Brand Adoption, Brand

1 Naming, and Intellectual

Property Issues
3

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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 following intellectual property
rights
associated with brands: patents, copyrights, and 2
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 Marcom and Brand Adoption

• Product Adoption
• The introduction and acceptance of new ideas,
including new brands
• Essential to long-term market success
• Marketing Communications
• Facilitate successful new product
introductions
• Reduce the product failure rate (potentially 35-
45%)

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 Brand Adoption: Vibram Five Fingers

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 The Adoption Process and Marcom Tools

Awareness Trier Class Repeater Class

Class • Coupons • Personal selling
• Free samples • Advertising
• Widesprea
• Social Media
and coupons d • Price
• Trade shows and distribution • Distribution
personal selling • Introductory • Product
• Advertising , low pricing satisfaction
• Social Media • Price
• Distribution

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 Figure 3.1: Model of the Brand Adoption
Process

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 Figure 3.2: Advertising Illustrating the Brand
Adoption Process

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Brand Characteristics That Facilitate Adoption

Relative
Advantage

Compatibility Complexity

Trialability Observability

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 Relative Advantage

Consumer Perception
of a New Brand
versus Alternatives

Better Time and Effort Immediacy

Performance Savings of
Reward

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 Compatibility

Compatibility Factors
Affecting the Rate of
New Brand
Adoption

Consumer Personal Values Past Consumption

Needs and Beliefs Practices

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Other Brand Characteristics That Facilitate
Adoption
• Complexity
• An innovation’s degree of perceived difficulty
• Trialability
• The extent to which an innovation can be used on a
limited basis prior to making a full-blown
commitment
• Observability
• The degree to which the positive effects of new-
product usage can be observed by users and others

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 Figure 3.3: An Advertisement Illustrating
Observability

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 Hypothetical Illustration of QuantifyingAdoption-
Influencing Characteristics

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Brand Naming

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

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 Power of Brand Naming

Effects of a
Brand Name

Speed of Overall Brand Equity

Brand Awareness Brand Image Formation

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What Constitutes a Good Brand Name?

• Distinguishes the brand from competitive offerings (e.g.,

JetBlue, Spirit Airlines) (yet “L2s”??)
• Facilitates consumer learning by describing the brand and its
attributes (e.g., “Healthy Choice,” “Diehard,” “Beauty
Rest,” “Crocs”)
• Achieves compatibility with a brand’s desired image and with
its product design or packaging
• Is memorable and easy to pronounce and spell (e.g., Zune)
(any exceptions??)
• Is suitable for global use (e.g., Exxon)

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 Facilitating Consumer Learning of Brand
Associations

Associations and
Memory Cues

Brand Name Made-up Brand Sound

Suggestiveness Names Symbolism

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 Figure 3.4: The Many Image-Compatible Brands in
Health Food Sections of Grocery Stores

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 Figure 3.5: The Brand-Naming Process

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The Role of Logos

• Logo
• Is a graphic design element related to a brand name
• Not all brand names are associated with a distinct
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

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 Figure 3.6: Examples of Logos

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 Figure 3.7: A Natural Design Logo

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 Figure 3.8: The Changing Faces of Betty
Crocker

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Intellectual Property (www.uspto.gov )

1. Patents (ideas, inventions)

• 20 years, not renewable, can renew improvements
• Utility, design, and plant patents
• Filing fee: $190 small entity; $380 normal (utility patent)
• Example: “U.S. Patents 4,000,000 and 4,000,001”
2. Copyrights (form of idea) (www.copyright.gov)
• Must be in a tangible medium (e.g., music that is scored: sheet music)
• Life of author plus 70 years; $35 (online), form, 2 copies
• If “work for hire,” 95 years from date of publication or 120 years from
its creation, whichever expires first
• “©Campbell’s Soup”
3. Trademarks (product ID)
• 10 year renewable periods; $275-$325 electronic processing fee
• Registered: “Campbell’s®“ or Pending: “Healthy RequestTM”
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