Chapter Seven
Facilitation of Product
Adoption, Brand Naming, and
Packaging
 2007 Thomson South-Western
Marcom and New Product Adoption
• Introducing new products is essential for most
companies’ success and long-term growth
– Forced obsolescence
• New idea and product failure-rate estimated 3545%
• Marketing communications facilitate successful
new product introductions and reduce the
product failure rate
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New-Product Adoption Process
Model
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New-Product Adoption Process Model
Three stages of adopting a new product
Awareness Class
Trier Class
Repeater Class
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New-Product Adoption Process Model
Awareness Class
Free
Samples
Coupons
Advertising
Distribution
• Variables: free samples, coupons, advertising,
and distribution
• Successful introduction of new products
requires an effective advertising
campaign, widespread product
distribution, and extensive couponing and
sampling
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New-Product Adoption Process Model
Trier Class
Coupons
Distribution
Price
• Variables: coupons, distribution, and price
• Once the consumer becomes aware of a
new product, there is an increased
probability that he will actually try the new
offering
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New-Product Adoption Process
Model
Repeater Class
Personal
Selling
Advertising
Price
Distribution
Satisfaction
• Variables: Personal Selling, Advertising, Distribution,
Satisfaction and price
• Once the consumer has tried a new product,
repeat purchases are largely determined by
product satisfaction
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Adoption Process
Relative
Advantage
Product
Characteristics
That Facilitate
Adoption
Compatibility
Observability
Trialability
Complexity
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Relative Advantage
• A product innovation is perceived as better than
existing alternatives
• Positively correlated with an innovation’s
adoption rate
• Exist when a new product offers:
– Better performance, increased comfort, saving in time
and effort, or immediacy of reward
– Existing alternatives begin to lose share
• Consider mobile phones vs. landlines; digital
cameras vs. 35mm film cameras
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Compatibility
• An innovation is perceived to fit into a person’s way
of doing things
• The greater compatibility, the more rapid a
product’s rate of adoption
• Overcome perception of incompatibility through
heavy advertising to persuade consumers
• Consider new releases of software – always
compatible with older releases and data files made
with older releases
• Consider UHT milk and refrigerated milk
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Complexity
• An innovation’s degree of perceived
difficulty
• The more difficult, the slower the
rate of adoption
• Consider PCs when they first hit the
market
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Trialability
• An innovation can be used on a limited
basis prior to making a full blown
commitment
• The trial experience serves to reduce
the risk of a consumer’s being
dissatisfied with a product after having
permanently committed to it through
outright purchase
• Example – Car Purchases
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Observability
• The product user or other people can
observe the positive effects of new
product usage
• Higher the visibility, more rapid the
adoption rate
• Example – Nike Shox
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Quantifying Adoption Potential
The Chevy Volt
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Quantifying Adoption Potential
Characteristic
Importance (I)
Evaluation (E)
IXE
Relative
Advantage
Compatibility
Complexity
Trialability
Observability
TOTAL SCORE
Importance : Scale – 1 (least important) – 5 (Most Important)
Evaluation: Scale – minus 5 (most unfavorable) – plus 5 (very
favorable); 0 indicates neither favorable nor unfavorable i.e. the car
measures neither very favorably nor unfavorably on that attribute
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Diffusion Process
• Concerned with the broader issue of how an
innovation is communicated and adopted
throughout the marketplace
• The process
of spreading Late
out
Early
Majority
Majority
• Adopter
Early categories
(34%)
(34%)
– Five different
type of consumers
Adopters
Laggards
• Innovators 2.5%; Early Adopters 13.5%; Early Majority 34%;
(13.5%)
(16%)
Late Majority 34%; Laggards 16%
– Normal distribution
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Managing the Diffusion Process
Objectives
1. Secure sales quickly
- rapid takeoff
2. Achieve rapid acceleration
- rapid acceleration
3. Secure maximum sales potential
- maximum penetration
4. Maintain sales as long as possible
- long-run franchise
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Securing Rapid Diffusion
The Chevy Volt
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Securing Rapid Diffusion
The Chevy Volt
• What promotion strategies would you
employ to
– Achieve Rapid Take-off
– Achieve Rapid Acceleration
– Secure Maximum Sales Potential
– Maintain Sales as long as possible
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Managing the Diffusion Process
Rapid takeoff can be facilitated by:
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Managing the Diffusion Process
Rapid acceleration accomplished by:
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Managing the Diffusion Process
Maximum penetration approached by:
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Managing the Diffusion Process
Long-run franchise maintained by:
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Stimulating
Word of Mouth Influence
• Impersonal sources: information
received from television, magazines, the
Internet, and other mass-media sources
• Personal sources: word-of-mouth
influence from friends, acquaintances, and
from business associates
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Strong and Weak Ties
• People are connected in networks of
interpersonal relationships.
