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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Chapter Seven Objectives

• Appreciate marcoms role in facilitating the
  introduction of new products.
• Explain the innovation-related characteristics
  that influence adoption of new products.
• Understand efforts employed by marketing
  communicators to manage the diffusion process.
• Appreciate word-of-mouth communications in
  facilitating new product adoption.

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Chapter Seven Objectives

• Be familiar with the role of buzz in
  facilitating product adoption.
• Understand the role of brand naming and the
  requirements for developing effective brand
  names.
• Explain the activities involved in the
  brand-naming process.

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Chapter Seven Objectives

• Appreciate the role of logos.
• Describe the various elements underlying the
  creation of effective packages.
• Explain the VIEW model for evaluating package
  effectiveness.
• Describe a five-step package-design process.

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Marcom and New Product Adoption

• Introducing new products is essential for most
  companies success and long-term growth
• 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

• Three stages of adopting a new product

Awareness Class
Trier Class
Repeater Class
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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

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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

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Complexity

• An innovations degree of perceived difficulty
• The more difficult, the slower the rate of
  adoption

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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

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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

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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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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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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

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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.

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Creating an Epidemic

• The law of the few
• The stickiness factor
• The power of context

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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.
• 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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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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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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Packaging Structure

• Color
• Design,Shape
• Size
• Physical Materials

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