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- Facilitating the Success
CHAPTER 3
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.
© 2010 South-Western, a part of Cengage Learning. All rights reserved. 3–2
- Marcom and Brand Adoption
• Product Adoption
Is the introduction and acceptance of new ideas,
Is
including new brands
including
Is essential to long-term market success
• Marketing Communications
Facilitate successful new product introductions
Reduce the product failure rate (potentially 35-45%)
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 3–3
- Adoption Process and Marcom Tools
Repeater
Trier
Awareness
Class
Class
Class
• Personal selling
• Coupons
• Free samples
• Advertising
and coupons • Widespread • Price
• Trade shows and distribution • Distribution
personal selling • Introductory, • Product
• Advertising low pricing satisfaction
• Price
• Distribution
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 3–4
- Model of the Brand Adoption Process
Figure 3.1
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 3–5
- Advertisement Illustrating the Brand Adoption Process
Figure 3.2
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 3–6
- Brand Characteristics That Facilitate Adoption
Relative
Advantage
Complexity
Compatibility
Observability
Trialability
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 3–7
- Relative Advantage
Consumer Perception
of a New Brand
versus Alternatives
Time and Effort
Better Immediacy
Savings
Performance of Reward
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 3–8
- Figure 3.3
Advertisement
Illustrating
Relative
Advantage
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 3–9
- Compatibility
Compatibility Factors
Affecting the Rate of
New Brand Adoption
Personal Values
Consumer Past Consumption
and Beliefs
Needs Practices
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 3–10
- Other Brand Characteristics That Facilitate
Other
Adoption
Adoption
• Complexity
An innovation’s degree of perceived difficulty
• Trialability
The extent to which an innovation can be used on a
The
limited basis prior to making a full-blown commitment
limited
• Observability
The degree to which the positive effects of new-
product usage can be observed by users and others
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 3–11
- Figure 3.4
Advertisement
Illustrating
Observability
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 3–12
- Hypothetical Illustration of Quantifying the Adoption-
Figure 3.5
Influencing Characteristic
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 3–13
- Brand Naming
• Brand Name
Is a company’s unique designation or trademark,
Is
which distinguishes its offering from other product
category entries.
category
• Exceptions to Naming Rules
Some brands become successful in spite of their
Some
names
names
First brand in a new product category can be
First
successful regardless of its name if it offers distinct
advantages.
Empty vessels—names can be intentionally
ames
© 2010 South-Western,inception
meaningless at a part of
meaningless
Cengage Learning. All rights
reserved. 3–14
- Brand Naming
Effects of a
Brand Name
Overall
Speed of Brand Equity
Brand Image
Brand Awareness Formation
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 3–15
- Brand Name Fundamentals
Distinguishable
from competitors
Facilitates
Compatible with
consumer
desired image
learning
Suitable for
Memorable and
global use
pronounceable
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 3–16
- Facilitating Consumer Learning
of Brand Associations
Associations and
Memory Cues
Made-up Brand
Brand Name Sound
Names
Suggestiveness Symbolism
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 3–17
- There are many image-compatible brands in health food
Figure 3.6
sections of grocery stores.
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 3–18
- The Brand-Naming Process
Figure 3.7
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 3–19
- The Role of Logos
• Logo
Is a graphic design element related to a brand name
Not all brand names are associated with a distinct
Not
logo
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
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 3–20
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