A brand extension uses an existing brand name on a new product in a new category to benefit from the existing brand name’s attribute and imagery awareness and associations to gain consumer trial, retailer distribution, and so forth, in the new category. For example, a cross-category brand extension could be one in which a car brand, such as Porsche, extends into categories such as pens or eyeglasses.
Before assessing what is known about GBM, we begin by painting the background that put global brands in the center stage. Developments accelerating the trend toward global market integration include the emergence of global media, the Internet, and mobile communications, the free movement of capital and goods leading to worldwide investment and production strategies,
Whilst there can be other factors that affect the ability of a business or practice to be successful, such as the economy, trends, cashflow and product/service quality or innovation, the number one difference between successful high-flying businesses and their struggling counterparts is good marketing.
The best way to distinguish between advertising and marketing is to think of marketing as a pie, inside that pie you have slices of advertising, market research, media planning, public relations, product pricing, distribution, customer support, sales strategy, and community involvement. Advertising only equals one piece of the pie in the strategy. All of these elements must not only work independently but they also must work together towards the bigger goal. Marketing is a process that takes time and can involve hours of research for a marketing plan to be effective. Think of marketing as everything that an organization does to facilitate an exchange between company and consumer.
