In a product novelty approach, the business pursues product modernization, then tries to expand a market for the product. Product modernization leads the process and marketing research is lead primarily to make sure that a profitable market segments exist for the modernization. The underlying principle is that consumers may not know what opportunities will be accessible to them in the later so we should not anticipate them to tell us what they are going to buy in the future. Nevertheless, marketers can forcefully over-pursue product modernization and try to overcapitalize on a niche.

Hardly ever we see marketing sites act with competitive analysis. Marketing concerns understanding competition as well. But not just listing off who the opponents are. It stands for considering their competitive feedbacks, their goals and capabilities. In addition it means realizing competitive forces in an industry.

Quite often companies act as though they were monopolists, as though their competitors were not likely to respond or had little concern about capturing a market. A company should consider long run plans of the competitors and try to predict their acts.