A go-to-market (GTM) plan is a detailed strategy to get a product or service into market. It outlines the steps to reach customers and get ahead of the competition. This includes market research, clear definition of the target audience, sales and marketing plans, and product pricing and distribution channels.
When Do You Need a GTM?
GTM moments happen at various stages of a business. Whether a startup is launching, releasing a new product or service, or expanding into a new market, a GTM is critical. A GTM is also essential when launching a new product in an existing market. Below we’ll cover what GTMs are, the components, the importance and how to create one.
What’s in This?
What’s in a go-to-market (GTM)?
Why do businesses need a GTM?
Go-to-market vs marketing strategy: Differences and similarities
How to create a go-to-market
What’s in a Go-To-Market (GTM)?
A GTM should define the value proposition of the product or service, why customers should choose it over the competition. According to a 2023 report, 37% of respondents said their company culture is product-first, 26% said sales-first, so many companies are product-first. Optimizing customer acquisition cost is crucial as it directly impacts the profitability and effectiveness of the go-to-market strategy.
A good GTM includes:
Market Analysis
Market size, growth, trends, customer analysis.
Target Customer
Ideal customer profile, challenges, buying behaviour.
Value Proposition
A sentence that defines the benefit to the customer.
Competitive Analysis
Competitors, their offerings, strengths and weaknesses.
Product Positioning
Where the product fits in the market and how it differentiates.
Sales Strategy
Channels, sales targets, team structure.
Marketing and Promotion Plans
Campaigns and Activities to Generate Interest and Leads
Selecting the right marketing channels is crucial for generating interest and leads. Aligning these channels with the target audience's content consumption habits and preferences can significantly enhance the effectiveness of your campaigns. For instance, raising brand awareness with SEO content, providing insights and building relationships with case studies and webinars, and convincing potential customers at the bottom of the funnel with strategies like free trial options are all effective methods.
Pricing Strategy
Pricing approach, costs, market conditions, competitor pricing.
Distribution
How the product will be delivered to customers, including channel partners and distribution points.
Customer Support and Service
Post-purchase Customer Service and Support
Providing excellent post-purchase customer service and support is crucial for maintaining customer satisfaction and loyalty. It is essential to address any issues promptly and effectively to ensure a positive experience. Additionally, offering exceptional support to existing customers can lead to renewals, cross-selling, and upselling opportunities, maximizing revenue. Engaging with existing customers through a well-planned channel strategy can also be beneficial, especially during product launches and pricing changes.
Metrics and KPIs
Metrics to measure the GTM initiatives.
Budget
Resource allocation to each component of the strategy.
Timeline
When each part of the strategy will be executed.
Risk
Risks and mitigation plans.
Feedback Loops
How to collect customer feedback and feed it back into the product and strategy.
Why do Businesses need a Go-To-Market?
A GTM is an action plan that tells a company how to get to their target customers and launch their product or service. It guides a business from product conception to market entry and beyond, how it will exist in the market going forward. Having well-defined go to market strategies is crucial for ensuring market alignment, resource optimization, and risk mitigation.
Market Alignment
The product or service meets market needs, gets accepted by the target customer.
Resource Efficiency
More time, money, people.
Risk Reduction
Anticipate potential challenges, reduce the risk of launching a new product.
Clear Messaging
A single, compelling message about the value proposition, how the product differentiates.
Sales Enablement
The sales team with a plan and tools to sell the product.
Marketing Alignment
All marketing efforts should work together to speak to the target customer.
Customer
Design the customer journey from the start, increase satisfaction and loyalty.
Revenue Growth
Accelerate adoption and revenue through strategic product launches.
Targeting potential customers at different phases of the buyer's journey is crucial to drive revenue growth.
Brand
Build or strengthen the business brand with a GTM.
Strategic Insight
Market, competitor and customer intelligence to inform business decisions.
Market Share
Gain market share by outflanking competitors and getting attention.
Feedback and Adapt
Mechanisms to collect customer feedback, to adapt.
Go-To-Market Strategy vs Marketing Strategy
A GTM and a marketing strategy are both important but play different roles in the product lifecycle.
GTM Strategy
An action plan that tells a business how to target customers and get a competitive advantage. It includes marketing, sales, distribution, pricing, customer support. It’s about getting the product to market.
Marketing Strategy
Creates demand through branding and communication. Ongoing and evolves over the product life, covers market positioning, campaigns, content marketing, media planning, social media strategy, customer engagement, brand development.
Differences
Scope: GTM strategy is wider and a one-time plan for a product or market entry. Marketing strategy is ongoing and about building and maintaining demand.
Similarities
Market Understanding: Both need to understand the target market and customers.
Alignment: They must work together for a successful product launch and marketing.
Research-Based: Both use market research and competitive analysis to inform their approach.
How to do a Go-To-Market
Market Research and Segmentation
Use advanced tools to research and find trends and patterns. Segment the market by demographics, behaviors, psychographics, purchase readiness.
Customer Profiling
Create a detailed profile of the target customer. Use data mining and user research to validate assumptions about customer needs.
Competitor Analysis
Research competitors’ products, strategies and customer feedback. Anticipate their moves and plan counter moves.
Value Proposition and Messaging
Create a value proposition for the desired customer outcomes. A/B test and focus groups to refine messaging.
Sales Strategy
Design a data-driven sales process with CRM and lead nurturing. Sales and marketing teams play a crucial role in launching a product or service into the right markets quickly and efficiently, defining target customers, developing an effective marketing plan, and creating a scalable sales and distribution model. Multichannel sales approach.
Pricing
Advanced pricing models, dynamic pricing based on market demand and customer segments.
Distribution and Fulfillment
Map out the distribution network for speed, cost and coverage. Predictive analytics for inventory and fulfillment.
Marketing
Omnichannel marketing plan. Sophisticated attribution models to understand each channel.
Launch plan and Timeline
Phased launch plan, soft launch or beta test. Milestones to measure progress.
Customer Support
Customer service blueprint with AI and personalization. Feedback loop to inform product and strategy development.
KPIs and Metrics
Advanced metrics, customer lifetime value, net promoter score. Predictive analytics for benchmarking.
Risk
Full risk assessment and contingency plans.
Legal and Compliance
Compliant with local and international laws. Legal teams to review contracts, licensing and intellectual property.
Iterative Development
Agile approach, adapt to market feedback. Cross functional teams to implement strategy pieces.
Partnerships
Partners to support GTM. Performance metrics and shared goals in the agreement.
Conclusion
A GTM strategy is a detailed plan that unites the efforts of various teams around a single launch period. By understanding and applying the components discussed, businesses can effectively bring their products and services to market, engaging the right audience and driving success.
