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The name of this technique is ‘Product Combination’. Under it, along with the main product some other product is offered to the customer as a gift. Two other techniques are given below:

i. Lucky Draw: Under this method, the customers of a particular product are offered gifts on a fixed date and the winners are decided by the draw of lots. While purchasing the product, the customers are given a coupon with a specific number printed on it. On the basis of this number alone the buyer claims to have won the gift. For example, ‘Buy a bathing soap and get a gold coin’ offer can be used under this method.

ii. Usable Benefits: Under this method, coupons are distributed among the consumers on behalf of the producer. Coupon is a kind of certificate telling that the product mentioned therein can be obtained at special discount. It means that if a customer has a coupon of some product he will get the discount mentioned therein whenever he buys it. Possession of a coupon motivates the consumer to buy the product, even when he has no need of it. Such coupons are published in newspapers and magazines. Some companies distribute coupons among its shareholders. Sellers collect the coupons from the customers and get the payment from the company that issues the same.

Activities/Components of Physical Distribution:

1. Order processing: A good physical distribution system should provide for an accurate and speedy processing of orders, in the absence of which goods would reach the customers late or in wrong quantity or specifications.

2. Transportation: It is the means of carrying the goods and raw materials from the point of production to the point of sale. It is important because unless the goods are physically made available, the sale cannot be completed.

Role of Public Relations:

i. Press Relations: Every organisation wants the press to give the news favourable to it. The information collected by the press correspondents about the organisation can be presented by distorting (breaking and wrenching) it. But this very information, when communicate by the Public Relations Department to the press, will be definitely realistic and better. With this very aim in view, the Public Relations Department, constantly maintains contact with the press.

ii. Product Publicity: Every company wants to attract the attention of people towards its new products. The Public Relations Department publicises the product through sports and other social programmes like press conference, seminars and exhibitions.

iii. Corporate Communication: Every company wants to make its image grow or develop by sharing its general information with the public and workers. To do this, the company’s Public Relations Department takes the help of newsletters, annual reports, brochures, articles and audio-visuals. Besides the managers of the company try to develop the organisation’s image by delivering lectures in trade associations and trade fairs.

iv. Lobbying: Different government departments form business policies under the supervision of its concerned ministers. Every company wants that the policies made by the government should be in its favour. The Public Relations Department conveys its wish to the concerned government department by establishing cordial relations with associations of commerce and industry. The government gives due importance to the communications of the different business organisations.

v. Counselling: The Public Relations Department gives counsel from time to time to the top level management about the different activities to be done for the Public Welfare. Doing so enhances the reputation of the company. The companies can improve their position (image) in the eyes of the people by spending their time and money so as to on environment, wildlife, children’s rights, education, etc.

vi. Helpful in Achieving Marketing Objectives: Good public relations play an important role in achieving the following objectives of marketing.

a. Building Awareness: The Public Relations Department popularises the product among its actual consumers through dramatisation before it reaches them.

b. Building Credibility: The public relation activities are supposed to be very much credible. The general view is that advertisement mislead people but public relations do not do so. Hence, what-so-ever is conveyed through public relations is fully believed by people.

c. Stimulates Sales Force: The job of the salesmen gets facilitated when they go to shops with their product, because the people are already familiar with those products.

d. Lower Promotion Costs: The cost on public relations gets lowered than advertisement and other promotional tools. However, making continuous efforts is necessary to have the place secured in the media.

The functions of packaging are given below:

i. Protection: The main function of packaging is to provide protection to the product from dirt, insects, dampness and breakage. For example, the products like biscuit, jam, chips etc. are needed to be protected from environmental contact. That is why they are tightly packed.

ii. Identification: Packaging also serves as an identification of the product. A product is packed in special sized, coloured and shaped container for keeping its difference from the products of competitors. For example, the yellow and black coloured pack of KODAK ROLL tells itself of its producer.

iii. Convenience: Packaging provides convenience in the carriage of product from one place to another, in stocking and in consuming. For example, the new pet bottles of COKE makes the carriage and stocking easier. Similarly, the pack of FROOTI provides convenience in its consumption.

