Industry Best Practices Flashcards

Before deciding to build a new capability, a product team evaluates whether to build, buy, or partner. Which factor is most central to this decision?

Answer: Strategic fit, time to market, cost, and alignment with distinctive competencies

Build/buy/partner decisions weigh strategic fit, speed, cost, and core competencies.

Which pricing approach is generally considered best practice for B2B products according to market-driven principles?

Answer: Value-based pricing tied to the value buyers perceive

Value-based pricing aligns price with what buyers believe the solution is worth.

A product team discovers that customers are churning due to onboarding difficulty. What is the best first step?

Answer: Investigate the root cause through customer conversations and usage data

Understanding the root cause from the market comes before choosing a solution.

Which best describes a positioning document in market-driven product management?

Answer: An internal document defining the target buyer, problem, and differentiated value for each persona

Positioning is an internal foundation that guides consistent messaging across teams.

Why do Pragmatic Institute practitioners recommend NIHITO ('Nothing important happens in the office')?

Answer: Because real market insight comes from interacting with customers and prospects outside the building

NIHITO reminds product teams that market truths are found by engaging the market directly.

A product manager is asked to write a business plan for a new product. Which element is most essential to include?

Answer: Market opportunity, financial projections, and go-to-market approach

A business plan justifies investment by showing market opportunity, expected returns, and how the product will reach buyers.

What is the main risk of building a product based primarily on a single large customer's requests?

Answer: It may create a custom solution that does not address the broader market

Single-customer requirements can lead to a product that fits one account but fails to solve a pervasive market problem.