Chapter 12 Brand Extensions

What is an upward vertical brand extension?

An upward extension can improve brand image, because a premium version of a brand often brings positive associations with it.

What types of consumer brand knowledge should marketers define in developing brand extensions?

Brand meaning, and must understand where it wants to take it in the long run.

· How is a category extension different from a line extension? Give examples of both types of brand extensions used by real brands.

Category extension uses an existing brand, but introduces a new product in a new category. Line extensions uses an existing brand and introduces a new product in an existing product category.

What are vertical brand extensions?

Extends brand up into more premium market segments or down into more value-conscious segments

True of False:o It is more costly to introduce a new product as a brand extension than it is to introduce a new product using a new brand name.

False

True of false: A brand extension can do little to improve the overall brand image.

False

True of false: o A brand extension will not convince retailers to distribute the new product.

False

True of false:A brand extension cannot revitalize the brand

False

True of false:§ Brand extensions can never hurt the parent brand's image.

False

True or False:o A brand extension can do little to enhance the parent brand's image.

False

True or false: § Retailers are welcoming of all brand extensions.

False

True or false:§ Brand extensions always lead to a strong identification with the original product category.

False

· List and describe three options for new product branding. Give examples of each of these options used by real brands.

New brand Sub-brand Existing brand

o Which of the three options for new product branding are brand extensions?

Sub-brand

What is a downward vertical brand extension?

Successful downward extension has the possibility of harming the parent's brand image by introducing associations common to lower-priced brands.

True of false: o Brand extensions can reduce customers' perceived risk of trying a new product.

True

True or False: A brand extension can clarify brand meaning.

True

True or False:o A brand extension can provide a variety of product options for consumers.

True

True or false: § A brand extension can cause the company to forgo the chance to develop a new brand.

True

True or false: § Some brand extensions can result in brand dilution.

True

Should competitors be considered in developing brand extensions? Explain your answer.

Yes.

List the factors in the three-factor model for evaluating the potential of a brand extension candidate.

salience favorability uniqueness

True or false: § Brand extensions can succeed and can never result in the cannibalization of sales of the parent brand.

True

True or false:A brand extension can attract new customers to the brand

True

True or false:Some brand extensions can confuse or frustrate consumers.

True

True or false:o A brand extension can open the door to future brand extensions.

True

What type of map can the marketer use to define these types of consumer brand knowledge?

Mental map

· What is a brand extension?

extending an existing brand name to new product categories

List the effects in the four-factor model for evaluating brand extension feedback effects.

how compelling how relevant how consistent how strong

Design ______ to maximize the likelihood of success and potential positive feedback effects.

marketing campaign

Brand extensions require fit with the ______ brand.

parent

Evaluate extension success and effects on ______ brand equity.

parent

How can a downward brand extension harm the parent brand's image?

possibility of harming the parent's brand image by introducing associations common to lower-priced brands.

How can an upward brand extension improve the parent brand's image?

§revitalize the parent brand, and permit further extensions in a given direction.