Minimum Marketable Product (MMP)

What is Minimum Marketable Product (MMP)?

The Minimum Marketable Product (MMP) refers to the smallest version of a product that can be released to the market while still providing value to the customers and generating revenue. Unlike a Minimum Viable Product (MVP), which is used to test assumptions and gain feedback, the MMP is intended to be a fully functioning product that meets the needs of the market, albeit with minimal features. It’s typically used when a team wants to release a product that can start generating income but will still undergo iterative improvements.

When is Minimum Marketable Product Used?

MMP is typically used when:

• The team has validated its concept and market assumptions through an MVP or other experiments.
• There is pressure to release a working product to generate revenue.
• The product has a clear set of core functionalities that deliver value and are necessary for the first marketable release.
• The goal is to release a product quickly while continuing to improve and add features over time.

MMPs are often launched when companies are transitioning from testing to scaling, aiming to introduce a product that can stand alone in the market while being improved incrementally.

Pros of Minimum Marketable Product

1. Faster Time-to-Market: By focusing on the core functionalities, teams can get the product to market quickly.
2. Generates Early Revenue: The MMP provides the minimum features required to start earning income, helping fund further development.
3. Risk Mitigation: Allows the company to enter the market with a smaller investment, reducing the risk of failure if the product doesn’t perform well.
4. Focus on Essentials: Encourages the team to focus on the features that deliver the most value to the customer, avoiding unnecessary complexity.

Cons of Minimum Marketable Product

1. Limited Features: The MMP may not satisfy all users' needs, leading to negative feedback or lost opportunities if key features are missing.
2. Pressure for Continuous Updates: Releasing an MMP puts pressure on the team to rapidly follow up with improvements and additional features.
3. Perceived Incompleteness: Users might perceive the product as incomplete or unfinished, which can impact customer satisfaction or brand reputation.
4. May Not Appeal to All Segments: A minimal feature set might alienate certain customer segments who expect a fuller experience from the start.

How is Minimum Marketable Product Useful for Product Managers?

For product managers, the MMP approach is extremely useful in several ways:

• Balancing Scope and Speed: MMP allows product managers to balance the need for delivering value quickly with the necessity of keeping the product lean. This approach ensures that only essential features make it into the first release.
• Generating Early Revenue: By releasing a marketable product earlier, product managers can start generating revenue and justify further investment in additional features.
• Feedback Loops: Once the MMP is released, product managers can collect user feedback and analytics to decide which features to prioritize for future iterations.
• Aligning Teams: Focusing on an MMP helps product managers keep development teams focused on delivering value rather than getting bogged down in feature creep.

When Should Minimum Marketable Product Not Be Used?

MMP should not be used in the following scenarios:

• Complex Products with Long Development Cycles: If the product’s value comes from a large set of interrelated features, an MMP approach might underdeliver.
• High Stakes Markets: In markets where first impressions are critical, an MMP may harm the brand’s reputation by appearing too bare-bones or unpolished.
• Regulatory Requirements: In industries with strict regulatory requirements, an MMP may not meet all the necessary criteria to be released.
• Luxury or Premium Brands: For high-end or premium products, an MMP could fall short of customer expectations, damaging brand perception.

Other Questions Relevant for Product Managers

1. How does MMP differ from MVP?

   • MVP is primarily about validating an idea or concept through experiments and tests, whereas MMP is about creating the smallest version of a product that can generate revenue and be sold in the market.

2. What is the relationship between MMP and product iterations?

   • MMP is the first step in releasing a product to the market. Afterward, teams should focus on gathering feedback and iterating to add features and improve the product based on real-world use cases.

3. How should a product manager prioritize features for an MMP?

   • A product manager should focus on the features that provide the most value to customers, meet the core use cases, and differentiate the product in the market. Secondary or nice-to-have features can be added in later iterations.

By understanding and leveraging the Minimum Marketable Product strategy, product managers can effectively launch a product quickly and start generating value, while also positioning the product for future growth and development.