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Friday 9 May 2014

Explain Packaging and Sales Promotion, state the purpose & types of Packaging.

PACKAGING-
Packaging is the science, art & technology of enclosing or protecting product for distribution, storage, Sale, and use. Packaging also refers to the process of designing, evaluation and production of packages. Packaging is heavily integrated into our daily lives. We see it all around us on everyday items such as chocolate bars and potato chips packets- but packaging also provides us with a recognizable logo or packaging. We instantly know what those goods are inside.
The purpose of packaging:
Packaging has several objectives-
Physical protection: The object enclosed in the package may require protection from, among other things, shock, vibration, compression, temperature etc.
Barrier protection: A barrier from oxygen, water vapor, dust etc., is often required package permeability is a critical factor in design. Some packages contain desiccants or oxygen observers to help extend shelf life. Keeping the contents clean, fresh, and safe for the intended shelf life is a primary function.
Containment or Agglomeration: Small objects are typically grouped together in one package for reasons of efficiency. For example, a single box of 1000 of pencils requires less physical handling than 1000 single pencils.
Information transmission: Package and labels communicates how to use transport, recycle, or dispose of the package of product.
Marketing: The packaging can be used by marketers to encourage potential buyers to purchases the product. Package design has been an important and a constantly evolving phenomenon for dozens of years.
Conveniences: Package can have features which add convenience in distribution, handling, display, sale, opening re-closing, use and reuse.
Portion control: Single serving or single dosage packaging has a precise amount of contents to control uses. Bulk commodities (such as salt) can be divided into packages that are a more suitable size for individual households.
Types of Packaging
It is sometime convenient to categories size packages by type of function-
Primary packaging: is the material that first envelops the product and holds it. This usually is the smallest unit of distribution or use and is the package which is in directed with the contents.
Secondary packaging: is outside the primary packaging perhaps used to group primary package together.
Tertiary packaging: is used for bulk handling and transport shipping.
SALES PROMOTION-
Sales promotion is the best tool for short-term results. Company can use sales promotion as a tool to sale the old stock. Sales promotion can bring quick response from customers. Sales promotion is the offering of short-term incentives to customers. Different types of consumer sales promotion tools can be used by marketers to increase sales. They includes-
o    Price promotion
o    Coupons
o    Gifts
o    Money refunds and rebates
o    Contests
Price Promotion: price promotion is also known as ‘price discounting’; offer a discount on the normal selling price or more of the product at the same price. These promotions can attract customers to make more purchase. Too much price reduction may affect brand image.
Coupons: are also price reductions in the form of a certificate given to the customer, distributed through magazines, newspapers and sometimes along with products.
Gifts: are also called premiums. They are the products given free of cost. When the product is purchased, there will be a gift inside the pack. Sometime customers have to approach retailers to receive gifts by showing proof of purchase.
Money refund and rebates: a certain amount of money is received by customer as a refund on the price of the product, when purchase proof is shown.
Contests: Contests are small competitions conducted by marketers with the intention of increasing sales. Generally, the contests are in the form of quizzes or games. Prices are offered to those who win contests.