In what ways can brand extensions improve the odds of new-product success?

Answer: Consumers make inferences and form expectations about the composition and performance of a new product based on what they already know about the parent brand and the extent to which they feel this information is relevant to the new product. By setting up positive expectations, extensions reduce risk and may make it easier to convince retailers to stock and promote a brand extension because of increased customer demand. From a marketing communications perspective, an introductory campaign for an extension doesn't need to create awareness of both the brand and the new product but instead can concentrate on the new product itself.

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Marketing

Charles Revson started Revlon. He once said "We sell hope." Revson was defining the ______ of Revlon cosmetics.
Blood donations to the Red Cross are considered __________ products.
The distribution strategy during the decline stage of PLC involves building more intensive distribution networks
Amazon and GEICO set themselves apart with their smooth-functioning direct delivery strategy referred to as __________ differentiation.
Which value proposition is difficult to sustain in the long run?
What are perceptual positioning maps used for?
The Westin Stamford Hotel in Singapore failed when it once advertised itself as the world's tallest hotel. This difference was not worth establishing because it did not satisfy which of the following criteria?
A company can differentiate itself from competitors using symbols such as McDonald's golden arches, Twitter's bird, and the Nike swoosh. Which type of differentiation is this?
The winning value proposition by discount stores such as Walmart and Best Buy can be categorized as __________.
Amazon and GEICO set themselves apart with their smooth-functioning direct delivery strategy referred to as __________ differentiation.
One important consideration in using a differentiated targeting strategy is that ________.
On the My M&Ms Web site, users can place custom orders for M&Ms. They can choose their own colors, put a personalized text message on the candies, and even upload a photo to be placed on each M&M. Which targeting strategy is M&M using here?
Anythinglefthanded.com.uk only sells products designed for left-handed people. Which targeting strategy is it using?
Instead of going after a small share of a large market, a firm goes after a large share of a smaller niche segment. This type of marketing strategy is known as __________.
If men and women respond similarly to the same marketing mix, they do not constitute different segments. Gender would not be effective in this example because the segment is not ________.
Toothpastes claim they "whiten teeth," "fight bad breath," and "reduce plaque." Which base of segmentation is being used in this example?
___ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product.
______ segmentation divides buyers into different segments based on lifestyle or personality characteristics
What is positioning?
Which of the following statements about segmentation is true?
What is the purpose of differentiation?
The process of evaluating each market segment's attractiveness and selecting one or more market segments to enter is called ______
The step in designing a customer value-driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market _____
Market ______ evaluates each market segment's attractiveness and selects one or more segments to serve
Which of the following is an advantage to businesses that use computer databases to manage their inventory?

Learn More Multiple Choice Question :

The marketing manager for ABC Corp. decides to scour his CRM and supplier databases to see if any helpful information comes to light. He uses a software package to run a variety of analyses. The problem with what he is doing is that he did NOT __________.
The marketing manager for Brand K retail stores is in the process of collecting primary data from customers to learn which current products need improvement. She is using a probability sampling method, but is having trouble figuring out how to contact customers and get them to participate. She is also debating alternative ways to recode the responses so that they can be analyzed. She is concerned with the _______ part of the marketing research process.
XYZ Marketing Research is testing how customers react to a proposed advertising campaign for Go Fast Sports Cars. They have consumers sit in an MRI machine and monitor which areas of the brain are activated as the participants watch a series of commercials and print ads. They are using _______ to collect the data needed to solve the research problem.
The owner of Joe's Pool Hall found some secondary data online that measured consumer reactions to certain amenities in Bars and Nightclubs. However, Joe is concerned about how the data was collected and whom it was collected from. This represents the _________ concerns associated with secondary data.
Vegan Videos has decided to conduct exploratory research to clarify its marketing related research problem. They have decided that they need to collect primary data, but they only have one week to collect this qualitative data from 10 customers and they only have 1 researcher. They should use a(n) __________ technique to collect the data in order to meet their deadline.
The manager of Gina's Groceries wanted to see how customers would react to some new displays. To collect this information, she posted employees where they could see the display and had them record how long customers looked at it, whether they picked up the item, and if they took the item with them. She is collecting _______ data to solve her research problem.

Marketing MCQ

In what ways can brand extensions improve the odds of new-product success?