Meaning of Grading and Its Advantages

Meaning of 'Grading'

Grading or categorization is just a part of the standardization by the Institute. By the term 'grading' is meant the classifying and categorizing the products into groups on the basis of the general characteristics found in them.

In the opinion of Clark and Clark, The meaning of the term `grading' is classifying the products into such categories which, from the point of view of shape, size, or kind, are almost similar or into such standardized categories to which they conform.

With regard to the products manufactured in the factories, there doesn't arise any problem of grading since these are already standardized beforehand. The problem of grading arises in the agricultural products, minerals, etc. mostly. If the agricultural products or the minerals are not graded, they will neither fetch full price nor would they be able to fully satisfy the consumers' needs. That's why the problem of grading arises. For instance, from the agriculture, the cotton is grown, it becomes essential to get it graded in separate categories. For instance, there might be the long-stapled cotton, medium and short stapled cotton, etc. Likewise, the coal extracted out of the mines, is distributed into various categories, for instance, the coking, non-coking, hard and soft coke, etc.

Advantages of the Gradation

The following are some of the main uses or advantages of the grading system:

(1)   Complete Satisfaction to Consumers. If the agricultural products or the minerals are not categorized or graded, these won't be able to fully satisfy the needs of the consumers.

(2)   Help to the Manufacturers in Production. Due to the gradation, the manufacturers get help in the production of one and the same (uniform) type of the products.

(3)   Help to the Sellers in Their Sales. The things that are graded could be sold only by showing of their samples or by description. The graded products are purchased by the buyers simply by showing them, and without any minute checking.

(4)   Facility in Availing the Loans. On the basis of the security of the graded things, the loans could be easily obtained. The financers are not required to undertake any special checking or investigating such goods for advancing the loans.

(5)   Facility in the Prospective Purchases. By gradation, the categories of the similar things are formed which lead to easy recognition of the products, and consequently the future contracts of forward nature could be easily undertaken about them.

Standardization of Products

In the marketing of the products, it is essential for the economy and facility that the products be divided into separate groups or categories in such a manner so that there are the uniform characteristics of the products in any particular group. In the modern production system, where the production is undertaken on a large scale, the grouping of the products of the similar or same qualities and characteristics, is very important and this very process ;s known as the `standardization'.

Within the process of standardization, the definite criteria of the products are prescribed and thereafter, the produced goods are tested on the basis of those criteria. Among these, on the basis of the quality, size, kind, color, shade, etc., their standards are determined. If some product is standardized, it easily captures the con­fidence of the masses. The commodities that have been standardized are directly purchased by the customers, without any further check­ing, testing or enquiries, etc.

In the opinion of Clark and Clark, Standardization is a common word in which the standards of the manufactured products are laid down and the products are inspected, by which it could be seen as to which standards do they conform to and where necessary, these products are sorted out in the categories conforming to the standards laid down.

In the opinion of Alford, The meaning of 'standardization' is to lay down the `standards' by which are estimated or assessed the limits, quantities, kind, price, production or service and in the ver­sion of layman, the production is given the best form.

Kulkarni has opined that the meaning of 'standardization' is the product of one specifically uniform kind. It presents an ideal specimen or example. The standardization indicates only that the particular product contains the specific qualities.

Advantages of Standardization

There are many advantages of standardization to the con-miners, society and the sellers, which are being given hereunder

(1)   Facility in Buying the Things. If the things are standardized, the consumers are not required to waste their time in check­ing its quality and they are facilitated in buying the products. Really, the consumers are saved of checking the products before their purchase.

(2)   Facility to Sellers in Selling the Products. The standardized goods could be sold only on the basis of their description. No need is there for the thorough checking of the product. The standardized products are also convenient to be advertised. The standardized things could also be sold on the basis of their home-delivery.

(3)   Increase in Demand. Due to the confidence regarding I Ike kind, form, size, etc., the demand of the standardized products Increases.

(4)   Facility in Financial Arrangements. Since the prices and the quality of the standardized goods could easily be undertaken, hence the financers easily advance the money on the security of these products.

(5)   Less Risk of Price Fluctuations. It is also observed that there are not many fluctuations in the prices of the standardized goods. Hence, there is not much risk or danger in the purchase of such products

(6)     Facility of Physical Transfer of the Products. It is seen that the standardized products are packed in a specific kind of the cartons or containers and due to it, there is no inconvenience in sending them from one place to the other. There is also experienced some economy in putting and sending the standardized goods from one place to the other.

(7)   Increased Goodwill of Producers. Such manufacturers, who produce the standardized type of the goods, acquire good reputa­tion in the market soon and for keeping their goodwill maintained well, they always try to manufacture the goods of one and the same standard.

(8)   Consumers Saved of Cheating in Prices. The prices of standard products are almost similar or uniform throughout the country. The difference might occur due to some of the local taxes only. Regarding the prices of the standardized products, there is no sort of deception with the consumers.

(9)   Improvement in Information Regarding Marketing. For the distribution of every sort of market information, the knowledge is essential of the fact that any particular product is re­lated to which variety or kind. Such information could easily be given regarding the standardized goods. For instance, if this information is to be given that 'ghee' has been received, the reader won't under­stand it in the real sense. But if the information is given that the Amul Pure Ghee has been received and is easily available, all would understand its real sense.

