The phrase “market gap” is used by the business world to reflect potential opportunities to invest in products that are in high demand but have low or even no supply. The more scarce a product in demand gets, the more its value will rise. When a company discovers such market gaps, it can expand its consumer base by filling the gaps.
Identifying Market Gaps
Many times market gaps go unnoticed for years. Before a company can benefit from a gap in the market, it must first identify demand for an unavailable or limited product. The firm must then decide whether the solution is completely new or if it’s more of a refinement of an existing product. Another type of gap in the market is when an old product gains demand for a new market in which it hasn’t been sold before.
Where to Find Market Holes
Market holes exist everywhere; it’s just a matter of finding one that a marketer can exploit. Since not all companies are equal, it follows that not all gaps can be filled by any given random enterprise. An entrepreneur, for example, can exploit gaps in which he or she has equipment or resources for generating products and services. A videographer who finds out that a community needs regular video production work but doesn’t know where to turn can step in and offer their services. That same videographer can distribute his or her business cards throughout the community to maximize earnings potential.
Discovering market holes often comes from market research, such as website surveys or even conversations with target market individuals. Another way to find these gaps is through company brainstorming sessions. Collecting input from an army of employees can help a firm uncover hidden demands within a market.
Constantly meeting new people and finding out their needs and observations is another way to expose market holes. Some of the ways businesses can increase interaction with the public include business seminars, trade shows, and social media. The more followers a firm can attract on social networks, the more opportunities they will have at gaining deep insights into consumer needs.
The key to offering a new solution for filling a market gap is to open the floodgates and gather plenty of market feedback. Making new connections while exploring with curiosity helps uncover lucrative market gaps.