Why You Need a Go-To-Market Strategy for Success
Launching a new product or service is always an exciting endeavor, but it can also be a risky one. The sad truth is that most business launches fail. In fact, research shows that 95 percent of the 30,000 products launched every year end up being unsuccessful. With odds like these, it’s clear that having a solid go-to-market (GTM) strategy is essential for success.
So, what exactly is a go-to-market strategy? It’s a plan that outlines how a company will introduce and sell its product or service in a way that maximizes its potential for success. This strategy focuses on engaging customers, outshining competitors, and making a meaningful connection with your target audience. It covers various aspects such as market research, customer personas, product positioning, pricing strategy, sales and distribution plan, and marketing tactics.
Now that we understand what a go-to-market strategy is, let’s dive into the key components and types of GTM strategies.
Components of a Go-To-Market Strategy
When crafting a go-to-market strategy, several components need to be considered:
1. Conducting Market Research: Before launching your product or service, it’s crucial to conduct market research to understand your target audience, competitors, and the potential market. This information will help you make informed decisions and effectively position your offering.
2. Creating Customer Personas and Mapping the Customer Journey: Developing customer personas and mapping out the customer journey enables you to understand your buyers better and effectively reach them at the various touchpoints.
3. Product Positioning: Determine how your product fits into the existing marketplace and what sets you apart from competitors. Clearly define your value proposition to stand out and attract customers.
4. Pricing Strategy: Develop a pricing strategy based on similar products in the market. Consider your costs, target audience, and business goals when deciding on the price.
5. Sales and Distribution Plan: Determine how you will sell the product, market it, and fulfill orders. This plan should cover the entire sales process from lead generation to closing the deal.
6. Marketing Plan: Create a comprehensive marketing plan that covers various channels such as direct advertising, social media, PPC ads, and email marketing. Planning your marketing efforts proactively increases the likelihood of success.
Types of Go-To-Market Strategies
The specific type of go-to-market strategy you choose will depend on your company goals, the product or service you’re launching, and your target audience. Here are some common types of GTM strategies:
1. Inbound Marketing: Focus on using strategies like SEO, social media, blogging, pop-up forms, newsletters, and video marketing to attract customers organically.
2. Sales Enablement: This strategy involves positioning your brand or product to the sales team and equipping them with the tools and resources they need to sell effectively.
3. Account-Based Marketing: Target high-profile clients by tailoring your marketing efforts to their specific needs. This strategy is often used by businesses selling high-value products or services.
4. Demand Generation: Create product demand through outbound marketing techniques such as cold calling, email marketing, online ads, landing pages, and direct marketing.
5. Direct Sales: Sell products directly to consumers, especially if you target a niche market with high-margin products.
6. Channel-Led Sales: Partner with other companies, such as agencies, resellers, and certified partners, to promote and sell your products and services. This strategy is suitable for targeting a large market with low-margin products.
7. Freemium: Offer a basic version of your product or service for free and charge for premium features or subscriptions.
8. Online Sales: Utilize a digital marketing strategy if you sell your products and services purely online and have a broad target market.
9. Retail Sales: Sell your products or services through brick-and-mortar stores.
10. Strategic Partnerships: Collaborate with other businesses to sell complementary products or services, especially if you have a narrow niche and sell high-margin products.
11. Direct Mail: Send marketing materials to potential buyers through direct mail.
Choosing the right go-to-market strategy will depend on your specific business needs and circumstances. It’s important to align your strategy with your goals and target audience to achieve the best results.
Benefits of a Go-To-Market Strategy