Brand extension is which of the following?
A)The concentrated targeting of new market segments
B)When an established brand name is used for brands in unrelated markets
C)A form of repositioning due to poor past sales and profit results
D)The use of an established brand name on a new brand within the same broad market

Question

Quizplus · Accepted Answer

Brand extension refers to using an established brand name for a new brand within the same broad market. It allows companies to leverage the existing brand equity to introduce new products with the same brand identity. Option A refers to concentrated targeting, which is a different marketing strategy. Option B refers to unrelated diversification, which is a different business strategy. Option C refers to repositioning, which is a different marketing strategy used to change consumer perception of an existing brand.

Brand Extension Is Which of the Following