What is a Go-to-Market Strategy?
A go-to-market (GTM) strategy is a detailed plan that outlines how to launch a new product or expand an existing one into a new market. It ensures success by addressing critical questions such as what product you’re selling, who your ideal customer is, where you’ll sell your product, and how you’ll reach your target customers.
Why Do You Need a GTM Strategy?
Launching a product is a significant investment, and a successful launch depends on a robust marketing campaign and sales strategy. A GTM strategy helps you avoid costly mistakes, like targeting the wrong audience or entering a saturated market.
When Do You Need a GTM Strategy?
You need a GTM strategy whenever you bring a product or service to market. This includes launching a new product in an existing market, bringing an existing product to a new market, or testing a new product in a new market. Even established companies need a GTM strategy when pioneering a new product or expanding into a new market.
GTM Strategy vs. Marketing Plan
A GTM strategy is specifically for launching a product or expanding to a new market, while a marketing plan details how you’ll execute your overall marketing strategy. Your GTM strategy draws from your long-term marketing plan but is tailored to a specific launch.
Steps to Build a GTM Strategy
- Identify the Problem: Every great product launch solves a specific problem. Understanding product-market fit is essential to gaining a competitive advantage and ensuring you’re launching the right product to the right customers.
- Define the Target Audience: Clearly understand your target audience by creating an ideal customer profile (ICP) and buyer personas. These methods help you narrow down your customer base and specify the types of people within your audience.
- Research Competition and Demand: Conduct market research to ensure there’s enough demand and not too much competition. A competitive analysis helps you identify your direct and indirect competitors and uncover their strengths and weaknesses.
- Decide Key Messaging: Tailor individual messaging for each of your buyer personas to address their unique values and frustrations. Create a value matrix to map your messaging to each persona.
- Map the Buyer’s Journey: Visualize the path customers take from realizing their problem to deciding to purchase your product. This helps you surface the right type of content to potential customers at the right time.
- Pick Marketing Channels: Choose the marketing channels that align with your target audience and where they are in their buyer’s journey. Use different distribution channels for different phases of the customer journey.
- Create a Sales Plan: Decide how you’ll sell to your target audience and turn prospective customers into buyers. Combine different sales strategies to fit your specific product and business model.
- Set Concrete Goals: Establish clear objectives and benchmarks to measure progress. Use goal-setting frameworks like SMART goals, KPIs, and OKRs to set measurable objectives.
- Create Clear Processes: Ensure your strategy is communicated and executed effectively with your team. Use project management tools to coordinate plans, projects, and processes in one central location.
Benefits of a GTM Strategy
A well-crafted GTM strategy offers several benefits, including faster market entry, improved customer understanding, streamlined resource allocation, and a competitive advantage. By identifying the most effective distribution channels, target audience, and messaging, businesses can significantly reduce the time it takes to go from concept to customers.
GTM Strategy Frameworks
Frameworks help you focus on the right target customers, craft messaging that resonates, and align your sales team and marketing efforts. Popular frameworks include the funnel approach, which maps out how potential customers move through stages of awareness, consideration, and decision-making, and the flywheel approach, which centers on building momentum by delivering an exceptional customer experience.
