Final answer:
When a company introduces a new product to its line without distinct positioning, it may lead to cannibalization, where the new product eats into the sales of existing products. Distinct product differentiation is essential to avoid this scenario and ensure each product occupies a unique market position.option d.
Step-by-step explanation:
If a company extends a line of products by introducing a new product to the market and does not distinctly position this product separately from other products in the line, the result could be cannibalization. This occurs when the new product starts to take sales away from the company's existing products rather than generating additional total sales or reaching new customers. It's essential for a firm to practice product differentiation by making their products distinct in physical aspects, location, intangible aspects, or perceptions to prevent cannibalization and establish a clear market position. Without proper differentiation, the products might compete against each other within the same market, which leads to reduced overall sales and potentially harms the company's profitability.
Contrastingly, bundling is a concept where a firm sells two or more products or services as one package, typically giving consumers a pricing advantage. Cable companies, for instance, often bundle cable, internet, and phone services to provide a more attractive offer. However, in the context of adding a new product to a line, bundling is not directly related to the concern raised in the question, which focuses on the risks of not positioning a new product distinctly.