Yes, packaging has acquired great significance in the marketing of goods.

Its functions can be understood as:

(a) Product Protection: Packaging protects the contents of a product from spoilage, breakage, leakage, pilferage, damage, climatic effects, etc. This kind of protection is required during storing, distribution and transportation of the product.

(b) Product Identification: Packaging greatly helps in identification of product among several other products. Colour of packaging, style, shape of packaging, etc., helps the customers to recognise the products.

(c) Facilitating use of the Product: The size, shape of the package should be such that it should be convenient to open, handle, and use for the consumers. For example, new bottles of shampoo, pet bottles of cold drink tubes of toothpaste etc.

Product concept:

• The product concept works under the principle that the consumers will favour ‘ products that offer the most in quality, performance and innovative features.
• Under this concept, marketing strategies are focused on making continuous product improvements.
• Companies following this concept keep on improving the product quality continuously and work day and night on research and development of the product.
• Products falling in this category are relatively costly.

This concept says that the producer needs to have a clear cut and exact idea about his product and what makes it unique before he can successfully market it.

It refers to designing and affixing appropriate labels to a product or its container.

It is a guaranty given by the marketer that the quality, durability of a product is good and free from any manufacturing defects and that the product will be replaced/ repaired at free of cost.

A product is a bundle of utilities consisting of various product features and accompanying sendees.

Packing the product:

• Packing can be considered as the garment for the product.
• Packing does two tasks, providing protection to the product as well as attracting consumers. Depending on the type of product, the producer also prints details regarding the use of the product on the product.
• A variety of materials such as paper, plastic jars, tinned boxes, glass jar, etc. are used to pack different products.

Advantages of packaging:

• Proper packing prevents the goods from getting damaged and makes them easier to transport.
• Packing helps to preserve product quality and its features.
• Consumers easily come to know the price of the product from the packing itself (For example: We can easily make out that a wafer or kurkure pack is worth Rs. 10 without looking at the price.).

Packaging:

• Packaging does two important functions, first protecting the product and second making it attractive so that consumers can be attracted.
• Various materials are used in packaging. The materials include plastic bags, cloth bags, cardboard box, plastic barrels, wooden boxes, etc.

Advantages of packaging:

• Provides protection to the product
• Helps in advertising and attracting consumers
• Success of many products lies in their packing
• It helps in easy transportation
• Product can better be used when it is packed

Because it is mandatory to print the price of the product on the pack.

Correct option is (B) Campaigning

Correct option is (D) Performance

Correct option is (A) Garments

Meaning: Marketing Management? It refers to the management of all marketing activities. Process: Main Steps Involved in the Process of Marketing Management:

The following main steps are involved in the process of marketing management:

1. Choosing a Target Market: First of all, the marketing manager decides the type of consumers the company wants to approach. For example, a company manufacturing readymade garments may aim at reaching the market of children upto the age of five. Similarly, another company may aim at a market of college going boys and girls.

2. Growing Consumers in Target Market: In this stage, the marketing manager makes efforts so that:

i. The consumers of target market may purchase goods.

ii. The consumers of the target market should remain associated with the company for a long time.

iii. New consumers should get attracted towards the company. Thus, in this stage efforts made to reach the target market consumers, to keep them associated and to increase their number.

3. Creating Superior Values: It implies to create such special features in the company’s products as may enable the company to surpass the competitors. For example, a company offering two year’s free service on its electronic products. This results in new consumers getting associated with the company and they begin to communicate the speciality of the company’s products to other people.

Definition: According to Philip Kotler, “Marketing is that social process by which individuals and groups obtain what they need and want through creating offerings and freely exchanging products and services of value with others.”

