Last updated on September 20th, 2024 at 12:35 pm
The step-by-step and elaborate action plans in which an organisation launches a unique product or service in an otherwise existing market is known as GTM or go-to-market strategy. The go-to-market strategy is an important and integral part of the total business plan which also includes other functions like operation details, resources, finances, statutory obligations etc. A go-to-market strategy is utilised by start-ups and established organisations alike.
This strategy minimises the risk of introducing a new product or service and maximises profit by reducing substantial advertisement and marketing expenditure. The strategy is based on extensive market research on existing products or services, customer feedback and expectations. The success of these new products or services is achieved since these are created keeping in mind customer pain areas and concerns.
The scope of the go-to-market strategy includes market research of the existing market, identification of new products or services for the target market, and making them readily available by creating efficient distribution channels and marketing awareness campaigns.
Steps in Go-to-Market Strategy
Go-to-market strategy can be achieved by following a few significant step-by-step actions. If these steps are diligently followed, then the organisation will surely taste success in due course. The processes are as follows –
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Problem Identification
The first step is the identification of the problems faced by the client. Innovation is inspired by necessity or additional demand creation. Organisations need to comprehend what difficulties customers face with the existing product or service.
The new / to-be-launched product or service must have that unique value proposition to solve the previous problems and add more features to surpass customer expectations.
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Set the Target Audience
Extensive research should be done on the target customers, who are experiencing the problems. It needs to be ascertained how much those customers shall be willing to pay for products or services which solve their problems. An ideal customer profile has experienced the problems and is ready to shell out a premium for a unique product or service.
There are several points to ponder when organisations profile their target customers. Depending on the market they cater to, customer types vary in industry, geography, age group, budget, decision-making factors, and information intake channels.
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Survey for Sustainability
Demand and competition are the two factors associated with any product or service. Thus, before engaging in actual business, organisations must assess the following points –
- The companies who offer similar or existing products.
- Consistency of demand for such products or services.
- Value addition against each similar product or service that claims to eradicate the existing problems.
- A comparison statement should be prepared that clarifies the key points of the existing and the proposed products or services, not only in terms of value proposition but also availability, price, durability etc. A SWOT analysis can also be performed.
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Message to Target Customers
Based on the type and buying habits of customers, organisations must send personified messages to address their concerns.
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Buyer’s Choice Mapping
After organisations gather quality customer data, it is their responsibility to map them. Some customers may be readily interested in the new products or services while others may not be convinced soon and may compare the new offerings with the ones in terms of price vis-à-vis their efficiency.
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Create Dedicated Marketing and Supply Channels
Now, when all calculations are in place, then organisations must focus on creating an efficient supply chain to fulfil the marketing commitment.
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Sales Plan Creation
The go-to-market strategy is incomplete without a sales plan in place. The sales plan must be chosen as per the nature of the industry or customer. E-commerce platforms adopt a self-service model. Giant retailers rely on the inside sales model.
Corporates often utilise field sales model which relatively involves more investment, have longer sales cycles but pay off reasonably well. Some companies outsource the sales activity to a channel partner by exercising the channel plan.
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Create Achievable Goals
The go-to-market strategy is associated with tangible goals. Nowadays organisations speak about SMART goals, i.e. the goals that are specific, measurable, achievable, realistic and time-bound. Key performance indicators (KPIs) are quantitative measures of the goals or objectives.
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Specify Processes
The above-mentioned points in a go-to-market strategy will be successful only when they are executed through smooth processes. Thus, there is a need to specify processes. Some of the processes are as follows -
- Collaboration with inter and intra-departmental teams.
- Sharing relevant information to teams effectively.
- Track objectives and course-correct, as required.
- Optimisation of customer experience.
- Track profit and return on investment.
Benefits of Go-to-Market Strategy
This strategy is designed to match the organisation’s budget goal with its sales objectives. The benefits of this strategy are as follows -
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Alignment Creation
With detailed prior documentation, this strategy creates alignment in all processes the business stakeholders need to follow.
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Competitive Advantage
The strategy is based on competition research and hence provides salient inputs to the organisation to stay well ahead of it. It helps both in terms of value creation and product or service availability.
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Cost Reduction
Go-to-market strategy saves cost by eliminating unwarranted processes and marketing activities since this strategy is developed after researching the mistakes of the competitors. Thus, a moderate budget can go a long way.
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Product-Market Fit
Several GTM strategy examples have proven that this strategy has the capability of fitting the product in the researched market.
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General Trouble-Shooter
There is no such strategy that can stop failures forever. However, this strategy has the potential to locate gaps and enrich both customer experience and the organisation’s profitability.
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Faster Success Rate
No worldly success may be achieved instantaneously. However, careful planning and meticulous execution in the go-to-market strategy help organisations reach their goals faster compared to other business plans.
