Packaging Paraphernalia

To some, the word packaging refers to what contains a product, the 'wrapper'. But there are major marketing implications that need to be recognised as well.

There are 3 main purposes for the product packaging:

1. Safety and utilitarian porposes. It protects a product on its journey from manufacturer to customer. It mustn't be tampered with, might need to be child-proof, and may need to be resistant to factors eg evaporation, spoilage or spilling.

2. Packaging implements a brand's marketing guidelines. It helps identify the product and therefore might prevent substitution of competitive products. It's a "silent salesman" in a way. Often the packaging design is what differentiates the product when other attributes seem common. Eg non-drip spout, a reusable container, or just something innovative (like the pump-pack toothpaste was).

3. Companies may package a product in a way so as to increase profit potential. A package may be so attractive (think Apple) that people will pay more just to get the special package, even though the additional price exceeds the additional cost of packaging.

Some criticisms of packaging include:

• Packaging depletes our natural resources (hence a trend to produce with green materials)


• Packaging is excessively expensive (eg beer, it accounts for roughly half the production cost)


• Health hazards may be an issue (aerosols, substrates for food packs)


• Packaging can be deceptive (wrong, or missing information)

and so marketers face some real challenges in satisfying these complaints while at the same time retaining the marketing effectiveness, consumer convenience and product protection features of packaging.

New trends are on their way too such as neon drink containers like this. And down the track we'll see interactivity built in (eg for sales promotions, product feedback etc). It's interesting that the new technology arising sees improvements in non-packaging areas, ie with the neon example it doesn't directly address the 3 fundamentals, it simply screams "I'm glowing green, look at me look at me buy me buy me 'cause I'm nifty!" (which will work a treat).

The point of all this is that a product these days isn't simply the tangeable outcome of the purchase. It's the whole experience from research through to usage. If the experience is positive, it should make for repeat purchase, extended word of mouth or both. Companies that skimp on packaging budgets should think again, as it lays before usage in the experience chain.

It's what you do with it

I've been inspired today. After reading various articles and blogs, some marketing magazines, and discussions with colleagues, it seems that the only recent trend anyone wants to discuss is online. "Growth in online advertising is enormous"......"companies should be allocating more resources to online...." etc.

That's all great, but there's two things to be mindful of. Firstly yes, it's all happening online but that's no surprise. Secondly, let's not simply rely on the media to solve all our problems.

Interestingly some articles reiterate that traditional media ('offline' - it's starting to sound a little vintage!) is still the best format. Research shows that newspapers are still the #1 trusted medium for advertisers. But it's hard to go past the direct response of online, or the accountability for that matter.

The point I'd like to make is this. I'm seeing more and more that advertisers are sensibly utilising online media, but are not being smart about the execution. It's easy to say that a web banner is beneficial because people can click through, but the banner shouldn't simply be a rezsize of their latest press ad.

As internet usage grows, desensitisation to online advertising grows. Since the early days before spam filters came along, our time has been wasted trying to discern the genuine relevant information from the annoying. Luckily for the advertiser, the most common way to pay for online advertising is 'per click'. Suddenly all of those impressions that went nowhere aren't an issue. Good stuff. This means that for the users who do click through, we'd better ensure their expectations are met at the other side. Bespoke landing pages are a great start.

My receptiveness to banners is low, but my propensity to click from a Google (or equiv) search is high. It's still the most effective solution because I am empowered - I get to 'choose my own adventure". For this reason, Google Adwords (again, or equiv) is often one of my first recommendations to clients in search of an effective online tool. Click throughs may not be any higher, but the click through rate is far higher, and the quality of user is better as they are automatically pre-qualified due to their search words. Again, the key to maximising effectiveness is not to simply start a campaign, but to ensure the design of it (in this case the keyword selection, and the accompanying copy) is well thought out.

It's a vast online world out there, and there are no blanket solutions. The common theme to successful campaigns is smart strategy and planning.

Consumer motivations

Motivation is the driving force that impels consumers to action. It's produced by a state of tension that exists as the result of an unfulfilled need. Consciously and subconsciously, we strive to reduce this tension through behavior we anticipate will fulfil our needs and thus relieve us of the stress we feel. The course of action that we pursue is formed on the basis of our thinking process (cognition) and previous learning. Hence, marketers who understand motivational theory attempt to influence the consumer's cognitive processes.

Motivational research also provides marketers with a basic orientation for new product categories and enables us to explore consumer reactions to ideas and advertising copy at an early stage, thus costly errors can be avoided.

How does all this help the consumer? Well, whether gratification is achieved at the end of the process depends on the course of action being pursued. Targeted advertising influences the learning and cognitive process so that (hopefully) the consumer's purchase decision is more goal oriented. For example if someone expected to become a legendary rockstar by buying a Fender guitar, they are likely to be dissapointed. If however, the person takes music lessons and practises diligently, they may succeed.

There's a plethora of detailed research on this topic available, far too in-depth for this blog. Keep it in mind for your next strategy meeting!