August 10th, 2023
Creating products that capture the market requires more than just a well-laid plan. It demands an integrated approach that aligns market-fit strategies with the process of product development. The real magic happens when the Product Manager, having secured investments with clear metrics and a rubric for success, dons a new hat - that of a development leader.
In this post, we delve into how this transformation occurs and how it facilitates the creation of products that strategically capture the market.
To effectively manage product development, a Product Manager must strike a delicate balance - ensuring that the 'why' and 'what' of the product development process align with the 'how'. In essence, while Product Management owns the purpose and definition of the product, the execution, including User Experience (UX), User Interface (UI), and software/service development, falls within the realm of the design and engineering teams.
This collaborative approach not only enhances the efficiency of product development but also ensures the final product aligns with the metrics defined in the market-fit strategy.
But this isn't just about producing a product. It's about delivering value to customers and hitting target outcomes including acquisition, activation, revenue, retention, and referral. This necessitates that the finance team plays a key role, establishing the chart-of-accounts to align with the pricing strategy, bundling approach, and business model. This alignment is crucial for discovering both technical success and financial viability.
So, what is the output of this stage? Simply put, it is a product that customers are willing to buy, sold in a way that matches the customer's buying behavior, and priced in a way that aligns with the business's targets.
To accomplish this, we must leverage the data from the market-fit strategy. This information becomes the bedrock upon which we design, test, and build a product/service that hits the targets within the viability constraints defined.
Yet, this process doesn't happen in isolation. It requires input from various areas, such as market-fit strategy, design, and engineering. The suppliers to this process include not only product management and development, but also technical leadership, who play a key role in defining the 'how' of product development.
In essence, transitioning from market-fit to market-capture requires a clear understanding of the market needs, the strategies to address these needs, and a product development process that aligns with these strategies. It's about more than just creating a product; it's about delivering a product that not only meets market needs but also aligns with business goals and customer buying behavior. Only by achieving this can we truly capture the market.
Stay tuned for the next post in our series where we'll explore the world of Go-to-Market strategies, taking our product from development to delivery, and navigating the journey from market-fit to market capture.