When a firm uses an established brand to introduce a new product, what is this strategy commonly referred to as?Question 11Answera.Brand Expansion b.Brand Reinvention c.Brand Extension
Question
When a firm uses an established brand to introduce a new product, what is this strategy commonly referred to as?Question 11Answera.Brand Expansion b.Brand Reinvention c.Brand Extension
Solution
Sure, let's break down the question step by step:
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Understanding the Question: The question asks about the strategy a firm uses when it introduces a new product under an already established brand name.
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Analyzing the Options:
- a. Brand Expansion: This term generally refers to growing the brand's market presence, but it is not the specific term used for introducing a new product under an existing brand.
- b. Brand Reinvention: This term implies a significant change or overhaul of the brand itself, not necessarily the introduction of a new product.
- c. Brand Extension: This term specifically refers to the strategy of using an established brand name to launch a new product in a different category or market.
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Selecting the Correct Answer: Based on the definitions, the correct term for using an established brand to introduce a new product is "Brand Extension."
So, the correct answer is: c. Brand Extension
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