Features: Following are the main features of marketing:

i. Need and Want: Marketing is the process of fulfilling the needs and wants of the consumers. All the people have almost the same needs but their wants happen to be different, e.g., feeling hungry is a need but satisfying it by eating only sambhar and dosa is a want. A seller tries to find out the needs of the consumers and how those needs are to be satisfied.

ii. Creating a Market Offering: It refers to provide complete information about the product and services e.g., providing information about the name of product and service, type, price, size, centre of availability, etc. A good market offer is always prepared keeping in mind the needs and priorities of the customers.

iii. Customer Value: A buyer analyses the cost and the satisfaction that a product provides before buying it. When he find that the satisfaction, that it provides out weighs the cost factors, only then he buys it. The seller should manufacture the product keeping in view this tendency of the customer.

iv. Exchange Mechanism: Literal meaning of marketing is exchanging things. Marketing has two sides—buyer and seller. Marketing becomes possible only by the medium of exchange between the two. For example, the seller gives goods and services and in exchange the buyer gives money or something equivalent to it. These days the distance between the place of production and the place of consumption has increased. To lessen this distance the help of many intermediaries like the agents, wholesalers, retailers, etc. is taken. All these reduce this distance through the medium of marketing. Therefore, it can be said that exchange is the essence of marketing.

Difference between selling and marketing:

Marketing: It refers to that process under which valuable goods/services are created, offered and by doing transaction independently, the needs are satisfied.

Functions:

i. Product Designing and Development: Product designing and development is that process which makes the product attractive to the target customers. Product designing plays an important role in product selling. The company whose product is better and attractively designed sales will be more than the product of a company whose design happens to be weak and unattractive. In this way, it can be said that the possession of a special design affords a company competitive advantage. It is important to remember that it is not sufficient to prepare a design in respect of a product, but it is more important to develop it continuously.

ii. Promotion: Promotion means informing the consumers about the products of the company and encouraging them to buy these products. There are four methods of promotion:

(a) Advertising,

(b) Personal selling,

(c) Sales promotion and

(d) Publicity.

Every decision taken by the marketeer in this respect affects the sales. These decisions are taken keeping in view the budget of the company.

iii. Customer Support Service: It refers to a group of services which aim at providing maximum satisfaction to the customers. A marketeer offers primarily the following services to the customers:

a. After-sales-services.

b. Handling customers’ complaints.

c. Technical services.

d. Credit facilities.

e. Maintenance services.

f. Product related information.

iv. Pricing of Products: It is the most important function of a marketing manager to fix price of a product. The price of a product is affected by its cost, rate of profit, price of competing product, policy of the government, etc. The price of a product should be fixed in manner that it should not appear to be too high and at the same time it should earn enough profit for the organisation.

Following are the main features of sales promotion:

i. Sales promotion does not include advertising, personal selling and publicity.

ii. Sales promotion activities are undertaken on special occasions. These are not routine activities.

iii. Sales promotion helps in rendering advertising and personal selling more effective.

i. Securing Cooperation of Public: Public relation is an activity to get support from public. Every organisation wants to run successfully. For this public (i.e., all related protagonists like—consumers, employees, shareholders and society) support is essential or needed. And the support of public can be earned through Public Relations.

ii. Successful relation with Public: Sometimes Public develops negative attitude towards any company. This attitude could be changed by establishing public relations which helps in developing better relations with public.

iii. Satisfying different Groups: Public relation is an effort to satisfy different groups (like— consumers, employees, shareholders and society). For example, with the help of Public relation, the expectation of any particular group is acknowledged. The group is tried to satisfy by most possibly meeting their expectations.