Tie Strength
Weak
Strong
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Opinion Leader
• A person who frequently influences other
individuals’ attitudes or overt behavior
• An informer, persuader, and confirmer
• Influence is typically limited to one or
several consumption topics
• Influence moves horizontally through a
social class
• Generally an Early Adopter
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Opinion Leaders
Characteristics
•
•
•
•
•
More cosmopolitan
More gregarious
Slightly higher socioeconomics status
Generally more innovative
Willing to act differently
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Opinion Leaders
Market Mavens
Individuals who have information about
many kinds of products, places to shop,
and other facets of markets, and initiate
discussions with consumers and respond
to requests from customers from market
information.
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Stimulating
Word of Mouth Influence
• Positive word-of-mouth communication is
critical in the success of a new product of
service
• Unfavorable WOM has devastating effects
because consumers seem to place more
weight on negative information in making
evaluations
29
Creating “Buzz”
• The systematic and organized effort to
encourage people to talk favorably about a
particular item (a product, service, or specific
brand) and to recommend its usage to others.
• Find opinion leaders who can become
‘cheerleaders’ – practice is called ‘seeding’
• ‘Kuchikomi’ the WOM network of teenage girls in
Japan – Tamagotchi
• Guerilla Marketing, Street Marketing, Viral
Marketing – all designed to generate buzz
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Creating an Epidemic
• The law of the few
– A few well connected people required e.g. opinion
leaders, market mavens
• The stickiness factor
– The message must be memorable
• The power of context
– Circumstances have to be just right for the message
to spread
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Igniting Explosive Self-Generating
Demand
•
•
•
•
•
•
Design the product to be unique or visible.
Select and seed the vanguard.
Ration supply.
Use celebrity icons.
Tap the power of lists – get on a list somewhere
Nurture the grass roots
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Brand Naming
Brand
A company’s unique designation or
trademark, which distinguishes its
offering from other product category
entries.
33
Power of Brand Name
• Affects the speed with which
consumers become aware of the
brand
• Influences the brand’s image
• Plays major role in brand-equity
information
34
What Constitutes
a Good Brand Name?
• Distinguish the brand from competitive offerings.
• Describe the brand and its attributes.
• Achieve compatibility with a brand’s desired
image and with its product design or packaging.
• Be memorable and easy to pronounce and
spell.
• Can be trademarked
• Consistent in meaning when used in other
countries / cultures
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Are these good brand names?
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Brand name gaffes
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Brand name gaffes
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Exceptions to the “Rules”
• Some brands become successful in spite of
their names
• The first brand in a new product category can
be successful regardless of its name if it offers
distinct advantages.
• Brand Managers sometimes choose names
that are intentionally meaningless at inception,
like “Lucent Technologies.”
