Product-Market Matrix

The Product-Market Matrix is a tool used to analyze the potential of a product or service in a given market. It is used to assess the potential of a product or service in a given market by dividing the market into four quadrants.

At a very high level, the Product-Market Matrix is used in the context of business, marketing, finance.

Product-Market Matrix quadrant descriptions, including examples
Want to try this template?
Other Templates

What is the Product-Market Matrix?

A visual explanation is shown in the image above. The Product-Market Matrix can be described as a matrix with the following quadrants:

  1. High Market Potential, High Product Potential: This quadrant represents markets with high potential and products with high potential. Examples include a new product in a rapidly growing market.
  2. High Market Potential, Low Product Potential: This quadrant represents markets with high potential and products with low potential. Examples include an existing product in a rapidly growing market.
  3. Low Market Potential, High Product Potential: This quadrant represents markets with low potential and products with high potential. Examples include a new product in a mature market.
  4. Low Market Potential, Low Product Potential: This quadrant represents markets with low potential and products with low potential. Examples include an existing product in a mature market.

What is the purpose of the Product-Market Matrix?

The Product-Market Matrix is a tool used to analyze the potential of a product or service in a given market. It is used to assess the potential of a product or service in a given market by dividing the market into four quadrants. The four quadrants are:

  • High Market Potential, High Product Potential
  • High Market Potential, Low Product Potential
  • Low Market Potential, High Product Potential
  • Low Market Potential, Low Product Potential

The Product-Market Matrix is used to evaluate the potential of a product or service in a given market. It helps to identify the market segments that are most likely to be successful and the products or services that are most likely to be successful in those segments. This helps to focus resources on the most promising opportunities and to avoid investing in markets or products that are unlikely to be successful.

For example, a company may use the Product-Market Matrix to evaluate the potential of a new product. The company may identify a segment of the market that has high potential, but the product may have low potential in that segment. In this case, the company may decide to focus its resources on other segments or on improving the product to make it more attractive to the target market.


Want to try this template?

What templates are related to Product-Market Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Product-Market Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

How can I use Product-Market Matrix in Priority Matrix?

You can get Product-Market Matrix in your Priority Matrix in just a moment:

  1. Click to sign in or create an account in the system
  2. Start adding your items to the matrix
  3. If you prefer it, download Priority Matrix and take your data with you

Learn more about Product-Market Matrix, and get free access to lots of other templates, at templates.app. Once you are comfortable with the document, you can easily export to Excel, if you prefer to work that way.

If you have any questions and you can't find the answer in our knowledge base, don't hesitate to contact us for help.