The product gap—also called the segment or positioning gap—is that part of the market a particular organization is excluded from because of product or service characteristics. This may be because the market is segmented and the organization does not have offerings in some segments, or because the organization positions its offerings in a way that effectively excludes certain potential consumers—because competitive offerings are much better placed for these consumers.
This segmentation may result from deliberate policy. Segmentation and positioning are powerful marketing techniques, but the trade-off—against better focus—is that market segments may effectively be put beyond reach. On the other hand, product gap can occur by default; the organization has thought out its positioning, its offerings drifted to a particular market segment.
The product gap may be the main element of the planning gap where an organization can have productive input; hence the emphasis on the importance of correct positioning.
Read more about this topic: Gap Analysis
Famous quotes containing the words product and/or gap:
“He was the product of an English public school and university. He was, moreover, a modern product of those seats of athletic exercise. He had little education and highly developed muscles—that is to say, he was no scholar, but essentially a gentleman.”
—H. Seton Merriman (1862–1903)
“The gap between ideals and actualities, between dreams and achievements, the gap that can spur strong men to increased exertions, but can break the spirit of others—this gap is the most conspicuous, continuous land mark in American history. It is conspicuous and continuous not because Americans achieve little, but because they dream grandly. The gap is a standing reproach to Americans; but it marks them off as a special and singularly admirable community among the world’s peoples.”
—George F. Will (b. 1941)