This chapter deals with branding and brand equity. These associations helps to establish a connection between the customer and the brand, and could include product attributes, brand personality, symbols, organisational associations, etc. Brand extension: Brand extension refers to the use of a successful brand name to launch a new or modified product in a same broad market. Brand Equity and Customer Equity have two things in common-Both stress on significance of customer loyalty to the brand : Both stress upon the face that value is created by having as many customers as possible paying as high price as possible. 1 decade ago. Self ⦠But, on a deeper level both have significant variation between them and have contrasting differences. 25. Kellerâs Brand Equity ⦠Brand description is distinct because it would not be expected to be quantified, whereas brand strength and brand value are considered quantifiable (though the methods of quantification are not covered by this article). Brand equity is the value added to the same product by offering it under a specific brand⦠Number of Brand Extensions â More the extensions, more the opportunity to add brand associations. 2. A successful brand helps a ⦠It is important to distinguish between brand equity's effect and its existence. In other words, brand equity ⦠Brand Extension is a marketing strategy according to which, a well known brand uses the same brand name to enter into a totally unrelated product category.It is done primarily to leverage on the existing brand equity. Apple: from ⦠To know more about Brand Stretching and Brand Extension⦠Lower cost access to retail operation: Brand extension allows the retailing organization an easy and a ⦠These terms are very important for a business organization. Data were collected from 370 University students and University lecturers at Dire Dawa University using convenience sampling. This is how customers look at your brand and distinguish it from others. SEE ALSO:Brand Governance â Branding Roundtable No. Consequently, a brand can have negative brand equity or positive brand equity. It can either increase the brand equity because of right judgement or can result in brand dilution just because the spin-off wasnât able to prove its relationship with the existing product. D. brand equity increases a firm's ability to succeed in a difficult competitive environment. The Brand Extension refers to the launch of a new or modified product into the broader market category in which the brand already operates. Good examples of brand extensions can put a company in a better strategic position. For example, Apple, which started off with macs, was able to easily launch and lend its brand equity to iPhones. Previous quantitative studies have identified that particularly brand equity and brand identity stand out as significantly influencing brand extension strategies. Stretching or extending a brand has some major advantages over launching ⦠Brand loyalty also affects the value of a brand, but it is more of a measure of brand equity than being a part of it. Building and Managing Brand Equity. The authors mainly distinguish between three brand extension strategy types: line extension, vertical line extension and category extension. After reading this article, you will be able to understand brand equity ⦠Brand ⦠A strong brand name is an invaluable asset; managers must know when to exploit it, when to protect it, and how to tell the difference between the two. For example, Apple started with Mac operating systems and easily converted its equity with iPhones. Capitalize existing brand assets: When market entry barriers are high, a company through brand extension can achieve growth by capitalizing its existing brand assets. The article discusses various Brand extension examples and the types of brand extensions. For example, Fairy (owned by Unilever) was extended from a washing up liquid brand to become a washing powder brand too. Relevance. In essence, brand equity is a factor of a brandâs ability to keep and attract customers. Brand extension: the launch of a new or modified product into the broader market category in which the brand operates e.g. This is because most of the times, both are referred to the same ideologies. Brand extension strategy delivers the following benefits. Keywords : brand, brand extension, brand equity, parent brand, brand awareness, brand association, brand loyalty. Brand equity, in marketing, is the worth of a brand in and of itself â i.e., the social value of a well-known brand name.The owner of a well-known brand name can generate more revenue simply from brand recognition, as consumers perceive the products of well-known brands as better than those of lesser-known brands. Start studying Distinguish between a brand extension and a line extension. Before delving into the differences, we will look at what Brand is and what exactly brand equity and brand ⦠Besides ⦠In this module, we will learn how to build a strong brand, explore how brand equity affects profitability, and understand how strong brands can leverage their equity to create successful extensions. Sophisticated brand managers have the mindset that a brand is an asset, and working on it and investing in it will make it more valuable over time. Branding is a complex concept, and it is becoming an essential marketing scheme.In simple terms, a brand is considered to be a distinguishing symbol, logo, word, sentence, mark or a combination of these items which is used by companies to distinguish ⦠1) Companion product extension : Companion products are a form of an extension which is very popular in the market with the customers. Doing so ⦠More the number of proprietary assets a brand has, greater is the brandâs competency in the market. Previous article in issue; Next article in issue; Keywords. the ultimate aim behind company product extension is to materialize or capitalize the complementary products, customers view both of them as together or jointly and therefore it offers a scope of brand extension⦠Brand Extension Advantages And Disadvantages. They are patents, copyrights, trademarks, trade secrets, and other intellectual property rights. More specifically, itâs a set of brand assets and liabilities linked to a brand name and symbol, which add to or subtract from the value provided by a product or service. LO 6.7 Distinguish between brand extension and line extension Brand extension = uses same brand name for a new product introduced into new or same markets Line extension = increase of an existing product line by the brand LO 8.8 Indicate the advantages of a productâs packaging and labelling strategy Brand extension = uses same brand ⦠In such cases, at some point in time, and as a result of his or her positive experience with the brand, brand equity was ⦠Everything they do is to make the brand more valuable to the organization. Brand equity may exist even in cases where purchase is habitual and based on inertia (or even addiction). Brand identity quantifies the breadth and depth of customer awareness of a brand⦠Stella Artois Cidre. Connecting âbrandâ to the concepts of âequity⦠Image: biggsreps.com . , greater is the brandâs competency in the market do is to make the brand operates e.g previous article issue! Where brand extension: the launch of a brand⦠Easy product line.. 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