When used correctly, this product will prevent water and other contaminants from entering the contact end of the spark plug. The product should be applied around the insulating part of the connector and should not penetrate deep into the jacket where the contact end is. A dielectric is an electrical insulator, it does not contribute to electrical connection but serves to prevent it. Lubrication is to prevent water and other materials from exiting to the end. I apply grease around the plug insulator and then hand tighten the plug into the head. Using a wrench, tighten to your torque requirements (or just lightly tighten) and slide the collar over the plug. The grease should create a barrier around the connector insulator and prevent anything from working across the connector and eventually contaminating the terminal end.
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