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Partnerships

tional and promotional communications, with the brand PARTNERSHIPS
selection being based on the package. The fourth situation
The Uniform Partnership Act (UPA) defines a partnership
is the pure impulse purchase. In this case shoppers had not
as “an association of two or more persons who operate as
considered buying the product until the package attracts
coowners a business for profit.” The creation, organiza-
their attention and they are enticed to purchase the prod-
tion, and dissolution of partnerships are governed by state
uct.
law. Many states have adopted the UPA. Partnerships that
In addition to drawing the attention of the shopper, are created under the UPA are referred to as general part-
the package itself may have attributes that significantly nerships. Business partners are fiduciaries to each other
increase the attractiveness of buying a given brand. These under the UPA. The law recognizes the partnership to be
are attributes that make the product easier to transport, all of the partners acting together and does not recognize
store, and use, such as multiunit packaging; package
dimensions that fit in the refrigerator door or on standard it as a separate distinct entity. It is a form of business
enterprise.
height shelves; and packaging which is easy to open,
resealable, reusable, microwaveable and/or pourable.
Some consumers also have a strong preference for envi- PARTNERSHIP AS DISTINGUISHED
ronmentally friendly packaging that is recyclable or FROM OTHER ENTITIES
biodegradable. Any of these features may persuade a shop- General partnerships are distinguished from other types of
per to purchase a given brand of a product and should be entities. It is an association between two or more people
considered when designing product packaging. who are seeking a profit. The partners share ownership,
SEE ALSO Marketing; Promotion profits, losses, and liability. The partners decide who will
manage the day-to-day affairs of the partnership. Each
shares equally in the profits, losses, and liability for dam-
BIBLIOGRAPHY
ages that may be incurred by employees or members of the
Arens, William F. (2006). Contemporary advertising (10th ed.).
Boston: McGraw-Hill. partnership. Equal shares are assumed by the partners
Hoffman, K. Douglass (2006). Marketing principles and best unless there is a written agreement that designates it dif-
practices (3rd ed.). Mason, OH: Thomson South-Western. ferently.
Kotler, Philip, and Armstrong, Gary (2006). Principles of market- Common law partnerships, joint ventures, and busi-
ing (11th ed.). Upper Saddle River, NJ: Pearson Prentice ness trusts are examples of for-profit unincorporated asso-
Hall.
ciations. Nonprofit associations include benevolent
Lane, W. Ronald, King, Karen Whitehill, and Russell, J. Thomas
associations, religious entities, and other organizations/
(2005). Kleppner’s advertising procedure (16th ed.). Upper
associations that are organized for charitable, humanitar-
Saddle River, NJ: Pearson Prentice Hall.
ian, or educational purposes. A nonprofit organization
Lascu, Dana-Nicoleta, and Clow, Kenneth E. (2004). Marketing
frontiers: Concepts and tools. Cincinnati: Atomic Dog. focuses upon providing services to the general public,
often while relying on government grants, private grant
Omega Research Associates. (2004). Executive summary. Packag-
ing Digest. Retrieved March 4, 2006, from http://www. money, and/or donations from businesses or individu-
packagingdigest.com/pdf/Sum_RigidFlex.pdf als—such as, for example, the American Red Cross. Non-
Pride, William M., and Ferrell, O. C. (2006). Marketing concepts profit organizations have to register with the government
and strategies (Rev. ed.). Boston: Houghton Mifflin. as they do not have to pay taxes because of the benefits
Solomon, Michael R., Marshall, Greg W., and Stuart, Elnora W. they contribute to society. They do not make any profits
(2006). Marketing: Real people, real choices (4th ed.). Upper from this type of business and are usually run by a board
Saddle River, NJ: Pearson Prentice Hall. of directors.
U.S. Department of Agriculture. (2000). Food marketing and A partnership can be created by an express agreement
price spreads: USDA marketing bill. The economics of food,
farming, natural resources, and rural America. Retrieved Febru- or can be created on an informal basis based upon a hand-
ary 28, 2006, from http://www.ers.usda.gov/Briefing/ shake agreement. In civil law, partnership is a contract
FoodPriceSpreads/bill/components.htm. between individuals who agree to carry on an enterprise,
Wells, William, Moriarty, Sandra, and Burnett, John (2006). combine their assets, and share the profits.
Advertising: Principles and practice (7th ed.). Upper Saddle There are two types of partners. General partners
River, NJ: Pearson Prentice Hall.
have joint liability depending upon circumstances whereas
liability of limited partners is limited to their investment
Thomas Baird in the partnership.

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