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Marketing - Branding

 

 
Understanding brand equity for successful brand extension The costs of introducing a brand into a consumer market can be considerable, ranging above $50 million. It is a considerable investment and like most investments carries no guarantee of success. The recession of the early 1990s focussed marketing managers on cost-saving tactics to increase competitiveness. One of the most important effects was to make brand extensions more compelling. Leveraging the brand equity of a successful brand promises to make introduction of a new entry less costly by trading on an established name. In essence, companies can be tantalized by the prospect of reaping a second dividend from their initial investment in advertising, research, and product development costs. As support for this alternative, studies of consumer brands in different markets found that successful brand extensions spent less on advertising than comparable new name products. Against the costs and considering the savings, brand extension may seem like the only alternative for some companies. pdf 1995

 

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Status: 29. Mai 2012