Packaging will substantiate the price of your products. If you’re positioning your product as a premium option, your packaging needs to reflect that. That could mean it’s easier to carry, store, open, use, improves safety, protects the product, or keeps something fresh longer. You can quickly boost the perceived value of a product with the right packaging, especially if the package provides a way to make a customer’s life easier. However, packaging also directly affects the price people are willing to pay.Ĭonsumers will certainly choose one brand over another based on the packaging. Reducing the cost of packaging may allow you to reduce the price or increase your profits. Packaging is a cost to the manufacturer and that impacts price. When people view your product as more valuable, they’ll be more willing to open their wallets, and that’s another area where packaging can help. The perceived value of your product is particularly significant if you want to battle commoditization. Did it take a lot of effort to make a purchasing decision? There are mental and emotional prices on products to consider in addition to the monetary price. Of course, customers will pay a price for your product, but that involves more than just the dollar amount. Packaging design should be an essential part of your product development process because it can easily become the reason a consumer chooses your brand over the competition. Consider the memorable, blue Tiffany’s box or how packaging for Apple products mirrors the company’s commitment to sleek design. There are some iconic examples of how packaging becomes crucial to branding. Packaging design can improve the overall customer experience because it directly affects the functionality of the product itself.įrom a branding perspective, if you’re selling a natural product, it would make sense to choose sustainable packaging materials that complement what you’re selling. Packaging becomes the product and part of the brand.įor example, people pick Dutch Boy paint for the innovative twist and pour container just as much as the paint inside. Packaging is more than just a box or wrapper that keeps products contained.
#What are the four p's of marketing full
In a store full of “me too” products, the package provides an excellent opportunity to stand out. Thankfully, commoditization is a problem that sound marketing and a good packaging strategy can overcome. This makes the modern consumer tough to please, and it drives prices down because cost becomes the primary distinguishing factor. That’s to say it’s more challenging than ever to differentiate one product from another. In a way, everything is becoming a commodity. There is no shortage of products ready to satisfy demand. The challenge for CPGs today, both online and in retail stores, is that shoppers have an overwhelming abundance of choices. It should have specific features and benefits that help you sell it and, potentially, a selection of different styles and options to create separate product lines. Hopefully, that product meets a consumer need and fulfills a demand. Your product is quite simply what you are selling. So, before getting caught up in the latest trends and technologies, take the time to examine your retail packaging strategy through the lens of the Four Ps. The original “Four Ps” are the perfect example of a framework that can be applied to practically any situation in which you must make marketing decisions.įor example, Product, Price, Placement, and Promotion are all directly connected to a fifth important “P” … Packaging. However, there are foundational concepts and best practices that remain crucial to companies large and small. Do you consider your marketing mix when it comes to packaging? In a fast-paced world where consumer habits and the retail landscape are constantly changing, it’s easy to brush off the basics.