1. ©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. 1 1 Brand Adoption, Brand Naming, and Intellectual Property Issues 3

2. ©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. 2

3. ©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. 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 35- 45%) 3

4. ©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. Brand Adoption: Vibram Five Fingers 4

5. ©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. The Adoption Process and Marcom Tools Trier Class Coupons Widespread distribution Introductory, low pricing Repeater Class Personal selling Advertising Social Media Price Distribution Product satisfaction Price Awareness Class Free samples and coupons Trade shows and personal selling Advertising Social Media Distribution 5

6. ©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. Figure 3.1: Model of the Brand Adoption Process 6

7. ©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. Figure 3.2: Advertising Illustrating the Brand Adoption Process 7

8. ©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. Brand Characteristics That Facilitate Adoption Compatibility Relative Advantage Observability Trialability Complexity 8

9. ©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. Relative Advantage Better Performance Time and Effort Savings Immediacy of Reward Consumer Perception of a New Brand versus Alternatives 9

10. ©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. Compatibility Consumer Needs Personal Values and Beliefs Past Consumption Practices Compatibility Factors Affecting the Rate of New Brand Adoption 10

11. ©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. Other Brand Characteristics That Facilitate Adoption Complexity An innovation’s degree of perceived difficulty T rialability 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 11

12. ©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. Figure 3.3: An Advertisement Illustrating Observability 12

13. ©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. Hypothetical Illustration of Quantifying Adoption- Influencing Characteristics 13

14. ©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. Brand Naming Brand A company’s unique designation or trademark, which distinguishes its offering from the other product category entries. 14

15. ©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. Power of Brand Naming Speed of Brand Awareness Overall Brand Image Brand Equity Formation Effects of a Brand Name 15

16. ©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. 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) 16

17. ©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. Facilitating Consumer Learning of Brand Associations Brand Name Suggestiveness Made-up Brand Names Sound Symbolism Associations and Memory Cues 17

18. ©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. Figure 3.4: The Many Image-Compatible Brands in Health Food Sections of Grocery Stores 18

19. ©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. Figure 3.5: The Brand-Naming Process 19

20. ©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. 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 20

21. ©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. Figure 3.6: Examples of Logos 21

22. ©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. Figure 3.7: A Natural Design Logo 22

23. ©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. Figure 3.8: The Changing Faces of Betty Crocker 23

24. ©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. Intellectual Property (www.uspto.gov )www.uspto.gov Intellectual Property (www.uspto.gov )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)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 Request TM ” 24