Jul 16, 2017 Research papers

Brand Name and the Cost of Advertisement

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Brand Name and the Cost of Advertisement


You want to introduce a new product. You already have a successful brand in a different product category than the new product you plan to introduce. You are contemplating using the same brand name (brand extension) for the new product. What factors should you consider before making this decision?


This question relates to line extensions from (Klassy Kitchen) and PharmaSim. Here are definitions from the text. A brand extension uses the existing brand name in a new product category, while a line extension is used in an existing category to extend the brand name to new sizes, flavors, etc. (Kotler and Keller, 2015). The consumer adoption process is helpful in answering this question. Finally, results may be bi-directional. 


BRAND NAME Student: Institution: Introduction In a competitive field where a company is successful in the market, it is worth considering to introduce a new product in the market. Introducing this new product might be done independently on its own or even by extending the new brand from the existing brand in the market. Introducing the new product on its own might be that risky as it might not be certain if the product will be the consumer’s preference. This is because introduc


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