When you try to add a new Gmail account in Microsoft Outlook, you encounter the following symptoms:
•You are prompted for authentication, and your credentials are not accepted.

•You receive the following error message in Outlook:
Your IMAP server wants to alert you to the following: Please log in via your web browser:
http://support.google.com/mail/accounts/bing/answer.py?answer=78754 (Failure)

This is what it took to get it fixed
Log into your Gmail account on the web,
Then open a second tab to: admin.google.com
Click on the Security

Click on Basic Settings

Click on Go to Settings for Less Secure Apps

Make sure check box is check to Allow access for less secure apps

Now go back to your web email window
Open a second tab to: myaccount.google.com
Click on Sign-in & Security

Make sure the slider is pushed to the Right (Turned ON) Allow less secure apps

That should fix it!!