Final answer:
Brand extension is the strategy of using an existing brand's reputation to launch a new product. This approach gives the new product an advantage due to existing brand recognition and consumer trust, which is exemplified by companies like Coca-Cola with their strong brand presence. Therefore, the correct option is 5.
Step-by-step explanation:
The process which involves attaching a popular brand name to a new product collection to capitalize on the recognition and reputation associated with that brand is known as brand extension. Brand extension allows a new product to have a head start in the market due to the existing consumer trust and loyalty towards the brand. For instance, if Coca-Cola were to launch a new line of beverages, the new products would benefit from the strong cola brand association Coca-Cola has meticulously built over many years.
Brand extension is part of a marketing strategy that can signal to consumers a certain level of quality and consistency they can expect from the new products based on their previous experiences with the brand. This strategy leverages the social marketing benefits associated with a well-established brand, as consumers are more likely to exhibit brand loyalty to and trust in new products that are affiliated with a brand they already recognize and respect.