Posted in Marketing and Strategy Terms, Total Reads: 4507
Definition: Latent Demand
Latent demand is basically the desire for a product that a consumer is unable to satisfy because he is himself unable to point it out or doesn’t realise what is missing until pointed out. This need cannot be satisfied by current product or services and the consumer himself cannot articulate the type of product which will help him. Identification of gaps in the existing market often helps marketers to discover latent demands. However, participation of the end consumer (in the form of focus group discussions or in-depth interviews) is necessary to successfully access the need.
One of the jobs of marketers is to figure out the latent demand of consumers and make products that satisfy the same. The marketing task involves measuring the potential market (by assessing the size of the population which feels the same need) and develop a suitable product. Alternatively, he can also introduce the additional features in the existing product.
One of the best known examples of latent demand is smartphones. Initially a phone was used just for calling and texting. As consumers demanded, more and more features like radio, internet connectivity, touchscreen etc. began to be added to the product. Thus the transition took place from basic phones to feature phones to smart phones.