What is it called when producers add related products to an existing line or develop a new product with the same brand name?

The correct answer, brand extension, refers to the strategy where producers take an existing brand and add related products or create new products under the same brand name. This strategy leverages the existing customer base and brand recognition to introduce new offerings, making it easier to market and sell them. By extending a brand, companies can target new customer segments or fulfill additional needs of their current customers.

For example, if a well-known snack brand that primarily sells chips introduces a line of dips under the same brand, this would be considered a brand extension. The new dips benefit from the established reputation of the chip brand, potentially leading to higher sales and acceptance among consumers.

In contrast, advertising refers to the promotional activities meant to communicate product benefits to consumers. Mass market pertains to strategies focusing on a broad audience rather than a specific target segment. A trade show is an event where businesses showcase their products to potential buyers and industry stakeholders, but it does not involve the concept of adding products to an existing brand line.