There are many markets with enough potential room to grow a business, and there are also many places in these markets to insert a new product or service offering. When you are starting out in the business world, it is important to know and understand several important terms, for knowing how to apply these terms will help you reach any goals that you might pursue for your business. However, it is equally important to be able to distinguish between terminology.
If you want to run a business that will grow, you’ll need a business plan that’s solid. Likewise, you will need a go-to-market strategy that is solid to offer a new product or service to an already established industry. It’s a bold move to offer a new product or service to an industry where there is plenty of competition, but you will have an easier time working with other business professionals when you understand the distinction of having a go-to-market strategy.
What is a Go-to-Market Strategy?
Manufacturers develop go-to-market strategies for new products they plan to offer in order to maximize the profits and revenue associated with a new product launch. Therefore, you should be able to easily imagine how go-to-market strategies that a business chooses have the ability to influence the launch of their products, making more money for the company. This guide will confirm any suspicions you already have about how products are launched, and we’ll discuss launching new services to the public as well.
There are several important elements of a go-to-market strategy (also called GTM strategy) that business executives consider when they begin to research and develop their products. Just as a new business designs a business plan to help launch a new company, an established business will create GTM strategies as part of a GTM plan for every new product offering. If major companies are able to influence the impact of their product launches, then small businesses should be able to replicate some of these designs to use on a smaller scale.
Marketing Strategy vs. Go-to-Market Strategy?
Most businesses start out with a good idea that satisfies some need for a product or service offering. The individual or individuals that start a business will usually craft a business plan that introduces this idea for the consideration of investors and other interested parties. The business plan includes information about the product or service that the new business will offer, research about the market, and other crucial elements to help make the new business a smashing success. One other element that is crucial to every business plan is having a solid marketing plan to find customers that want to purchase a product or service.
In order to be successful in business, a company must have good marketing strategies from the very beginning. Even if a product or service is exceptionally made and highly desired, the general public needs a way to find out about the offering. Marketing strategies are the way, and companies continue to use marketing strategies for a long time after they are open for business. Marketing strategies include traditional advertising techniques and digital marketing techniques, both of which are designed to create more buzz about the company’s offerings in the real and digital worlds.
On the other hand, a go-to-market strategy is only used when a company is offering something new to their customers. A go-to-market strategy is a type of marketing strategy, but it is specifically designed to assist a new offering that consumers have not yet seen from the company. After the product is launched, market research continues to prove its worth, and the company will continue to advertise their new product offering with other marketing strategies designed to keep momentum going for the new product.
What is Included in a GTM Strategy?
In order to develop a GTM strategy that will be effective in marketing the product or service to its fullest potential, you will need to consider some challenging questions about the new offering. This marketing strategy should address ways of reaching clients with messages about the new product. What are ways that you will be able to show the value of this new offering to potential customers? A value proposition will help create a buzz around your new product or service.
In addition to creating a buzz around your product by showing off its potential value to consumers, you will need to include information about your competition and information about how your company will deliver on its promises in the future. Your GTM plan should be designed with the intention to give a competitive edge to give your new product offering. Meanwhile, you must keep in mind how your company will actually deliver the product to consumers. For example, your GTM plan could include working with retail locations within the industry of your company.
What Does a Good Go-to-Market Plan Look Like?
When a company has already been established in its industry by offering quality products or services to consumers, the business might eventually grow to offer new products or services to fill the growing needs of consumers. A good go-to-market plan is focused on showcasing product or service offerings to an audience of current clients and future clients. Once people notice the value in this new offering, a good GTM plan is designed to market the product, surpass new offerings from competitors, and deliver the product to excited clients. An initial marketing campaign consisting of a good GTM will take the product from its research and development phase into its launch. After the product is successfully launched, new marketing strategies will become essential to keep momentum and sales going.
What Defines an Efficient Go-To-Market Strategy?
An efficient GTM strategy takes care of all the needs of promoting a new product to consumers without creating fear in the minds of investors. Since investors will want to know that their money is being handled correctly, they will want to see that solid plans have been made to efficiently launch new products. Efficiency involves bringing clients to your company by taking as few actions as possible. Buying “more bang for a buck” when marketing a product will impress investors as well.
Creating an efficient GTM strategy for a product involves thinking deeply about how the general public will perceive the new offering. It’s more complicated when a company needs to create GTM strategies for a new service being offered. Services are harder to define because they aren’t tangible things, like products. Services involve skill and expertise, which must be communicated efficiently in every good GTM strategy.
What Are the Steps to Develop a Go-to-Market Strategy?
Identify Your Target Markets
No product is right for every market. Establishing your ideal target markets is a vital element in formulating your GTM strategy. Factors could include demographics, psychographics, buyer personas, online/offline, and geography.
Since you can’t pursue every market you need to determine where you can most effectively differentiate your brand and attract the most profitable customers.
Define Your Target Customer
The motivating force here is developing customer intelligence by doing market research. You want to become skilled at generating actionable consumer insights through web surveys and analysis, focus groups, and one-on-one in-depth interviews.
Understanding the journey that a buyer goes through will help achieve an effective GTM plan. You should focus on the demographics of your average buyers, and take note of their individual responsibilities in life. Understanding the buyer’s journey will impact your company’s ability to create effective marketing campaigns that address the fears and purchase drivers of your intended audience.
Determine Your Buying Centers
The buying center in marketing includes all of the people that influence a buying decision. There are several unique personas that influence every buying decision. For example, the gatekeeper is the person (secretary, assistant, et cetera) that you must get through to get to the buyer.
Determine Your Brand Positioning
The positioning statement is one of the most important sentences in a marketing plan. It is an articulation of how a company should be perceived in the minds of its customers and prospects. It brings focus to the development of a marketing strategy and the marketing plan and tactics to support that strategy.
Define Your Unique Value Proposition
Your value proposition — also known as your USP — is what you promise to deliver your customers. Understanding the key features and benefits and exactly how your product/service connects with your customers including the context of their use, the problems it solves, the benefits they derive from using your product or service.
To help determine the product’s unique value proposition, look at it from your target customer’s perspective.
Identify Your Channels
Channels link your product or service offering to your customers. Channels might include a retail store, digital marketing, a call center and customer service, a face-to-face salesperson, a trade show, or a direct partner.
In order to appeal to all the individuals that surround the buying process, it’s important for every good GTM plan to address each persona in the channel where they are most likely to engage with your product. Create a value matrix of the types of content that will meet the expectations of each persona. A messaging strategy that includes content to meet the needs of each persona will assist in creating an effective value matrix. An example of something to consider when creating messaging to meet each persona is the tone used throughout the writing of each piece of new information.
Build Your Financial and Sales Strategy
Once you’ve defined your channels, you’ll need to build a financial model. Here you want to define your product pricing and estimate the costs associate with your GTM strategy.
The sales strategy is the way that your company will deliver its new product or service to the market. If you’ve already been selling products or services, you have been using a sales strategy to make conversions. The sales strategy might be similar for new products, but it still needs to be clearly defined.
Develop Your Marketing Strategy
Now it’s time to begin developing a unique marketing strategy for each target market you’ve identified. Your marketing mix will be determined by your strategy in each market.
When you are marketing a new product or service, the main goal is to gain interest from your targeted audience. Find out more information about the needs of your target audience. Make your audience want your offering by appealing to their need to resolve their problems through using your new product or service.
Putting Everything Together
This guide has presented how products are taken from the research and development phase into being launched to the public. This information should help you understand the importance of having a go-to-market strategy, and you’ll have a better understanding of the value of creating a quality GTM strategy when you work on setting up your own plan for future product offerings. This type of thinking is necessary to have a successful product launch that gets real attention from consumers. The key to keeping your business growing is selling products, so you’ll need to add some new products to your line in the future. You are using your ideas to position your new product or service to get the most exposure and generate future revenue for your company.
Thanks for reading "Go-To-Market Strategy Guide For Developing a GTM Strategy For A New Product", by the Linchpin Team in Chicago, Raleigh, and Wake Forest.