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**Refining Target Market for Product-Market Fit **
Understanding the importance of refining the target market for achieving product-market fit is crucial. Companies like Dropbox had to differentiate between high value and low value active users to tailor their product towards the former. It is essential to focus on users who bring real business value rather than just driving user numbers. Product-market fit involves iterating on both the product and the target market to ensure alignment and long-term success, as having a large user base does not necessarily translate to a successful business model.