What Is a Go-To-Market Strategy? And How to Create One
You possess a product that can change the game. It is new, solves actual problems, and you believe it will be widely accepted. However, as ironic as it sounds, even the most transformative ideas can die down if they do not enter the market smoothly.
That is where the go-to-market strategy comes in. This term is not just used to impress investors; it serves as your recipe for success and roadmap towards winning over customers.
Imagine throwing spaghetti against the wall and hoping something sticks versus hitting the bull’s eye in archery. Which one is messy and unpredictable, while the other involves aiming?
Nevertheless, people must understand that GTM strategies are marketing campaigns and acts of empathy. It entails deepening your client’s shoes and finding ways they cannot live without your offering.
In light of this, would you like us to get started on these steps? Let us explore how combining arts and sciences creates attention-getting, wallet-opening (and perhaps world-changing) go-to-market strategies!
The Anatomy of a Winning Go-to-Market Strategy
1 – Understand Your Playground: Market Definition
Before playing the game, learn where to play. The market definition is a crucial initial step in any GTM strategy. Ask yourself:
- Who are potential customers?
- What problem are you solving for them?
- Where do these customers hang out?
- How big is this market?
- What does the competitive landscape look like?
Remember that you’re not just selling a product – you’re selling a solution. The more deeply you comprehend your market, the better you can position your offer.
2 – Target Audience: Who’s Your Bullseye?
You can’t be all things to everyone; trying to be everything to everyone guarantees that you’ll be nothing to no one. Therefore, target your ideal customer with laser-like precision in your GTM strategy by considering:
- Demographics (age, gender, income, location)
- Psychographics (interests, values, lifestyle)
- Buying Behaviour
- Pain points and needs
The more specific you can get here, the better — create detailed buyer personas complete with names, backstories, goals and challenges to make it easier for us marketers to tailor our messaging accordingly.
3 – Value Proposition: What Makes You Special?
Why should anybody care about what we have if many others like it? In other words – what’s unique about this thing compared to everything else? This is where we need our value proposition statement, which ought to:
- Communicate product benefits
- Speak directly to the audience's desires
- Differentiate from competitors
We shouldn’t just list features here but focus on outcomes because that’s what people want. How does my life improve after using their stuff?
4 – Pricing Strategy: The Price is Right (Or Is It?)
Now, this isn’t just slapping numbers onto items, folks! No siree, Bob! Pricing happens to be a strategic move capable of either making or breaking an entire GTM plan altogether, so take note of these various options:
- Cost-plus pricing
- Value-based pricing
- Competitive Pricing
- Penetration pricing
- Skimming pricing
Remember that your chosen method should align well with overall business objectives and customer expectations within the target market since perception matters most when people talk money – yeah?
5 – Distribution Channels: Getting Your Product Out There
So you’ve got a fantastic product, but how will it get into customers’ hands – what shall be done? This distribution strategy forms one critical aspect of a GTM plan where we can consider different alternatives such as:
- Direct sales
- E-commerce
- Retail stores
- Wholesalers e.t.c…
The correct blend here depends on factors like the type of goods, whom they’re meant for, available resources, etcetera. Still, please don’t try out too many things simultaneously because nobody wins anything!
6 – Marketing and Sales Strategy: Spreading the Word
Now is the time to shout from rooftops (or other high places)… Your marketing & sales tactics need to show:
- What are our key messages/ USPs (unique selling points)
- Which channels should we use (social media, content marketing, paid advertising, etc.)
- How can I close this deal faster than lightning bolt speed x1000?
What’s more – don’t forget that relationship building never stops, so always include some kind of continuous engagement stuff in there, okay?
Putting It All Together: Crafting Your Go-to-Market Strategy
Now that the main parts have been broken down, let us talk about combining them into one GTM strategy.
1 – Start with Why
Before getting into details, take a step back and ask yourself why you are doing this. What do we want to achieve? Do we want to:
- Increase our market share?
- Enter a new market?
- Launch a new product?
- Reposition an existing product?
Your ‘why’ will guide all other decisions you make in your GTM strategy.
