A marketing technique that introduces new items under a brand name is called brand extension (Ozretic Dosen et. al. 2018, 2018). A majority of businesses use brand extension to increase their market penetration and influence customers. They do this because of their substantial equity and well-built images of core goods. Brand expansion can lead to easier market access because the corporation shows client loyalty and defeats the competition. The corporation launches a product by leveraging its brand equity and customers’ trust (Ahn, et al. 2018, 2018). The brand expansion helps to increase consumer acceptance and trust. The company can increase its turnover rate by establishing a brand new in a niche market that has little customer awareness. A brand extension helps to conserve the company’s marketing and advertising budgets (Ahn, et al. 2018, 2018). The corporate marketing budgets are reduced and they can invest in strategic activities to promote sustainability. In order to capitalize on their brand equity, companies may adopt premium pricing. Based on its market standing, companies may be able to charge premiums for their new products, increasing its profitability.
Brand expansion can also negatively affect a company’s image and sustainability. Trustworthiness may be affected by the expansion of the brand to other countries. To promote their brand, institutions must do extensive research and develop a product and name range. The perceptions that the new product doesn’t meet customers’ expectations can be detrimental to the brand. Brand extension can also hinder innovation as the manufacturer focuses on making new products with the same brand to cut costs, instead of investing in research and developing new products. Poor innovation rates could threaten the business’ viability. A brand that lacks competitive advantages can also be doomed to failure.
It is about how individuals can build and strengthen their brand. Hassey (2019), asserts personal branding is an important aspect of modern culture because people are evaluated on the basis of their behaviour and appearance. Gringarten used his pet dog Duke (2020) to show that personal branding is essential for adapting to changing cultures. Your personal branding can be achieved by being social, friendly, open-minded, loyal, curious and self-assured.
To support his main thesis, the author uses the fact that dogs’ branding allows them to enhance their image of man’s best friend. His dog’s social skills, ability to interact with canines and enthusiasm, curiosity, loyalty, and sociability have all helped strengthen its brand. Author Gringarten (2020) emphasizes how it is important to learn to forgive in order for businesses and not harbor grudges. Gringarten, 2020 states that grudges have a negative impact on a person’s reputation by harming their health and social connections. People must accept diversity and find peaceful solutions to disputes in order to improve their brand image (Hassey 2019). To illustrate how important it is to maintain a positive image, the author used BMW.