The effect of brand extention to the advertising efficiency

Lee Sang Min(Major in Advertising & Public Relations Graduate School of Mass Communication, Chung Ang University in Seoul Korea)

Most enterprises will expect to reduce their investing cost enlagement needed to induce new products to market effectively and to get them landed in there safely, when they try to extend their brands.

But they must keep it in their minds that Brand Extension alway not gets to goods results, on the contrary t results in bad effects to the goods of another line with the some brand.

Some times, they should put up with unonticipated losses of getting deprived them of their chances of cultivating their new brands.

Which may promore their Brand Equity in for sighted viewpoint in the course of their making brand Extension.

Even when they succeed in getting better brand extension, they must the careful not to dilate the meaning of their original Brand.

Therefore Brand Extension requires the enterprises under consideration of making it to look into their market circumstances, the special characters of their Brand, Characterlistics of the extension product, and their marketting abilities etc., in detail.

The purpose of this study with the above mentioned viewpoint lies in surveying how Brand Extension and Individual Brand differ on the advertising efficiency point of view, and as the conditions of controlling above things, I set up 4 diffrent kinds of Hypotheses to find out which relations the Advertising Efficiency has with consumer's Evaluation, and have tested them one affer another.

I have taken lineless telephone as Search Goods and flour ditergent as Experience Goods and mode the first research on the advertising persons in charge of each enterprises producing above goods and the second one on married - women consumers of them.

finishing this study, I got to below mentions conclusions.

1. There is not any significant difference between Brand Extension and Indivisual Brand, but the significant difference recults from the degree of strength betweend relative price and competitiveness.

2. The advertising efficiency occurred in Brand Extension in creases according to the similarity between extension products and original ones.

3. The advertising efficiency is more remakrable in research goods than in experience goods, but we may find out the corrtrary case only when the Intensity of competitiveness differs from Relative Price insimilar degrees.

4. The advertising Efficiency resulted form Brand Extension brings about relative gap according to Relative Price degrees with the competing goods ; when Relative Price increases, Advertising Costs do, too.

With above research results, I made it clear how the Brand Extension under application are affected by the above controlling factors and proposed to review dilating opportunitles of new Brands.

In particular, I emphasise to review and compare this study with the unefficiency of Enterprice name Brand applied by most domestic enterprises and set up effcetive Brand and fulfill it.