MGMC11H3 Lecture Notes - Lecture 7: Brand Equity, Backtracking
Document Summary
When a firm introduces a new product, it has three choices for branding it: It can develop a new brand, individually chosen for the new product. It can apply one of its existing brands. It can use a combination of a new brand and an existing brand. Brand extension: occurs when a firm uses an established brand name to introduce a new product. Line extension: marketers apply the parent brand to a new product that targets a new market segment within a product category the parent brand currently serves. Category extension: marketers apply the parent brand to enter a different product category from the one it currently serves. Sub-brand: when a new brand is combined with an existing brand, can also be a brand extension. Parent brand: an existing brand that gives birth to a brand extension. Family brand: if the parent brand is already associated with multiple products through brand extensions. Increase the probability of gaining distribution and trial.
