Final answer:
A product line extension allows a company to save on developing brand awareness by leveraging an existing brand's reputation. This method supports product differentiation and innovation while remaining cost-effective. It also aligns with consumer preferences for variety and quality in their products.
Step-by-step explanation:
One advantage of a product line extension is that the company can spend less money to develop brand awareness. By extending an existing product line, the business leverages the established reputation and equity of the brand, avoiding the higher costs associated with creating and promoting a new brand from scratch.
This strategy not only allows the company to capitalize on its established market presence but also offers consumers the benefit of variety and product differentiation. As companies continue to find innovative ways to attract customers, including friendlier service and quality guarantees, extending a product line provides a pathway to innovation while maintaining brand consistency, thus optimizing marketing resources.