Companies can only indirectly manage that brand equity." (6:6). What does he mean by saying, "Companies can indirectly manage that brand equity"? Managing that brand equity can be by doing market researches and perform other marketing activities.
B. Brand extension.
Nowadays a lot of new products are being introduced into the market. Big proportions of these products are line extensions from a parent product (4:12).
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There are reasons that makes marketers consider brand extension, one of them is to reach a new market, another is producing new products that have a big share of the market in that period of time (1:1).
Marketers have to be careful when making an extension, because there is no role that can assure them that it will be a successful extension.
There are steps in brand extension. First, the extension must be relevant to the parent brand. Second, the value of the extension must be similar to the original brand. Finally, the extension must yield a competitive advantage for the brand being extended (1:1).
Extensions are lower risk alternative for increasing sales, but marketers also have to be careful when making an extension, because there might be some risks beyond that extension and your dreams successful new brand may stay as they are and don't become apart from reality (9:49). So, an old saying might be helpful in such a situation which is "Do it right or don't do it" (9:53). So, either you do your extension in a good way or don't do it, because it may be harmful to the company's financial status.
Extensions either to focus on a different market segment or may be an attempt to increase sales within the same market segment by focusing on satisfying the needs of people in that market. If the people in that market reject the extension then the company will be a failure one (6:4). Again the company must take care of the extension being developed.
COCLUSION.
Brands nowadays are very sensitive to changes in the market that is because of the raising competition between brands.