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Principles of Marketing

Product Decisions

Tutorial Contents

Labeling

Most packages, whether final customer packaging or distribution packaging, are imprinted with information intended to assist the customer.  For consumer products, labeling decisions are extremely important for the following reasons. 

  • Labels serve to capture the attention of shoppers.  The use of catchy words may cause strolling customers to stop and evaluate the product.
  • The label is likely to be the first thing a new customer sees and thus offers their first impression of the product. 
  • The label provides customers with product information to aid their purchase decision or help improve the customer’s experience when using the product (e.g., recipes). 
  • Labels generally include a universal product codes (UPC) and, in some cases, radio frequency identification (RFID) tags, that make it easy for resellers, such as retailers, to checkout customers and manage inventory. 
  • For companies serving international markets or diverse cultures within a single country, bilingual or multilingual labels may be needed. 
  • In some countries many products, including food and pharmaceuticals, are required by law to contain certain labels such as listing ingredients, providing nutritional information or including usage warning information.


 
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