Market Problem and Market Opportunity Primer
A Problematic World
There are different types of problems in the world.
Some problems relate to humanity, society, business, industry, company, consumers, and much more.
Problems can span the spectrum from philosophical to technical, be conjoint, and pose different implications subject to their character and magnitude.
Market Problems in Product Management
The Blackblot PMTK Methodology™ presents a structured understanding of market problems and market opportunities related to product management.
In PMTK, the Market Problem is a situation (difficulty) that exists in the target market and requires change.
PMTK mandates that product management only relates to a user's functional market problem.
This means that in PMTK, product management is focused on helping the user mitigate or eliminate the difficulty they experience in performing a task by providing the user with product functionality.
More specifically and according to PMTK, the market problem in the context of product management is not a technology problem or technical limitations/deficiencies in the solution that need fixing, nor business challenges such as trying to make more money or trying to reduce costs.
Money-making Potential
Choosing which market problem to solve hinges on specific market problem characteristics that conform to a market-driven dogma.
A market problem that is lucrative, lasting, and sizable represents a Market Opportunity, the potential for economic gain by solving the market problem.
PMTK Problem Echelon Model
Market problems can manifest differently, and their existence depends on other market problems.
Developed by Blackblot, the PMTK Problem Echelon Model™ is a descriptive model that maps the inter-connected problems in the industry and the market.
This model serves several objectives: structure and simplify the analysis of market problems in product management, explain how technology finds uses and applications, and demonstrate the sequence of events in which market dynamics generate market problems followed by products and technology that solve them.
A bottom-up perspective of the PMTK Problem Echelon Model means that companies create technology that later finds uses and applications, like memory chips and CPUs, which solve unknown market problems. This approach is technology-driven, and it's a gamble.
A top-down perspective means that companies identify specific market problems and then develop/seek the products and technology to solve them, like medicine and software applications. This approach is market-driven, and it's less risky.
Summary
Defining the market problem definition is owned by product management, and solving the market problem is done by product development.
The Blackblot Procedural Requirements Management™ Model provides product managers with the means to articulate the market problem and for product architects to describe the solution.
The PMTK Problem Echelon Model helps product managers help market analysis by mapping the relationships between the various problems handled by the industry and the market.
The Blackblot PMTK Methodology™ draws a clear distinction between the problem and the solution space, between product management and product development, and offers means to formulate market problems, qualify market opportunities, and define solutions.