All four elements of marketing mix are described as under:

i. Product Mix: It refers to the combination of all decisions relating to product. These decisions are mainly with regard to dimensions of the product (Product line, Product Width, Line Length, Product Depth and Product consistency), its branding, packaging, labelling, colour, design, quality, size, after sale service, its weight etc. These decisions play an important role in attracting the customers to the product.

ii. Price Mix: It refers to all those decisions which are concerned with the price fixation of any product or service. Determination of fair price of the product is a very important but difficult function of marketing manager. Fair price is that price which is acceptable both to the customers as well as producers. Price is one of the major factors which contribute a lot to finalise the deal between buyer and seller. Under price mix, besides fixing the price of the product or service, decisions regarding credit sale, discount, etc. are also included.

iii. Promotion Mix: It refers to informing the customers about the product, persuading them to purchase these products. This job is done by the company through the medium of advertisement, personal selling, sales promotion and publicity. Decision with regard to all these factors directly influence the sale of the product.

iv. Place Mix: It refers to the combination of all decisions relating to make products available to consumers. If the product is not available on right time, in right quantity and at right place then consumer will not be able to buy it. In such a situation, all activities of Marketing Mix will turn futile. So to make Marketing Mix a success, Place Mix is very important. To make the product reach the consumers the decisions regarding the following are included in ‘Place Mix’:

a. Channels of Distribution: It refers to that path through which products reach consumers. In this path many people and firms participate.

b. Physical Distribution: It involves decisions relating to the transportation, inventory, warehousing and order processing of goods.

Personal Selling:

Personal selling involves face to face contact between the seller and prospective customer with an intension of selling some products. It is a personal form of communication.

Features of Personal Selling: 

1. It is a direct presentation of the product to the consumers.

2. Develop personal relationships with the prospective customers.

3. The sales presentation can be adjusted according to the specific needs of the individual customers.

4. It is possible to take a direct feedback from the customer.

Price is an element of marketing mix which refers to all important decisions relating to the fixation of the price of a product. Some factors that must be taken into consideration are:

(i) Production cost: The price should recover all costs viz. fixed costs, variable costs and semi- variable costs apart from obviously including a fair return for undertaking the marketing effort and risk.

(ii) Utility and demand: While determining the price of any product, the utility provided by it and the intensity of demand should not be ignored. If a buyer is satisfied that the given product meets his/ her requirement, he would also be ready to pay the cost and reasonable margin to the producer.

(iii) Extent of competition in the market: In case of monopoly, a firm can enjoy complete freedom in fixing prices. However, if it is facing competition, it should consider the prices charged by the competitors also.

(iv) Government and legal regulations: Government plays an important role in regulating the prices. For example, Life Saving Drugs, etc.

(v) Pricing objectives: Pricing objectives should be in accordance with the company objectives. Also, company’s objectives should be clear enough. In addition to profit maximization, pricing objectives may include (i) Obtaining market share leadership (ii) Surviving in a competitive market.

(vi) Marketing methods used: Pricing of products also gets affected by the elements of marketing such as amount spent on advertisement, type of packaging, discounting policies, credit or finance facilities etc.

The name of this sales promotion scheme is ‘Discount’.

Some the essentials of a good advertisement copy are Attention Value: Every advertisement copy should be designed with a high degree of attraction of the viewers. Use of catchy slogans, colorful pictures, design borders, etc in the ad copy will attract the attention of the viewers, towards product or service.

Memorizing value: The advertisement copy should be such that it should last for long in the minds of people. For example the advertisement for. “Washing powder Nirma” is remembered even today.

Suggestive value: The ad copy should highlight the need and necessity of the product/ service. For example, “Boost is the secret of my energy.” Suggests that boost is a healthy drink and gives good energy throughout the day.

Educational value: The ad copy should educate the customers by giving useful information about the usage of the product. For eg. advertisement for “Iodex” in TV gives the various purpose for which it can be used and how to use it.

Sentimental Value: Human behavior is affected by sentiments. Hence the ad copy should be prepared in such a way that it does not cause any damage to their sentiments.

Simplicity: The ad copy should be simple to understand and convincing to the people. Vague and confusing texts in advertisements should be avoided.

