Using an existing brand name to launch a product in a different category

Using an existing brand name to launch a product in a different category

• A. Brand extension
• B. Brand name
• C. Slogan
• D. Product launch

Answer: (A)

Brand extension is using an existing brand name to introduce a product in a different category. By riding the recognition and trust the brand already has, a company can attract customers more quickly, reduce risk, and lower marketing costs when launching a new product. The key is alignment; the new product should fit the brand's image and promise. If the fit is poor, the brand's reputation can suffer because consumers may expect one thing and get another. The other terms don't describe this strategy: a brand name is simply the identifying label, a slogan is a tag line used in messaging, and a product launch is the event of releasing a product—none specify using the brand to enter a new product category. So brand extension is the right concept.

Brand extension is using an existing brand name to introduce a product in a different category. By riding the recognition and trust the brand already has, a company can attract customers more quickly, reduce risk, and lower marketing costs when launching a new product. The key is alignment; the new product should fit the brand's image and promise. If the fit is poor, the brand's reputation can suffer because consumers may expect one thing and get another. The other terms don't describe this strategy: a brand name is simply the identifying label, a slogan is a tag line used in messaging, and a product launch is the event of releasing a product—none specify using the brand to enter a new product category. So brand extension is the right concept.