Marketing Communications - Chapter 3 potx

© 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
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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%)
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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
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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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reserved.
3–7
Brand Characteristics That Facilitate Adoption
Brand Characteristics That Facilitate Adoption
Compatibility
Relative
Advantage
Observability
Trialability
Complexity
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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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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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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
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3–12
Advertisement
Illustrating
Observability
Figure 3.4
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Cengage Learning. All rights
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3–13
Hypothetical Illustration of Quantifying the Adoption-
Influencing Characteristic
Figure 3.5
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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
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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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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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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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3–18
There are many image-compatible brands in health food
sections of grocery stores.
Figure 3.6
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3–19
The Brand-Naming Process
Figure 3.7
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Cengage Learning. All rights
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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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3–21
Famous Logos
Figure 3.8
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3–22
Cingular’s
Logo
Figure 3.9
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3–23
The Changing Faces of Betty Crocker
Figure 3.10
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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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3–25
Packaging Structure
Packaging Structure
Functional, Symbolic,
and Experiential
Components of
Packaging Structure
Design

Color
Shape
Information
Labeling
Physical Materials
Size