1. Facilitation of Product Adoption, Brand Naming, and Packaging
Chapter Seven
Facilitation of Product Adoption, Brand Naming, and Packaging
 2007 Thomson South-Western

2. 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.

3. 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.

4. 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.

5. 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

6. New-Product Adoption Process Model
Three stages of adopting a new product
Awareness Class
Trier Class
Repeater Class

7. 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

8. 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

9. Complexity An innovation’s degree of perceived difficulty
The more difficult, the slower the rate of adoption

10. 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

11. Observability
The product user or other people can observe the positive effects of new product usage
Higher the visibility, more rapid the adoption rate

12. 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

13. 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

14. 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

15. 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.

16. 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

17. 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.

18. Creating an Epidemic The law of the few The stickiness factor
The power of context

19. 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.

20. Brand Naming Brand A company’s unique designation or
trademark, which distinguishes its
offering from other product category
entries.

21. 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

22. 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

23. 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

24. 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

25. 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.

26. Packaging Structure
Color
Design,Shape
Size
Physical Materials

27. Evaluating the Package: The VIEW Model
Visibility
Information
Emotional Appeal
Workability

28. Designing a Package