Here you will find out what is meant by the end of Mark Hung, which has a target end Mark Hung and what the conditions for successful brand extension - according to the relevant literature - and finally simplistic in their own words - is.
I got a little deeper busy two years ago and summarized some of it and saved me. Here is an extract.
From the textbook: Definition and objective of a brand extension:
A trademark is the process of elongation, in which the target values of an established brand for new products is utilized by using a common name. The aim of the brand extension is to use the already established positive associations and ideas with consumers and capitalize on the associated preferences in new products. It is attempted to obtain a positive image of a brand to a new brand.
The elongation of a brand is particularly useful when an existing brand positioning does not allow the address of specific customer segments. Another great advantage of brand extension in comparison to the introduction of Neumarken is the ratio of advertising expenses to sales units (see the strategy and technique of brand management by Franz-Rudolf Esch, 2004 edition, pages 269 and 283).
Conditions for successful brand extension:
The most important requirement for the success of the implementation is that the new product fits to the main brand (see Marketing: A management-oriented introduction Esch, Herrmann, Sattler, 2006 edition, page 208). Because the further you move away from the core competencies, the higher the risk that the brand values of the parent brand no longer be transferred to the new products. In the case of the new brand would not "jump start" experience through awareness and trust of the old brand. Anticipated synergies would ultimately fail.
It is also important to ensure that companies do not rush and stretch marks too many, because this creates the risk that the rapidly increasing level of diversification to the company dilute and damage the image of the stretched marks. A strong dilution of the image of the parent brand can thus also the core products to add negative connotations and thus cause significant harm to the company.
A further a condition of a successful brand extension is that the master brand must be strong enough. If it has too low brand awareness and a weak image, it is not possible to transmit clear memory content to the extension product.
The fourth condition is that one estimates the synergies wrong or overestimated and thus occurs to a deficit in the communication to the successful application of the new brand.
The transfer potential of a brand is, the greater the nearer the mark or the original product category and the extension product category lie in technological and emotional perception of spaces together.
So, what does this mean in German:
I make time explaining the Bear and explaining the easiest (and greatly simplified) with a diagram. Read the rest of this entry »