MKT 510 Lecture 12: Chapter 12
22 Oct 2015
School
Department
Course
Professor
Document Summary
New products and brand extensions: when a firm introduces a new product, it has three choices for branding it, 1. It can develop a new brand, individually chosen for the new product: 2. It can apply, in some way, one of its existing brands: 3. Ge energy saving bulbs or head and shoulders for dry scalp: category extensions: using the parent brand in a different product category (aunt jemima syrup and hershey chocolate milk) Successful extension musts: must create pop and pod in extensions category, must recognize competitive reactions, must enhance pop and pod of parent brand, must maximize the advantages and minimizes the disadvantages of brand extensions. Steps in successfully introducing brand extensions: define actual and desired consumer knowledge about the brand. As with any new products, analysis of consumers, corporate and competitive factors can be useful: according to the 3 factor model. It can be difficult to extend into product class that consumers see as easy to make.