GTM Strategy Examples
Many successful organisations have applied go-to-market strategy and their GTM strategy examples shall keep on inspiring the business world for a long time. Some of the best example stories are as follows -
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Apple
It has demonstrated the GTM strategy examples of superior lifestyles. The organisation has always believed in and utilised advanced technology as its main weapon and innovative products with a classy, unique and rich customer experience, which is the focal point of its go-to-market strategy.
Apple uses the powerful Golden Circle policy to establish their philosophy of business. Instead of starting with open-ended questions like what or how they preferred to start with why. Their answer to this question was that Apple wants to make products which shall have the capability to challenge the existing ones at their very core.
To respond to how they should do it, they were clear in their mind that beautiful design and user-friendliness would be their mantra. And finally, they mentioned what they wish to come up with i.e. their great products (i-pads, iPhones, smart watches, MacBook i-pods etc.).
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Tesla
It has demonstrated the GTM strategy examples of selling a vision. The organisation was neither the flag bearer of electric automobiles nor industrial batteries. However, they utilised the go-to-market strategy of combining the two concepts and evolving a saleable vision out of the same.
They came up with electric cars that were superior to their bio-fuelled peers. Tesla focused on customer experience right from the very beginning. This includes booking a car, its customisation, digital upgradation, superior implementation controls and robust performance.
The removal of middlemen or dealers enabled the organisation to cut costs and save customers money. In-house production of most components including batteries also added to their quality control and superiority of products. Using this strategy, Tesla has dwarfed top automobile companies in the US like Toyota, Volkswagen, Daimler, BMW, Honda etc.
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Huawei
It has demonstrated the GTM strategy examples of creating a local community impact in India. Though being one of the largest brands in its own country, China, Huawei faced a sense of business insecurity in India. The perception here was that Chinese brands sell low-quality products, that can only address lower market segments.
Huawei addressed this issue by opening a research and development wing in India and went on to hire top Indian executives. This served their dual purpose of understanding the Indian market and making their customers in India feel that Huawei is working in the interest of the Indian community. They also supported the Indian Government initiative of “Make in India”.With this go-to-market strategy, Huawei could challenge the likes of Apple and Samsung in India.
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Slack
It has demonstrated the GTM strategy examples of taking customer experience to the next level. It has used a cloud-based software as a revolutionary internal communication tool which was convenient, omni-available, fast and expressive. They competed with a well-known and established product called email and emerged victorious in a few geographies of the world.
It targeted the inconvenience the users faced with long email threads and came up with straightforward solutions. It also supported efficient communication with a greater number of team members, unlike emails. The result was the meteoric rise of slack.
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Microsoft
It has demonstrated the GTM strategy examples of embracing change and transformation. Whenever we speak of go-to-market strategy, the name of Microsoft comes as a front runner.
The key focus of Microsoft is understanding customer needs and responding accordingly. Hence, they felt that adaptation to constant change should be the only mantra to stay relevant. The wide range of software, services and solutions they offer and the reputation they command is a proven testimony to the philosophy that they believe in.
All these stellar achievements come from the brilliant individuals that these organisations employ. These leaders have mastered the art of go-to-market strategy to the core. To scale similar heights, aspiring business houses can enrol their senior business team for the CMO Program organised by reputed
GTM vs. Marketing Strategy
The following are the key points in GTM vs. Marketing Strategy -
- GTM is product or service driven whereas marketing strategy is organisation driven.
- Marketing strategy focuses on how an organisation can capture an addressed market and deliver an overall value proposition. GTM, on the other hand, focuses on bringing new products or services to the market.
- Elements like finance, legal matters, statutory compliances etc. are also considered in a marketing strategy. GTM covers subjects up to a new product or service launch.
Conclusion
Go-to-market strategies have already traversed a long way and have been a proven success. Nowadays, organisations recruit smart individuals with institutional knowledge on the subject. Potential job aspirants, on the other hand, have already started working in the same direction. They are aware that the marketing career is challenging and rewarding.
The Global Senior Leadership Programme Specialisation: Chief Marketing Officer by Imarticus will give prospective candidates a perfect start at the beginning of their careers. The duration of the course is 6 months.
Visit the official website of Imarticus for more details.
FAQs
What is the triangle of go-to-market strategy?
Three inter-dependant factors, namely, consumer, business and competition form the core components of the strategy.
What are the risks of go-to-market strategy?
Negative reactions by certain customers regarding products, services or pricing create a risk to the go-to-market strategy. This risk may be perceived through revenue drop, decrease in existing customers or deceleration in new customer conversion.
Are sales a part of the go-to-market strategy?
This strategy includes product design and cost analysis, customer base creation along sales and marketing activities.
What is an important point of difference in GTM vs. Marketing Strategy?
GTM is product or service driven whereas marketing strategy is organisation driven.
