Entering a market is a big step for all of us. In the start-up world, a lot of things are to be considered. One of them is the concept of product-market fit. This common term in the market is crucial to lay the foundation for your brand. Let us begin by knowing what a product-market fit is.
What is Product-market Fit?
Do you find yourself clueless when the first time you hear the term 'Product-market fit'?
Firstly, what is a product/market fit? Marc Andreesen said, "Product-market fit means being in a good market with a product that can satisfy that market" when he first coined the term, which we agree is a very vague definition. In simple words, a product that satisfies a market's needs in which the customers are buying, using, and sharing their experience with others is a product-market fit. In the product-market fit pyramid, product-market fit fills the gap between the product and the market.
When product-market fit happens, you will notice a 'pull' from the market, and you provide value to the customers and know how to reach them.
For example, the market for food products has a high need to distribute certain food products to consumers at a digital level. Any product/app that satisfies these needs the best makes the product-market fit.
What is a Product marketing Strategy, and Why Does Your Brand Need It?
You must be wondering, 'What is a marketing strategy?' We have the answer to that—think of product strategy as a road map to how your product has to be. With a product strategy, you can envision the ideal product for the market. And a product like that will make the product-market fit.
The aim of any product marketing strategy is for the product to be recognized by the customers, shared with others, and helping the start-up make more products for its new users. The importance of a marketing strategy is that it determines the product's success and its manufacturer/creator.
Techniques to search your Product-market Fit
When working for the ideal product-market fit, this is what you need to keep in mind:
Know your potential users
Before producing a product, the most important thing is to know your target audience. A product that focuses on the needs of the audience is a product that gains the maximum audience. A customer looking for a solution that they are facing with their current product expects value in your product to make an ideal client for your product. Talk to your potential customers to know what they are looking for in your product. Keep in mind to focus on a small portion of the public, no matter how tempting it is to pay attention to a more significant proportion.
A team effort
Every employee has to look for product-market fit, and not just one specific person. It is not an easy process and requires the team's contribution, be it the product team or the marketing team. The coordination between these two will result in finding your product-market fit fast while knowing the current market demand. The success of a product is determined by everyone's effort, which, in turn, portrays the importance of marketing strategy.
Coordination between the marketing team and product team
As mentioned above, the product team and the marketing team need to work together. If this condition is not satisfied, your product will not cope with continuously changing market demands. With product-market fit, the growth will be slow but will steadily rise.
Importance of acquisition
Acquisition plays a crucial role in a product's popularity. Finding appropriate acquisition channels should be the top priority of the marketing team. Some of the most profitable acquisition channels are social media, SEO, paid advertisements, partnerships, and press. These avenues will help in the proper acquisition of your product.
Fulfill the market (Product-Market fit pyramid) gap
The product-market fit pyramid is a five-component hierarchical model in which product-market fit fills the gap between market needs and product value. The different layers of the pyramid are directly dependant on the ones below them.
Add value to your product
Adding value to your product will create more traction to it once in the market, assuming the targeted customers value the added features. Make the audience anticipate your product; this anticipation will turn the customers in your favor. Focus on the presentation of your product. Instead of boasting about the features of your product, let the user experience it. Presell your product to know your customers' response to it. Make the required adjustments to satisfy the customers' needs.
Steps and target marketing strategies to explore your product-market fit
Getting the product-market fit is not an easy process. We have these easy steps for you to reach the target marketing strategy:
Determine your target audience
The first step to a successful enterprise is to determine who your audience is. Know the concept of the 'ideal user,' which requires four stages: Examine your product; Know your competition; Choose a sector of the public; and lastly, Conduct your research.
When thinking of research, you have to physically go to your audience, talk to them, understand their needs and what they are looking for. Keep in mind that you are not the final consumer. Customer feedback is an essential factor that determines and helps in increasing your product's value.
Focus on a single perspective
A small budget is an issue faced by most start-ups. Instead of feeling discouraged, it allows you to concentrate on a single vertical. Focusing on a minor problem might make you feel dejected initially but make sure that your product provides the ideal solution to the issue.
Find different marketing channels that are ideal for your product
Acquisition channels play a crucial role in your product's popularity and usage among the customers. Finding the right acquisition channel for your product is essential. And remember, invest in as many acquisition channels as possible.
Mistakes that you must avoid
Product-market fit is not an easy task. It requires intensive planning and research. Amidst this, mistakes are bound to happen. Here are some common mistakes that entrepreneurs make and you should avoid:
Not interacting with customers
Customers will provide the best intel on your products than any research. Be mindful of your customers and what they think about your product. A customer's review can make or break your product's reputation, so remember, every review counts.
Every market is different and comes with competitors of its own. Ensure that your product has something different that will be of more use to your customers.
Not improving the key metrics
Often, start-ups make the mistake of not paying attention to their performance, which leads to the start-up's downfall. If you have reached the product-market fit, do not stop there. Remember, the needs of your customers are constantly changing. Your research should be an ongoing process of regularly interacting with your clients.
Do not focus on satisfying a large audience from the start
The larger audience you focus on initially, the more difficult it will be to reach product-market fit. A small budget is one reason you should focus on only a specific section of your audience. And while doing so, make sure that the product solves all the problems faced by your target audience.
Attaining product-market fit is not an instant process. It might take you multiple attempts to reach the product-market fit. It takes time, effort, and hard work, not just from one team of the start-up but by the entire company. Patience and persistence will help you in reaching your goal. After a time, your customers and marketing team efforts will carry your cause and help you achieve product-market fit.
We hope that this article helped educate you about the product-market fit pyramid and its specifics. Share it with your friends and family to support their start-up become successful.