1. PACKAGING
The aim of packaging is
identification, containment,
protection, safety and to
attract customers.

2. Labels
 Part of the package
 Promote the brand name
 Give information on the contents
 Where it is made (important for some)
 www.coca-cola.com.au livepositively link

3. Product life cycle – in packaging
 Introduction – developed for sale
 Growth – Product begins to become popular
 Maturity – Product popular
 Decline – Product becomes outdated
 Packaging changes can be made at each
stage to keep the consumer interested
 See figure page 181

4. Question
 Page 182 question 4 and 9

5. Price
 Price is either fixed or flexible
 When pricing a product the business
must take into consideration.
• What the customer is willing to pay
• Manufacturing or production costs

6. Price
 Customer orientation
• Sometimes people like to pay for quality
• “Pay for what you get”
• Product thus needs to be promoted to show
difference from others
• Prices is more expensive

7. Production Orientation
 Takes all the fixed costs and the variable
costs to form overall costs.
• MARKUP %
• All the costs + the % profit = Price
• To make a profit
• BREAKEVEN
• All the fixed costs + the desired Profit / selling price
– variable costs
• To not make money but get the product out there

8. Approaches to pricing
 Price Skimming
• Aim at the top end of the market first then reduce later so
becomes more affordable
• Aimed at the top end of sciety
 Penetration Pricing
• Low cost to gain entry then increase over time to get more
share of the market
 Competitive Pricing
• Match the competition. Usually arises in the maturity stage
 Price Reduction
• Discounts are given ie. Bulk purchase or dockets
 Demand Pricing
• Find out what people are willing to pay and go with that

9. Paragraph Response
 Summarize the different methods of
pricing in a paragraph. Give examples
for each method of pricing to support
your answer.