature and contents and protects against spurious products.
- Facilitates branding — The brand name and mark can be easily printed on the package, lending individuality and prestige to the product.
- Reduces cost — Good packaging reduces costs of transportation and storage and widens the market.
- Reuse value — Packages often have reuse and resale value (e.g., tins of Dalda are used by housewives for storing provisions).
- Silent salesman — A package acts as a silent but forceful salesman at the point of purchase, differentiating the product from substitutes and stimulating impulsive buying.
Related Questions
State any two advantages of cost-plus pricing strategy.
"Skimming pricing policy is ideal for introducing a product in the FMCG sector." Justify for or against.
"In a competitive market, parity pricing is the appropriate strategy." Justify either for or against.
"Branded goods are normally sold by inspection." Justify a reason either for or against.