Any company that hopes to successfully sell its products or services needs to develop a solid go to market strategy plan that will give it the firmest possible foothold in its respective market. Such a plan is known as a go to market strategy, and it’s a cornerstone of any profitable business.
Simply defined, a go to market (GTM) strategy is a start-to-finish plan that determines a business’s best course of action for selling a specific product or service to its customers while achieving a significant advantage over its competition. From sales initiatives to data analysis, the implementation of a variety of crucial factors is necessary for developing an effective go to market strategy that caters to customers and curtails competition.
The Three Cs of a Go To Marketing Strategy
When working on a GTM strategy, it is important to keep these three Cs – company, customers, and competition – in the back of your mind and let them dictate your decision making. Creating a framework around these components will benefit you immensely in the development of your GTM strategy.
Before you even start to think about your customers or competition, you first must be able to articulate your company’s vision. What sort of impact do you hope to make? Once you understand your company’s identity, then you can get into defining the market for the specific product or service that is the focal point of your GTM strategy. From there, you’ll engage in thorough market research that will help determine your ideal customers and competition.
But if you can’t first be honest about where your company stands in the grand scheme of things, you can’t truly move forward with an effective GTM strategy.
You can’t successfully sell a product or service without knowing your potential customers like the back of your hand. Who are your customers? What are their habits? Do they have a need for your product or service? Once you’re able to answer these questions, then you can begin engaging with your customers through various strategic messaging practices.
It’s very rare, especially these days, to operate in a market with zero competition. If you’ve thought of it, it’s likely that other companies are working on similar or tangential projects. Therefore, intimately understanding your competitors through extensive research is paramount. You’ll want to know their successes and their failures. Is there a pressing need in the current market that they are not addressing? If there is, you’ll want to take advantage of it.
Defining Your Product or Service
After determining what your product or service actually is, you’ll then want to go about defining the value of that product or service and execute a pricing strategy.
A value proposition (VP) is essentially a statement that assures your customers of the benefits of your product or service. It’s right there in the term: value. A solid VP snappily defines what your product is and how it is different from your competitors’, while also convincing your customers that the benefits they are receiving from your product are worth more than the cost.
Once you craft your VP, you can begin to identify your proper pricing strategy, of which there are several. In an economy pricing strategy, a company spends little on promotional and marketing materials to keep product cost low. This is predominantly used by large deal-saver type companies, such as Wal-Mart. With premium pricing, small businesses or companies that specialize in unique goods sell their products at a higher cost than competitors, though usually for a short time. A company that utilizes a penetration pricing strategy initially sells its products and services at a low cost to penetrate the market before eventually bumping prices up.
Like with any facet of your GTM strategy, you’ll want to conduct proper market research and collect sufficient data to determine the best pricing strategy for you.
Executing the Distribution Strategy That Best Works for Your Business
Maintaining a Solid and Consistent Vision Throughout the GTM Strategic Process
From defining your market to executing effective distribution channels, developing a go-to-market strategy requires careful calculation and sample analysis.
Ultimately, a good GTM strategy takes the company, customer, and competition to heart. It also answers important questions about the product and promotional methods. These elements should be part of your GTM framework. As a result, you will be several steps closer to rolling out that next successful product or service.