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Product Market Fit (PMF)

Finding product/market fit is the main objective of all new products. However, it's crucial to acknowledge that according to Harvard studies, the majority of startups and established organizations fail to achieve PMF. To ensure that we don't fall into the same trap with our product, or to achieve PMF quickly and efficiently, we need to take a purposeful approach. This means proactively addressing the six most common dimensions where new products fail and comprehensively focusing on all critical steps that ladder up to building a successful product.

  1. Problem to solve
  2. Target audience
  3. Value proposition
  4. Competitive advantage
  5. Growth strategy
  6. Business model

https://www.lennysnewsletter.com/p/how-to-know-if-youve-got-productmarket

https://www.lennysnewsletter.com/p/how-to-kickstart-and-scale-a-marketplace

GTM - Go To Market​

A go-to-market (GTM) strategy is a step-by-step plan for launching a new product or expanding an existing product into a new market. It sets your initiative up for success by answering the following questions:

  • What product are you selling, and what unique problem does it solve?
  • Who is your ideal customer, and what pain points do they experience?
    • Ideal customer profile (ICP)
    • Buyer personas
  • Where will you sell your product? What markets do you want to pursue, and what does the demand and competition look like in those markets?
  • How will you reach your target customers and create demand?

go-to-market-strategy

https://asana.com/resources/go-to-market-gtm-strategy

Product Strategy + GTM (Go To Market)​

PM School - Should Google enter the OTT market? | Strategy and GTM questions in PM Interviews

  • CXO Thinking Skills
  • How well you breakdown an ambiguous & vague problem
  • Should X enter Y market
  • Do not jump to conclusions, don't say yes or no without an approach/framework

5C Framework​

  • Competition
    • How competitive is the industry?
    • Too many/few players?
    • Any unfair advantages others have that we don't
  • Customers (Synergies)
    • Existing customers
    • Future customers in new market
  • Company
    • Do we have what it takes from a skillset standpoint?
      • Strengths
      • Weaknesses
  • Collaborators
    • Do we need to partner with anyone to enter this market?
  • Climate
    • Political / Economic / Regulatory

Where & How to enter?

  • Where - Look at customer journey / value chain
  • How - Think about business model

Pricing Strategy​

PM School - How do you price Spotify Premium? | Pricing Questions in PM Interviews

  • Pricing is not just a number (it can make or break your product)
  • Analysis
    • What is the product?
    • Who is the customer?
    • What is the problem?
    • What is the company?
  • Business
    • Goal
    • Market (Competition)
    • Brand
    • Willingness to pay (alternatives)
    • Cost (manufacturing)
  • Strategies
    • Price Skimming
      • Initially charge the highest price customers will pay and gradually reduce the price
      • Works when technology is new
      • There is little to no competition
      • Goal: Gather as much revenue as possible until demand is high
    • Market penetration
      • Price really low at the start to beat competition, and then graudually increase price
    • Premium pricing
      • Price really high for aspirational products
    • Bundled pricing
      • Combine high & low value products & price the bundle lower than the combined price of each of the products taken individually
    • Freemium
      • Offer a basic version for free, and a paid upgraded version (ex - SAAS products)
  • Frequency of payment (Annual / Monthly)