Explain four functions of packaging and explain any four elements in physical distribution of products.
Answer – Packaging: levels, functions and importance
Packaging designs and produces the container or wrapper of a product.
Levels: primary packaging is the immediate container, such as a toothpaste tube; secondary packaging protects the primary pack, such as its cardboard box; transportation packaging supports storage, identification and transport of several units, such as a shipping carton.
Functions: identifies the product; protects it against damage and deterioration; facilitates convenient handling, storage and use; promotes the product through attractive presentation.
Importance: rising standards of health and sanitation require safer packs; self-service outlets need packs that explain and attract; packaging innovation can make use more convenient; differentiation and promotion can strengthen sales.
Good packaging balances protection, convenience, information, cost and environmental responsibility. It should not mislead customers about quantity or quality.
Physical distribution and channels
Physical distribution moves finished goods from producers to customers efficiently and reliably.
Four principal components:
- Order processing: receive, verify and execute orders accurately and promptly.
- Transportation: choose suitable modes for cost, speed, reliability and product requirements.
- Warehousing: store goods in appropriate locations to bridge the time between production and consumption.
- Inventory control: maintain enough stock for service while avoiding excessive holding cost and obsolescence.
The prescribed main list has four components; a question requesting six should not lead to invented categories.
Distribution channels are the routes through which products reach buyers. Direct or zero-level selling connects producer and consumer; one-level uses a retailer; two-level uses wholesaler and retailer; longer channels may add an agent. Intermediaries can sort, accumulate, allocate and assort goods, promote products, negotiate, bear risk and support availability.