How Product Labeling Impacts Business Economics

Having a way to identify a product is essential to tracking how well it sells and understanding how it is used. Labels serve the purpose of displaying information that enables a consumer to effectively identify and gather all the facts that they desire. And, as we all know, economics is fueled by supply and demand, so how product labeling impacts business economics directly relates back to this formula.

What Drives Sales

It is astonishing that roughly 60 percent of the population is driven to consume a product based on labeling alone. That must mean that there are other factors, such as aesthetics, that drive the other 40 percent. With gains that high, you can safely bet that product labeling is an effective means of making products more visible.

Packaging vs. Labeling

In the business of labeling, the main idea is to make the package as visible as possible, but there are two different types of visibility. Packaging primarily deals with the proponent of how a product looks, whereas labeling concentrates on how we look at a package. To be clear, labeling has its strength in the informative, as it displays all the information it possibly can to ensure consumers what they are purchasing. The will of packaging is merely aesthetic in nature, as it deals with the presentation of packaging as its selling point, rather than what it can tell you about the product.

Labeling Options

There are many options when it comes to labeling your product. One popular method is dry peel, in which you can peel the label off the packaging and stick it in your pocket or save it somewhere for future reference. This option may also be useful for couponing, as coupons are a huge selling point of products wherever you go.

Another method is the fold-out-label, in which the label takes on an accordion shape that can provide much more information about the product than is possible with a regular label. Last is the resealable label, which has caught on in recent years. These labels are great for things like baby wipes, food items, and personal hygiene products.

Four Factors of Marketing Importance

The first thing to know is that by labeling your product, you are making yourself credible. There is also a better overall user experience in understanding the product on a personal level to cover their needs. There is also the matter of visibility by the consumer that the labeling provides in the market. And finally, your product will be entirely unique, so people will be attracted to it and know to look out for it.

When you find yourself purchasing anything, pay close attention to the labeling, as it will tell you all you need to know. Knowing what the packaging means will give additional clues regarding the brand itself. If you remain well-versed on how product packaging affects business economics, you will always know what to look for whenever you are in the market to purchase anything.