Latent Market - Definition & Meaning
What is Latent Market?
Latent market is a potential market identified which is not yet offered with the product or services needed for that market. Latent demand from the consumers gave raise to this type of market where when the consumer buys a product he might not desire some features but later on he might think on those feature and buy the product.
Example: Customers buying pattern for Normal mobile phones and smart phones
These latent demands from the consumers are never expressed explicitly. It makes the task of the marketer even more difficult to identify those needs and manufacture products which cater to these latent demands. Thus many companies invest a lot in their market research and R&D to come up with some innovative products or services. The strategy to create a product for this latent market is sometimes called as Blue ocean strategy where there will be no competitors. The first entrant holds a huge advantage as it unlocks the new demand and makes competition irrelevant
Example:
• Tata motors introduction of Nano cars
• ITunes and IPods’ from Apple
The introduction of ITunes changed the way people listened to music. Until the introduction of ITunes consumers has to buy the CD or cassette of an album and can listen to it. ITunes provided the consumers with an option to buy even a single song rather than buying the whole album. It introduced pay per song options through which consumers benefitted and a new demand was created. The introduction of IPods and I Pads are also aimed at targeting the latent market.
Social media provides a huge market for many products and services. Among them Facebook, YouTube and other popular media were leveraged for marketing efforts. But only in recent times Twitter was able to convert its reach to the mass through a new revenue model where marketers can promote paid trending or even customer complaints can also be handled efficiently through twitter by Social Listening. This latent market was identified very recently and tapped swiftly for the mutual benefit of both customer and firms.
Whatsapp is another platform which has huge potential but marketers are yet to come with a strategy to use it for their marketing efforts.
Hence, this concludes the definition of Latent Market along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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