Advantages And Disadvantages Of Brand Extension: Economic Benefits And Marketing

By upgrading their brand, it will help to identify the qualities of the products that set it apart from the competition. They have to make the

Brand extension is a technique in order to create a good brand image and increase the sales.

It will also provide the product mix for the new offering of features and benefits, branding, and any other products in line; it will show the differentiating characteristics from competitive or substitute products, packaging and

New brands of existing products, such as a new food, also give consumers more choice to switch items in order to help them lower their cost of living.

Going into a store to buy either a new shirt or some cough medicine, the decision on what is bought is affected by the brands or even the advertisements customers have been subjected to. Branding and the marketing of those brands affect people as they make decisions on what they want to spend their money on. In “A Brand by Any Other Name,” by Douglas Rushkoff and in “With These Words I Can Sell You Anything” by William Lutz, the authors write about how consumers are influenced by different marketing practices. Rushkoff and Lutz explain the ways that shoppers can be manipulated just by what they read or hear and buy things just because they think they are getting the best or the coolest.

6. Following trends of marketing: - Innovative, differentiated brands, however, can offer potent advantages. Not only can they offer the consumer real benefits and thus give the consumer a reason to change, they can also serve to outmode existing brands (Murphy, 1988).

Brand equity is an important asset for any organization. It is also an assets that offers an organization or a brand a road to success. Brand equity is important because its brand's product is closely associated with its premium price in the market. An organization or a brand with positive brand equity typically have higher quality products and services when compared to similar generic unbranded products. Furthermore, brand equity is important because it helps an organization or a brand to strengthen its competitive edge in the market. It is important to an organization or a brand, the reason are that it help lower the marketing costs and allows a brand to enjoy higher brand awareness and brand loyalty. Therefore, the ultimate goal of a brand

Brand extensions afford many companies the ability to introduce new products backed by a brands affluence, quality, or popularity. This greatly reduces launch costs, as new brand launches can reach astronomical costs. Ultimately, once a strong customer loyalty is established with one particular brand, consumers tend to purchase these new products as well (Kotler & Keller, 2016, pg. 325).

For sales and market share to be increased further, it will be necessary to achieve this through innovation with completely new product development and introduction, or more likely, as developing new products has become increasingly difficult to develop new brand/product extensions such as mixes and delivery systems,, and performance could be enhanced and margins protected by achieving world class marketing, innovation and production standards. At the same time costs will continue to be squeezed. Resources should be focussed on creating value that the customer is willing to pay for.

But for new customers, the new brand extensions will be essential to be able to offer a competitive product offering that will attract them to the brand. Therefore, we can avoid conflict between both segments by letting them choose the products they want depending in their needs.

Diversification – By exploring and developing strategies to incorporate variety and diversify their product line to attract larger pool of customers, e.g. introduce new flavors.

Branding has become the key concept of marketing strategies. Brand is the name of firm, products, services, and above all, it is coherent with the firm’s image from

This strategy has the aim of increasing sales by developing products for a company’s existing market.

01)Take a position on one of the following statements: a) "All brands have a limited life as indicated by the product life cycle and will slip or disappear." b) "There is no reason why a successful brand can't live forever." Provide examples to support your position. (1 page)

* BRAND EXTENSION: An extablished brand is using by a firm to introduce a new product and that product is called brand extension.