Revel Flashcards 6.4 How are brands developed and extended?

Question 1

How are brands developed?

Answer 1

For most products branding is essential, apart from some homogenous products such as petrol. However, now some petrol companies have started to brand on how they differentiate by offering alternative types of fuel.

Question 2

What are generic brands?

Answer 2

• Where a single brand image covers a wide range of different products. e.g. supermarkets, with low priced products.

Question 3

What are discreet brands?

Answer 3

• Individual products are given entirely separate brand identities.
• Useful strategy to adopt if a business wants to compete in a number of different market segments.
• Big disadvantage is that each brand needs to be set up from scratch, which can be expensive and time consuming.

Question 4

What are monolithic brands?

Answer 4

• Allows brands to support one another by using a family name with a single identity for the whole product range.

Question 5

What is a fixed endorsed approach?

Answer 5

• An approach that allows individual brand image, but uses the corporate name as an umbrella to endorse the product.

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Question 6

What is a flexible endorsed approach?

Answer 6

• Gives the brand more latitude to express it’s individuality.
• These products enjoy the best of both worlds, the family name and the individuality.

Question 7

3 advantages of brand extension strategies:

Answer 7

• builds awareness and thus scope for buying.
• supports the launch of new products as the consumer is already familiar with the brand.
• Can maximise revenue.

Question 8

What are the risks and benefits of filling the product range?

Answer 8

• useful strategy for keeping the competition out.
• Risk is to adding to costs
• Risk of cannabilisation.