1. PowerPoint Presentation by Charlie Cook The University of West Alabama Eighth Edition © 2010 South-Western, a part of Cengage Learning All rights reserved. Facilitating the Success of New Brands CHAPTER 3

2. 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. 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 Objectives After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–2

3. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–3 Marcom and Brand Adoption Product AdoptionProduct Adoption  Is the introduction and acceptance of new ideas, including new brands  Is essential to long-term market success Marketing CommunicationsMarketing Communications  Facilitate successful new product introductions  Reduce the product failure rate (potentially 35-45%)

4. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–4 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

5. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–5 Model of the Brand Adoption Process Figure 3.1

6. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–6 Advertisement Illustrating the Brand Adoption Process Figure 3.2

7. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–7 Brand Characteristics That Facilitate Adoption Compatibility Relative Advantage Observability Trialability Complexity

8. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–8 Relative Advantage Better Performance Time and Effort Savings Immediacy of Reward Consumer Perception of a New Brand versus Alternatives

9. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–9 Advertisement Illustrating Relative Advantage Figure 3.3

10. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–10 Compatibility Consumer Needs Personal Values and Beliefs Past Consumption Practices Compatibility Factors Affecting the Rate of New Brand Adoption

11. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–11 Other Brand Characteristics That Facilitate Adoption ComplexityComplexity  An innovation’s degree of perceived difficulty TrialabilityTrialability  The extent to which an innovation can be used on a limited basis prior to making a full-blown commitment ObservabilityObservability  The degree to which the positive effects of new- product usage can be observed by users and others

12. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–12 Advertisement Illustrating Observability Figure 3.4

13. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–13 Hypothetical Illustration of Quantifying the Adoption- Influencing Characteristic Figure 3.5

14. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–14 Brand Naming Brand NameBrand Name  Is a company’s unique designation or trademark, which distinguishes its offering from other product category entries. Exceptions to Naming RulesExceptions 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

15. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–15 Brand Naming Speed of Brand Awareness Overall Brand Image Brand Equity Formation Effects of a Brand Name

16. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–16 Brand Name Fundamentals Compatible with desired image Distinguishable from competitors Suitable for global use Memorable and pronounceable Facilitates consumer learning

17. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–17 Facilitating Consumer Learning of Brand Associations Brand Name Suggestiveness Made-up Brand Names Sound Symbolism Associations and Memory Cues

18. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–18 There are many image-compatible brands in health food sections of grocery stores. Figure 3.6

19. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–19 The Brand-Naming Process Figure 3.7

20. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–20 The Role of Logos LogoLogo  Is a graphic design element related to a brand name  Not all brand names are associated with a distinct logo Good Logo DesignsGood 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

21. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–21 Famous Logos Figure 3.8

22. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–22 Cingular’s Logo Figure 3.9

23. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–23 The Changing Faces of Betty Crocker Figure 3.10

24. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–24 Packaging Motivate brand choice Functions of the Package Contain and protect product Draw attention to brand Break through competitive clutter Justify price and value Signify features and benefits Convey emotionality

25. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–25 Packaging Structure Functional, Symbolic, and Experiential Components of Packaging Structure Design Color Shape Information Labeling Physical Materials Size

26. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–26 The Use of Color in Packaging ColorsColors  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

27. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–27 Design and Shape Cues in Packaging Effective Package DesignEffective 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

28. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–28 Packaging Size and Physical Materials Packaging SizePackaging Size  Satisfies unique needs of various market segments  Represents different usage situations  Can help gain more shelf space in retail outlets Physical MaterialsPhysical 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)

29. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–29 Evaluating the Package: The VIEW Model V isibility E motional Appeal I nformation 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 Does package: Provide usage instructions, claimed benefits, slogans, and supplementary information Stimulate trial purchases, encourage repeat purchases, and provide correct usage instruction Does package: Evoke the desired feeling or mood Properly blend informational and emotional content to simultaneously appeal to consumers W orkability 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

30. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–30 An Effective Seasonal Package Design Figure 3.11

31. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–31 Dutch Boy’s Easy-to-Hold/ Open/Pour Paint Container Figure 3.12

32. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–32 Hypothetical Illustration of Quantifying the VIEW Model Components. Figure 3.13

33. © 2010 South-Western, a part of Cengage Learning. All rights reserved.3–33 The Package Design Process Figure 3.14