What is the function of a Product Requirements Document (PRD)?

The primary function of a Product Requirements Document (PRD) is to articulate product specifications based on Market Requirements Document (MRD) input. A PRD serves as a foundational document that outlines what a product needs to be and the features it should include. By capturing detailed specifications, including functional requirements, technical requirements, and performance criteria, a PRD ensures that all stakeholders—including product managers, development teams, and designers—have a shared understanding of the product vision derived from market needs identified in the MRD.

This process is essential for aligning efforts among different teams, facilitating effective communication, and guiding the development workflow. While the PRD reflects input from market analysis, it is distinct in its focus on the 'how' and 'what' of product development, translating broader market requirements into actionable design and engineering specifications.

Other options do not align with the specific purpose of a PRD. Company-wide budgets relate to financial planning and resource allocation rather than product specifications. Advertising strategies are more concerned with marketing approaches, and customer feedback, while valuable, is usually collected through different mechanisms and is not the primary focus of a PRD.