Advertising of new products

New product development is an important activity of the marketing process. A “new product” may refer to totally new product manufactured as a result of a technological breakthrough, which fully replaces the old and existing product. In marketing management, however, the term “new product” refers to a product that has been modified of improved, or which completely replaces a similar product. A modification of an existing product, an imitation of a competitive product and product-line acquisitions are also included in the broad meaning of the term ”new product”. The concepts of market segmentation and product differentiation are important in the achievement of better marketing results. Advertising, when rightly employed, makes it possible for such strategies to work beautifully. In segmentation, a product is modified in such a manner that it fits the special need which seems to exist among a group (segment) of potential buyers. In product differentiation, however, consumers have to adjust their demand to the product as it exists, or to a changed existing product. Advertising is effectively used to persuade consumers that they should a manner that it fits the special need which seems to exist among a group (segment) of potential buyers.