Until now I associated brand extension with a positive thing, but using this technique of marketing can also have a negative impact on costumers and their believe in the brand. As you can read in Laura's blog, it's possible that brands are extending too much. Connecting a lot af different products to the same brand name confuses people. Few companies are good at everything, so I think it's better to specialize. This makes it easier to improve product knowledge.
According to the source brand extensions can cause two negative consequences. First of all, there is a possibility that repeated brand extensions will take down the reputation of the original brand. Otherwise an unsuccessful brand extension will dilute the equity associated with a well-established brand name.
Despite these concerns, companies still keep using brand extensions as an easy way to launch a product into a new market.
Melanie Ciers
http://www.jstor.org/pss/1251855
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