Marketing Management | 2015
Student: Houssem Eddine Ratel ID: 0060MRMR0414 Semester: One Program: MBA Lecturer: Dr. Syed Abdul Kadir TWC: 4669 (Executive summary to references) | Master of Business Administration |
In this work, we have tried to present the main approaches that helped to explain the brand extension evaluation mechanisms, namely the approach of perceptual congruence and group approach. Both approaches have dominated the literature on brand extension ...view middle of the document...
Since the eighties, the brand extension strategy is heavily taxed in companies from growth strategies. More marks are no longer associated with a single creation however to a heterogeneous set of goods. One can cite the case of the brand "Evian" which firstly produced mineral water, it is currently in cosmetics. There is too mark "signal" that is passed to toothpaste and toothbrushes currently chewing gum. Nevertheless, achievement was not the fortune of most extensions; certain failed and even resulted in bad control on the parent brand.
To limit this danger, investigators have annoyed to study the issue of evaluation of product extensions. The evaluation of the literature shows that research is largely dominated by notions of "fit" (or logical link) and "similarity" and "typicality". These concepts in the context of the theory of holistic categorization initially are introduced by, (ROSCH & MERVIS, 1975). This theory can be divided into two distinct approaches. On the one hand, the approach of perceptual congruence that explains the attitude or performance with respect to brand extension. Under this approach, the more extension products are internally consistent with the brand; they will have more chances of success (Aaker & Keller, 1990).
On the other hand, there is categorical approach based on the concept of typicality. This approach considers that an extension is classic and more evaluation will be optimistic for the reason that the usual extensions segment the benefits promised by the mark (Boush & Loken, 1991) .
II. The brand extension strategy
In general, brand extension is understood as the procedure of a current brand to move in a new product in a different product group of the new class, the position is one of several writers such as (Tauber, 1981) , (Aaker & Keller, 1990) .
(Kotler & Dubois, 2000) Characterize brand extension as the utilization of a brand name that has demonstrated it to dispatch an item having a place with another class.
(Aaker & Keller, 1990) Indicate that the brand extension is the procedure of a current brand on an innovative product group for the firm, compare to the extension line that uses the designation of the brand a product group where the brand previously exists.
These descriptions are somewhat ambiguous mainly lies in the definition of the concept of product category. (Cegarra & Merunka, 1993) Were the first to try to better understand this concept, they consider that there is brand extension if the product category of the extension is diverse from the new product category, this conceptualization is the problem of the definition of a different class of products, the relationship between the new product and existing product is investigated using two criteria:
* The nature of the product: that is to say, all its tangible elements (composition, physical characteristics).
* The product function: that is to say, its use value and consumer benefits.