Some of the essentials of a good advertisement copy are: 

Attention Value: Every advertisement copy should be designed with a high degree of attraction of the viewers. Use of catchy slogans, colorful pictures, design borders, etc in the ad copy will attract the attention of the viewers, towards product or service.

Memorizing value: The advertisement copy should be such that it should last for long in the minds of people. For example the advertisement for. “Washing powder Nirma” is remembered even today.

Suggestive value: The ad copy should highlight the need and necessity of the product/ service. For example, “Boost is the secret of my energy.” Suggests that boost is a healthy drink and gives good energy throughout the day.

Educational value: The ad copy should educate the customers by giving useful information about the usage of the product. For eg.advertisement for “Iodex” in TV gives the various purpose for which it can be used and how to use it.

Sentimental Value: Human behavior is affected by sentiments. Hence the ad copy should be prepared in such a way that it does not cause any damage to their sentiments.

Simplicity: The ad copy should be simple to understand and convincing to the people. Vague and confusing texts in advertisements should be avoided.

Branding is an important function performed by a marketer.

It has following advantages to the marketers 

• Enables marking of product differentiation. 
• Helps in advertising and display programs. 
• Differential pricing. 
• Ease in introduction of new products.

Advertisement can be targeted to a very large number of consumers at one go. This increases the demand many-folds. To fulfill this demand the company needs to undergo large scale production.

Correct option is b) Both are correct but (R) is not the correct explanation of (A)

Reason is not the correct explanation of assertion as production concept focuses on increasing scale of production to increase demand of product in the market

Correct option is b) Both are correct but (R) is not the correct explanation of (A)

Reason is not correct explanation. As selling focuses on profit maximization through sales because it is process of converting good into cash.

Correct option is b) Both are correct but (R) is not the correct explanation of (A)

Reason is not correct explanation. As marketing generate customer value at profit because customer satisfaction is the main objective of marketing

(b) Sales promotion

The correction answer is Promotion.

Correct option is (C) Customer

It refers in identifying group of potential customers and finding out ways to convince them to buy the company’s products.

Functions of marketing:

(a) Marketing research/Gathering and analysing market information: Marketing research is the systematic investigation of the facts relevant to the various aspects in marketing. Marketing research helps managers to arive at an appropriate decision. Market information should be gathered and analysed, appropriately.

(b) Market Planning: This is concerned with the development of appropriate marketing plans to achieve the marketing objectives of an organisation. This includes making a comprehensive action programme covering all the important aspects of the plan.

(c) Product Designing and Development: Another important marketing activity is related to the product designing and developing in such a way so as to attract the targeted customers. The product design should be such, which improves the performance of a product or gives it a competitive edge over its competitors.

(d) Standardisation and Grading: Standardisation refer to determining the basic measure/standard of the product with regard to shape, size, colour quality, quantity, etc. Grading is the process of classification of the product into different groups, on the basis of some parameters like quality, quantity, size, etc.

(e) Packaging and Labeling: Packaging is the act of designing and packing the product for customers. A package is a wrapper or a container in which a product is enclosed. Packaging reduces the risk of spoilage, breakage, etc. in the process of storage and transportation of goods. Labeling means designing and developing a label to be put on the package.

(f) Branding: It is the process of stamping a product with some identifying name or mark or a combination of both.

(g) Customer support services: Services such as after sales services, maintenance services, technical services, handling customer complaints are included in this function.

(h) Storage and Warehousing: Storage is the process of holding and preserving goods between the time of their purchases/production and the time of their sale. The storage function is facilitated by warehouses.

(i) Transportation: Transportation refers to the physical movement of goods from the place of production to the place of consumption. By carrying the goods to such places where they are needed creates place utility.

(j) Promotion: Promotion refers to all such activities of the manufacture, like advertising, personal selling, sales promotion and publicity, which are intended to influence buyer's behaviour.

