Free MRD Template for Market Requirements
A market requirements document template with six sections covering market analysis, customer segments, competitive landscape, use cases, market sizing, and go-to-market considerations.
When to write an MRD
An MRD validates the market opportunity before your team invests in building. It answers: Is there a real market? Who are the customers? What do they need? How big is the opportunity? How will we reach them? Writing an MRD first prevents the expensive mistake of building a product nobody needs.
This template provides the structure for a thorough market requirements analysis. Each section builds on the previous one: market overview establishes the opportunity, customer segments define who you serve, competitive analysis shows the whitespace, use cases bridge to product requirements, and market sizing quantifies the prize.
The complete MRD template
Six sections from market overview to go-to-market considerations.
Market Overview
Describe the market you are targeting. Include the current state, growth trends, key players, and the specific opportunity you are addressing. Use data from market research reports, analyst coverage, and your own customer conversations. This section establishes that the opportunity is real and worth pursuing.
Example: "The project management software market is valued at $6.7B (2026) and growing at 13% CAGR. The segment we are targeting — product management tools for mid-market tech companies (50-500 employees) — represents approximately $800M. Key trends: consolidation of point tools into platforms, AI-assisted content generation, and increasing demand for traceability from requirement to deployment."
Tips
- Cite specific market data with sources (Gartner, Forrester, industry reports)
- Focus on the specific segment you are targeting, not the entire market
- Include growth rate and trajectory, not just current size
- Identify the macro trends that create the opportunity
Customer Segments
Define the specific customer segments you are targeting. For each segment, describe who they are, how many of them exist, what they currently use, and what pain points they experience. Prioritize segments by market size, willingness to pay, and accessibility.
Example: Primary segment: Product managers at Series A-C tech companies who own a roadmap and manage 2-5 concurrent projects. Estimated 45,000 PMs in this segment in the US. Currently using Notion + Linear/Jira + Slack + Figma. Pain: context fragmentation — spending 30%+ of time switching between tools and manually transferring information. Secondary segment: Engineering managers at the same companies who participate in sprint planning and grooming.
Tips
- Be specific about company size, role, and buying behavior
- Quantify the segment size (number of potential customers or users)
- Describe the current tool stack for each segment
- Rank segments by priority using market size, willingness to pay, and ease of reach
Competitive Landscape
Map the competitive landscape. Identify direct competitors (same problem, same customer), indirect competitors (different approach to the same problem), and substitutes (what customers use today instead of a dedicated solution). For each, note their strengths, weaknesses, pricing, and market position.
Example: Direct competitors: Productboard (feature prioritization, $49-99/user/month, strong in enterprise, weak in execution integration), Aha! (roadmapping, $59-149/user/month, strong in stakeholder management, weak in developer workflows). Indirect: Notion (flexible but requires manual assembly, no traceability). Substitutes: Google Docs + Sheets (free, universal, zero automation). Key differentiator opportunity: end-to-end traceability from customer signal to shipped ticket.
Tips
- Include both direct competitors and substitutes (what customers use today)
- Note pricing for competitive positioning
- Identify underserved needs that competitors do not address
- Use a comparison matrix for feature-level competitive analysis
Use Cases and Requirements
Define the top 5-10 use cases that customers in your target segments need. For each use case, describe the user, the scenario, and the current workaround. Prioritize by frequency (how often does this happen?) and pain (how much does the workaround cost?). This section bridges market needs to product requirements.
Example use cases: (1) PM needs to write a PRD and currently copies context from 4 different tools manually — frequency: weekly, pain: high. (2) PM needs to create sprint tickets from requirements and currently re-types each one in Jira — frequency: bi-weekly, pain: high. (3) PM needs to check if a new feature conflicts with existing plans and currently asks 3 teams on Slack — frequency: monthly, pain: medium.
Tips
- Rank use cases by frequency and pain severity
- Describe the current workaround and its cost (time, errors, friction)
- Each use case should map to a customer segment
- Validate use cases with actual customer interviews, not assumptions
Market Sizing (TAM/SAM/SOM)
Calculate the Total Addressable Market (TAM), Serviceable Addressable Market (SAM), and Serviceable Obtainable Market (SOM). TAM is everyone who could use the product. SAM is the segment you can reach with your go-to-market. SOM is the realistic share you can capture in 2-3 years. Use both top-down and bottom-up approaches.
Example: TAM: 500,000 PMs globally * $1,200/year average = $600M. SAM: 45,000 PMs at Series A-C US tech companies * $1,200/year = $54M. SOM (Year 3): 2% of SAM = 900 PMs * $1,200 = $1.08M ARR. Bottom-up validation: 900 PMs = 180 companies * 5 PMs/company. At current growth rate of 15 new companies/month, achievable in 12 months.
Tips
- Use both top-down (market reports) and bottom-up (unit economics) approaches
- SAM should reflect your actual go-to-market reach, not the entire market
- SOM should be achievable with your current resources and growth rate
- Include the assumptions behind each number
Go-to-Market Considerations
Outline how the product will reach the target market. Cover pricing strategy, distribution channels, sales model (self-serve, sales-assisted, enterprise sales), and key partnerships. This section does not replace a full GTM plan but ensures market requirements account for how the product will be sold.
Example: Pricing: Freemium with paid tiers at $29/user/month (Team) and $79/user/month (Business). Distribution: Product-led growth via SEO, content marketing, and community. Sales model: Self-serve for teams under 20, sales-assisted for 20-100, enterprise sales for 100+. Key channels: Product Hunt launch, PM community partnerships (Lenny's Newsletter, Product School), LinkedIn thought leadership.
Tips
- Pricing should reflect competitive positioning and willingness to pay
- Identify the primary acquisition channel for each customer segment
- Consider the sales motion required for your target deal size
- Include partnerships that accelerate market entry
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