magic triangle: product, market, users

George  E.P.  Box  

Essentially,    all  models  are  wrong,  

 but    some  are  useful  

Magic  Triangle:  

Users  

Market  

Product  

OpenOffice.org  on  iPad  

•  Market  is  a  place,  where  Users  exchange  funds  for  a  privilege  to  use  Products  

•  Products  compete  for  Users  on  the  Market  

•  Users  are  people  looking  for  valuable  Products  on  the  Market    

What  will  be  the  value  for  the  Users?  How/where  can  we  sell  it?    

(Is  there  a  Market  for  this?)  

Idea  

Marketing/Sales  Strategy  

Product  Development  Strategy  

How  will  the  Product  look  like?  

Market  =  

Users  (Demand)  +  

Products  (Competition)  +  

Possibility  of  a  deal  

There  is  no  fish  here!  

Existing  Market  

New  Market  Tough  competition  

No  competition  

–  Working  on  established  Market?  –  Differentiate!  

–  Working  on  a  new  Market?    –  Build  the  market!          …  or  start  from  existing  one  

Market  ≠  Demand  Possibility  of  a  deal  

Products  General  purpose   Specialized  

Products  

Low  margins,    high  volumes  

•  Lager  potential  market  size  

•  Easier  to  enter  the  market  

•  Higher  pressure  on  price  

•  Difficult  to  differentiate  

High  margins,  low  volumes  

•  Can  command  high  prices  

•  Easy  to  differentiate  •  Smaller  size  of  TAM  •  Entering  the  market  

requires  more  domain  knowledge  

General  purpose   Specialized  

rollApp  vs.  CloudOn  Office  solution  for  iPad  

Every  interaction  is  an  opportunity  for  sale  

Be  personable  

Thank  you  so  much!  you  really  made  my  day!  I  will  continue  to  use  rolApp.  It  is  nice  to  know  that  there  are  people  who  take  it  upon  themselves  to  help  other  people!  

Market  •  Know  your  market  and  act  appropriately  

Product  •  Sales  strategy  coordinated  with  positioning  

Users  •  Be  personable  

Questions?  

@dmalenko  dmalenko@rollapp.com  

www.dmalenko.org