2 – Do Your Homework
In GTM strategy, knowledge is power. Therefore, conduct extensive market research, analyse your competitors, and talk to potential customers. The more information you gather at this stage, the better informed your strategy will be.
3 – Define Your Unique Selling Proposition (USP)
What makes you different from the rest? Why would someone buy from or work with you rather than any other company offering products/services similar to yours? Your USP should be clear, compelling and consistently communicated throughout all components of your GTM strategy.
4 – Map Out the Customer Journey
Put yourself in their shoes; think through each step, from realising they have a problem until finding a solution(s) thereof, and then consider which touchpoints could be leveraged for engagement purposes.
5 – Choose Tactics
Once the target audience has been determined based on market research findings and customer journey map analysis completed thus far, it’s time to select specific tactics that will most likely yield the desired outcome(s).
This may include things such as but not limited by
- content marketing
- social media campaigns
- influencer partnerships
- trade show appearances
- direct mail campaigns
- email marketing
NB: Remember always align tactics employed with the overall strategy set up earlier on, also considering preferences exhibited by the target audience identified at stage two above.
6 – Set Clear Goals & KPIs
How will success be measured against objectives set within the GTM strategy?
Be sure to establish specific, measurable goals for your GTM strategy. These can include, among others such as
- market share percentages achieved over specific periods
- total sales revenue generated per annum
- average customer acquisition cost compared to lifetime value
Additionally, remember that KPIs should directly tie back into overall business aims; otherwise, they would not make sense in this context.
7 – Create Timeline
It is essential that when planning any form of market entry or new product launch, there be a clear roadmap showing what needs to happen at which point, with precise deadlines attached to it; hence, this step should be noted when drafting up GTM strategies.
8 – Allocate Resources
Ensure adequate financial and human resources are available to implement selected tactics successfully; otherwise, the whole plan will remain ink on paper.
9 – Plan For Iteration
As much as we may wish everything to go according to plan still, it’s prudent enough to always factor in some level of flexibility within our thinking because “no battle plan survives contact with the enemy” – Carl von Clausewitz.
Therefore, it would only be reasonable if, from time to time, various aspects surrounding GTM strategy were reviewed based on actual outcome(s) plus feedback obtained along the way.
Common Pitfalls in Go-to-Market Strategy (And How to Avoid Them)
Even the most well-executed plans can fail. Below are some common mistakes made when creating GTM strategies:
Not Paying Attention to the Competition
There is never a time when there aren’t people competing with you for customers. Ignoring this fact sets up a company to be blindsided. Investigate all rivals and watch their every move.
Neglecting Customer Research
Amidst creating and launching new products, it’s easy to forget what consumers want from them. The strategy should always be designed with their needs in mind.
Trying Too Hard To Please Everyone
This should sound familiar since we’ve already mentioned target audiences twice before now… Attempting to cater for everybody generally ends in pleasing nobody. Concentrate on your primary target group instead.
Sales Team Disregard
Those who work in sales represent an organisation’s front lines; thus, they must form part of its strategic development process while receiving adequate support for plan execution.
Resource Underestimation
Executing any good plan takes resources – time, money, staff, etc.; therefore, one needs not to underestimate such requirements from the word go but rather approach things with realism.
Failure To Be Flexible In Approach
What may have worked yesterday could flop today due to market changes or customer demands; hence, a GTM strategy must remain adaptable.
Case Studies: Go-to-Market Strategy in Action
Let’s take a look at a few real-world examples of successful GTM strategies:
Case Study 1: Dollar Shave Club
When Dollar Shave Club came out, they were the talk of the town, and rightly so. They had:
- A specific target market – Men who were tired of overpaying for razors.
- A great value proposition – Get top-quality razors sent to you each month for only $1.
- Different ways of getting their products to customers – Instead of going through retailers, they sold directly to consumers via subscription.
- Marketing that went viral – Millions watched their launch video.
- Consistent branding– Funny and relatable voice
What happened? Within just some years, they gained a considerable share in the market and sold to Unilever for $1B!
