Introduction
How do you identify a specific product or service? Of course from the label printed on the good or displayed by the service we get to know the brand, what product it is, how to use it, its expiry date and other such important information.
Imagine what if the products and services were not labelled? They would all probably look identical. Then, how would the respective brands get recognition? So, the process of labelling is now an important element of marketing. Want to know further? Let us dive straight into the discussion.
Meaning of Labelling
Labelling can be defined as a process of display of all the information on the packaging material or on the product itself. While labelling the product a company has to follow all the guidelines and adhere to all the legal requirements like ingredients, nutritional and safety information mentioned under the Competition and Consumer Act 2010. The details mentioned in the labelling of the product help the customer in knowing a product better and help them decide whether to buy it or not. There are three types of labels.
Brand Label: This provides necessary information about the product.
Descriptive Label: This provides detail regarding the product usage.
Grade Label: This part of labelling specifies the aspect and features of the product.
To recognize certain brands and products we use labelling, this is due to the specific labelling, that their logo and design is well known to us. A distinct label of a product is one of its most identifiable features in the product, and thus after viewing it the customers gain the confidence to buy the product.
Labelling is thus an important part of the branding of the product and the company uses it to fulfil their motive of mass selling. It helps the product to stand out in the market, and this identifies it as a part of a particular brand. This is an important era of high and intense competition and thus labelling serves the purpose.
Labelling in Market
Branding is a big part while labelling is a part of it, which enables the process of product identification. This is printed information that is bonded to the product for recognition and also provides detailed information and basics about the product. Customers make the decision whether to buy it or not easily at the point of purchase seeing the labelled on the product.
Also, it should be noted that the labels must comply with the legal obligations. A company’s label should adhere to the Competition and Consumer Act 2010. According to The Food and Drug Administration (FDA), the products are to be packaged and processed, also the food items must have nutritional labelling. The Federal Trade Commission Act (FTC) states that fraud with labels and graphics is an offence and also this consists of unjust competition. The Fair Packaging and Labelling Act levies the compulsory labelling conditions and boosts independent packaging standards which grant federal companies to establish packaging regulations in certain industries and businesses.
Importance of Labelling
Labelling is significant as it pulls customers’ attention to purchase the product because of its visual appeal. This also promotes the sale of the product as this initiates the sale of the product. Labelling this is an important factor that helps in selling the product, labelling also helps in grading the products, and this provides information required by the law.
Labelling is one of the important aspects of the marketing of a product. Labelling is very important as it helps in attracting the customer. It can be strategically combined with packaging and can be used by marketers to encourage potential buyers to purchase a particular product. Packaging is also used for relaying information to the customers. Packages and labels give detail on how to use, transport, recycle or dispose of the package or product to the customers.
Labelling serves as an identity for the product. Labelling is also a very important tool to exaggerate the product. It differentiates a certain product from others on the shelves of the supermarket. A person can find out about the constituents of a product. This helps in spreading awareness among the customers about the item they are using as it also provides various other details about the product.
Branding Packaging and Labelling
Branding is the process of attaching meaning to a specific organisation, company, product or service by creating and shaping a brand in the consumers’ minds. This is a strategy designed by the organisations to help the people to quickly identify and experience their brand, and also give them a reason to choose their products over the competition’s or rival’s product.
Packaging is the art of enclosing or protecting the products for distribution, storing, sale, and use of the product for further use. Packaging also means the process involved in designing, evaluating, and producing the packages.
Labelling is defined as the process of affixing a descriptive word or phrase to someone or something. An example of labelling is the process of putting signs on jars that say what is inside them.
Role of Labelling
Labelling is the only way by which a customer can know what is inside a bottle (product). Hence it must relay the correct information about the product. This becomes even more important for sectors like the Pharmaceutical industry which manufactures medicine. Labelling should also contain information about harmful chemicals present inside a product or commodity, especially if it is a product that is meant for children. The role of labelling becomes essential in the case of edible products. The label of an edible product must contain information like manufacturing date and expiry date, in some cases, details like “use before” must be mentioned on the product so that the customers do not have to suffer the consequences of using a product that has reached its expiry date. The price of a product must also be mentioned clearly on a product so that the customers may know the actual price and avoid getting conned.
