PKG 101 Lecture 4 Notes
PKG 101 Lecture 4 Notes PKG 101
Popular in Principles of Packaging
Popular in Packaging Science
This 4 page Class Notes was uploaded by Samantha Shea on Tuesday September 13, 2016. The Class Notes belongs to PKG 101 at Michigan State University taught by p. koning in Fall 2016. Since its upload, it has received 3 views. For similar materials see Principles of Packaging in Packaging Science at Michigan State University.
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Date Created: 09/13/16
Lecture 4 Notes 9/13/16 Tuesday, September 13, 210:07 AM The Role of The Package in Marketing ► Moments of Truth • FMOT (First Moment of Truth): Prospect has a -‐ha moment when confronted with the pkg/product system and related alternatives, often in real life • SMOT (Second Moment of Truth): Customer has bought and used your brand or product. The experience (hopefully) supports your pre -‐purchase promise. • TMOT (Third Moment of Truth): Customer becomes a true fan & gives back to your brand with loyalty, repurchases, and evangelizes. • ZMOT (Zero Moment of Truth): Customer decisions based on feedback and online blogs; influenced by social media in making purchase decisions, long before ever entering a store. ► Marketing History • Marketing Mix contained 4 elements: product, price, placement, promotion. ► Four P's -‐ Marketing 100 • Product • Pricing • Promotion • Placement ► Marketing Today The Five P's • Product, price, promotion, placement, and…. • People ► The 5 P Marketing Mix ► The 5 Where's Packaging? • The package is the product and more • The package is the delivery system • The package is an important sales tool, sometimes called the "silent salesman". • The Package is the new trends enabler and a major contributor to the whole consumer/user "experience" when using a product ► Customer's needed information (3) to make a purchasing decision! 1. What is this? • The package is an important sales tool, sometimes called the "silent salesman". • The Package is the new trends enabler and a major contributor to the whole consumer/user "experience" when using a product ► Customer's needed information (3) to make a purchasing decision! 1. What is this? 2. What are you going to do for me? 3. Who guarantees that? ► Consumer Trends-‐Purchase Behavior • It is crucial to consider your consumer's experience, and packaging's role throughout the usage cycle-‐ and that the consumer and shopper are not always the same ► New Convenience Features • Companies have realized the value in communicating innovation to grow business and enhance the consumer experience through packaging. ► Case Studies • New Packaging may cost more but provides significant top and bottom line opportunities ► Value Equation • Stronger the Equation the Stronger the Ownership ► "Packing brings a Contribution to Total Product Value" • Product Value = Quality x Service / Cost X Time § The stronger the Product Value Equation the stronger the ownership! § Packaging is the enabler of greater value; both real and perceived value ► Marketing Consideration: Equity • Equity is the trust in a product, company or symbolic representation of a product or company built over a period of time ► Equity • Can be a name • Can be a package shape • Can be a color or a combination of colors ► Marketing Consideration: Persona • Persona is a description of a product or package as if it were a person, or having the attributes of a person • Package persona should: § Appeal to the targeted customer § Suggest favorable product attributes ► The Quaker Persona • The America Cereal Co. was the first to create an imaginary personage to represent their product. It is the first example of developing a package persona. ► Changes in Merchandising § Suggest favorable product attributes ► The Quaker Persona • The America Cereal Co. was the first to create an imaginary personage to represent their product. It is the first example of developing a package persona. ► Changes in Merchandising • SKU = Stock Keeping Unit ► 1916 Piggly Wiggly grocery store self -‐serve concept • Packages now must inform and sell ► Changes in Merchandising • 2000's § Speed and convenience § Their way, differentiation from others § Technology enabled consumer interaction § Gender marketing, nontraditional placement § E-‐commerce challenges ► Smart (or active) Packaging • Response to consumers needs of immediacy and convenience § Entertainment value § Real value § Linking customers to worldwide network of engageme-‐ ed commerce. QR codes. ► Changing & Emerging Marketing Dynamics 1. New-‐age and more connected consumer lifestyles. 2. Maturing and emerging retail channels. 3. Shorter product life-‐cycles. ► New-‐age and more connected consumer lifestyles ► Mature and emerging retail channels ► Shorter product life cycles ► Category Disruptors! • Disrupting the Sea of Sameness/ Status Quo packaging in the retail space. • Innovative products invest and break out with disruptive category packaging. ► Global View of Packaging • Different cultures apply the role of packaging at carrying degrees in terms of complexity, product safety, supply chain factors, source reduction, and sustainability. • Growth drivers are: Population Growth and Growth of the Middle Class • The need for properly packaged foods, beverages and pharmaceuticals will grow with this increase in population ► "Packing will continue to ChangeanValue Enabler!" • The need for properly packaged foods, beverages and pharmaceuticals will grow with this increase in population ► "Packing will continue to Changeand Value Enabler!"