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Part I
Core Concepts
Chapter 1
Achieving Product-Market Fit with the Lean Product Process
What Is Product-Market Fit?

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As I mention in the introduction, Marc Andreessen coined the term product-market fit in a well-known blog post titled “The only thing that matters.” In that post he writes, “Product-market fit means being in a good market with a product that can satisfy that market.” My definition of product-market fit – which is consistent with his – is that you have built a product that creates significant customer value. This means that your product meets real customer needs and does so in a way that is better than the alternatives.

Some people interpret product-market fit much more broadly, going beyond the core definition to also include having a validated revenue model – that is, that you can successfully monetize your product. For others, product-market fit also includes having a cost-effective customer acquisition model. Such definitions basically equate product-market fit with having a profitable business. I believe using “product-market fit” as another way of saying “profitable” glosses over the essential aspects of the idea, which can stand on its own.

In this book, I use the core definition above. In business, there is a distinction between creating value and capturing value. In order to capture value, you must first create it. To be clear, topics such as business model, customer acquisition, marketing, and pricing are critical to a successful business. Each is also worthy of its own book. This book touches on those subjects, and you can use the qualitative and quantitative techniques in it to improve those aspects of your business. In fact, Chapters 13 and 14 discuss how to optimize your business metrics, but the majority of this book focuses on the core definition of product-market fit and gives you a playbook for how to achieve it.

The Lean Product Playbook

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