Classification Of Brand Extension And Brand Endorsement Marketing Essay

By August 15, 2017 Marketing

For ages, the trade name permits to separate a good of a manufacturer from another. The term “ Brand ” comes from the old Norse ( old Irish ) brandr, and means burn. The sheep breeders marked their farm animal so, and continues today ( Keller 2008 ) . The look is anyhow “ to tag with a stigmatization Fe ” . We can utilize today this metaphor when the manufacturer tries to “ trade name ” , or burn, the image into the consumer ‘s head, so pull a analogue between the image and the merchandise ‘s quality.

A trade name represents the holistic amount of all information about a merchandise or group of merchandises. This symbolic concept typically consists of a name, placing grade, logo, ocular images or symbols, or mental constructs which distinguishes the merchandise or service. A trade name frequently carries intensions of a merchandise ‘s “ promise ” , the merchandise or service ‘s point of difference among its rivals which makes it particular and alone. Sellers attempt through a trade name to give a merchandise a “ personality ” or an “ image ” . Therefore, they hope to “ trade name ” , or burn, the image into the consumer ‘s head ; that is, tie in the image with the merchandise ‘s quality. Because of this, a trade name can organize an of import component of an advertisement subject: it serves as a speedy manner to demo and state consumers what a provider has offered to the market.

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Well known merchandises get trade name acknowledgment. When a trade name has accumulated a mass of positive sentiment among consumers, sellers say that its proprietor has acquired trade name equity or trade name franchise. Brand equity measures the trade name ‘s value to the seller. It is an appraisal of the investing a company has made in a trade name. Brand franchise measures the consequence of this investing on the mark market. When adequate trade name equity is created that the trade name has the ability to pull purchasers ( even without farther advertisement ) , it is said to hold trade name franchise. A trade name name comprises that portion of a trade name consisting of words or letters that worlds can verbalise. A trade name name that has acquired legal protection becomes a hallmark.

Branding has become portion of pop civilization. Numerous merchandises have a trade name individuality: from common table salt to designer apparels. Non-commercially, branding can besides use to the selling of entities which supply thoughts or promises instead than goods and services — such as political parties or spiritual organisations.

Consumers as a group may look on the trade name as an of import facet of a merchandise, and it can besides add value to a merchandise or service. It carries the repute of a merchandise or company. A branded wash detergent may sell twice every bit much merchandise as a store-brand detergent. Although the two merchandises may resemble each other closely in about every other regard, people have learned to see the branded merchandise as superior. In some instances they believe that because it costs more it offers better quality.

Ad interpreters have besides became portion of some trade names, for illustration: Mr. Whipple of Charmin lavatory tissue and Tony the Tiger of Kellogg ‘s.


Trade names originated with the 19th-century coming of packaged goods. Industrialization moved the production of many family points, such as soap, from local communities to centralise mills. These mills, cursed with mass-produced goods, needed to sell their merchandises in a wider market, to a client base familiar merely with local goods. It rapidly became evident that a generic bundle of soap had trouble viing with familiar, local merchandises. The packaged goods makers needed to convert the market that the populace could put merely every bit much trust in the non-local merchandise.

Many trade names of that epoch, such as Uncle Ben ‘s rice and Kellogg ‘s breakfast cereal furnish illustrations of the job. The makers wanted their merchandises to look and experience every bit familiar as the local husbandmans ‘ green goods. From at that place, with the aid of advertisement, makers rapidly learned to tie in other sorts of trade name values, such as juvenility, merriment or luxury, with their merchandises. This kickstarted the pattern we now know as “ stigmatization ” .

Harmonizing to the AMA ( American Marketing Association ) , are called trade names “ a name, a term, a mark, a symbol, a drawing or a combinations of these elements that identify the goods or services of a marketer and to separate these from those of the rivals ” .

The professor Theodor Levitt provides an analysis that the competition is non about the “ what we sell ” , because the most endeavors could sell good merchandises, but “ how we sell it ” . For illustration, consumer goods could be about the same, but the difference comes from packaging, service, advertisement, after-sales service, payment and recognition footings, conveyance facilitiesaˆ¦ ( Levitt 1960 )

The sellers have to place a merchandise, but to separate a trade name from another ( Keller 2008 ) . The differences between the trade names into a class of merchandises are sometimes rational and sometimes based on the emotion or the symbolic. It ‘s rational, when the ill fame of the trade name comes from the merchandise ‘s perform, for illustration Sony for a long clip, or Apple in this last decennary, houses that have a great invention capacity. It ‘s more emotional for some houses like Coca or McDonalds that have got a competitory advantage because they are here for decennaries. They created a positive image around the trade name.

