A Go-to-Market Strategy (GTM strategy) is a holistic and integrated set of policies and action plans that specifies the ‘why,’ ‘what’ and ‘how’ a company will successfully reach customers and obtain or maintain a competitive advantage in their targeted markets.
The purpose of a GTM strategy is to enhance the overall customer (and prospective customer) interactions and experience by providing a structured framework for delivering a unique corporate Value Proposition to customers with consideration for customer requirements, pricing, processing, and distribution.
“The company without a strategy is willing to try anything.”
Best-in-Class executives understand and appreciate that a GTM strategy requires an associated pragmatic and doable execution plan to leverage and exploit corporate resources effectively.
‘best-in-class’ organizations view a GTM strategy as a long-term strategic approach to successfully building and sustaining profitability and productivity, decreasing customer acquisition and retention costs, and enhancing the company’s brand awareness.
Developing a GTM strategy should always be about the customer! Keeping the customer at the center stage of strategic planning empowers company stakeholders to make the correct customer-focused decisions on the mission-critical elements in the GTM strategy!
GTM Strategy: Value
Successful GTM strategy generates business value that provides:
- The decreased cost associated with failed product and services launches and promotional activities.
- Eliminate reputation (brand) risk.
- Improved productivity.
- Improve revenue and profitability.
- Increase ROI with innovative strategies.
- Increase customer awareness.
- Increase customer engagement through better customer experiences.
- Maximize profit by minimizing workload and service costs.
- Reduced time to market.
- Reinforce corporate brand.
GTM Strategy: Focus
GTM strategy development encompasses analysis and critical decision-making for the below corporate elements.
- Product and Services
“So companies have to be very schizophrenic. On one hand, they have to maintain continuity of strategy. But they also have to be good at continuously improving.”
GTM Strategy: Development
A GTM strategy consists of research, analysis, and decision-making to:
- Align corporate mission, vision, and business model.
- Define target markets.
- Profile target customers.
- Position corporate brand.
- Develop a value proposition, “How is this helping our customers?”
- Align product and service offerings.
- Map supporting business processes, activities, and decision-points.
- Strengthen Channels—Touchpoints and Distribution
- Develop appropriate marketing and sales policies and plans.
GTM Strategy: Key Strategic Considerations
GTM strategy development conversations typically consider the below strategic decision-points.
- Identify and mitigate company pain points.
- Balance digital and traditional channels.
- Create effective brand and product messaging that resonates with target industry sectors and potential customers.
- Evaluate channel partner strategy to maximize channel sales effectiveness.
- Identify disconnects between market aspirations and budget realities.
- Leverage ‘best practices’ to help select the right channel mix and customer segments for product and services offerings.
- Measure success via market share data and analyst feedback.
- Validate the company position in the targeted industry with independent, objective research.
GTM Strategy: Market Segmentation
Market segmentation is the marketing analysis method of separating a targeted universe of potential customers into groups, or segments, based on unique characteristics. The sectors identified to consist of prospects who generally respond similarly to business strategies and share similar traits, interests, needs, and locations.
The critical common factors that considered when performing a GTM strategy market segmentation exercise include prospective customer’s:
- Behavior is related to the product or service such as the customer buying from a competitor or examining the responsiveness to selling effort.
- Benefits of product or service.
- Geographical locations.
- Industry and segments.
- Information provided by the company.
- Profitability to the company.
- Size and sales potential.
- Product use – How, When and Where the product or service