Brand Names, Logos, Packages, and Point-of-Purchase Materials

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Chapter Seven
Facilitation of Product Adoption, Brand Naming,
and Packaging
? 2007 Thomson South-Western
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Marcom and New Product Adoption

• Introducing new products is essential for most
  companies success and long-term growth
• Forced obsolescence
• New idea and product failure-rate estimated
  35-45
• Marketing communications facilitate successful
  new product introductions and reduce the product
  failure rate

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New-Product Adoption Process Model
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New-Product Adoption Process Model

• Three stages of adopting a new product

Awareness Class
Trier Class
Repeater Class
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New-Product Adoption Process Model
Free Samples
Awareness Class
Advertising
Coupons
Distribution

• Variables free samples, coupons, advertising,
  and distribution
• Successful introduction of new products requires
  an effective advertising campaign, widespread
  product distribution, and extensive couponing and
  sampling

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New-Product Adoption Process Model
Price
Distribution
Coupons
Trier Class

• Variables coupons, distribution, and price
• Once the consumer becomes aware of a new product,
  there is an increased probability that he will
  actually try the new offering

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New-Product Adoption Process Model

• Repeater Class

Personal Selling
Advertising
Price
Distribution
Satisfaction

• Variables Personal Selling, Advertising,
  Distribution, Satisfaction and price
• Once the consumer has tried a new product, repeat
  purchases are largely determined by product
  satisfaction

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Adoption Process
Relative Advantage
Observability
Product Characteristics That Facilitate Adoption
Compatibility
Complexity
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Relative Advantage

• A product innovation is perceived as better than
  existing alternatives
• Positively correlated with an innovations
  adoption rate
• Exist when a new product offers
• Better performance, increased comfort, saving in
  time and effort, or immediacy of reward
• Existing alternatives begin to lose share
• Consider mobile phones vs. landlines digital
  cameras vs. 35mm film cameras

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Compatibility

• An innovation is perceived to fit into a persons
  way of doing things
• The greater compatibility, the more rapid a
  products rate of adoption
• Overcome perception of incompatibility through
  heavy advertising to persuade consumers
• Consider new releases of software always
  compatible with older releases and data files
  made with older releases
• Consider UHT milk and refrigerated milk

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Complexity

• An innovations degree of perceived difficulty
• The more difficult, the slower the rate of
  adoption
• Consider PCs when they first hit the market

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Trialability

• An innovation can be used on a limited basis
  prior to making a full blown commitment
• The trial experience serves to reduce the risk of
  a consumers being dissatisfied with a product
  after having permanently committed to it through
  outright purchase
• Example Car Purchases

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Observability

• The product user or other people can observe the
  positive effects of new product usage
• Higher the visibility, more rapid the adoption
  rate
• Example Nike Shox

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Quantifying Adoption PotentialThe Chevy Volt
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Quantifying Adoption Potential
Characteristic Importance (I) Evaluation (E) I X E
Relative Advantage
Compatibility
Complexity
Trialability
Observability
TOTAL SCORE
Importance Scale 1 (least important) 5
(Most Important) Evaluation Scale minus 5
(most unfavorable) plus 5 (very favorable) 0
indicates neither favorable nor unfavorable i.e.
the car measures neither very favorably nor
unfavorably on that attribute
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Diffusion Process

• Concerned with the broader issue of how an
  innovation is communicated and adopted throughout
  the marketplace
• The process of spreading out
• Adopter categories
• Five different type of consumers
• Innovators 2.5 Early Adopters 13.5 Early
  Majority 34 Late Majority 34 Laggards 16
• Normal distribution

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Managing the Diffusion Process

• Objectives

1. Secure sales quickly - rapid takeoff
2. Achieve rapid acceleration - rapid
acceleration
3. Secure maximum sales potential - maximum
penetration
4. Maintain sales as long as possible -
long-run franchise
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Securing Rapid DiffusionThe Chevy Volt
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Securing Rapid DiffusionThe Chevy Volt

• What promotion strategies would you employ to
• Achieve Rapid Take-off
• Achieve Rapid Acceleration
• Secure Maximum Sales Potential
• Maintain Sales as long as possible

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Managing the Diffusion Process

• Rapid takeoff can be facilitated by

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Managing the Diffusion Process

• Rapid acceleration accomplished by

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Managing the Diffusion Process

• Maximum penetration approached by

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Managing the Diffusion Process

• Long-run franchise maintained by

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Stimulating Word of Mouth Influence

• Impersonal sources information received from
  television, magazines, the Internet, and other
  mass-media sources
• Personal sources word-of-mouth influence from
  friends, acquaintances, and from business
  associates

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Strong and Weak Ties

• People are connected in networks of interpersonal
  relationships.
• Tie Strength

Weak
Strong
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Opinion Leader

• A person who frequently influences other
  individuals attitudes or overt behavior
• An informer, persuader, and confirmer
• Influence is typically limited to one or several
  consumption topics
• Influence moves horizontally through a social
  class
• Generally an Early Adopter

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Opinion Leaders

• Characteristics
• More cosmopolitan
• More gregarious
• Slightly higher socioeconomics status
• Generally more innovative
• Willing to act differently

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Opinion Leaders

• Market Mavens
• Individuals who have information about
• many kinds of products, places to shop,
• and other facets of markets, and initiate
• discussions with consumers and respond
• to requests from customers from market
• information.

