Reply to the following:
A brand extension is when a firm uses an established brand to introduce a new product. There are two main advantages.
1.They can facilitate new product acceptance
2.They can provide positive feedback to the parent brand and company (Keller & Kotler, 2012, p.264-265)
Example: Promoter Michael Jordan - Product Hanes - Just celebrated 25 years of underwear ads
By Hanes using Michael Jordan to promote its product, a consumers thoughts may be that if it's good enough for Mike then it's good enough for me.
This is a positive brand extension.
On the other hand brand extension can be bad in such a way there could be negative feedback on the company or product. With a reputation such as Mike Tyson in the past this could be exceptionally bad for promotions of products.
Over all at the end of day, success is based on the goal to be achieved and how it (the product) can be promoted for the best profit compare to the quality of the product. How much are you willing to pay for the quality of product?© BrainMass Inc. brainmass.com October 25, 2018, 9:54 am ad1c9bdddf
The post brings up some good points. Brand extensions can be successful because consumers are more likely to try an item with a recognized name. Brand extensions also offer a way for the parent company to gain positive feedback. However, I was thinking this is more in the case of having more opportunities to make ...
This solution is in response to a post regarding brand extensions and includes examples to support the response.
Markup or cost-plus pricing
A former co-worker now represents a company that manufactures a new type of laboratory-made gemstone, called ZC, which is similar to, but better than, cubic zirconia. These gemstones are used in rings, pendant type necklaces, bracelets and pins which your firm designs. While they have begun to sell their ZC jewelry to selected stores, they have just received an invitation to sell their ZC products on one of the largest television home-shopping networks in the United States with the potential, if the products sell well, for an airing on the network's European show. Your friend`s company must now determine the best pricing method for their products in this environment.
The television program has given them complete control over how your products will be priced.
Your former co-worker brings this challenge to your marketing networking association. meeting.
Seven pricing methods are to be considered are the following:
? Going-rate or competition-based pricing
? Perceived-value pricing
? Value pricing or "every day low pricing" (EDLP)
? Markup or cost-plus pricing
? Target-return pricing
? Group pricing
? Auction pricing
The task will be two fold -
Evaluate and determine the advantages and disadvantages of markup or cost-plus pricing for this special marketing situation.
State the advantages and disadvantages of each of the above pricing strategies as applied to this new type of product and to this marketing situation. Be sure to share within this portion (1) any personal experience you have with any of the other pricing strategies for ZC jewelry that you did not choose to evaluate, and (2) any suggestions for new potential pricing methods that are not described as part of the standard seven pricing methods, or (3) any pricing strategies which combine several pricing methods.
This can be an interesting and creative task. I trust your insight and creativity and believe you will deliver an exemplary product in the provided timeframe. I just ask that the information that is pulled from outside sources not be excessive and be quoted according to APA guidelines both in text and end of paper. It should be a task compiled from inner creativity, knowledge and backed up with references and facts. Please avoid paraphrasing too much throughout the paper. It should be one that showcases your own knowledge, creativity and writing skills coupled with references and facts. You should showcase your knowledge and skill but support it with proper research and facts. Please also refrain from utilizing Wikipedia as it is not an accepted source by the institution and check spelling, grammar, content, flow as well as verify all information is property cited both in text and end of paper according to APA format.View Full Posting Details