So, you want to create a product that gives customers a one-of-a-kind, required experience.
But where do you go for that market gap? It might be tough to discover a strategy to incorporate market trends into your company model because they are continuously changing.
The need for new products and services that keep up with the fast development pace of technology increases every year. In 2020, when our lives became completely different than before, we felt this need more than ever.
Companies faced a bewildering rate of change even before the pandemic arrived. The virus and its consequences have only demonstrated how a change in the organization’s mindset can make it more resilient to critical situations like this one.
For example, Red Roof hotels began providing day rates for remote workers. They can get exclusive access to a hotel room turned office suite with fast internet and a quiet environment for as little as $29 per day in some areas.
Other examples are fitness companies like Orange Theory, Planet Fitness, and 24 Hour Fitness, which started streaming live classes and providing training plans adapted to the customer’s home environment. In addition, to encourage customers to keep active, athletic clothing manufacturer Under Armour created a 30-day Healthy at Home workout challenge.
All these companies found ways to innovate by identifying market gaps. Furthermore, market gaps may be excellent sources of inspiration for your next big idea, whether you’re establishing a new business or searching for ways to expand your present one. But, before we get to the point where we advise you how to identify a market gap, let’s see what they represent in the first place.
What Are Market Gaps?
A market gap is a chance to create and offer something currently unavailable. Consumers, on the other hand, want it, and the need exists. The term “gap” refers to the disparity in supply and demand for a specific product or service. It refers to a customer demand that has yet to be satisfied by cache.
The definition by Macmillan Dictionary states that a market gap is:
“An opportunity to produce something that is not yet available but that people would like to have.”
According to Market Business News, a market gap needs to have at least one of the following characteristics:
- It’s something unique. It’s brand new, and there’s nothing else like it on the market.
- It is already in existence. However, an update or modification would significantly increase sales.
- The product is already available. Nobody, however, has attempted to sell it in a new market. Its sales will skyrocket if introduced to a new market.
How to Spot Market Gaps?
Spotting a gap on the market isn’t as tricky as it sounds. You probably spot several every day. However, most of the gaps aren’t possible to fill in. The real challenge comes when you need to identify a realistic gap for you to fill in. What you need to do is recognize future demands that your skills and resources can meet.
Start by getting yourself into an environment that is full of fresh ideas and new people. Get out of your comfort zone and disrupt your everyday routine to freshen up your creative thinking. This setting will allow you to get a fresh perspective and see the problem or the market with different eyes.
3 Tips to Identify Market Gaps from an Innovation Consultant
1. Listen to Your Customers
If you are already getting feedback from your existing customers, this is where you should look for your next innovation. If you aren’t, you are missing a lot! Keeping a close relationship with your customers can give you a fresh perspective on what you’re doing and offer ongoing opportunities for improvement. However, it’s also wise to use a third-party interviewer who can get a more objective overview of what your customers think about your products.
2. Follow Consumer Trends and Industries on the Rise and Adapt
While examining different patterns in various markets, you might uncover significant gaps. Everything is moving very fast—the dynamics of technology and the economy change throughout time, which you need to think about.
You’ll need to perform a more in-depth analysis in a particular subject if you wish to identify significant gaps. Try to locate as many things as you can that aren’t evident to others when researching. It makes no difference if you have no prior experience with the market or business. Having no background is preferable as you will avoid any possible assumptions from a previous experience.
When you realize what the trends are, consider what’s missing. Talk to people from the industry and ask them if there’s a product they would like to use and that’s missing. What are some products/services they want? Could you improve them in any way? Keeping in touch with others in your field is an excellent way to stay on top of current events and seize opportunities as they occur.
3.Differentiate Yourself from Your Competitors
You must invest time and attention to discovering new sources of revenue if you can no longer rely on the products you were already selling to your customers. Existing markets may already be presenting prospects that might not be so obvious. Examine your competitors to see whether any of them are also struggling. While no one loves to see a firm fail, market gaps provide opportunities for your own company to flourish. Competitors shutting down could be a chance to pick up valuable technology and experience without starting from scratch.
Once you have identified a gap, you need to think about the more practical stuff. Is there a demand for it? Do you have the resources to meet it? Do you have the skills to apply your resources? Can you make a business out of it?
If the answer to all these questions is “yes,” you’re probably on the right track. However, if one of them is missing, you might want to rethink your idea and modify it to make it more suitable for the market or the target audience.