CHAPTER 3
Facilitating the Success
of New Brands
© 2010 South-Western, a part of Cengage Learning
All rights reserved.
PowerPoint Presentation by Charlie Cook
The University of West Alabama
Eighth Edition
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 various elements underlying the creation
of effective packages.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–2
Marcom and Brand Adoption
• Product Adoption
 Is the introduction and acceptance of new ideas,
including new brands
 Is essential to long-term market success
• Marketing Communications
 Facilitate successful new product introductions
 Reduce the product failure rate (potentially 35-45%)
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–3
Adoption Process and Marcom Tools
Awareness
Class
• Free samples
and coupons
• Trade shows and
personal selling
• Advertising
• Distribution
Trier
Class
• Coupons
• Widespread
distribution
• Introductory,
low pricing
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
Repeater
Class
• Personal selling
• Advertising
• Price
• Distribution
• Product
satisfaction
• Price
3–4
Figure 3.1
Model of the Brand Adoption Process
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–5
Figure 3.2
Advertisement Illustrating the Brand Adoption Process
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–6
Brand Characteristics That Facilitate Adoption
Relative
Advantage
Complexity
Compatibility
Trialability
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
Observability
3–7
Relative Advantage
Consumer Perception
of a New Brand
versus Alternatives
Better
Performance
Time and Effort
Savings
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
Immediacy
of Reward
3–8
Figure 3.3
Advertisement
Illustrating
Relative
Advantage
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–9
Compatibility
Compatibility Factors
Affecting the Rate of
New Brand Adoption
Consumer
Needs
Personal Values
and Beliefs
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
Past Consumption
Practices
3–10
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 new-
product usage can be observed by users and others
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–11
Figure 3.4
Advertisement
Illustrating
Observability
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–12
Figure 3.5
Hypothetical Illustration of Quantifying the AdoptionInfluencing Characteristic
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–13
Brand Naming
• Brand Name
 Is a company’s unique designation or trademark,
which distinguishes its offering from other product
category entries.
• Exceptions to Naming Rules
 Some brands become successful in spite of their
names
 First brand in a new product category can be
successful regardless of its name if it offers distinct
advantages.
 Empty vessels—names can be intentionally
meaningless at inception
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–14
Brand Naming
Effects of a
Brand Name
Speed of
Brand Awareness
Overall
Brand Image
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
Brand Equity
Formation
3–15
Brand Name Fundamentals
Distinguishable
from competitors
Compatible with
desired image
Memorable and
pronounceable
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
Facilitates
consumer
learning
Suitable for
global use
3–16
Facilitating Consumer Learning
of Brand Associations
Associations and
Memory Cues
Brand Name
Suggestiveness
Made-up Brand
Names
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
Sound
Symbolism
3–17
Figure 3.6
There are many image-compatible brands in health food
sections of grocery stores.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–18
Figure 3.7
The Brand-Naming Process
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–19
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
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–20
Figure 3.8
Famous Logos
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–21
Figure 3.9
Cingular’s
Logo
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–22
Figure 3.10
The Changing Faces of Betty Crocker
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–23
Packaging
Contain and
protect product
Draw attention
to brand
Break through
competitive clutter
Functions of
the Package
Justify price
and value
Signify features
and benefits
Motivate
brand choice
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
Convey
emotionality
3–24
Packaging Structure
Color
Shape
Design
Functional, Symbolic,
and Experiential
Components of
Packaging Structure
Physical Materials
Size
Information
Labeling
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–25
The Use of Color in Packaging
• Colors
 Communicate the brand’s ability to satisfy consumer’s
psychological needs
 Have emotional effects on users
 Create perceptions of elegance and prestige by using
polished reflective surfaces
 Can have meanings that vary across different cultures
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–26
Design and Shape Cues in Packaging
• Effective Package Design
 Provides good eye flow and a point of focus
 Evokes different feelings through the choice of slope,
length, and thickness of lines—horizontal (tranquility),
vertical (strength), slanted lines (upward movement)
 Uses shapes to arouse emotions and evoke specific
connotations—curving lines (femininity), sharp lines
(masculinity)
 Uses shapes to promote positive perceptions of
volume, harmony, balance, and beauty
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–27
Packaging Size and Physical Materials
• Packaging Size
 Satisfies unique needs of various market segments
 Represents different usage situations
 Can help gain more shelf space in retail outlets
• Physical Materials
 Can increase sales and profits
 Arouse emotions and affect perceptions of product
characteristics




Metals and foils (strength, durability, quality, and prestige)
Plastics (lightness, cleanliness, cheapness)
Wood (masculinity)
Velvet (femininity)
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–28
Evaluating the Package: The VIEW Model
Visibility
Does package:
• Attract attention at the point of purchase
• Stand out on the shelf yet not to detract brand’s image
• Require special seasonal and holiday packaging
Information
Does package:
• Provide usage instructions, claimed benefits, slogans, and
supplementary information
• Stimulate trial purchases, encourage repeat purchases, and
provide correct usage instruction
Emotional
Appeal
Workability
Does package:
• Evoke the desired feeling or mood
• Properly blend informational and emotional content to
simultaneously appeal to consumers
Does package:
• Protect the product contents against breakage and pilferage
• Facilitate easy storage and handling
• Simplify consumer’s task in accessing and using the product
• Appear to be environmentally friendly
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–29
Figure 3.11
An Effective
Seasonal
Package
Design
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–30
Figure 3.12
Dutch Boy’s
Easy-to-Hold/
Open/Pour
Paint Container
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–31
Figure 3.13
Hypothetical Illustration of Quantifying the VIEW Model
Components.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–32
Figure 3.14
The Package Design Process
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
3–33