1. Section 31.2 Packaging and Labeling
Marketing Essentials
n Chapter 31 Branding, Packaging, and Labeling
Section Packaging and Labeling

2. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
What You'll Learn
The principal functions of product packaging
The main functions of labels

3. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
Why 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.

4. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
Key Terms
package
label

5. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
Packaging
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.

6. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
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

7. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
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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8. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
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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9. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
Functions of Packaging
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.
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10. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
Contemporary Packaging Issues
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
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11. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
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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12. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
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

13. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
Labeling Laws
Many package labels must meet local, state, and federal standards to prevent manufacturers from misleading consumers.

14. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
The Federal Food and Drug Administration
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.

15. Packaging and Labeling
SECTION 31.2
Packaging and Labeling
The Federal Trade Commission
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.

16. Reviewing Key Terms and Concepts
ASSESSMENT
31.2
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?

17. ASSESSMENT Thinking Critically 31.2
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?

18. Marketing Essentials
End of Section 31.2