What Needs to be on a Product Label?
A product label usually holds this certain key information in its label:
The name of the product that affixes the label.
A logo of the brand, if the product is part of a line of the brand.
Units of measurement denote the size, quantity or weight of the specific item.
A short description or tagline encourages the customers to buy the product.
The list of ingredients.
The history is attached with the product.
Directions for use of the product.
The label should be readable enough, the type should be legible in its own font size and colour. A font size that is readable by others should be used in the labelling.
Differentiate Between Labels and Brands
A label is a piece of paper, a plastic film, or a cloth, a metal, or other material which is affixed to a container or product, on which it is written or printed the information or symbols about the particular product or item. Information is directly printed on a container or on an article that can also be considered as labelling.
A brand is the overall experience of a customer which distinguishes an organisation or product from its rivals in the eyes of the customer. Brands are used in business, marketing, and advertising. Name brands are also sometimes distinguished from generic or store brands.
FAQs on Labelling: Purpose and Importance in Marketing
1. Where can I find useful study resources for understanding Labelling and its importance?
You can find everything you need on the Vedantu app or website. These resources are created by professionals and the content is accurate and reliable. Students can find information about labelling, its importance and role and a whole lot more! These study materials are completely free and there is no cost involved. All students just have to sign in and then you will be able to download what you want in pdf format. Students can take advantage of these free resources that will surely help them ace their exams.
2. How can you define Labelling?
Labelling can be defined as a process of display of all the information on the packaging material or on the product itself. While labelling the product a company has to follow all the guidelines and adhere to all the legal requirements like ingredients, nutritional and safety information mentioned under the Competition and Consumer Act 2010. The details mentioned in the labelling of the product help the customer in knowing a product better and help them decide whether to buy it or not.
3. What is the importance of Labelling?
Labelling is one of the important aspects of the marketing of a product as it serves as the identity of a product. Labelling is very important as it helps in attracting the customer. It can be strategically combined with packaging and can be used by marketers to encourage potential buyers to purchase a particular product. Packaging is also used for relaying information to the customers. Packages and labels give detail on how to use, transport, recycle or dispose of the package or product to the customers.
4. What is Packaging?
Packaging is the process of designing and manufacturing a wrapper, container, box, etc., for a product/commodity. The packaging material must be designed in such a way that it ensures protection of the product, easy handling. The storage space should be taken into consideration while crafting the packaging. Packaging is one of the most important marketing tools because it is the first thing the customer looks at. In simple words, the packaging is a process to create the storing space for a product to keep it safe from physical damage and also to attract customers at the same time.
5. What is the difference between Labelling and Packaging?
Labelling: It is the display of all the information on the packaging material or on the product itself. Its purpose is to provide clear details about the product and its features and influence the decision of the customer.
Packaging: It's the process of designing and creating a container/storage space for a product. It serves as a marketing tool and also protects the product from any physical damage. It affects the decision of the customers. Attractive packaging can boost the sales of a product.
6. What is Meant By the Term ‘Logo’?
A logo is a graphical mark or an emblem, or even a symbol that is used to aid and promote public identification and helps in recognition. This may be of an abstract design which includes the text of the name which represents it.
7. Why is Labelling Used for ‘High and Intense Competition’?
Labelling attaches a specific brand image to a product, it discusses details about the product and hence it gives a perfect competitive image of the product in the market along with its rival products. Thus, if proper labelling is done, then it will beat the high and intense competition and stand out of the market with its own unique feature.
8. What Does ‘Competition and Consumer Act 2010’ Tell?
The Competition and Consumer Act 2010 is actually an Act of the Parliament of Australia. Before 1 January 2011, it was known as the Trade Practices Act 1974. The Act is a legislative vehicle for competition law in Australia, which seeks to promote competition, also fair trading as well as providing protection to the consumers.
9. What is the FDA?
FDA is the abbreviation for Food and Drug Administration which is a federal agency for Department of Health and Human Service.
