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Brand Adoption, Brand
Naming, and Intellectual
Property Issues
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter Objectives
After reading this chapter you should be able to:
1. Appreciate marcom’s role in facilitating the introduction of
new brands.
2. Explain the innovation-related characteristics that influence
adoption of new brands.
3. Understand the role performed by brand names in
enhancing the success of new brands.
4. Explain the activities involved in the brand-naming process.
5. Appreciate the role of logos.
6. Describe the following intellectual property rights
associated with brands: patents, copyrights, and trademarks.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Marcom and Brand Adoption
• Product Adoption
• The introduction and acceptance of new ideas,
including new brands
• Essential to long-term market success
• Marketing Communications
• Facilitate successful new product introductions
• Reduce the product failure rate (potentially 3545%)
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Brand Adoption: Vibram Five Fingers
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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The Adoption Process and Marcom Tools
Awareness
Class
•Free samples
and coupons
•Trade shows and
personal selling
•Advertising
•Social Media
•Distribution
Trier Class
Repeater Class
•Coupons
•Widespread
distribution
•Introductory,
low pricing
•Personal selling
•Advertising
•Social Media
•Price
•Distribution
•Product
satisfaction
•Price
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Figure 3.1: Model of the Brand Adoption
Process
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Figure 3.2: Advertising Illustrating the Brand
Adoption Process
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Brand Characteristics That Facilitate Adoption
Relative
Advantage
Complexity
Compatibility
Trialability
Observability
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Relative Advantage
Consumer Perception
of a New Brand
versus Alternatives
Better
Performance
Time and Effort
Savings
Immediacy
of Reward
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Compatibility
Compatibility Factors
Affecting the Rate of
New Brand Adoption
Consumer
Needs
Personal Values
and Beliefs
Past Consumption
Practices
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Other Brand Characteristics That Facilitate
Adoption
• Complexity
• An innovation’s degree of perceived difficulty
• Trialability
• The extent to which an innovation can be used on a
limited basis prior to making a full-blown
commitment
• Observability
• The degree to which the positive effects of newproduct usage can be observed by users and others
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Figure 3.3: An Advertisement Illustrating
Observability
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Hypothetical Illustration of Quantifying AdoptionInfluencing Characteristics
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Brand Naming
Brand
A company’s unique designation or
trademark, which distinguishes its offering
from the other product category entries.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Power of Brand Naming
Effects of a
Brand Name
Speed of
Brand Awareness
Overall
Brand Image
Brand Equity
Formation
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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What Constitutes a Good Brand Name?
• Distinguishes the brand from competitive offerings (e.g.,
JetBlue, Spirit Airlines) (yet “L2s”??)
• Facilitates consumer learning by describing the brand and its
attributes (e.g., “Healthy Choice,” “Diehard,” “Beauty Rest,”
“Crocs”)
• Achieves compatibility with a brand’s desired image and with
its product design or packaging
• Is memorable and easy to pronounce and spell (e.g., Zune)
(any exceptions??)
• Is suitable for global use (e.g., Exxon)
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Facilitating Consumer Learning of Brand
Associations
Associations and
Memory Cues
Brand Name
Suggestiveness
Made-up Brand
Names
Sound
Symbolism
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Figure 3.4: The Many Image-Compatible Brands in
Health Food Sections of Grocery Stores
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Figure 3.5: The Brand-Naming Process
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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The Role of Logos
• Logo
• Is a graphic design element related to a brand name
• Not all brand names are associated with a distinct logo
• Good Logo Designs
•
•
•
•
•
Are natural—neither too simple nor too complex
Are readily recognized
Convey same meaning to all target market members
Evoke positive feelings
Are suited for periodic updating
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Figure 3.6: Examples of Logos
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Figure 3.7: A Natural Design Logo
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Figure 3.8: The Changing Faces of Betty
Crocker
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Intellectual Property (www.uspto.gov )
1. Patents (ideas, inventions)
•
•
•
•
20 years, not renewable, can renew improvements
Utility, design, and plant patents
Filing fee: $190 small entity; $380 normal (utility patent)
Example: “U.S. Patents 4,000,000 and 4,000,001”
2. Copyrights (form of idea) (www.copyright.gov)
• Must be in a tangible medium (e.g., music that is scored: sheet music)
• Life of author plus 70 years; $35 (online), form, 2 copies
• If “work for hire,” 95 years from date of publication or 120 years from its
creation, whichever expires first
• “©Campbell’s Soup”
3. Trademarks (product ID)
• 10 year renewable periods; $275-$325 electronic processing fee
• Registered: “Campbell’s®“ or Pending: “Healthy RequestTM”
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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