A Go-to-market strategy is crucial in this free-market environment. In this article, we will try to cover everything and learn how to develop a Go-to-Market strategy.
What is a “Go-to-Market Strategy” & How to Develop it
No matter how good a business plan your company has, developing a Go-to-Market strategy (from now on, we’ll call this GTMS) can always help the company grow.
GMTS is the plan an organization makes when launching a new service/product. It tries to maximize the use of the company’s inside and outside resources. By optimizing these, the company will gain a competitive advantage. Your GTMS needs a solid value proposition for its customers. You should offer them either a better product or finer pricing.
- At the beginning of GTMS development, you need to assess your target market and target customers.
- Define your product or service to determine your pricing strategy. What unique value will you be promising customers? Your target audience’s response to you lies within this step.
- Pick the distribution model and then the marketing channels.
- Decide on your financial strategy.
Driving Factors In A Go-to-Market Strategy
There are a few core components in a GTM strategy:
In a GTMS, the company needs to figure out where its target market is. No product will be fit for every market, and you can’t waste time and resources trying every single of them to find out which one is the best fit. Determine where you can most effectively attract your target audience. Here’s how!
Factors when choosing the target market may vary. But there are some fundamental concepts each company should consider:
- Look at buyers and the needed services/products in the area.
- For more comprehensive research, look at the demographics and geography of the area.
- Use metrics such as the barrier of entry (this could be seed money or legal requirements) and each market’s economic state.
- Review customer surveys as well as create focus groups to get a better view of the area.
At the end of all these stages, you should have some options on hand. Focusing on what’s most important for your company and prioritizing the opportunities according to its needs will point you in the right direction.
Since customers are the main source of income for many companies, they are the second key component in a GTMS. Determining the target audience within the target market you chose is the next stage.
You should decide if your existing customers are going to turn into potential sales or do you need to look for an entirely new set of target customers. When determining the target customers, here some examples of questions that can be useful:
- “Who is going to buy your product?”
- “Who are the target users of this product?”
- “Which customers will be most profitable”
You must remember the essential goal of the company in this phase: Understanding your customers’ behavior regarding your product.
After picking the target audience, the next step is acquiring their loyalty and trust. Exceptional customer service is vital. As an example, we can take Amazon; providing a special and almost loss-inducingly customer-friendly service brought them loyal, supporting, and trusting customers in the long run. Gaining customers this way will boost the sales of your product or service.
The channels in which you deliver your service or product to customer plays a fundamental role in a GMTS. Distribution channels might include a retail store, a web page, etc.; which one to use should be chosen according to the product. For example, selling heavy machinery online might be a bad idea since customers pay high prices and would probably like to examine the product first.
Marketing channels are significant because if chosen poorly, even though you might have a superior product, the customers would never hear about it. Answer the question “Where should I promote my product so that it reaches the target audience.”
Once again, we should look back to the customer experience here because a good marketing strategy lies in good customer service. Your product being recommended by customers who have used it and were satisfied is far more valuable than any marketing campaign.
Now, let’s look into an example to better understand how to use marketing channels properly: if your company is launching a new app, which is primarily made for gamers, it wouldn’t be very wise to promote it using television adverts. You would instead use platforms such as Twitch, YouTube, or even in-game marketing.
To talk about your positioning when developing a GTMS, first, we should look at what brand positioning means. Brand positioning is how you come into the mind of your customers. To make a strong one, you should focus on the unique capabilities of your brand and the differences between you and your competitors.
Declare a brand positioning statement. This statement is a one or two-sentence pitch to your customers about what makes your brand special and what your brand’s value is. Since brand positioning is going to determine how the customers will remember you making a strong impression is very valuable and will provide you with a competitive advantage.
When deciding the price of the service/product, there are a few things to consider. Let’s start by asking some questions:
- “What are you offering your target customers regarding value?”
- “How will the price of your product compare with your competitors”?
- “What is your primary plan for market share penetration?”
As you are determining the price, while it is useful to consider the cost of the product/service, it shouldn’t be the only factor. You should also consider the value proposition that was promised to the customers as well as the product’s position in the market.
FAQ About Go-to-Market Strategy
How Microsoft shifted its focus and brand awareness in the gaming industry, from being a gaming platform manufacturer to being one of the best subscription service providers, while using marketing strategies appropriate to the change, is a remarkable example of a GTMS.
“Marketing strategy” is more of a broad term that defines an organization’s plan of targeting the market after reviewing market researches. However, a go-to-market strategy is usually developed by organizations when launching a new product or a service.
It is to plan when getting ready to launch something new so that everyone involved in the company can meet expected milestones and reach arranged outcomes.
Even if the company has a good marketing strategy, developing a sound GTMS will ensure the company’s place in the long run. It might even help the company achieve more.
In this article, we explained what a good “GTMS” needs to include. There’s a summary of it in the “Developing a GTMS” section.
Conclusion on Go-to-Market Strategy
Suppose your company is getting ready to bring something new to the table, like the launch of a new product/service. Planning a strong GTMS will provide the company with a route towards success. As we investigated the details in this article, hopefully, you were able to gain some insight on what a GTMS is how to develop it successfully. Before you go, if you feel like you need to go over some important concepts about marketing, then you might find our extensive guide on marketing useful.