Why Is Brand Extension A Popular Marketing Strategy
Olivia Luz
It avoids the problem of brand dilution.
It allows the firm to discontinue complementary products. The strategy behind a brand extension. Companies may find selling new products easier after earning buyers trust and gaining a foothold in the market as it imposes less risk on the consumer. The marketing trend boosts business and engages the consumer.
It guarantees success for a new product. A study was carried out to understand the factors which influence the consumer s perception of these products fit with the remaining parent brand s product lines. When an established brand image is used to launch a new product the product is called the brand extension. The brand extension is the marketing strategy wherein a new product is launched under the existing brand name.
By using the new product category linked with the existing brand name the market reach of the new product can be made easy. A brand extension is when a company uses one of its established brand names on a new product or new product category. Brand extensions are a useful means of marketing a business. Why is brand extension a popular marketing strategy.
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It s sometimes known as brand stretching. Brand extension is a strategy used in marketing. A company which is already branded in the market with a pre defined image will make use of the same brand name to market a different product category. According to some researchers brand extension is a marketing strategy for introducing new products in relation to an established successful brand.
Instead of building a brand from scratch established brands can leverage their brand awareness in one product category to gain a foothold in a new product category. The brand that gives rise to a new product under its name is called the parent brand. It separates out the cost of brand extension from brand intention. Brand extensions are a popular marketing strategy because the marketing costs of creating brand awareness can be spread over multiple product lines.
Why is brand extension a popular marketing strategy.
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