Creating a marketing plan requires a cohesive and strategic approach. Your first step should be to examine and understand your target market. Once you know what they want, you can look for opportunities where your business can fill their needs. Aside from doing some customer research, there are other methods you can use to help identify gaps in the market.
When you think of market gaps, you would often assume that they’re only for big businesses that can afford to explore and exploit these opportunities.
However, that’s not always the case. Even small businesses can find gaps in the market if they know where to look and how to take advantage of them. After all, market gaps are opportunities to serve a need that’s not being filled.
What does a gap in the market mean?
Gapping happens when there is no trading activity in between the price of a security or asset opening significantly above or below the previous day’s closing. When the opening price is within the previous day’s price range but is higher or lower than the close of the previous day, this is known as partial gapping. When the open is outside of the range from the prior day, full gapping happens. Gapping, particularly a full gap, indicates a significant movement in public opinion occurred over night.
Tips on Finding Gaps in the Market for Your Small Business
How do you find gaps in the market for your small business?
1. Check industry trends
Always be updated with the industry trends. You can find this information by subscribing to trade magazines, online newsletters, and other resources. Also, attend trade shows and industry events to network with other professionals in your field.
When you’re aware of the latest trends, you can start looking for gaps in the market that may exist. For example, if you’re in the marketing industry, you may see that video is becoming a more popular marketing tool. This means there may be a gap for a small business that offers video production services.
2. Ask your target market
Your target market is a significant source of information to find any market gaps. Communicating with them can help you get insights into what they want and need. You can also ask them how they feel about the products or services you currently offer. This feedback can then help you improve your offerings or identify new opportunities.
For instance, if you’re a small business that offers web design services, you can ask your target market which features they would like to see on a website. This will give you an idea of what kinds of gaps there are in your industry.
3. Do your research
Identifying market gaps always comes with reliable and exhaustive research. Be sure that the niche you have chosen is not already saturated with businesses offering the same products and services.
Conduct a thorough search on the internet using specific keywords related to your niche. See if there are any new trends or changes in the market that you can capitalize on.
Once you have a good idea of what is currently being offered, it’s time to think about what is missing. What needs are not being met currently? What are people looking for but cannot find?
Brainstorm a list of potential gaps in the market, then do more research to determine if there is a demand for these products or services.
4. Look at your competition
Study your competitors and observe how they market their products. Also, look for ways to improve on what they are offering. For example, what marketing strategies are they doing that you’re not? Can you provide a better product or service? Can you give a more valuable experience?
Moreover, stand out from the competition and think of ways to make yourself unique. This will help you attract customers looking for something fresh and different.
5. Consider business requirements
As a small business, your goal is not only to promote your products or services but also to meet the needs of your stakeholders. Therefore, you must consider your business requirements before taking action on potential gaps in the market. For example, while doing your research, you can study how to generate your 1099 or create a W-2.
In this way, you can ensure that you are offering the best products and services possible while also fulfilling the Internal Revenue Service (IRS) requirements.
6. Use your expertise
You can also use your expertise to find gaps in the market. What are you passionate about, and what needs do you see that are not being met?
Once you’ve identified a gap, it’s time to take action. Create a strategy to fill that gap and make sure that your target market is aware of it.
Remember, the key is ensuring that your small business can offer a unique and valuable solution to the problem you’ve identified. So, if you can do that with the tips we’ve discussed above, you’ll be well on your way to success.
7. Track legal developments
New regulations are a major driver of change and can create brand-new market gaps almost immediately.
As an illustration, the Legal Services Act 2007 opens in a new window established regulated alternative company structures and made it possible for non-lawyers to become the first-ever owners of law firms.
Due to this, previously unheard-of modern legal services, such internet conveyancing, proliferated.
The Distinction Between Various Gap Types
The following sorts of gaps have some key distinctions: Common Gaps, Breakaway Gaps, Runaway Gaps, and Exhaustion Gaps.
Typically, no significant event precedes this kind of gap. Compared to other forms of gaps, common gaps typically close rather rapidly (typically within a couple of days). Common gaps, sometimes referred to as “area gaps” or “trading gaps,” typically occur with average trading volume at normal levels.
When the price moves above a support or resistance level that was created during a trading range, it creates a breakaway gap. A breakaway gap occurs when the price uses a gap to exit a well-established trading range. Another form of chart sequence, such as a triangle and a wedge, curved bottom or top, or head and shoulders pattern, could also give rise to a breakaway gap.
When trading activity passes consecutive price points, frequently fueled by significant investor interest, a runaway gap develops, which is typically visible on charts. of other words, between the price points where the runaway gap started and concluded, there was no trading, which is defined as an exchange of ownership of an asset.
A break lower in prices (often on a daily chart) that follows a stock’s price rising quickly over several weeks prior is known as an exhaustion gap. This signal represents a major change in activity from buying to selling, which typically occurs when demand for a stock is declining. The signal suggests that a growing pattern may be about to come to an end.
For traders, each kind of gap has repercussions. For instance, runaway and ordinary gaps do not often coincide with a dramatic increase in trade volume, whereas reversal or breakaway gaps do. Additionally, news, events, such as earnings or an analyst’s upgrade or downgrade, are the main causes of gaps.
Common gaps are more frequent and may not always require a cause. Additionally, common gaps are more likely to be filled than the other two, which could indicate a trend reversal or continuation.
Restrictions on Gaps in the Market
Despite it being simple to identify gaps, there are restrictions. One’s own ability to recognize the various gaps that exist is the obvious fault. If a gap is understood incorrectly, it could be a disastrous error that prevents one from taking advantage of a buying or selling opportunity, which could have a significant impact on one’s gains and losses.
In conclusion, researching the gaps in your market creates a big opportunity for you and your small business. By understanding what is not currently being offered, you can fill that need and provide a unique service or product to consumers.
Additionally, gaining knowledge about the wants and needs of your target market will help you better appeal to their interests. Finally, remember to keep an open mind while conducting your research, as there may be gaps in the market that you’ve never thought of before.