The 4 Types of Market Fit: Part I

It’s a symphony, and every note matters.

The 4 Types of Market Fit: Part I

Ever tried selling a product and felt like you were trying to convince a cat to take a bath?

Welcome to the club.

It’s a big club and we’re just as lost, confused and close to our wits’ end as you are.

But it doesn’t need to be like that.

I’ve worked with a lot of startups and being a founder myself I had to develop some kind of a framework to deal with that, mostly for the sake of my sanity.

It might (or might not) come in handy for you too while making the sense of the accursed “why are they not buying?” question.

I call it the Four Fits Framework (FFF):

  • Channel-Market Fit;
  • Message-Market Fit;
  • Offer-Market Fit;
  • And the granddaddy of them all, Product-Market Fit (PMF).

From finding where your customers love to hang out, to speaking their lingo, crafting an offer they can’t refuse, and fine-tuning your product until it sings in harmony with the market’s needs - it’s a symphony, and every note matters.

We’ll cover the first two (Channel and Message-Market Fits) in this one. The other two will come separately.

1. Channel-Market Fit: Finding Your Audience's Habitat

Imagine yourself as a fisherman, not the kind who casts nets randomly but one who chooses his pond with precision because that's where the prized fish gather. This is the essence of channel-market fit - it's all about knowing where to cast your net.

Initially, you might try every available channel - from digital ads across Google and social media to more direct approaches like emails or even engaging influencers.

But have you really seen that strategy work?

And let’s be real for a second. What kind of early-stage startup has enough resources to test dozens of channels at the same time?

Instead, start where your audience is.

Begin with platforms and channels where your potential customers are already active and engaged.

If you have no idea where those places are, take a step back and do your homework. How do you expect to find people if you don’t know where they hang out? You don’t expect them to come over themselves, do you?

If You’re Going the Paid Advertising Way, Then…

Thinks are a big clearer here but, come on, people don’t like ads. There, I said it.

But here’s the irony – done right, they can't resist clicking.

But which channels?

Google Search, Instagram, Facebook, Quora, Amazon, Google Display, App Store, Pinterest, YouTube, Bing, LinkedIn, Affiliates, Influencers, Email, Physical ads, TV, Print, Radio, Community, etc.

Ugh…

Basically, whichever happens to cost-effectively scale for your startup is the right choice. Nobody can tell you for sure what will work for you but here are some of the experiments I would prioritize based on your business type:

For B2C

  • B2C eCommerce: Instagram/FB, influencers, sponsorships, and marketplaces should be your playground. You might also try dipping your toes into Pinterest, Google Ads, and Google Shopping.
  • B2C Mobile Apps: Your best bets? Instagram/FB Ads, Google Ads and Apple Search. Maybe a bit of good old referrals.
  • B2C SaaS: Facebook Ads, content-driven strategies, and product-led growth should be your mantra. And don’t be shy to play with Google Ads and collaborative partnerships.
  • Brick and Mortar: Traditional, but evergreen. Try Facebook Ads, Instagram Ads, Banners, and a bit of PR magic. Maybe even Google Ads, and affiliate program.

For B2B

  • **Niche B2B with high ARPU (**average revenue per user): Think enterprise software charging big bucks annually. Sales, content, webinars, partnerships, Facebook Ads, Google Ads, and LinkedIn Ads will be your allies for lead generation.
  • Broad B2B with medium ARPU: Imagine software for small businesses, say, accounting tools. The tactics from the previous point largely apply. The only twist: a bit more focus on ads and content and a bit less on sales, webinars and partnerships.
  • Niche B2B with low ARPU: Say, a specialized tool for app developers. With limited ad and sales budgets, your best shots are word-of-mouth, communities, product-led growth, and genuine content.
  • Broad B2B with low ARPU: General software products that don’t break the bank. Content Marketing, Google Ads, and perhaps Apple Search Ads if you've got an app in the mix. Mass distribution partnerships and integrations could be the cherry on top.

