And we give those two boxes, those two relationships, a special name.

You might decide that's a strategy but that's kind of a counter in learning from an MVP.

And in customer segments, the goal is to understand in detail the customer archetype or persona.

By now to get to this step we assumed you believe you have product market fit.

And we said at 1.70, people are willing to eat two million cupcakes in a year.

Now what does that result in their valuation, or in terms of their market cap?

And product market fit just simply says what is the match between what you are building and what customers need and want, and who are those customers.

And the one we'll be actually talking about in some detail during the series of lectures is that you never actually found product market fit and there's too few people who will buy or will use the product.

So we have to be careful.

Who knows what it has!

We call that product market fit.

You might already remember that if I have a plus b times a minus b, that that's equal to a squared minus b squared.

As we discussed, some businesses are multi sided.

So, our sales curve in an existing market literally should be one of taking shares.

That rule holds good in this particular case.

Why? Because you've never asked the question what type of market am I in?

But if you had a revenue model but no users, there would be no reason for those advertisers to show up.

You want to identify who your customers and markets are, and you have, but you now want to size the market,

This test between problem and solution and your features and customers is actually sometimes called product market fit.

The troll market! The troll market?

That rule holds good in all cases.

This rule cannot be applied to that case.

I will go to the market.

Ben has actually done a good job of saying the market value of his inventory, the market value of his equipment.

And this is a key idea, value proposition and customer segments are the first two things you tend to work on with the business model canvas.

Now this was an example of a 2 sited market.

And why do they make sense?

lifecycle adoption curve popularized by Geoff Moore in a book called Crossing the Chasm.

Can we apply this rule in this case?

There are some cases where this rule does not apply.

This rule can't be applied to every situation.

There are some cases where this rule doesn't apply.

If you don't surrender immediately, we'll begin targeting your cities.

And he fits the profile.

Print. 51 .

It turns out that the type of market changes everything.

This rule can be applied to any case.

So that's model selection applied to selecting the regularization parameter

You don't know what to do with it.

So the question becomes

So in summary, the questions you want to ask are how big can this be, how much of it can we get, what's the growth rate of the market, is the market itself declining or is it in flux or is it taking off? and most importantly here is talk to customers and the sales channel, and next important is you can get some pretty good market size estimates by competitive approximation if it's an existing or resegmented market, or even if we're going to clone a market outside the US.

It's a bit technical.

So what's leftover?

He applied his theory to some cases.

That rule only applies if he's married.