What is an extension in marketing?

A brand extension is when a company uses one of its established brand names on a new product or new product category. It’s sometimes known as brand stretching. If successful, a brand extension can help a company reach new demographics, expand its customer base, increase sales, and boost overall profit margins.

What is extension and its types?

Basically, a brand extension is leveraging an existing brand to promote a product in a different category. There are various types of brand extension such as product form, companion product, expertise, customer franchise and brand image type.

What are the types of brand extension?

8 Types Of Brand Extension

• Similar Product In A Different Form From The Original Parent Product.
• Distinctive Flavor/Ingredient/Component In The New Item.
• Benefit/Attribute/Feature Owned.
• Expertise.
• Companion Products.
• Vertical Extensions.
• Same Customer Base.
• Designer Image/Status.

What are the advantages of brand extension?

Advantages of Brand Extension The risk perceived by the customers reduces. The likelihood of gaining distribution and trial increases. An established brand name increases consumer interest and willingness to try new product having the established brand name. The efficiency of promotional expenditure increases.

Why is brand extension important?

Brand extensions can also benefit the parent brand by creating a greater sense of loyalty, reaffirming the brand promise and consumer perceptions of the brand, and sustaining the parent brand’s relevance in its existing category. Extensions can also help to establish a brand’s position in new categories.

What is an example of extension strategy?

For example, a business could try introducing a different sized version of the product. Increasing marketing activity – Running new advertising campaigns and sales promotions can attract new customers, remind previous customers that the product still exists and encourage existing customers to buy more of the product.

What is brand extension and its advantages?

They can help the product be easily accepted. They can also improve the overall brand image. Consumers’ perceived risk can go down with brand extensions. Since the company has established the brand name as trustworthy and popular, they can also increase the interest of consumers and make them consider a new product.

What are the two types of brand extension?

What is Brand Extension? The Types of Brand Extension

• Line Extensions. A line extension is the simplest form of brand extension.
• Product Extension. Launching #NewProducts is a great example of a brand extension.
• Expertise Extension.
• Market Extension.
• Geographic Extension.

  What is brand extension and example?

  Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. The new product is called a spin-off. An example of a brand extension is Jello-gelatin creating Jello pudding pops.

  What is the definition of a market extension?

  It includes changing the name, package, and logo. The complete look and feel as well as the brand name is changed and is relaunched as a new product although content of the product is same as previous one or slightly changed. It is generally done to reach a new different audience all together.

  Which is the best definition of product extension?

  Definition: Product Extension. Product extension is a type of branding strategy. The product extension is also known as line extension where a parent brand covers a new product under a product category it currently serves with new color, sizes, pack size and forms.

  Which is an example of an extension strategy?

  There are various kinds of extension strategies being adopted by the marketers, like repackaging, rebranding, discounting, market expansion etc. A few important ones are mentioned below: • Re packaging: It is the easiest way to retain a product in market.

  When do extension strategies take place in the product life cycle?

  Generally such kind of strategies take place in the maturity phase of the product life cycle to prevent the product from entering the decline phase. There are various kinds of extension strategies being adopted by the marketers, like repackaging, rebranding, discounting, market expansion etc.