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The Brand Naming Process
Step 1: Specify Objectives for the Brand Name
Step 2: Create Candidate Brand Names
Step 3: Evaluate Candidates
Step 4: Choose a Brand Name
Step 5: Register Trademark
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The Role of Logos
• Graphic design element that is related to
the brand name
• Companies use logos with or without
brand names
• Not all brand names possess a distinct
logo but many do
e.g., the Nike swoosh, Ralph Lauren’s Polo
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Good Logos
• Recognized readily
• Convey essentially the same meaning to
all target members
• Evoke positive feelings
• Best strategy is to choose a design that is
moderately elaborate rather than too
simple or too complex
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The Role of Logos
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The Role of Logos
Cingular’s
logo
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Functions of the Package
• Contain and protect the product
• Draw attention to a brand
• Break through competitive clutter at the
point of purchase
• Justify price/value to the consumer
• Signify brand features and benefits
• Motivate consumers’ brand choices
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Packaging Structure
• Sensation Transference: a tendency to
impute characteristics from a package to
the brand itself.
• Gestalt-consumers react to the unified
whole of the package not the individual
parts.
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Issues in Packaging
Color
Design and Shape
Physical
Materials
Packaging Size
Product Information
on Package
* VIEW Model (Visibility, Information, Emotional
appeal, Workability)
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Packaging Structure
Color
Design,Shape
Size
Physical Materials
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The Use of Color
Color
Design, Shape
Size
Physical Materials
• Communicate quality, taste, and product’s ability
to satisfy psychological needs
• Affect people emotionally
• Add elegance, prestige to products by using
polished reflective surface
• Meaning of color varies from culture to culture
49
Meanings of Colors
• What do you associate
with Red?
• Purple
• With white?
• With gray?
• Good tasting soft
drinks
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Design and Shape Cues
Color
Design, Shape
Size
Physical Materials
• Effective package design provides good eye flow
and a point of focus
• Evoke different feeling through the choice of
slope, length, and thickness of lines
– Horizontal(tranquillity), Vertical(strength), Slanted
lines(upward movement)
• Shapes also arouse certain emotions and have
specific connotations
– Curving lines(femininity), Sharp lines(masculinity)
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Packaging Size
Color
Design, Shape
Size
Physical Materials
• Satisfy the unique needs of various market
segments
• Represent different usage situations
• Gain more shelf space in retail outlets
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Physical Materials
Color
Design, Shape
Size
Physical Materials
• The most important consideration should be the
marketing-communications implications of the
materials chosen rather than cost
• Can arouse consumer emotions
– Metal(strength, durability, coldness)
– Plastics(lightness, cleanliness, cheapness)
– Wood(masculinity), Velvet(femininity)
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Evaluating the Package:
The VIEW Model
Visibility
Information
Emotional Appeal
Workability
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The VIEW Model
Visibility: An
Effective
Seasonal
Package
Design
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Evaluating the Package:
The VIEW Model
Visibility
• Ability of a package to attract attention at
the point of purchase
• To have a package stand out on the shelf
yet not to detract brand’s image
• Special seasonal and holiday packaging
as a way of attracting attention
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Evaluating the Package:
The VIEW Model
Information
• Product usage instructions, claimed benefits,
slogans, and supplementary information
• Avoid cluttering the package with excess
information
• Useful for
– Stimulating trial purchases
– Encouraging repeat purchase behavior
– providing correct usage instruction
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Information:
Frito Lay’s
Smart
Snack
Label
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Evaluating the Package:
The VIEW Model
Emotional Appeal
• The ability of a package to evoke a desired
feeling or mood
• CPM vs. HEM
– Some packages emphasize informational
content, while others heavily emphasize
emotional content
• Blend informational and emotional content so as
to simultaneously appeal to consumers
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Evaluating the Package:
The VIEW Model
The changing faces of Betty Crocker
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Evaluating the Package:
The VIEW Model
Workability
How a package functions (Does it…)
• Protect the product contents?
• Simplify the consumer’s task in accessing and
using the product?
• Protect retailers against unintentional breakage
from consumer handling and from pilferage?
• Is the packaging environmentally friendly?
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Dutch Boy’s
“Workable”
Package
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Important issues in packaging
• Too much packaging
• Environmentally-friendly packaging
• Smart packaging (RFIDs)
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