Market Requirements Document(MRD): An Easy Guide(2021)

Introduction

An MRD is a market requirements document that highlights the variety of information, giving an overview of the product, marketplace, product opportunities and threats, targeted consumer or audience, product analysis, and specific information related to its vision. It is considered a good source of the document that can be used to identify the opportunities that can enhance the product marketplace and help revise or establish the existing product. A product manager or marketing personnel generally charters the document. It is strategic in nature and gives a clear view of consumers’ value for the product.

A PRD product requirements document strongly defines the intent of the product or its particular function and are more specific in nature as it distils irrelevant information about the product.

In this article let us look at:

1. How is an MRD used?
2. Who creates the MRD, and why is it important?
3. Key questions in an MRD
4. How should an MRD be structured?
5. Challenges with the MRD

1. How is an MRD used?

The use of market requirements documents is strategic in modern days. But traditionally, these were used during product management processes known as the waterfall, a model from planning and building the products and their features, ending with the delivery process. This was done to understand the market and customers’ needs only. But in the case of a more conservative approach to product development document is one of the most preferred writing detail which can effectively give an insightful understanding of the market and customers desires.

2. Who creates the MRD, and why is it important?

With the global market’s presence, it is a challenging task for a company to know and build a product or service, which can fulfil the customers’ requirements. A product manager is responsible for defining the new product or services’ ideas and prioritizing the specific problems that need to be solved immediately. Therefore the onus for writing an MRD is upon the product managers. Product managers generally connect the market requirements document with product marketing also. 

The resources for an organization is limited, and it can be optimally used only through an MRD. This document provides for various opportunities that are worth investment and can grow and succeed in the market. They give a direction to focus and move forward with a proper plan which is solely connected with the product strategy and brings out the best for the customers.

3. Key questions in an MRD

A Market requirements document answers strategic questions which are specifically targeted with potential market and audience. Below are a few examples:

• What is the targeted market, and why it is worth investing in?
• Who is the targeted audience, like business or end consumers?
• What is the potential revenue size of the product?
• What are the associated problems, and how can they be solved?

4. How should an MRD be structured?

When talking about the structure of an MRD, it must be structured in a way that can leave no question unanswered. The following structure can be useful:

Executive summary: It highlights the important points that are covered in this document. It presents a summary of the whole document, which gives an idea to the reader about what is there discussed in this document.

Vision statement: The vision statement is a unique version of the product’s essence, which heads the direction for the product and its value delivered to the customers. 

Target market: It describes the market size and justifies how it gives the right opportunity to the product discussed.

Personas: It introduces the person or the team related to the market opportunity and planned solution.

Competitor analysis: It is important to define the competitors who have already covered the relevant market share. It specifically deals with a competitive advantage and product differentiation.

High-level capabilities: The customers’ solution in the form of a product or service is outlined simply through short specifications.

Metrics strategy: It collaborates the solution with the business, creates some order which helps in gaining a view of potential revenues, pricing decisions, and other key success factors.

5. Challenges with the MRD

An important task is to identify what type of MRD shall be useful according to the need of the team. For example, a detailed MRD is required, which can help foster collaboration with cross-functional teams. Another version of an MRD is a lite approach where smaller versions of every aspect are connected with this strategic goal. The documents that are to be used with an MRD are also important parameters. More often, it is found that information written in an MRD becomes outdated or obsolete due to market development and globalization. Hence, it becomes difficult for the team to comprehend it and work on it.

Conclusion

An MRD must focus on benefits rather than the features which give a lively insight into the solution discussed. It is a document that should be written with the group efforts of a team and not an individual. The document must show strategic planning that should be used in introductory stages with flexible time limits keeping in mind the contingencies of the market.

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