Why is brand extension a popular marketing strategy?

Why is brand extension a popular marketing strategy? Brand extensions are a useful means of marketing a business. For one: 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.

How does the brand influence their marketing strategy?

In developing a strategic marketing plan, your brand serves as a guide to understanding the purpose of your key business objectives and enables you to align the plan with those objectives. Branding doesn’t just count during the time before the purchase—the brand experience has to last to create customer loyalty.

What are the marketing strategies for a new product?

The best ways to promote a new product or service

1. Offer loyal customers an exclusive preview.
2. Use a special introductory offer.
3. Make use of Google My Business.
4. Run a social media contest.
5. Spread the word via email.
6. Write a blog post.
7. Host an event.
8. Offer a complimentary upgrade.

Is brand extension a strategy?

A brand extension is a strategy to launch a product in a tangential market or category, sometimes closely related to the core product, and other times unrelated. Brand extensions can also simply be great marketing, allowing brands to create awareness and capitalise on exposure.

What is the role of a brand extension for most brands?

Brand extension strategies are broadly applied in order to reduce marketing expense in launching new product, enhance well-known and quality of core brand, and lessen risk for companies (Keller and Aaker, 1992; Taylor and Bearden, 2002). …

How important is brand extension for increasing brand awareness?

Importantly, brand extensions help companies communicate trust, brand awareness, and relevance. If customers notice distinct brands that face change, then customers will follow more willing. From brand extensions, clients change their lifestyles and shape others around them.

How does product branding affect your products and services?

A successful brand can create and sustain a strong, positive, and lasting impression in the mind of a consumer. Brands convey positive or negative messages about a product, along with indicating the company or service to the consumer, which is a direct result of past advertising, promotion, and product reputation.

How does branding influence the product of the marketing mix?

Brand and marketing mix shows its impact on market and customer which emphasis on the organisation success. It is found that increasing of brand value automatically becomes the best choice among customer of that particular product available in the market.

How do you develop a new product launch strategy?

Here’s a five-step checklist:

1. Get to know your customer. You can do this through metrics, analytics, and research.
2. Get to know your product.
3. Develop a new product launch plan.
4. Create assets.
5. Launch the product and measure your results.

What is an extension strategy example?

Extension strategies include rebranding, price discounting and seeking new markets. More complex rebranding efforts can include new advertising strategies, extensive public relations (PR) and social media marketing campaigns.

How can brand extension strategies be improved?

Extending brand value

1. Re-positioning same product in a different form.
2. Re-positioning different product in the same form.
3. New distributor, franchise or relationships.
4. Brand name or design change.
5. Price changes.
6. Renewed features such as distinctive change like taste, ingredients, components.

What is brand extension with example?

A brand extension (some times called a category extension) is when a brand is known for one type of product starts selling a different type of product. Some example of brand extension are: Apple: from personal computers into MP3 players. Callaway: from golf clubs into footwear, apparel and golf accessories.

What are the benefits of brand extension for a company?

Cost associated with marketing communication and sales promotion for new product as brand extension is reduced as consumers are already aware of the parent brand. Brand extension again helps eliminating cost associated with research and development of altogether new product and packaging of the new product.

What is brand extension and naming of new products?

Clearly companies have to tackle tactical and strategically brand extension and naming of new products almost at any stage of growth. For a given brand extension, it can be in form, where companies decide to expand product category under current parent brand family. This sort of extension may be through adding new flavor, different size packing.

How do brand extensions upscale companies?

Brand extensions upscale companies through various ways. Due to companies progress to challenge competitors, satisfy customers, and innovate new products, brands may see gains through profits, brand exposure, and customer satisfaction.

What are the types of horizontal brand extensions?

product in the same product class or to a product category altogether new to the company, it is called horizontal brand extension. According to Aaker and Keller (1990), based on their focus, there are two varieties of horizontal brand extensions viz.; line extensions and franchise extensions.