CHAPTER 3

Facilitating the Success

of New Brands

2010 South-Western, a part of Cengage Learning PowerPoint Presentation by Charlie Cook

All rights reserved. The University of West Alabama
Eighth Edition
 Chapter Objectives
After reading this chapter you should be able to:
1. Appreciate marcoms 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. 32
 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. 33

 Adoption Process and Marcom Tools

Awareness Trier Repeater

Class Class Class
Personal selling
Free samples Coupons
Advertising
and coupons Widespread Price
Trade shows and distribution Distribution
personal selling Introductory, Product
Advertising low pricing satisfaction
Distribution Price

2010 South-Western, a part of Cengage Learning. All rights reserved. 34

Figure 3.1 Model of the Brand Adoption Process

2010 South-Western, a part of Cengage Learning. All rights reserved. 35

Figure 3.2 Advertisement Illustrating the Brand Adoption Process

2010 South-Western, a part of Cengage Learning. All rights reserved. 36

 Brand Characteristics That Facilitate Adoption

Relative
Advantage

Compatibility Complexity

Trialability Observability

2010 South-Western, a part of Cengage Learning. All rights reserved. 37

 Relative Advantage

Consumer Perception
of a New Brand
versus Alternatives

Better Time and Effort Immediacy

Performance Savings of Reward

2010 South-Western, a part of Cengage Learning. All rights reserved. 38

Figure 3.3

Advertisement
Illustrating
Relative
Advantage

2010 South-Western, a part of Cengage Learning. All rights reserved. 39

 Compatibility

Compatibility Factors
Affecting the Rate of
New Brand Adoption

Consumer Personal Values Past Consumption

Needs and Beliefs Practices

2010 South-Western, a part of Cengage Learning. All rights reserved. 310

 Other Brand Characteristics That Facilitate
Adoption
Complexity
An innovations 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. 311

Figure 3.4

Advertisement
Illustrating
Observability

2010 South-Western, a part of Cengage Learning. All rights reserved. 312

Figure 3.5 Hypothetical Illustration of Quantifying the Adoption-
Influencing Characteristic

2010 South-Western, a part of Cengage Learning. All rights reserved. 313

 Brand Naming
Brand Name
Is a companys 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 vesselsnames can be intentionally
meaningless at inception

2010 South-Western, a part of Cengage Learning. All rights reserved. 314

 Brand Naming

Effects of a
Brand Name

Speed of Overall Brand Equity

Brand Awareness Brand Image Formation

2010 South-Western, a part of Cengage Learning. All rights reserved. 315

 Brand Name Fundamentals

Distinguishable
from competitors

Facilitates
Compatible with
consumer
desired image
learning

Memorable and Suitable for

pronounceable global use

2010 South-Western, a part of Cengage Learning. All rights reserved. 316

 Facilitating Consumer Learning
of Brand Associations

Associations and
Memory Cues

Brand Name Made-up Brand Sound

Suggestiveness Names Symbolism

2010 South-Western, a part of Cengage Learning. All rights reserved. 317

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. 318

Figure 3.7 The Brand-Naming Process

2010 South-Western, a part of Cengage Learning. All rights reserved. 319

 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 naturalneither 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. 320

Figure 3.8 Famous Logos

2010 South-Western, a part of Cengage Learning. All rights reserved. 321

Figure 3.9
Cingulars
Logo

2010 South-Western, a part of Cengage Learning. All rights reserved. 322

Figure 3.10 The Changing Faces of Betty Crocker

2010 South-Western, a part of Cengage Learning. All rights reserved. 323

 Packaging

Contain and
protect product
Draw attention
to brand

Break through
competitive clutter

Functions of Justify price

the Package and value

Signify features
and benefits

Convey
emotionality
Motivate
brand choice

2010 South-Western, a part of Cengage Learning. All rights reserved. 324

 Packaging Structure

Color

Design Shape

Functional, Symbolic,
and Experiential
Components of
Packaging Structure

Size Physical Materials

Information
Labeling

2010 South-Western, a part of Cengage Learning. All rights reserved. 325

 The Use of Color in Packaging
Colors
Communicate the brands ability to satisfy consumers
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. 326

 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 lineshorizontal (tranquility),
vertical (strength), slanted lines (upward movement)
Uses shapes to arouse emotions and evoke specific
connotationscurving 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. 327

 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. 328

 Evaluating the Package: The VIEW Model
Does package:
Attract attention at the point of purchase
Visibility Stand out on the shelf yet not to detract brands image
Require special seasonal and holiday packaging

Does package:
Provide usage instructions, claimed benefits, slogans, and
Information supplementary information
Stimulate trial purchases, encourage repeat purchases, and
provide correct usage instruction

Does package:
Emotional Evoke the desired feeling or mood
Properly blend informational and emotional content to
Appeal simultaneously appeal to consumers

Does package:
Protect the product contents against breakage and pilferage
Workability Facilitate easy storage and handling
Simplify consumers task in accessing and using the product
Appear to be environmentally friendly

2010 South-Western, a part of Cengage Learning. All rights reserved. 329

Figure 3.11

An Effective
Seasonal
Package
Design

2010 South-Western, a part of Cengage Learning. All rights reserved. 330

Figure 3.12

Dutch Boys
Easy-to-Hold/
Open/Pour
Paint Container

2010 South-Western, a part of Cengage Learning. All rights reserved. 331

Figure 3.13 Hypothetical Illustration of Quantifying the VIEW Model
Components.

2010 South-Western, a part of Cengage Learning. All rights reserved. 332

Figure 3.14 The Package Design Process

2010 South-Western, a part of Cengage Learning. All rights reserved. 333