Market Opportunity

The opportunity to create a product that customers in a certain market willing to purchase.

Market opportunity refers to the potential or current revenue a business can acquire by selling goods and/or services to their customers. It focuses on an analysis of revenue opportunities in a certain market and explores the estimated amount of money that can be made by selling goods, services, and/or experiences to that market. Once an opportunity has been identified, businesses can then craft appropriate strategies in order to maximize their profits by offering products and services that meet the needs of the customer and their market.

For a business to discover potential market opportunities, it is important to conduct research on the target audience and competitors. Businesses should focus on who their customers are, what their needs are, what kind of products they could potentially purchase, and from who they are most likely to purchase them from. This research then gives better informed insights of the market, allowing businesses to better develop products and services that meet the needs of the customers. Additionally, it is important to identify competitors and analyze their strategies in order to modify the current offerings and provide better quality services or products.

A clothing company, for example, might identify that there is a market opportunity for specialized workout clothing for people with disabilities. Through research they would discover the needs of disabled customers and what price points they are willing to pay. After, they can craft a strategy to target this customer segment by providing specialized workouts clothes, with different materials and features that increase their accessibility. Then, they can create an appropriate marketing campaign with the goal of reaching more customers and creating greater exposure of their specialized products.