Glossary
Product-Market Fit
The term “product-market fit” refers to the match between the actual solution (product, service, business model, etc.) and the market it addresses. Essentially, it is about finding out if a solution satisfies strong market demand…
Definition
The term "product-market fit" refers to the match between the actual solution (product, service, business model, etc.) and the market it addresses. Essentially, it is about finding out if a solution satisfies strong market demand.
When bringing a solution to the market, it is critical to know whether or not it is targeting an attractive market.
To determine this, the idea team defines the target market and examines its size (number and value) and potential revenue streams. Assumptions made based on this can be verified through further research and interviews with market representatives or customer contacts.
Furthermore, it is crucial to know whether a solution will meet strong demand from that market.
To find this out, the team may define and run experiments to test the level of interest, purchase intent, the usage of the solution, etc. These experiments may involve building various prototypes or a minimum viable product (MVP).