The main benefits of extension using the already established successful brand of the parent are: reduced costs, the fact that it may prevent competitors from filling a niche, reduced shelf space available to competitors, and the filling of a gap in the product line that customers want to see filled. However, there are risks such as weakening the parent brand or cannibalisation of the market share of the original product. Extensions may damage consumer faith of the parent; the managerial time and budget will be split and the lack of focus could undermine the brand message; retailers have only limited space, and additional lines demand more space. Retailers may just allocate the extension some space from the brand's existing allowance, maintaining the same total allocation but now split between more products. Brand stretching is more risky since it involves diversification into an unrelated area of business. Stretching is a leap away from the initial technology (Kapferer 1997). Firms need to be aware...
Most companies should really avoid brand stretching. However, brand extension -- when studied carefully and done right -- are a very important way to grow a brand. They can cause brand harm if they are not addressed correctly, though, so that means that there has to be a lot of up-front research done before any company moves into extending its brand. Some extensions will work much better than others, as well, so how to extend and in what directions are vital things to know before any company decides to move forward with extending their brand.
Brand Extension The disadvantages of employing brand extension strategy This work compeers and contrasts the merits and demerits of implementing brand extension a s a growth strategy by various firms. This is done by means of practical examples. In the end of the debate, the paper indicates why it is better to adopt the extension strategy as opposed to shunning it due to its numerous demerits. A discussion of the key
Branding in Service Markets Amp Aim And Objectives Themes for AMP Characteristics Composing Branding Concept Branding Evolution S-D Logic and Service Markets Branding Challenges in Service Markets Considerations for Effective Service Branding Categories and Themes Branding Theory Evolution S-D Logic and Service Markets Branding Challenges in Service Markets Considerations for Effective Service Branding Branding Concept Characteristics Characteristics Composing Branding Concept Sampling of Studies Reviewed Evolution of Branding Theory Evolution of Marketing Service-Brand-Relationship-Value Triangle Brand Identity, Position & Image Just as marketing increasingly influences most aspects of the consumer's lives, brands
Opponents to the idea that a brand can live forever point out the many popular brands that have died out in the past. True, there have been a lot of brands that have gone the way of the dinosaur. But there are also many brands that are still around, and that have endured. They are the same companies and the same brands, but in most cases they are not the
Branding and Communication There has been significant criticism leveled against the branding practices of companies, and most particularly those of multinationals, which have been raised. Drawing on the academic literature this work will identify the primary arguments used in these critiques and will critically examine those arguments and discuss their implications for branding in the age of globalization. This study will further answer the question of how branding has changed under
The corporation or seller could benefit by developing marketing strategies prior to consumer reviews being available online. Seller Response to Novice and Expert Consumers Before allowing consumers to post product reviews on a corporations or sellers website, the seller should consider the size of the segments of expert consumers and novice consumers. For example, the seller may benefit from selling certain products if a significant number of expert consumers exist, especially
Customer Satisfaction, Brand Loyalty and Services Satisfaction Loyalty vs. Satisfaction Services as a Means to Enhance and Lengthen Brand Experience Techniques of Managing Customer Relationships Through Services Customer satisfaction and customer loyalty are two different constructs indeed. As indicated by William Bleuel, Ph.D., survey services expert, satisfaction and loyalty are different concepts. Consider the difference from a real life example of yourself purchasing a fridge. While you may have been satisfied with the use of
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