Packaging of Goods

Meaning of 'Packaging'

In this age of competition, good and appropriate packaging occupies much significance^. The policies pertaining to the packaging are a part of the product planning and product development

program.

Some of the main definitions of 'packaging' are being given hereunder:

In the opinion of Prof. Rustom S. Davar, Packaging is that art and/or science which is related to the development and use of materials, methods and equipment, for the packing of the goods in some containers, so that the product, while passing through various stages of distribution, could remain fully safe.

William Stanton has opined that the meaning of packaging is the total group of activities under the product planning which are related to the chalking out of a design of the outer cover of a product and the concerned production.

In the opinion of Masson and Ruth, The use of the containers and the wrapping materials, is 'packaging', which also includes the labeling and decoration so that the product might remain safe, its sale too might be helpful, and it might have facility for the consumer to put that product to use.

Functions of Packaging

(1)  Safety of the Products. The main function of packaging is to protect the things from dust, water, moisture, insects, etc. Good packing saves the products against perishing, loss and other damages.

(2)  Facility in Marketing Activities. Due to the packing, the movement of the products, shifting, preserving, opening, collect­ing and storage, become economical and easier for both the mid­dlemen as well as the consumers.

(3)  Advertisement. One of the functions of packing is adver­tisement too. Till there exists any product packet, it keeps us aware of the same.

(4)  Facility in Collecting. It is easier to store the packaged goods. Due to packing, the products remain safe in the godowns.

(5)  Information to the Customers. While making the product attractive, the packing could also make the product useful and informative. It can extend necessary instructions and information more effectively to the customer regarding the use of the product.

Characteristics of a Good Package

According to Ruston S. Dat^,ar, in a good packing, especially in case of the consumer commodities, the following essentials must exist there :

(1)   Could attract one's attention.

(2)   Could make the prompt recognition possible.

(3)   Could create interest and maintain the same.

(4)   Could create the desire for the procuring of the product.

(5)   Could compel for purchasing the product.

(6)   Could impress the heart of the consumer.

(7)   Could add to the work-suitability, characteristics and total image of the brand.

In the end, it might be said that a very well made packing, would immediately attract the attention, would create interest, would develop desire and would ultimately press the consumer either to investigate and make enquiries into the product, or for pur­chasing the same.

Packaging Decisions

In order to develop the packing for a new product, various decisions are required to be taken up in which matters, the experts of the marketing and publicity departments have to work. The following decisions are included within the packaging decisions:

(1)  Packing Idea. Within the packing idea, is the decision taken as to what is the objective of packaging? In other words, whether the main function or purpose of packing is to grant protec­tion to the product, or to indicate the special qualities of the company or the product, or is its function to recognize the product, or it has to perform some other function.

(2)  Packing Design. After taking the decision on the packing idea, several other decisions are required to be taken, for instance, the design, size, etc. In the packing design are the decisions taken at to which of the raw materials (say, tin or paper) will be used in the packing, what shall be its shade or color, what shall be written in it, what type of the symbol shall be of the brand, etc. While deter­mining the packing design, it must be borne into mind that no trouble could arise to the consumers and middlemen in carrying and shifting product from one place to the other.

(3)  Size of the Package. While taking the continuous decisions, the size of package would depend upon the consumers. The most important criterion for them is the basis of the buyers' purchas­ing power. For instance, the tea packets are available in the packing of 25 gins. to 500 gins., since the purchasing power of different pur­chasing groups is also different.

(4)  Cost of the Package. Within the cost determination, it has to be seen as to what shall be the total expenditure on the pack­age. Its decision must be made on the basis of the security and the purchasing power of the consumer and also the security that could be extended to it.

(5)  Package Testing. After the preparation of the sample package companies pass it through various tests before giving the final form to it. The engineering tests are undertaken so that strength of the packing could be depended upon. Likewise, the con­sumer tests too are undertaken, so that the consumer reaction could be known.

Classification of Packaging

The packaging might be classified in the under-mentioned manner:

(1)  Way Packaging. For shifting a product from the producer to the consumer-centers, various means of transport are taken to use. For transporting them, such a type of packaging is resorted to so that by movement, or during the loading and unloading, the product might not be destroyed. This is what is known as the way packaging.

(2)  Consumer Packaging. This is, in reality, that packaging in which the consumers actually get the products. For it, the small tin-containers, glass bottles, paper or cardboard containers are used.

(3)  Product-Line Packaging. When the products manufac­tured by one producer are of one and the same kind, then the pack­aging of all the items is made on a uniform type basis so that the middlemen (agents, distributors, etc.) and the consumers could easily recognize the products. Such packing is known to be the line pack­aging.

(4)  Multi-Unit Packaging. In the packaging of this kind, several items or products are packed together- Such packaging is more suitable and convenient for the packing of small products.

(5)  Re-Use Packaging. In the packaging of .this kind, products are packed in such a manner so that after the use of the main (original) product, its packaging is put to use for other purposes. The tin and plastic containers are an important instance of the same type of packing. The containers of ghee, oil, etc., after be­coming empty, are taken to the use of keeping miscellaneous things in them in the domestic items. This very device of packaging is known as the re-use packaging.