An important part of Product Management is research, you will spend a considerable amount of time researching on the right problems to solve. It is important to ensure that the product you decide to build solves your user’s problem and also meets your business goals.

Market Research:

You have to understand the market in order to build for it. There are several things you need to consider when conducting your market research.

• Size of the market
• Acquisition cost
• Growth rate of the market

You typically want to do research on the industry trends and also put a value on the size of the market. This can be done by calculating the following:

• Total Addressable Market: It is the total market demand for a product or service.
• Serviceable Available Market: It is the segment of the TAM targeted by your products and services which is within your geographical reach.
• Serviceable Obtainable Market: It is an estimate of the portion of revenue within a specific product segment that a company is able to capture.

Competitor Analysis:

It is important to take a deep dive and analyze what the existing players in the industry are currently doing. This would give you insight into what features your target market already have access to, the mistakes they’ve made and how you can position yourself to be better than them.

Return on Investment:

ROI is the ratio between the revenue and investment made. This would help you determine how profitable an investment is.

Formula: (Net Profit / cost) * 100

Relevant Resources: