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© 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 Objecves
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
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Cengage Learning. All rights
reserved.
3–6
Advertisement Illustrating the Brand Adoption Process
Figure 3.2
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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
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Cengage Learning. All rights
reserved.
3–9
Advertisement
Illustrating
Relative
Advantage
Figure 3.3
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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
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Cengage Learning. All rights
reserved.
3–11
Other Brand Characteristics That Facilitate
Other Brand Characteristics That Facilitate
Adoption
Adoption

Complexity
Complexity

An innovation’s degree of perceived difficulty
An innovation’s degree of perceived difficulty

Trialability
Trialability

The extent to which an innovation can be used on a
The extent to which an innovation can be used on a
limited basis 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 the positive effects of new-
product usage can be observed by users and others
product usage can be observed by users and others
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved.
3–12
Advertisement
Illustrating
Observability
Figure 3.4
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Cengage Learning. All rights
reserved.
3–13
Hypothetical Illustration of Quantifying the Adoption-
Influencing Characteristic
Figure 3.5
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Cengage Learning. All rights
reserved.
3–14
Brand Naming
Brand Naming

Brand Name
Brand Name

Is a company’s unique designation or trademark,

Is a company’s unique designation or trademark,
which distinguishes its offering from other product
which distinguishes its offering from other product
category entries.
category entries.

Exceptions to Naming Rules
Exceptions to Naming Rules

Some brands become successful in spite of their
Some brands become successful in spite of their
names
names

First brand in a new product category can be
First brand in a new product category can be
successful regardless of its name if it offers distinct
successful regardless of its name if it offers distinct
advantages.
advantages.

Empty vessels
Empty vessels
—n
—n
ames can be intentionally
ames can be intentionally
meaningless at inception
meaningless at inception
© 2010 South-Western, a part of

Cengage Learning. All rights
reserved.
3–15
Brand Naming
Brand Naming
Speed of
Brand Awareness
Overall
Brand Image
Brand Equity
Formation
Effects of a
Brand Name
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Cengage Learning. All rights
reserved.
3–16
Brand Name Fundamentals
Brand Name Fundamentals
Compatible with
desired image
Distinguishable
from competitors
Suitable for
global use
Memorable and
pronounceable
Facilitates
consumer
learning

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Cengage Learning. All rights
reserved.
3–17
Facilitating Consumer Learning
Facilitating Consumer Learning
of Brand Associations
of Brand Associations
Brand Name
Suggestiveness
Made-up Brand
Names
Sound
Symbolism
Associations and
Memory Cues
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Cengage Learning. All rights
reserved.
3–18
There are many image-compatible brands in health food
sections of grocery stores.
Figure 3.6
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Cengage Learning. All rights
reserved.
3–19
The Brand-Naming Process
Figure 3.7
© 2010 South-Western, a part of

Cengage Learning. All rights
reserved.
3–20
The Role of Logos
The Role of Logos

Logo
Logo

Is a graphic design element related to a brand name
Is a graphic design element related to a brand name

Not all brand names are associated with a distinct
Not all brand names are associated with a distinct
logo
logo

Good Logo Designs
Good Logo Designs

Are natural
Are natural


neither too simple nor too complex
neither too simple nor too complex

Are readily recognized
Are readily recognized


Convey same meaning to all target market members
Convey same meaning to all target market members

Evoke positive feelings
Evoke positive feelings

Are suited for periodic updating
Are suited for periodic updating
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Cengage Learning. All rights
reserved.
3–21
Famous Logos
Figure 3.8
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Cengage Learning. All rights
reserved.
3–22
Cingular’s
Logo
Figure 3.9
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Cengage Learning. All rights
reserved.
3–23
The Changing Faces of Betty Crocker
Figure 3.10
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved.

3–24
Packaging
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
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Cengage Learning. All rights
reserved.
3–25
Packaging Structure
Packaging Structure
Functional, Symbolic,
and Experiential
Components of
Packaging Structure
Design

Color
Shape
Information
Labeling
Physical Materials
Size

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