Question:
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.
Answer:
For me, brand extensions are a benefit because marketers with influential brand reputation
and active in the industry can accommodate their consumers to narrow their options by the
use of brand extensions. Brand extensions increase the probabilities of new-product
success because it will help equip the consumers with the trust and knowledge of the brand.
It also helps a company stand out from its competitors because they have a variety of
products, which will challenge rivals because of the alternative goods of the same brand.
Consumers will then choose the corresponding brand because of the options available.
Thus, it will lessen the probability of customers to purchase from a different brand.
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.
Answer:
For me, brand extensions are a benefit because marketers with influential brand reputation
and active in the industry can accommodate their consumers to narrow their options by the
use of brand extensions. Brand extensions increase the probabilities of new-product
success because it will help equip the consumers with the trust and knowledge of the brand.
It also helps a company stand out from its competitors because they have a variety of
products, which will challenge rivals because of the alternative goods of the same brand.
Consumers will then choose the corresponding brand because of the options available.
Thus, it will lessen the probability of customers to purchase from a different brand.
