What is the significance to a business of identifying a gap in the market?

By a business successfully identifying a gap in the market this allows for the market to be segmented and for an organisation to correctly position themselves against rival competitors. Therefore, this results in a business being able to differentiate it's products and create USP's. Thus, creating a competitive advantage which will lead to an increase in demand for a product/service. However, when conducting market research a business needs to take into account that just because there is a gap in a market this does not necessarily mean there is a need for a product/service. Therefore, further market research may need to be conducted in order to ensure that this segment would be profitable.