Transcript Chapter Seven Facilitation of Product Adoption, Brand Naming, and Packaging

Chapter Seven
Facilitation of Product
Adoption, Brand Naming, and
Packaging
 2007 Thomson South-Western
Chapter Seven Objectives
• Appreciate marcom’s 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 brandnaming 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
innovation’s 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
person’s way of doing things
• The greater compatibility, the more
rapid a product’s rate of adoption
• Overcome perception of
incompatibility through heavy
advertising to persuade consumers
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Complexity
• An innovation’s 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 consumer’s 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
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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 company’s 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 brand’s 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 Lauren’s 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
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