Use ICE Framework to Choose

Sean Ellis’s ICE prioritization framework is your compass here. Rank each channel using the ICE method:

  • Impact (1-10): How game-changing would the channel be if it hits the bullseye?
  • Confidence (1-10): How sure are you about its potential?
  • Ease (1-10): How effortless is the trial?

With this, you're not just throwing darts in the dark. You're aiming with precision.

With each cast of the net, you're not just fishing for customers; you're learning how to navigate the waters of your market more effectively.

2. Message-Market Fit: Speaking Their Language

Finding the right message for your market is like trying to hit the perfect note in a song. When you get it right, it resonates; when you don't, it's glaringly off-key. Here are a few real-life examples from some people I know:

  • From Generic to Specific: Initially, a startup described its app as "The Best Fitness Tracker." While accurate, it lacked a personal touch. The game-changer came when they rebranded it as "Your 24/7 Personal Health Coach." This shifted the focus from what the app was to what it could do for the user, making it far more appealing.
  • Feature-Focused to Benefit-Driven: A cloud storage company advertised itself as "Secure Cloud Storage Solutions." It's straightforward but hardly exciting. They blew when they shifted to "Protect Your Memories, Effortlessly." This reframing spoke directly to the emotional benefit for the customer, tapping into the desire to safeguard cherished moments without hassle.
  • Technical to Relatable: An innovative water filtration startup initially marketed its product with "Advanced Reverse Osmosis Filtration Technology." While technically impressive, it felt inaccessible. The breakthrough came when they simplified the message to "Pure Water for Your Family, Pure Peace of Mind." It connected with the audience's core desire for family well-being, making the technology aspect secondary to the emotional reassurance offered.

These examples underline a common theme: the journey from a broad, feature-centric message to a clear, benefits-focused proposition that directly addresses the audience's needs and desires.

It's about shifting from telling your audience what you have to showing them what they can achieve or feel through your product.

So, how do you do that?

Start with Positioning

For many businesses, it's an overlooked aspect, but positioning is essential for setting the right context for your product.

What is Positioning, Anyway?

Imagine watching a movie without an opening scene. You'd be lost, right? Positioning is similar to that opening scene. It establishes the setting and provides clarity.

April Dunford, the world’s leading authority on positioning says:

"Positioning defines how your product is a leader at delivering something that a well-defined set of customers cares a lot about."

Positioning encompasses a particular set of components. The magic lies in understanding these components and their relationship with each other.

Consider positioning as context-setting for your products. Much like that first scene in a movie that lays out the setting. It addresses the critical questions:

  • If you didn’t exist what would customers use?
  • What features/capabilities do you have that others do not?
  • What value do these attributes enable for customers?
  • Who cares a lot about that value?
  • What context makes the value obvious to your target segments?

Once these questions are answered, both you and your customers can dive deeper into the product's nuances.

  • Good positioning sparks a set of assumptions about your product that align with reality. It ensures your product is perceived in the light you intended.
  • Bad positioning can cause misaligned assumptions, making your sales and marketing teams work twice as hard to correct any misconceptions.

Remember, the opening scene in a movie sets the tone for the entire film. Similarly, the positioning of your product establishes the foundational perception in your customers' minds.

Do it right, and your product's narrative will seamlessly flow. Do it wrong, and you'll be constantly course-correcting.

In the next part, we’ll be taking this positioning framework and using it as a foundation for the whole marketing engine, starting with marketing assets and advertising engine and ending with content strategy and brand.

From Positioning to Value Proposition

I’m going to use Julian Shapiro’s framework and examples.

Here's an exercise for finding your product's value props:

  • What bad alternative do people resort to when they lack your product?
  • How is your product better than that bad alternative?
  • Now turn the last step into an action statement—that's your value prop.

A few examples:

That’s it.

After you nail these two fits, it’s then time to move on to the more painful ones: Offer and Product-Market Fits.

We’ll cover them in the next article.