© 2010 South-Western, a part of Cengage Learning All rights reserved. PowerPoint Presentation by Charlie Cook The University of West Alabama Eighth Edition Facilitating the Success of New Brands CHAPTER 3 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. Chapter Objecves After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 3–2 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 3–3 Marcom and Brand Adoption Marcom and Brand Adoption • Product Adoption Product Adoption Is the introduction and acceptance of new ideas, Is the introduction and acceptance of new ideas, including new brands including new brands Is essential to long-term market success Is essential to long-term market success • Marketing Communications Marketing Communications Facilitate successful new product introductions Facilitate successful new product introductions Reduce the product failure rate (potentially 35-45%) Reduce the product failure rate (potentially 35-45%) © 2010 South-Western, a part of Cengage Learning. All rights reserved. 3–4 Adoption Process and Marcom Tools Adoption Process and Marcom Tools Trier Class • Coupons • Widespread distribution • Introductory, low pricing Repeater Class • Personal selling • Advertising • Price • Distribution • Product satisfaction • Price Awareness Class • Free samples and coupons • Trade shows and personal selling • Advertising • Distribution © 2010 South-Western, a part of Cengage Learning. All rights reserved. 3–5 Model of the Brand Adoption Process Figure 3.1 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 3–6 Advertisement Illustrating the Brand Adoption Process Figure 3.2 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 3–7 Brand Characteristics That Facilitate Adoption Brand Characteristics That Facilitate Adoption Compatibility Relative Advantage Observability Trialability Complexity © 2010 South-Western, a part of Cengage Learning. All rights reserved. 3–8 Relative Advantage Relative Advantage Better Performance Time and Effort Savings Immediacy of Reward Consumer Perception of a New Brand versus Alternatives © 2010 South-Western, a part of Cengage Learning. All rights reserved. 3–9 Advertisement Illustrating Relative Advantage Figure 3.3 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 3–10 Compatibility Compatibility Consumer Needs Personal Values and Beliefs Past Consumption Practices Compatibility Factors Affecting the Rate of New Brand Adoption [...]... © 2010 South-Western, a part of 3–29 Figure 3.11 An Effective Seasonal Package Design © 2010 South-Western, a part of 3–30 Figure 3.12 Dutch Boy’s Easy-to-Hold/ Open/Pour Paint Container © 2010 South-Western, a part of 3–31 Figure 3.13 Hypothetical Illustration of Quantifying the VIEW Model Components © 2010 South-Western, a part of 3–32 Figure 3.14 The Package Design Process © 2010 South-Western, a... Brand Associations Associations and Memory Cues Brand Name Suggestiveness Made-up Brand Names © 2010 South-Western, a part of 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 3–18 Figure 3.7 The Brand-Naming Process © 2010 South-Western, a part of 3–19 The Role of Logos • Logo Is a graphic design element... 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 3–11 Figure 3.4 Advertisement Illustrating Observability © 2010 South-Western, a part of 3–12 Figure 3.5 Hypothetical Illustration of Quantifying the AdoptionInfluencing Characteristic © 2010 South-Western, a part of... target market members Evoke positive feelings Are suited for periodic updating © 2010 South-Western, a part of 3–20 Figure 3.8 Famous Logos © 2010 South-Western, a part of 3–21 Figure 3.9 Cingular’s Logo © 2010 South-Western, a part of 3–22 Figure 3.10 The Changing Faces of Betty Crocker © 2010 South-Western, a part of 3–23 Packaging Contain and protect product Draw attention to brand Break through... be intentionally meaningless at inception © 2010 South-Western, a part of 3–14 Brand Naming Effects of a Brand Name Speed of Brand Awareness Overall Brand Image © 2010 South-Western, a part of Brand Equity Formation 3–15 Brand Name Fundamentals Distinguishable from competitors Compatible with desired image Memorable and pronounceable © 2010 South-Western, a part of Facilitates consumer learning Suitable... Package Justify price and value Signify features and benefits Motivate brand choice © 2010 South-Western, a part of 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 3–25 The Use of Color in Packaging • Colors Communicate the brand’s ability... 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 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... 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 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... 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 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 . introductions Reduce the product failure rate (potentially 3 5-4 5%) Reduce the product failure rate (potentially 3 5-4 5%) © 2010 South-Western, a part of Cengage Learning. All rights reserved. 3–4 Adoption. prior to making a full-blown commitment limited basis prior to making a full-blown commitment • Observability Observability The degree to which the positive effects of new- The degree to which. 2010 South-Western, a part of Cengage Learning. All rights reserved. 3–13 Hypothetical Illustration of Quantifying the Adoption- Influencing Characteristic Figure 3.5 © 2010 South-Western,