Question

How would you best describe a needs gap by an example? If marketers know what needs gaps are, then why are they allowed to exist?

Answer 1

The consumer need gap concerns a specific good or service that is lacking or not optimally delivered by existing companies in a given market.

The consumer needs gap defines the structure and extent of the gap in a particular market. The consumer needs gap often represents potential opportunities on a given market that can be used for profitability. For example, a market segment which lacks petrol or a petrol filling station but produces cars is a useful opportunity for the individual to exploit because the car is using petrol as petrol.

Marketers may know what the gap is, but can exist because of financial restrictions. Marketers may be unable to solve a problem in the market that creates a gap in consumer needs or to invest in a profitable gap and therefore there is a gap.