Marketing debate Essay Example | Topics and Well Written Essays - 500 words

Marketing debate - Essay Example In the process of discussing the positive side of brand extension, several examples will be provided. In most cases, brand extensions are considered as a potential growth strategies because of the fact that the use the parent brand that has been successfully known by the public could reduce the high costs of advertising. (Stephenson, 2008; Aaker 1996, p. 380) Since the parent brand has already won the trust of its target consumers, it will be so much easier on the part of the marketing managers to introduce and make the consumers accept a new product extension under the parent brand. For example: McDonald’s has successfully established its brand in the global markets. Since the company is known to provide good service in terms of the cleanliness of the restaurnts and having prompt service, the recent introduction of its McCafe’ was easily accepted and recognized by the public consumers. To prove the success of McDonald’s brand extension, the company has already sold more than 500 million cups of coffee each year since the pre-launching of McCafe’ in the American market. (Mabrey & Apton, 2008) With regards to the services provided by McDonald’s and McCafe’, the experimental study that was conducted by Lei et al. (2004) to test the customers’ perception of the low quality service offered by the extension brand as compared with the high quality service offered by the parent brand reveal that despite the differences in the quality service offered by the parent brand and brand extension, customers are more likely to perceive the service offered by the extension brand as similar to the ones offered by the parent brand. Even though the application of brand extension could significantly increase the potential sales and market of a busines organization, theres is still a strong need for marketing managers to effectively position the new product in the