(k) Pricing: Pricing is the process of fixing the price of a product or service. Prices are generally fixed by manufacturers carefully after looking into three factors, i.e., the cost of production, the demand for the product and the nature of competition.

Bonus, Sample, Coupons, Rebate, Free gift etc.

The correction answer is Promotion.

Yes, I agree as:

So many products are being advertised which make similar claims that the buyer gets confused as to which one is true and should be relied upon.

                                      OR

No, I do not agree as we all are human beings who make our decisions for purchase of product based on various factors. The arguments of supporters of advertisement are:

Advertising gives a chance to know about the products and allows the buyers to choose from the options available.

It allows the buyers to take rational decisions on various factors such as price, style, size etc.

Marketing functions include a series of specialised activities performed on the marketing of goods and services.

(a) Marketing research/Gathering and analysing market information: Marketing research is the systematic investigation of the facts relevant to the various aspects in marketing. Marketing research helps managers to arive at an appropriate decision. Market information should be gathered and analysed, appropriately.

(b) Market Planning: This is concerned with the development of appropriate marketing plans to achieve the marketing objectives of an organisation. This includes making a comprehensive action programme covering all the important aspects of the plan.

(c) Product Designing and Development: Another important marketing activity is related to the product designing and developing in such a way so as to attract the targeted customers. The product design should be such, which improves the performance of a product or gives it a competitive edge over its competitors.

(d) Standardisation and Grading: Standardisation refer to determining the basic measure/standard of the product with regard to shape, size, colour quality, quantity, etc. Grading is the process of classification of the product into different groups, on the basis of some parameters like quality, quantity, size, etc.

(e) Packaging and Labeling: Packaging is the act of designing and packing the product for customers. A package is a wrapper or a container in which a product is enclosed. Packaging reduces the risk of spoilage, breakage, etc. in the process of storage and transportation of goods. Labeling means designing and developing a label to be put on the package.

(f) Branding: It is the process of stamping a product with some identifying name or mark or a combination of both.

(g) Customer support services: Services such as after sales services, maintenance services, technical services, handling customer complaints are included in this function.

(h) Storage and Warehousing: Storage is the process of holding and preserving goods between the time of their purchases/production and the time of their sale. The storage function is facilitated by warehouses.

(i) Transportation: Transportation refers to the physical movement of goods from the place of production to the place of consumption. By carrying the goods to such places where they are needed creates place utility.

(j) Promotion: Promotion refers to all such activities of the manufacture, like advertising, personal selling, sales promotion and publicity, which are intended to influence buyer's behaviour.

(k) Pricing: Pricing is the process of fixing the price of a product or service. Prices are generally fixed by manufacturers carefully after looking into three factors, i.e., the cost of production, the demand for the product and the nature of competition.

The term generic name refers to the name of the whole class of the product.

Public Relations 

Product related factors affect the choice of channels of distribution:

(i) Industrial products being more technical, and made to order requires short channels in comparison to the consumer products being standardized and non-technical.

(ii) Perishable products like fruits, vegetables, etc. require short channels while non-perisable products like groceries, fabrics, etc. require longer channels to reach wide spread consumers.

(iii) If the unit value of a product is low as in case of most convenience products, long channels are preferred while, in case of high value products, shorter channels may be used.

Labelling performs various functions. Its important functions are:

(i) Describe the product and Specifies its contents: Label describes the product, its usage, cautions in its use, and specifies its contents etc. eg. A popular brand of Prickly Heat Powder, describes how the product provides relief from prickly heat and controls bacterial growth and infection. Label describes the product, its usage, caution in its use and specifies its contents etc.

(ii) Product or Brand Identification: The label identifies the product or the brand. For example, The name stamped on a cold drink identifies it as Pepsi, Coke, Thums Up, Fanta, etc.

(iii) Grading of products: The label might also grade the product into different categories, where the differentiation tends to be marginal.

(iv) Providing Information Required by the Law: It is a carrier of information, which is to be provided to the customer. The label describes the product, the manufacturer, date of manufacture, its contents, directions for use, price, etc.

