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.

In a product innovation method, the business practices product innovation, then tries to work out a market for the product or service. Product innovation handles the process and marketing research is carried out primarily to make certain that a beneficial market segments are for the innovation. The basis is that clients may not know what choices will be accessible to them in the future so the company should not expect them to tell the company what the customers will buy in the future. On the other hand, marketers can assertively over-pursue product innovation and attempt to overcapitalize on a niche.