Important Purpose of Labeling the Product or Service are given below:
1. Marketing:
It is used to communicate with potential customers to motivate them to buy the product/service.
2. Identification:
ADVERTISEMENTS:
Labeling or Tags that both consumers and providers – comfortable enough to identify the product at a glance all the provision, selection, use, etc.
3. Product Differentiation:
The label or graphic can be a trademark symbol for the product that certainly distinguishes product in the league of its own, and even their competitors.
Image Source: blogs-images.forbes.com
4. Mandatory Labeling:
It is mandatory in most developed countries and increasingly in developing countries, especially for foodstuffs. As for food and medicine, mandatory labeling has been a battleground between the major consumer advocates and businesses since the late 19th century. In China, all clothing is labeled with the factory of origin, including telephone and fax numbers, although this information is not available to buyers outside of China, who see only a generic label made in China.
Due to recent scandals involving misleading labeling, countries like the U.S. and Canada require most foods have information about nutrition, table etiquette, table format and content must conform to strict guidelines. Recently, Nestle has been charged by a Delhi Court for not following the Infant Milk Substitutes Feeding Bottles, and Infant Foods (Regulation of Production, Supply and Distribution) Act.