Meaning : It refers to the process of preparing label.

Functions of Labelling: The various functions performed by labelling are as follows:

(i) Describe the Product and specify its Contents: A label provides complete information regarding the product. It mainly includes ingredients of the product, its usage, caution in use, care to be taken while using it, date of manufacturing, batch number, etc.

(ii) Identification of the Product or Brand: It is easier to identify a particular product among many with the help of labelling. For example, you as consumer want to select CINTHOL SOAP. The task of finding the desired soap from heap of various branded soaps becomes easier with the help of labelling.

(iii) Grading of Product: When a product has different qualities, labelling helps to find out which pack contains what type of quality. For example, Hindustan Unilever Ltd., manufactures three types of tea and to differentiate the each type of tea, the company uses Green, Red and Yellow coloured labels.

(iv) Help of Promotion of Products: The Fourth function of labelling is to promote sales. Sometimes a consumer gets encouraged to buy a product simply due to attractive label. Now-a-days labelling is used as an effective sales promoting tool.

No, I do not agree with this statement as it plays an important role for various parties. The role of advertisement becomes clear through the following facts:

(A) Importance to Manufacturers: The importance of advertisement for manufacturers is cleared from the following discussion:

(i) Enhancing Customers' Satisfaction and Confidence: Through the medium of advertisement the manufacturers spread information about their product to the consumers. Only after having information about the new products, people decide to buy them. In this way, there is an increase in customers' confidence and satisfaction.

(ii) Helpful to Increase the Demand of Existing Products: The manufacturers regularly give information about their existing products through the medium of advertisement. As a result of it, people get acquainted with those products and their manufacturers and they purchase those products time and again. When the old customers repeatedly buy the same product, it also has a positive effect on the new customers. In this way, advertisement helps in increasing the demand for the old products.

(B) Importance to Society: Main benefits accruing to society on account of advertising are as follows:

(i) Helpful to Generate More Employment: Advertising is instrumental in generating more employment opportunities and creating diverse kinds of jobs. It provides jobs to artists, screen printers, block-makers, script-writers, painter, etc. Today, advertising has become a profession. Some companies do only advertising job.

(ii) Helpful to Improve the Standard of Living: Through the medium of advertising people get information regarding new products. As people use these new and latest goods, their standard of living gets a boost. Advertising is helpful in providing employment and increasing income of the people. Both have a positive effect on their standard of living.

(C) Importance to Customers: Main advantages of advertising to the customers are as under:

(i) Reduction in Prices: Advertising stimulates demand, production is on large-scale and cost of production per unit falls. Due to fall in production cost, price of the commodity is reduced.

(ii) Knowledge of Various Products: People come to know about different kinds of products by means of advertising. Thus, the customer has a large variety of goods to choose from. He picks up the best from among them.

Definition: In the words of C.L. Boiling, 'Advertising can be described as the art of creating a demand for article or a service.'

Features: Main features of advertising are as under:

(i) Paid Form: Only that attempt of the seller on which he has spent some money to communicate information to the consumer is called advertising. If without incurring any expenditure some information relating to some product or service is published, it will not be called advertising. It may be called propaganda or publicity.

(ii) Impersonal Presentation: Advertising is non-personal presentation of information. In other words, advertiser and consumer do not come into personal contact. Advertising is a monologue and not a dialogue.

(iii) Speedy and Mass Communication: Advertising is a speedy medium of communication. Besides being speedy, its operational area is very vast. In other words, it reaches millions of people simultaneously.

(iv) Identified Sponsor: Another feature of advertising is that its sponsor can be identified. If due to some reason it is difficult to identify the sponsor, then that information cannot be called advertising. It will be called propaganda or publicity.

In Physical Distribution of products four activities are included and decisions related to these activities are taken. These four activities are as follows:

(i) Transportation: Transportation is that activity through which products are moved from one place to another. By making the products reach at desirable place increases the importance and value of those products. Many means of transportation are available, like — road, railway, air, water, pipeline etc.

(ii) Inventory: By inventory we mean the stock of raw material, semi-finished goods and finished goods held in anticipation of sales or use. How much inventory should be kept for various items? This is an important decision in Physical Distribution. The main reason why this decision is important is that if the inventory is either more or less than required, both the situations have their advantages and limitations.

(iii) Warehousing: Oftenly it is noticed that it takes some time between purchasing/ manufacturing and selling. For this time period material has to be kept in stock. Under warehousing activity following decisions regarding the inventory of material are taken:

(a) Which is a better option? (To own or to rent a warehouse)

(b) Which is the right location for a warehouse? (Nearer to factory or nearer to market).

(c) Which decision is more apposite? (To locate the warehouse at one place or at different places) (iv) Order Processing: Order Processing means the process which is followed to fulfill the material order of the customer. Different steps of an order processing are as follows:

(a) Orders placed by consumers to salesperson.

(b) Transmission of order by salesperson to company.

(c) Entry of order in Company Office.

(d) Evaluate the reputation of customer.

(e) Check inventory and prepare scheduling.

(f) Shipment of material in accordance to the order.

(g) Receive Payment.