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When developing a new product or service, it is critical to assess what need it will fill and what your competitors are offering. This so called gap in the market could be the difference between an astounding product launch or an equally impressive product flop. Here are six ways you can identify a gap in your market:
1. Monitor Trends in Your Area of Expertise
If you have your finger on the pulse of current trends, consider what is missing. Are there products that you yourself would use but that are not on the market? Have you heard of any desired services from your network of colleagues? Keeping in touch with those in your industry is a great way to monitor current trends and take advantage of opportunities when they arise.
Do you have a systematic method to trap items and ideas?
2. Elicit Feedback from Customers (and Listen to it!)
Do you routinely get feedback from your current and former customers? If not, you may be missing a golden opportunity to offer something new (and profitable) to a group of individuals who already value your work. Maintaining regular contact with your customers has the added benefits of keeping your company fresh in their minds as well as creating a natural pool of potential charter clients for anything new you launch. But sometimes clients are telling you what you want to hear. Using a third party for some client interviews offers a different set of ears.
3. Evaluate Competitors’ Offerings and Differentiate Yourself
Hopefully you know who your major competitors are and what they are offering. How do you distinguish yourself from them? Are you offering products or services that provide more (value, service, convenience, etc) to your customers? Making sure that you not only know your competition but also how you differ from them will help you gain better control of your corner of the market and identify any potential gaps.
Again outside perspectives and interviews with clients and prospects can help.
4. Think Globally
Sometimes the best idea has already been developed into a successful product in another corner of the world. A German startup incubator, Rocket Internet, consistently generates billions of dollars per year by identifying successful international companies and legally imitating their business model. Perhaps an international company holds the key to helping you identify a gap in your own market.
5. Adapt an Existing Product or Service
You might already have an existing product or service that, with some changes, could be made into an even more profitable asset. Take Netflix, the entertainment giant who successfully identified a market gap that its competitors were not filling. Instead of wading through the aisles of a brick-and-mortar video rental store, Netflix customers could browse its impressive array of DVDs online and receive them via mail. But, they didn’t stop there. They expanded their offerings to include streaming services and, more recently, producing blockbuster tv shows (like House of Cards) based upon their own customer viewing data.
Do you have a current product or service that can be adapted to better fit the market? Or, do you have a competitor whose product or service you can do better?
6. Hire Outside Resources to do the Legwork for You
If you’re having trouble identifying and taking advantage of a market gap, it might be time to call a professional. Outside resources can help you by performing market research, identifying potential customers, obtaining feedback on product ideas, providing unbiased input on your current direction, and utilizing a specialized network on your behalf.
If you need help evaluating a gap in the pharmaceutical market, contact Pharma Acumen today to learn more about how we can assist you.