Which term best describes a strategy that involves entering a completely new market with a new product?

The term that best describes a strategy involving entering a completely new market with a new product is diversification. This business strategy is characterized by a company expanding its operations by launching new products in new markets, which can reduce the company's dependence on its existing products and markets, thus spreading risk.

Diversification often aims to tap into new customer segments and opportunities that may not be related to the company’s current offerings. By entering a new market with a new product, a business can leverage its existing strengths, innovate, and potentially achieve greater growth.

The other options do not relate to this strategy in the same way. Merging refers to the combination of two companies to form a new entity rather than the introduction of a new product into a new market. Publicity pertains to the public dissemination of information about a company’s products or services and is not a strategic market entry method. Franchising involves leveraging a business model and brand to allow other operators to sell products under the franchisor’s branding, but it typically involves existing products in established markets.