THE REALITIES ABOUT POULTRY The Modern Farm - The Realities About Poultry_Seco | Page 148

spend lots of money on promotion campaigns so as to attract customers. Loyal customers
usually praise the values and attributes of their favourite products.
 Facilitates product differentiation: The existence of different market segments has caused
businesses to use a marketing strategy of product differentiation. There is a high degree of
differentiation when it comes to packaged goods. Differentiation of products simplifies product
recognition thereby facilitating buying.
 Packaged goods are easy to distribute: The pathways of ownership, transport and storage
down which products pass between production and consumption are called distribution
channels. The successive stages in the process form the distribution chain. With packaging,
distribution of goods from their production to consumption centres is greatly simplified.
Because packaged goods are easy to handle, even their transportation and delivery becomes easy.
 Enables premium pricing: A well-packaged product helps an organization achieve a premium
price for its products. Think of the difference in prices of sugar. Pre-packaged sugar is highly
priced than weighed sugar. Without a package, a firm will have to settle for a product position in
the market where sales are only driven by low prices.
 Packaging enables a business enjoy a competitive advantage: Business competition
exists when two or more organizations act independently to supply their products to the same
group of consumers. The degree of competition in business is likely to influence the level of
sales and profits. A businesses that is first to the market with a well and attractively packaged
product is likely to be in position to make large sales and profits and therefore remain
competitive than one whose products are poorly or not packaged at all.
 Safeguards consumers against exploitation: Consumer protection has become an important
function of packaging including the development of tamper-resistant containers. Today
companies commonly use safety seals or pop-tops that reveal previous opening. Nonetheless, no
package is completely tamper resistant. Customers are also saved from the risk of consuming
under-weighed products since pre-packaged products usually contain quantities on their package
materials.
 Facilitates portioning of products in various quantities: Packaging makes it possible to pack
products in relatively small sizes according to weights, volume, length or common usage. This
simplifies handling, usage, and pricing. It also fosters product differentiation thereby increasing a
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