Brand extension ( Bouchet 2009 )

If a line extension purposes to offer more complementary merchandises to the consumers, a trade name extension aims to work the name, the ill fame and the competencies of an bing trade name to establish a new merchandise in another class of the original merchandises ( Ladwein 1998, Bouchet 2009 ) . For illustration, a line extension could be to sell ski places after holding sold skis. We could happen different kind of line extension, horizontal as seen before, or perpendicular. That ‘s consist to establish new merchandises in another monetary values class, with sometimes a difference of quality excessively ( Randall 1999 ) . Some houses use a scheme of geographic extension excessively.

1/ Horizontal line extension

2/ Vertical line extension upside

3/ Vertical line extension downside

4/ Geographic extension

5/ Brand extension

B2B trade name extension to the B2C market

Brand extension has been recognized as a strategic plus by most companies. In the consumer markets, the accent is normally on the merchandises or a bunch of merchandises, whereas in industrial markets the company name itself is frequently the trade name name.

A trade name extension will associate the new merchandises with the established trade name or the company name, so as to bring forth consumer credence for a new merchandise. The success of a trade name extension is hence determined by how consumers evaluate the trade name. That provides a signal to the consumer about the qualities or features of that new merchandise.

The trade name equity theoretical account of Aaker and Keller purposes to look into a consumer ‘s attitude toward B2B trade name extension on the B2C market. They examine trade name extensions outside the current trade name offerings in three types of properties, that is, selling activities related to merchandise invention, environmental concern and community engagement. Their findings suggests that a selling activity can ease a new merchandise credence. If consumers perceive a “ tantrum ” between the original and extension merchandise, they would reassign quality perceptual experiences to the new trade name extension.



Brand Architecture

How an organisation constructions and names the trade names within its portfolio. There are three chief types of trade name architecture system: monolithic, where the corporate name is used on all merchandises and services offers by the company ; endorsed, where all sub-brands are linked to the corporate trade name by agencies of either a verbal or ocular indorsement ; and freestanding, where the corporate trade name operates simply as a keeping company, and each merchandise or service is separately branded for its mark market.

( hypertext transfer protocol: // )


= corporate trade name, umbrella trade name and household trade name

Endorsed: EasyGroup.

= Endorsed trade names and sub-brands.

Freestanding: P & A ; G ( voir truc en francais )

= Individual merchandise trade name


The trade name architectures is the forming construction of the trade name portfolio that specifies trade name functions and the nature of relationships between trade names ( Rajagopal 2003 ) . Contemporary theories province that trade name architecture is based on the efficaciousness of the properties, derived advantages and trade name system emerging in relation to the purchasing power of the client.

The classs of trade names play important functions in the procedure of trade name architecture for a company by:

Making coherency and effectivity

Leting trade names to stretch across the merchandises and markets

Stimulating the purchase determinations by trade name drivers

Targeting market niches and benefit placement

House of brands. A branded house uses a individual maestro trade name to cross a set of offerings that operate with merely descriptive sub-brands. The house-of-brands scheme clearly places trade names on functional benefits and to rule niche sections. Targeting niche markets with functional benefit places is the chief ground for utilizing a house-of-brands scheme.

The chief properties of the endorsed trade name may be delineated as follows:

It incorporates the shadow trade names

It generates indirect market impact with female parent trade names

It represents distinguishable merchandise and market sections

Endorsed trade names operate independently of the female parent trade names in the market

The advantages of the corporate indorsement of the merchandise trade names include:

Constructing umbrella trade names

Establishing planetary corporate individuality

Developing client assurance

Monitoring cardinal strategic trade names

Enhancing the trade name value in the new sections.

The turning prevalence of corporate indorsements and trade name extensions, coupled with a focal point on constructing a limited figure of strong trade names in international markets, has led houses to develop processs to pull off and supervise cardinal strategic trade names. A cardinal aim is to keep their individuality and value in international markets. Two of import facets need to be considered:

The consistence of trade name placement in different states and across merchandise lines.

The value and/or hazards of trade name extensions in international markets. Widely different attacks have been adopted for pull offing strategic trade names in international markets and delegating detention for them. Typically these vary depending on the organisational construction of the house and the coveted grade of control, and rang from holding no explicit detention scheme to extremely centralised tight control by corporate central offices.



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