Product Labeling

AuthorThomas Baird, Michael Milbier
Pages604-607

Page 604

The label on a product is an important selling point for a company's product. Of all product purchase decisions, 70 percent or more are made at the point of purchase, and the product label is an important element in assisting consumers to make those decisions. Product labels perform several functions: to identify the product; to promote the product; and to provide essential, often required, information about the product and its use. Thus, the product label may make or break the sale of a product. In addition to the marketing aspect, certain legal requirements must be met in order for the label to be compliant with federal regulations. When a company designs a label it must take all of these factors into consideration.

IDENTIFICATION

The brand name is the central focus on the label for identifying a product. Nevertheless, such elements as the logos, brand marks, color schemes, designs, and graphics may also serve to identify a specific brand. The opportunity to quickly identify a specific product is often important to consumers, because it allows them to choose a brand with which they have had experience or previous knowledge. Additionally, the identification of the manufacturer and/or distributor is often required and may be of interest to the buyer.

PROMOTION

The brand name may be enough to persuade a consumer to buy a particular product, but often the label must also promote the product. Creative, attractive, and colorful

Page 605

Nonprescription medicine labels shown with warnings printed on them before and after the labeling system changes in 1999. AP IMAGES


graphics are needed to allow the product to "pop out" of the wide array of products surrounding it on the shelf and gain the attention of the consumer. Persuasive characteristics or attributes of the product, such as "low fat" or "vitamin enriched," may be prominently displayed on the label to promote the sale of the product.

INFORMATION

Although some products can be identified adequately by brand name alone, many require more complete identification of their nature and use. In short, the purpose of the label is to provide useful and relevant information about the product, as well as to help to market the product. Processed foods, patented drugs, textiles, and numerous other products are required by law to carry a fairly complete list of their ingredients. This specific information is extremely important so that consumers (for example, those who are allergic to certain ingredients) do not use a product that may harm them.

Companies may also provide additional information on...

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