1
Market opportunity analysis is conducted to evaluate market
opportunities. Business firms need to conduct external environment analysis
with special emphasis on customer requirements and strategies adopted by the
competitors.
Philip Kotler
identifies three main sources of market opportunity
1.
Product in Short Supply: - a firm may identify a
product/service which is in short supply. A firm may grab this opportunity to
take advantage of the market demand.
2.
Modified Product: -The product may have additional
features beneficial to the customers. The company can use certain methods this
regard;
·
Problem
Detection Method, where customers give suggestions for improvement.
·
Ideal
Method, which enables customers to imagine an ideal version of the product.
·
Internal
Research and Development to launch modified products.
3.
New Product: - A firm may develop and supply a
totally new product. Consumption chain method can be used, where customers are
asked to state steps in acquiring, using and disposing of a product. Companies
undertake market opportunity analysis to determine their attractiveness and the
profitability of success by asking certain question such as;
1.
Does
the company have adequate resources to produce and deliver the product?
2.
Will
the company be able to satisfy the customers better than the competitors?
3.
Will
the company be able to convince about product beneficial to the target market?
4.
Will
the company get adequate return on investment?
5.
Will
the new product impact the performance of firm’s existing product line?
If the
answer to the above questions is positive, the marketer may grab the
opportunity, otherwise, the opportunity is allowed to pass by;
Advantages of Market
opportunity analysis:
1.
It
helps to identify customer’s needs and accordingly design and deliver the
products to generate customer satisfacti0on.
2.
It
enables a firm to launch new models or products as per the market needs.
3.
It
enables a firm to face competition in the market because of customer-oriented
marketing mix.
4.
It
facilitates a firm to achieve its organizational objectives such as increase in
market share, profits, corporate image, etc.
