Note to future self…
There’s this very powerful notion of following the “latent demand” of a market and figuring out a way to unlocking all of that latent demand in order to build a meaningful business. The big question is
How do you identify latent demand?
First of all we need to understand what’s latent demand and here’s a good definition:
Latent demand refers to demand for a good or service that consumers cannot satisfy for three main reasons.
- Cost: The consumer does not have enough money to buy the item
- Availability: The item is not available.
- Awareness: The consumer does not know that the product or service is available.
The opposite of latent demand is effective demand which is the actual demand (measured in $$ and volume) that people are currently transacting.
How to identify this gaps in the market created by latent demand?
This is what we still don’t know how to articulate properly. However, I believe that part of the equation is understanding how latent demand
Now back to work…