Chapter 9 Essay examples

Submitted By lynn_xl
Words: 496
Pages: 2

Are Brand Extensions Good or Bad? Some critics vigorously denounce the practice of brand extensions, because they feel that too often companies lose focus and consumers become confused. Other experts maintain that brand extensions are a critical growth strategy and source of revenue for the firm.
Take a position: Brand extensions are an important brand-growth strategy.
There are the definitions of brand extension.
Brand Extension: A firm named a new product by use a famous brand name, and this product is an extension of the famous brand1.
I agree with the point brand extensions are an important brand-growth strategy. I think there have some reasons. First, brand extensions can help company spend less than comparable new name products2. Because if the new product uses a famous brand name, and this brand we all know, then I think people can remember this new product very easily. When people shopping in a market, they can easily recognize the new one. If they are fans of this brand, I think they may want to try this product. So the company doesn’t need more money to advertise this product, they may just use the similar advertise and just need to show the prominent feature of the new one.
On the other hand, extensions can avoid the difficulty and expense of coming up with a new name and allow for packaging and labeling efficiencies3.
Second, the value of a brand is added to the product. The value will be extending to the new product too. So maybe people think this brand is very good, and the products of this brand is all good, then they may buy more products under this brand. Like Apple, under this brand they have iPhone, iPad, MacBook, and so on. When people use an iPhone, and they really like it; when they need to buy a computer, I think the possibility of them to buy an Apple is much bigger