MKT 510 Study Guide - Prestige Brands, Brand Equity
Document Summary
Chapter 12 introducing and naming new products and brand. Brand extension: occurs when firm uses established brand name to introduce a new product: sub-brand: when new brand is combined with existing brand, parent brand: an existing brand that gives birth to a brand extension. Family brand: parent brand is already associated with multiple products though brand extension. Reduce risk perceived by customers established reputation for introducing high-quality products and standing behind them may be important risk-reducer for consumers. Increase probability of gaining distribution and trial brand reputation key screening criteria of gatekeepers making new- product decisions. Increase efficiency of promotional expenditures concentrate promotions on only the new product itself. Reduce costs of introductory and follow-up marketing programs save 40-80% on estimated cost to launch new product. Avoid cost of developing a new brand global trademark search is a must for any new brand launch or rebranding, and can cost millions of dollars because of shrinking appealing brand names.
