Gap in the market
| Gap in the market |
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| See also |
Gap in the market means that there is need for generating a new product or service in the market[1]. In other words, gap in the market is opportunity to develop new objectives and promote them[2].
Working towards gap in the market
On example of "A gap in the market: The conceptualisation of surveillance, security, privacy and trust in public opinion surveys", generally to start research if there is some gap in the market there are two steps necessary. Firstly, methology of research should be set up and secondly, results should be analyzed[3]. Jacobi E. S., Freund J., Araujo L. treats the gap in the martket as something that could be created by good marketing and good advertising. They are showing detailed steps of developing or discovering gap in the market[4]:
- Identification of the target audience - creating a consumer profile, describing the target audience (including social and cultural trends, insights about potencial customer's aspirations, desires, interests, dreams, passions), reviewing key competitors, developing potential propositions for future testing in focus group research.
- Laddering top-down with multiple approaches to planning - developing the propositions based on insights (motivation, essence, emotional background, rational benefit), market researching towards propositions might start,
- Identifying the product or service - for example playing with possible combinations of ingredients or functions, checking with lawyers,
- Laddering bottom-up - processing opposite dirction from top-down laddering (from consumer insight to product development) by following a bottomup logic which means to start this time with specific ingredients or functions of desired product and working up to the consumer insight.
- Comparing research versus planning - involving focus groups, working to solve any concerns about product,
- Identifying a gap in the market - basing on all data gained from previous actions,
- Creating a market in the gap - creating new ladder with new brand philosophy (mission) supported with necessary market analyzes and calculations.
Author: Patrycja Mikołajczyk
Examples of Gap in the market
- Automated Home Security Systems: Automated home security systems are gaining more and more traction in the market due to their ease of use and high level of security. With a home security system, users can monitor their homes from anywhere in the world using an app on their phone. These systems also allow users to set up motion sensors, door locks, and other security features from their phone.
- Personalized Learning Platforms: With the rise of technology, personalized learning has become increasingly popular. Personalized learning platforms allow students to learn at their own pace and tailor the content to their individual needs. These platforms use data to customize learning materials and provide students with personalized feedback to help them learn better.
- Online Grocery Delivery Services: With the increasing demand for convenience, online grocery delivery services have been gaining more and more traction in the market. Online grocery delivery services allow customers to order their groceries online and have them delivered to their doorsteps. These services also offer discounts, coupons, and other incentives to encourage customers to use their services.
Advantages of Gap in the market
Gap in the market offers a great opportunity for companies to develop innovative products and services that can fill the void. Here are some of the advantages of gap in the market:
- It can help companies to differentiate their products and services from the competition and stand out in the market.
- It enables companies to capitalize on a market opportunity by developing a product or service that meets the needs of customers.
- It provides an opportunity to create a new market or expand an existing one by providing a solution that meets the needs of customers.
- It allows companies to gain a competitive advantage by being the first to introduce a product or service that fills the gap in the market.
- It can help companies to gain market share and increase profits.
- It can result in the development of innovative products or services that benefit both the company and its customers.
Limitations of Gap in the market
Gap in the market can be a great opportunity for entrepreneurs and businesses to develop a product or service that fills an existing void, however, there are some limitations to consider:
- Lack of resources: When a gap in the market is identified, entrepreneurs and businesses must be able to access the resources needed to fill the gap. This may require significant financial investment and access to the right personnel, technology, and materials.
- Regulatory compliance: To ensure the safety and compliance of the product or service, businesses must be aware of the applicable regulations. This can be a lengthy and expensive process, depending on the complexity of the product or service.
- Competition: Even if a gap in the market exists, it is possible that there are other businesses that are also trying to fill the gap. This can make it difficult for a business to differentiate itself from its competitors and ensure market share.
- Customer demand: Even if a product or service is developed and marketed, there may be limited customer demand if the gap is not clearly identified or if the market is too small or saturated.
- Timing: The timing of the product or service launch is critical. If the product or service is released too early, it may not be fully developed or ready for the market, while if it is released too late, the competition may have already filled the gap.
Gap in the market means that there is need for generating a new product or service in the market. Other approaches related to Gap in the market include:
- Market Analysis – Conducting a thorough analysis of the market to identify potential opportunities and any existing gaps.
- Competition Analysis – Examining the competition to determine what is already being offered, what is successful and what areas are not being addressed.
- Customer Analysis – Analyzing customer behavior to understand customer needs and preferences.
- Product Development – Brainstorming and designing products or services that can fill the identified gaps.
- Pricing Analysis – Determining the most competitive and profitable pricing for the product or service.
In summary, Gap in the market provides opportunities for further development of products and services that can be used to fill the existing need in the market. Other approaches related to Gap in the market include market analysis, competition analysis, customer analysis, product development and pricing analysis.
Footnotes
References
- Ellis K., Keane J. (2008), A review of ethical standards and labels: Is there a gap in the market for a new ‘Good for Development’ label?, Overseas Development Institute, United Kingdom
- Jacobi E. S., Freund J., Araujo L. (2014), “Is there a gap in the market, and is there a market in the gap?” – How advertising planning performs markets in "Journal of Marketing Management, Vol. 31, No. 1-2"
- Mason K., Kjellberg H., Hagberg J. (2015), Marketing Performativity: Theories, practices and devices Key Issues in Marketing Management, Routledge, United Kingdom
- Scallan P. (2003), Process Planning: The Design/Manufacture Interface, Elsevier, Saudi Arabia
- Watson H., Rachel L. Barnard-Wills F., Barnard-Wills D. (2017) A gap in the market: The conceptualisation of surveillance, security, privacy and trust in public opinion surveys, Surveillance & Society 15(2), Licensed to the Surveillance Studies Network under a Creative Commons BY-NCND
