If you’ve already launched a product, you know exactly how to build one. You can concentrate on choosing a large market and nailing the pain point, brand, content, marketing, and sales model required to reach that market.
However, most first-time business owners build products only to determine marketing afterward. An inaccurate go-to-market strategy might mean years of delayed growth for individuals starting a new company due to incorrect pricing, marketing channels, and sales processes.
Launches typically fail when companies assume a product’s market needs and spend on its development without gathering accurate knowledge. As a result, nearly 80% of companies miss their projected estimates.
So, suppose you find yourself in one of the three scenarios listed below. In that case, you need a GTM strategy to avoid wasting time and resources on a failed launch:
- Launching a new product in an existing market,
- Introducing an established product into a new market,
- Testing the potential market for a new product.
This article will walk you through everything you need to know to design a robust go-to-market strategy to help you get there.
What is a Go-To-Market Strategy?
A go-to-market (GTM) strategy is a detailed and precise action plan that specifies how a company’s marketing, sales, and customer success departments will collaborate to introduce a new or current product or service into the market.
Delivering products or services to its target customer requires conducting extensive market research, understanding your buyer personas, developing a business case for your product or service, determining your competitive edge, and determining your price strategy. Effective GTM strategies identify the pain points you’re addressing and create actionable product roadmaps to achieve your strategic goals.
Here are some of the essential advantages of a well-executed go-to-market strategy:
- Decreases the time to market
- Ensures that product launch is successful
- Reduces the costs of failed product launches
- Manages product development challenges
- Improves customer experiences
Go-to-Market Strategy Examples
Here are two examples of how successful businesses took their new product to market.
Cisco myPlanNet Go-To-Market Strategy
The Product Strategy and the Go-to-Market Strategy
These two approaches are mutually helpful. Product and go-to-market strategies should serve the overall corporate goals. When the product strategy and GTM strategy are not linked, teams often experience friction and misunderstandings, resulting in launch delays and weak messaging.
Understanding each strategy is crucial for teams to collaborate more efficiently and create unique experiences that delight customers.
The product strategy unites the entire organization behind a shared vision of how a new product or update to an existing product will provide value and assist the firm meet its objectives. It outlines essential areas for investment and serves as the foundation for the product roadmap. This schedule unites the team around the true north of what you will build.
The go-to-market strategy unifies the rest of the business around the tasks meant to give something fresh to your target audience. That could be a new product launch, a new feature, or a market expansion. It specifies the technique you will take to translate technical functionality into customer-friendly communications.
Go-To-Market Strategy Framework
Every product and industry has unique problems and opportunities, so it’s vital to plan your go-to-market strategy adequately. Unfortunately, no uniform structure can be applied to all businesses. Still, our product launch experts can provide you with advice on the following critical components of a go-to-market strategy:
Market Demand: Is there a market demand for the goods, or is it oversaturated already?
A few things influence the demand, including the number of people looking for your product, how much they’re ready to pay for it, and how much your product is available to consumers, both from your company and your competitors.
There are various methods for gathering more information and making this technique more valuable and efficient: One-on-one interactions with real people can provide multiple important details, but you can also utilize search engines and social media to “listen” to customers.
Users: Who is affected by the problem that your product solves?
Determine who your target customers are in your defined market and create a detailed description of your ideal consumer. Also, consider finding out their willingness to pay for a solution. Finally, think of the type of consumer who may get major benefits from your product or service while also providing enough value to make your company profitable. Begin by performing user research—developing empathy with your target users and determining precisely what they require from the product. A persona is typically built on user research and integrates your target audience’s needs, goals, and observable behavior patterns.
Competitors: Who else is selling what you’re selling?
It’s essential to know where your product or service belongs in the market when developing a GTM plan. Understanding what your competitors provide and recognizing their value helps you position your product.
Determine what their customers appreciate and dislike about competitors’ platforms and what resonates with your persona.
Unique Value Proposition: What distinguishes your company from others in your industry?
A strong, instantly recognizable UVP can make or break a company; therefore, you must use it and make it the cornerstone of your go-to-market plan. It describes your product’s specific benefits, why your target customers should choose your product over the competition, and how your solution addresses their problems.
The most crucial aspect of crafting a UVP is to guarantee that the customer understands the message fast, so make sure you use straightforward wording they can understand.
Distribution: What channels will you use for marketing the product or service?
Determine where and how you will reach out to your customers and encourage them to buy. The channel strategy encompasses your marketing and sales activities, utilizing both online and offline channels, outbound and referrals. Your consumers’ needs and expectations must be considered while developing a distribution strategy and the channels suitable for your niche.
Pricing: What pricing models will you offer?
Pricing your product or service should not be a quick decision based solely on profit. Instead, it should be a deliberate, informed decision considering your company’s identity, brand, and financial stability. Set up several pricing models for the products or services you wish to offer your consumers. You can choose from several models, but always remember to consider the market you’re targeting and your value proposition while developing your price plan.
The go-to-market strategy is a blueprint for launching a new product or service, although it is not rigid. Continuously alter and iterate as you go and if the market tells you to change course, always listen.
Mark the parts of your strategy that aren’t working and make changes to them. Make a note of what works and think of ways to improve it.
And last but not least, always have the users in mind when developing a go-to-market strategy.
Connect with us, and we’ll work on helping you find the ideal go-to-market strategy for your company.