(v) Product Promotion: A carefully designed label can facilitate product promotion. It attracts attention, describes the product, gives the reason to purchase. Particularly in case of a fast moving consumer goods sector (FMCGs), label has become a patent tool of sales promotion.

The customer care services plans are:

(i) Free services during the first year of its use.

(i) Free exchange of blades, rims during first six months of its purchase.

Company Related Factors include:

(i) Financial strength of the company: If the financial strength of the company is good, it would prefer shorter channels.

(ii) Degree of control over channel members: If company’s management wants greater control over channel members, shorter channels may be used.

Labelling: A tag indicating some information about the quality or price on complex graphics that are part of the package.

Labelling performs various functions. Its important functions are:

(i) Describe the product and Specifies its contents: Label describes the product, its usage, cautions in its use, and specifies its contents etc. eg. A popular brand of Prickly Heat Powder, describes how the product provides relief from prickly heat and controls bacterial growth and infection. Label describes the product, its usage, caution in its use and specifies its contents etc.

(ii) Product or Brand Identification: The label identifies the product or the brand. For example, The name stamped on a cold drink identifies it as Pepsi, Coke, Thums Up, Fanta, etc.

(iii) Grading of products: The label might also grade the product into different categories, where the differentiation tends to be marginal.

(iv) Providing Information Required by the Law: It is a carrier of information, which is to be provided to the customer. The label describes the product, the manufacturer, date of manufacture, its contents, directions for use, price, etc.

(v) Product Promotion: A carefully designed label can facilitate product promotion. It attracts attention, describes the product, gives the reason to purchase. Particularly in case of a fast moving consumer goods sector (FMCGs), label has become a patent tool of sales promotion.

Labelling: A tag indicating some information about the quality or price on complex graphics that are part of the package.

Labelling performs various functions. Its important functions are:

(i) Describe the product and Specifies its contents: Label describes the product, its usage, cautions in its use, and specifies its contents etc. eg. A popular brand of Prickly Heat Powder, describes how the product provides relief from prickly heat and controls bacterial growth and infection. Label describes the product, its usage, caution in its use and specifies its contents etc.

(ii) Product or Brand Identification: The label identifies the product or the brand. For example, The name stamped on a cold drink identifies it as Pepsi, Coke, Thums Up, Fanta, etc.

(iii) Grading of products: The label might also grade the product into different categories, where the differentiation tends to be marginal.

(iv) Providing Information Required by the Law: It is a carrier of information, which is to be provided to the customer. The label describes the product, the manufacturer, date of manufacture, its contents, directions for use, price, etc.

(v) Product Promotion: A carefully designed label can facilitate product promotion. It attracts attention, describes the product, gives the reason to purchase. Particularly in case of a fast moving consumer goods sector (FMCGs), label has become a patent tool of sales promotion.

Labelling performs various functions. Its important functions are:

(i) Describe the product and Specifies its contents: Label describes the product, its usage, cautions in its use, and specifies its contents etc. eg. A popular brand of Prickly Heat Powder, describes how the product provides relief from prickly heat and controls bacterial growth and infection. Label describes the product, its usage, caution in its use and specifies its contents etc.

(ii) Product or Brand Identification: The label identifies the product or the brand. For example, The name stamped on a cold drink identifies it as Pepsi, Coke, Thums Up, Fanta, etc.

(iii) Grading of products: The label might also grade the product into different categories, where the differentiation tends to be marginal.

(iv) Providing Information Required by the Law: It is a carrier of information, which is to be provided to the customer. The label describes the product, the manufacturer, date of manufacture, its contents, directions for use, price, etc.

(v) Product Promotion: A carefully designed label can facilitate product promotion. It attracts attention, describes the product, gives the reason to purchase. Particularly in case of a fast moving consumer goods sector (FMCGs), label has become a patent tool of sales promotion.