Page 169 - Cambridge IGCSE Business Studies

12: Marketing mix: product and price

The role of packaging

Most products bought by consumers are packaged. The design and materials
used in the packaging of products can be important in promoting the product.

Poorly designed or poor quality packaging may influence consumers so they
think the product inside is not very good. Well-designed, imaginative packaging,
using good quality materials sends the message to consumers that ‘this is a good
quality product’.

ACTIVITY 12.2

Choose one of the following products:

Toothpaste
Coff ee jar
Breakfast cereal
Chocolate bar

Look at the packaging of your chosen product. What do you think is the role of the packaging for the product you have
chosen?

Packaging is an additional cost which increases the final price of the product.
Businesses must not spend too much money on packaging as this may increase the
price above the level consumers are willing to pay. 167
In recent years consumers have become more aware of environmental issues.
This has led to many businesses using recycled materials in their packaging, or the

packaging itself can be recycled.

In Activity 12.2 you should have identified the following roles of packaging:
■ to protect the product
■ to provide information about the product
■ to help consumers recognise the product.

You may have identified other purposes of the packaging which are also important

in helping to promote and sell the product such as:
TOP TIP
Packaging is sometimes referred
■ The packaging might have a use once the product has been used up, for example a

to as the ‘fifth P’. This is oft en

coffee jar might be a storage jar.
thought of as a separate element
of the marketing mix. ■ To keep the product fresh once the packaging has been opened, for example the
inside packaging of breakfast cereals.
The product life cycle

KEY TERM All products have a life cycle. The life cycle represents the sales of the product
over time. Th e product life cycle is divided into four main stages, as shown in
Product life cycle: the pattern Figure 12.2.
of sales of a product from
introduction to its withdrawal ■ Introduction stage – the product is introduced into the market. Sales are low.
from the market.
The product might be making a loss in this stage because of the cost of heavy
advertising to gain product recognition.
■ Growth stage – the product is becoming better known to consumers. Sales are
increasing. The product usually starts to earn profit during this stage.