Prentice Hall: Brand Extensions and New Products

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Questions and Answers

What is necessary for a brand extension to be successful?

Association between the original product and the new item (correct)

Low price point

High-quality product packaging

Strong marketing campaign

What is the opposite effect of a successful brand extension?

Brand dilution (correct)

Brand fragmentation

Brand amplification

Brand saturation

What happens when there is a weak or nonexistent association between the original product and the new item?

Brand dilution occurs (correct)

Brand extension is unsuccessful

Brand remains the same

Brand extension is successful

Why is it important to have a logical association between the original product and the new item?

To leverage the brand equity of the original product Signup and view all the answers

What is the result of a brand extension with a weak or nonexistent association?

Brand dilution occurs Signup and view all the answers

What is a requirement for brand extension to work?

The original and new products share a common quality or characteristic Signup and view all the answers

What do consumers do when they identify a common quality or characteristic between the original and new products?

They immediately recognize the brand extension Signup and view all the answers

What is the primary goal of brand extension?

To leverage the existing brand equity to launch new products Signup and view all the answers

What happens when the original and new products do not share a common quality or characteristic?

The consumer is confused about the brand extension Signup and view all the answers

What is a brand extension in marketing?

Using an established brand name to introduce a new product Signup and view all the answers

Why is brand extension a common strategy used by companies?

To leverage the existing brand recognition and reputation Signup and view all the answers

What is the purpose of a line extension?

To add a different variety, form, size, or application to the brand Signup and view all the answers

What is category extension in marketing?

Applying the parent brand to enter a different product category Signup and view all the answers

What is the topic of discussion?

Disadvantages of Brand Extensions Signup and view all the answers

Which publishing company is associated with this content?

Pearson Education Signup and view all the answers

Why do companies use brand extension strategies?

To leverage their existing brand equity Signup and view all the answers

What is the benefit of using an established brand name to introduce a new product?

Lower risk of product failure due to existing brand recognition Signup and view all the answers

In what year was this content copyrighted?

2013 Signup and view all the answers

What is the name of the brand publishing this content?

Prentice Hall Signup and view all the answers

What symbol denotes the copyrighted material in this content?

© Signup and view all the answers

What is the first step in evaluating brand extension opportunities?

Define actual and desired consumer knowledge about the brand Signup and view all the answers

What is the main objective of evaluating extension success?

To assess the effects on parent brand equity Signup and view all the answers

Why is it necessary to identify possible extension candidates?

To generate a list of potential brand extensions Signup and view all the answers

What comes after defining actual and desired consumer knowledge about the brand?

Identifying possible extension candidates Signup and view all the answers

What is the final step in the brand extension process?

Evaluating extension success and effects on parent brand equity Signup and view all the answers

Study Notes

Brand Extensions

A brand extension occurs when a firm uses an established brand name to introduce a new product.
There are two types of brand extensions:
- Line extension: adds a different variety, form, size, or application to the brand.
- Category extension: applies the parent brand to enter a different product category.

Success Factors for Brand Extensions

For a brand extension to be successful, there must be a logical association between the original product and the new item.
The original and new products should share a common quality or characteristic that the consumer can immediately identify.

Disadvantages of Brand Extensions

A weak or nonexistent association between the original and new products can result in brand dilution.

Evaluating Brand Extension Opportunities

Define actual and desired consumer knowledge about the brand.
Identify possible extension candidates.
Evaluate the potential of the extension candidate.
Design marketing programs to launch the extension.
Evaluate the extension's success and its effects on parent brand equity.

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Description

Learn about brand extension, line extension, and category extension in marketing. Understand how firms use established brand names to introduce new products and enter different product categories.