Companies that are aligned to the market have lower marketing costs & higher revenue potential
Serial Entrepreneur, Author, Demand Horizon & Search Expert
Finding the product market fit is the critical juncture for a company.
Great products are the result of a match between the market and the product.
Market is the most important.
Lesson: Demand Horizon with Gerry Campbell
Step #6 Market Importance: Companies that are aligned to the market have lower marketing costs & higher revenue potential
I worked in the corporate world. I ran technology for Reuters. You guys know of Reuters. I ran that for awhile and then I had the opportunity to move over and start doing angel investing. I was really puzzled by what companies did well, and what companies didn't do well. Couple, like Tweetdeck did really well. I was involved in Tweetdeck and those guys. I was an investor and adviser. This really embodies to me the idea of where great products truly come from.
We started looking at the real problem. We looked at the data behind the problem. Not what people said, but what they actually did. That allowed us to drill in. Great products are the result of a match between the market and the product. Mark Andreessen is brilliant. He's absolutely fantastic. Everything he touches turns to gold. He lays out the idea that the product market fit is a turning point and one of the most critical times for a company.
I'm going one step further and saying that not only is the product in the market fit the most important, I'm going to push the thought one step further and say that the market is the most important. So keep your eye out for that. Great products are definitely the result of a product market fit. It's easy, right? Shouldn't this be easy? I don't know, it's pretty hard.
Market alignment benefits. Why it matters? Companies that are aligned to the market have lower marketing costs. They have higher revenue potential. They have greater strategic clarity. It's easier to get a large company moving when there is that clarity.
Market acceptance, if you've already pre-validated, and you end up with competitive strength. If you're on a signal, from your customers, you're in better spot.