Four Concepts for Startup

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September 15, 2012 by huionn

Market Validation, Customer Validation, Product/Market Fit and Customer Acquisition Cost.

What are the relationship between these concepts?

IMHO, Market Validation is to test the market and Customer Validation is to validate that there is Product/Market Fit which can significantly reduce Customer Acquisition Cost.

Product/Market Fit involves product features, limitations, pricing, available other options etc. It is possible that there is a market demand yet the product fails to fulfil the customers’ need.

If a product does not have good product/market fit, it has to depend on sales pitch by salesperson in engaging customer aggressively. This results in high customer acquisition cost (salary of sales team + marketing cost).


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