DECA Sports and Entertainment Marketing Practice Exam

Which term refers to the development of new products that expand a brand?

1. Brand Identity

2. Brand Equity

3. Brand Extension

4. Brand Loyalty

The correct answer is: Brand Extension

The term that refers to the development of new products that expand a brand is brand extension. This marketing strategy involves taking an established brand and introducing new products under the same brand name, thereby leveraging the existing brand identity and reputation to capture new market segments or categories. Brand extension can enhance the overall strength and perception of the brand, making it easier for the new products to gain consumer acceptance and trust. For example, if a well-known and trusted shoe brand decides to launch a line of athletic apparel, that would be a classic case of brand extension. The other terms carry different meanings. Brand identity refers to the visual and communicative elements that create recognition of a brand. Brand equity pertains to the value derived from the consumer's perception of the brand, impacting its market position and pricing power. Lastly, brand loyalty refers to the tendency of consumers to consistently prefer a particular brand over others. Each of these concepts plays a significant role in marketing, but they do not specifically denote the strategy of launching new products under an existing brand name.