Companies with a well-known brand and a loyal customer base spend less on advertising than companies with an unknown brand and low customer loyalty.This is an example of how brand loyalty can influence strategy.Since customers make brand connections,marketing managers generally want to extend the brand to new products,no matter how well they fit with the existing perception of the brand as long as the extension is into a profitable category.

Question

Quizplus · Accepted Answer

A well-executed branding strategy helps reduce long-term marketing costs, giving the brand sponsor more flexibility in the marketing budgets.

Companies with a Well-Known Brand and a Loyal Customer Base