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 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.
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 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%)

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 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

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Figure 3.1 Model of the Brand Adoption Process

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Figure 3.2 Advertisement Illustrating the Brand Adoption Process

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 Brand Characteristics That Facilitate Adoption

Relative
Advantage

Compatibility Complexity

Trialability Observability

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 Relative Advantage

Consumer Perception
of a New Brand
versus Alternatives

Better Time and Effort Immediacy

Performance Savings of Reward

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Figure 3.3

Advertisement
Illustrating
Relative
Advantage

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 Compatibility

Compatibility Factors
Affecting the Rate of
New Brand Adoption

Consumer Personal Values Past Consumption

Needs and Beliefs Practices

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 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

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Figure 3.4

Advertisement
Illustrating
Observability

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Figure 3.5 Hypothetical Illustration of Quantifying the Adoption-
Influencing Characteristic

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 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

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 Brand Naming

Effects of a
Brand Name

Speed of Overall Brand Equity

Brand Awareness Brand Image Formation

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 Brand Name Fundamentals

Distinguishable
from competitors

Facilitates
Compatible with
consumer
desired image
learning

Memorable and Suitable for

pronounceable global use

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 Facilitating Consumer Learning
of Brand Associations

Associations and
Memory Cues

Brand Name Made-up Brand Sound

Suggestiveness Names Symbolism

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Figure 3.6 There are many image-compatible brands in health food
sections of grocery stores.

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Figure 3.7 The Brand-Naming Process

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 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

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Figure 3.8 Famous Logos

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Figure 3.9
Cingular’s
Logo

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Figure 3.10 The Changing Faces of Betty Crocker

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 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

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 Packaging Structure

Color

Design Shape

Functional, Symbolic,
and Experiential
Components of
Packaging Structure

Size Physical Materials

Information
Labeling

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 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

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 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

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 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)

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 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 brand’s 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 consumer’s task in accessing and using the product
• Appear to be environmentally friendly

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Figure 3.11

An Effective
Seasonal
Package
Design

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Figure 3.12

Dutch Boy’s
Easy-to-Hold/
Open/Pour
Paint Container

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Figure 3.13 Hypothetical Illustration of Quantifying the VIEW Model
Components.

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Figure 3.14 The Package Design Process

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