Case Study 2: Spotify
Spotify had to fight hard against iTunes when it entered the US market. It did this by:
- Giving away music for free with ads in between songs (freemium model), which helped it grow faster than any other music service ever seen before or since then;
- Making sharing playlists accessible and encouraging users’ discovery of new tunes through friends’ recommendations (social integration);
- Teaming up with Facebook so that people could log into Spotify using their social media credentials without having to create another account separately (strategic partnerships);
- Only allowing a limited number of people access during the beta testing phase which created hype around it (gradual rollout);
- Spotting that mobiles would become more popular than desktop computers for listening purposes soon enough, they decided to focus on mobile devices more (mobile-first approach).
Nowadays, Spotify has over 600 million monthly active listeners worldwide, making it the biggest streaming platform ever!
The Future of Go-to-Market Strategy
As markets grow and technology advances, so does the GTM strategy. Here are a few trends to look out for:
Extreme personalisation
Companies can now use big data and AI to shape their GTM strategies around individual customer needs like never before.
All-channel approach
Customers demand that all platforms work seamlessly together; thus, successful GTM strategies must flawlessly integrate online and offline channels.
Focus on sustainability
GTM strategies must emphasise environmental friendliness as consumers grow more conscious about it.
Influencer marketing
Small-scale influencers and user-generated content have become vital in any GTM strategy.
Agile Marketing
Being able to test an idea fast enough before learning from it and then making necessary adjustments is what will set apart winners in quick-moving markets.
Wrapping Up: Your Go-to-Market Strategy Awaits
A strong market strategy is what you need to succeed in business today. It doesn’t matter how good your product is if nobody knows about it. Put the right thing in front of the right person at the right time.
Remember, your GTM strategy isn’t a fixed thing. It’s a dynamic file that should change as your business grows and the market changes. Keep testing, keep learning, keep refining.
So, now that you know this, create a GTM strategy that wins in the market. What are you waiting for? Your market exists – so find them!
FAQs About Go-to-Market Strategy
How much time is required to develop a go-to-market strategy?
The duration it takes to develop a go-to-market strategy varies significantly with the complexity of the product and market; it can be a few weeks or even several months. You have to do your homework well but simultaneously move fast enough to seize opportunities within the market.
Can one use the same go-to-market strategy for different products?
While some components may have similarities, developing a unique GTM plan for each product or entry into new markets is advisable. Various products will have different target audiences, value propositions, and competitive landscapes.
How often should I review my go-to-market strategy and make updates if needed?
You should review your GTM strategy every quarter and make significant changes once per year. However, be ready to adjust this if significant shifts occur within your industry or among competitors.
What is the difference between a go-to-market strategy and a marketing strategy?
A GTM plan covers everything involved in bringing goods/services to consumers, such as defining who they are (targeting), what price should be charged (pricing), where they can get them from (distribution) and how we intend to sell them (sales approach). On the other hand, marketing strategies are just part of broader-based GTMs, which focus specifically on what promotional activities would work best according to various situations encountered during this process.
Do I need one for an existing product? If yes, then why so?
Although primarily associated with new items coming into markets, it still holds even when dealing with existing ones. Suppose you want to venture into fresh territory, reposition what already exists there, or encounter new forms of competition. In that case, having another look at things through fresh eyes may not hurt at all.
How do you measure success with go-to-market strategy?
Success can be gauged by looking at how close or far away one has come from achieving their goals. Still, typically, it involves measuring market share captured from rivals, sales revenues generated against expenses incurred while acquiring customers, etc., the lifetime value of a given purchaser base alongside awareness levels about this brand/concept within the target population.
What role does customer feedback play in go-to-market strategies?
Customer feedback is critical because it tells us whether our value proposition resonates with them, if we have priced appropriately, and whether our offer meets their needs. It would be best to create channels through which information from buyers will flow into the system, thus giving room to adjust your GTM accordingly.
Can small businesses compete with larger companies using this approach?
Definitely! A well-executed GTM can level the playing field. Smaller enterprises are more agile and responsive towards customer wants, which is crucial when implementing such plans.
What is a company's biggest mistake when creating go-to-market strategies?
One significant error lies in not clearly defining who they are targeting; trying to appeal to everybody ends up appealing to nobody. Having a focused audience becomes critical towards effective GTMs.
