Question 6

Describe the functions of labeling in the marketing of products.

Answer

Functions of labelling in the marketing of product are discussed below:

Describe the product and specify its contents: It specifies the contents and other features of the product. It enables the manufacturer to give clear instructions to the consumer about the proper use of his product. It helps to describe the product, its usage, cautions in use, contents, manufacturing and expiry dates, price, quantity, etc.
Identification of the product or brand: It gives a definite identity to the product or brand and therefore, the identification of a product becomes easy. e.g. the name Pears printed on toilet soaps helps us to know which soap out of several soaps is Pears.
Grading of products: It enables the manufacturer to grade the products into different categories. E.g. Hindustan lever sells different grades of tea under green, yellow and red labels.
Helps in promotion of products: A good label can attract attention, describe the product and stimulate the buyer to buy the product. It helps in the promotion of the product. It plays an important role in sales promotional activities of the marketer.
Providing information required by law: It provides information required under law. E.g. statutory warning ‘smoking is injurious to health’ must be stated on the package of cigarettes. Such information is considered necessary on processed foods, poisonous materials, drugs, medicines, etc, which provides safety warning to the consumers.

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