From the foregoing, it is evident that the package today is far more than mere protection of contents. In fact, the modern package has merchandising characteristics which give it unique powers in marketing. We can summarize these characteristics as follows:
The package serves as a distinct identification for the product.
The package makes it possible to give an entire product line "family identification."
The package is a means of communicating information and instructions to the housewife for correct use.
The package serves as a silent salesman in the retail store where self-service has largely displaced and supplanted the store clerk.
The package makes impulse buying easy, by serving as a reminder, at the point of sale, of pre-selling done through advertising.
The package lengthens the life of the contents.
It is now possible to consider some major over-all product policy decisions which confront the manufacturer in this age of increased competition.
What strategy shall we use to differentiate our product? We have seen that there are various devices by which we can make our product different. Management chooses that which is most appropriate under the circumstances.
Shall we change the physical characteristics of products by regions and sections, adapting them to changed market demands in various sections? Many manufacturers and marketing people feel that the market is a series of individual and different markets and that products should be slanted for these different regional markets.
To what extent can we make our products according to customer specifications? Theoretically, all products are custom-made. In reality, all marketing people know that most consumers do not consciously know what they want except in a general way. Further, consumer-want-s are neither fixed nor stationary. How far does a company go in compromising the ideal with the realities of the situation in a specific case?
Shall we engage in planned obsolescence? This means the adoption of such practices as the bringing out of annual models, the changing of style merchandise, changing the design of heavy appliances, short-lived models, arousing the consumer desire for the new. This policy involves decisions that virtually all managements face at one time or another.
The policy of planned obsolescence has given great impetus to research and development, and has been responsible for much progress in many lines. It has also helped to maintain a high level of employment in in¬dustries which otherwise might have become sated.
How extensive shall we make our product line? Shall we attempt to produce every make and model offered by competition, or shall we restrict ourselves to a
certain limited number of offerings? How many items can we afford to make? How many can we justify making on the basis of volume of profitable sales?To what extent shall we standardize our line? Simplification has many advantages: it makes for economies in production and in selling; it makes possible published standards or the use of recognized standards (government standards, trade association or group standards, etc.); it reduces the amount of promotion necessary to sell the products; it tends to stabilize prices and reduce uncertainty and risk.
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