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Stimulating Word of Mouth Influence

• Positive word-of-mouth communication is critical
  in the success of a new product of service
• Unfavorable WOM has devastating effects because
  consumers seem to place more weight on negative
  information in making evaluations

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Creating Buzz

• The systematic and organized effort to encourage
  people to talk favorably about a particular item
  (a product, service, or specific brand) and to
  recommend its usage to others.
• Find opinion leaders who can become
  cheerleaders practice is called seeding
• Kuchikomi the WOM network of teenage girls in
  Japan Tamagotchi
• Guerilla Marketing, Street Marketing, Viral
  Marketing all designed to generate buzz

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Creating an Epidemic

• The law of the few
• A few well connected people required e.g. opinion
  leaders, market mavens
• The stickiness factor
• The message must be memorable
• The power of context
• Circumstances have to be just right for the
  message to spread

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Igniting Explosive Self-Generating Demand

• Design the product to be unique or visible.
• Select and seed the vanguard.
• Ration supply.
• Use celebrity icons.
• Tap the power of lists get on a list somewhere
• Nurture the grass roots

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Brand Naming

• Brand
• A companys unique designation or
• trademark, which distinguishes its
• offering from other product category
• entries.

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Power of Brand Name

• Affects the speed with which consumers become
  aware of the brand
• Influences the brands image
• Plays major role in brand-equity information

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What Constitutes a Good Brand Name?

• Distinguish the brand from competitive offerings.
• Describe the brand and its attributes.
• Achieve compatibility with a brands desired
  image and with its product design or packaging.
• Be memorable and easy to pronounce and spell.
• Can be trademarked
• Consistent in meaning when used in other
  countries / cultures

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Are these good brand names?
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Brand name gaffes
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Brand name gaffes
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Exceptions to the Rules

• Some brands become successful in spite of their
  names
• The first brand in a new product category can be
  successful regardless of its name if it offers
  distinct advantages.
• Brand Managers sometimes choose names that are
  intentionally meaningless at inception, like
  Lucent Technologies.

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The Brand Naming Process

• Step 1 Specify Objectives for the Brand Name

Step 2 Create Candidate Brand Names
Step 3 Evaluate Candidates
Step 4 Choose a Brand Name
Step 5 Register Trademark
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The Role of Logos

• Graphic design element that is related to the
  brand name
• Companies use logos with or without brand names
• Not all brand names possess a distinct logo but
  many do
• e.g., the Nike swoosh, Ralph Laurens Polo

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Good Logos

• Recognized readily
• Convey essentially the same meaning to all target
  members
• Evoke positive feelings
• Best strategy is to choose a design that is
  moderately elaborate rather than too simple or
  too complex

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The Role of Logos
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The Role of Logos

• Cingulars
• logo

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Functions of the Package

• Contain and protect the product
• Draw attention to a brand
• Break through competitive clutter at the point of
  purchase
• Justify price/value to the consumer
• Signify brand features and benefits
• Motivate consumers brand choices

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Packaging Structure

• Sensation Transference a tendency to impute
  characteristics from a package to the brand
  itself.
• Gestalt-consumers react to the unified whole of
  the package not the individual parts.

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Issues in Packaging
Color
Design and Shape
Physical Materials
Product Information on Package
Packaging Size
VIEW Model (Visibility, Information, Emotional
appeal, Workability)
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Packaging Structure

• Color
• Design,Shape
• Size
• Physical Materials

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The Use of Color

• Communicate quality, taste, and products ability
  to satisfy psychological needs
• Affect people emotionally
• Add elegance, prestige to products by using
  polished reflective surface
• Meaning of color varies from culture to culture

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Meanings of Colors

• What do you associate with Red?
• Purple

• With white?
• With gray?
• Good tasting soft drinks

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Design and Shape Cues

• Effective package design provides good eye flow
  and a point of focus
• Evoke different feeling through the choice of
  slope, length, and thickness of lines
• Horizontal(tranquillity), Vertical(strength),
  Slanted lines(upward movement)
• Shapes also arouse certain emotions and have
  specific connotations
• Curving lines(femininity), Sharp
  lines(masculinity)

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Packaging Size

• Satisfy the unique needs of various market
  segments
• Represent different usage situations
• Gain more shelf space in retail outlets

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Physical Materials

• The most important consideration should be the
  marketing-communications implications of the
  materials chosen rather than cost
• Can arouse consumer emotions
• Metal(strength, durability, coldness)
• Plastics(lightness, cleanliness, cheapness)
• Wood(masculinity), Velvet(femininity)

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Evaluating the Package The VIEW Model
Visibility
Information
Emotional Appeal
Workability
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The VIEW Model

• Visibility An Effective Seasonal Package Design

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Evaluating the Package The VIEW Model
Visibility

• Ability of a package to attract attention at the
  point of purchase
• To have a package stand out on the shelf yet not
  to detract brands image
• Special seasonal and holiday packaging as a way
  of attracting attention

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Evaluating the Package The VIEW Model
Information

• Product usage instructions, claimed benefits,
  slogans, and supplementary information
• Avoid cluttering the package with excess
  information
• Useful for
• Stimulating trial purchases
• Encouraging repeat purchase behavior
• providing correct usage instruction

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Information Frito Lays Smart Snack Label
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Evaluating the Package The VIEW Model
Emotional Appeal

• The ability of a package to evoke a desired
  feeling or mood
• CPM vs. HEM
• Some packages emphasize informational content,
  while others heavily emphasize emotional content
• Blend informational and emotional content so as
  to simultaneously appeal to consumers

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Evaluating the Package The VIEW Model

• The changing faces of Betty Crocker

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Evaluating the Package The VIEW Model
Workability

• How a package functions (Does it)
• Protect the product contents?
• Simplify the consumers task in accessing and
  using the product?
• Protect retailers against unintentional breakage
  from consumer handling and from pilferage?
• Is the packaging environmentally friendly?

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Dutch Boys Workable Package
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Important issues in packaging

• Too much packaging
• Environmentally-friendly packaging
• Smart packaging (RFIDs)