2: Selling Practices and Product Labeling
Ever read a label carefully on any product's package? If yes, do you know why is it necessary for all businesses to follow a certain code? Let's understand why is it important. Here we will also look at some Industry best practices and case studies examples.
Selling practices, product labeling and marketing are crucial channels for communicating with clients and maybe governed by laws and regulations.
It may also be linked to adherence to marketing and brand differentiation tactics. There are voluntary codes such as the International Chamber of Commerce (ICC)’s Consolidated Code of Advertising and Marketing Communication Practice.
The emphasis of product or service labeling is to provide accurate and sufficient information about positive and negative environmental, economic, and social aspects of the product or service people consume. Information on how to safely use a product or service, how to dispose of a product, or where to buy a product can all be found on the labeling of that product. Numerous regulations govern how information is displayed, provided, and labeled for goods and services. Non-compliance might be due to ineffective implementation or internal management systems.
An organization is supposed to conduct its operations and interactions with clients in a fair and responsible manner. In order to practice fair and ethical marketing, a company must be open and honest about the effects that its brands, goods, and services have on the economy, the environment, and society. Fair and ethical marketing also refrains from any false, discriminatory, or misleading statements and doesn't exploit a customer's understanding or lack of options.
Consumers are more likely to make reasonable choices when they have access to information about product composition, correct use, and disposal.
Industry best practices
Enterprises should follow ethical business, marketing, and advertising principles while dealing with customers, and they should do everything within their power to guarantee the high quality of the products and services they offer.
The best practices for product labeling and marketing are as follows:
1. Maintenance of Standards
Ensure that all consented or legally mandated standards for consumer health and safety, including those pertaining to health warnings and safety information, are met by the products and services they offer.
2. Disclosure of Information
Information about costs, content, safe usage, environmental factors, maintenance, storage, and disposal of goods and services should all be provided in a clear, accurate, and verifiable manner so that consumers may make educated decisions. When possible, this information should be given in a way that makes it easier for customers to compare items.
3. Fair Selling Practices
This includes not engaging in any practices that are unfair, unethical, fraudulent, or deceptive, including making false statements.
Provision of Feedback loop: Giving customers access to quick, inexpensive, efficient, and equitable non-judicial dispute resolution and redress options is important.
4. Enhancing consumers' knowledge
A consumer aware about business can:
- make informed decisions involving complex goods, services, and markets;
- better understand the economic, environmental, and social impact of their decisions;
- support sustainable consumption and initiatives to promote consumer education in areas that relate to their business activities.
Case study
The work of Patagonia
A prime example of good selling practices and product labeling is Patagonia, a clothing and outdoor gear brand from the USA. They are famous for their sustainability commitments and which is reflected in their selling practices and product labeling.
Some example of good selling practices is as follows;
Patagonia collaborates with a network of vendors who follow stringent social and environmental criteria, and the company also makes its supply chain information publicly available.
Patagonia is a member of the Fair Labor Association, and has put in place code of conduct for its factories that forbids forced labor and calls for fair pay and secure working conditions.
Patagonia provides comprehensive details regarding the components and procedures utilized in the production of its goods, as well as the related expenses on its website.
Additionally, the business runs a programme called "The Footprint Chronicles" that offers comprehensive details on the environmental effects of its products and the actions it is taking to lessen those impacts.
Overall, Patagonia's dedication to moral and open business operations and precise, enlightening product labeling is in line with sustainability standards and contributes to the company's credibility and trustworthiness with its customers.