1. Ch. 9 - Notes

2. Brand extension
Refers to the use of the same brand name for new products being introduced to the same or new markets.
Roots has extended its brand from athletic clothing to leather bags, yoga wear and accessories, and even a line of baby clothes.
The firm can spend less in developing consumer brand awareness and brand associations for the new product.
When brand extensions are used for complementary products, a synergy exists between the two products that can increase overall sales. As an example, Frito Lay markets both chip and dips.

3. Cobranding
Is the practice of marketing two or more brands together, on the same package or promotion. This practice has increased greatly, led by credit card companies such as Visa and Mastercard. Examples include; CIBC Aeroplan Visa, TD Gold Visa, and President’s Choice Mastercard, to name a few.
Cobranding enhances consumers’ perceptions of product quality
Yum Brands frequently combines two or more of its restaurant chains, including A&W, KFC, Long John Silver’s, Pizza Hut, and Taco Bell into one space
Loblaw partnered with Mattel in a cobranding agreement for its affordable fashion line, Joe Fresh, to create a limited-edition collection of Barbie-branded sleepwear and underwear.
This strategy can fail when customers for each brand is vastly different.

4. Brand licensing
Is a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee.
Common for toys, apparel, accessories, and entertainment products, such as video games.
The firm that provides the right to use its brand (licensor) obtains revenues through royalty payments from the firm that has obtained the right to use the brand (licensee).
Ralph Lauren, Calvin Klein, Eddie Bauer, Porsche, NASCAR , Disney, and Marvel Entertainment (Spider Man) all engage in brand licensing. Sports teams also benefit from licensing, NBA, NFL, and NHL teams.