A Go-to-Market Strategy (GTM strategy) is defined as a holistic and integrated set of strategies and action plans that specifies the ‘why’, ‘what’ and ‘how’ a company will successfully reach customers and obtain or maintain 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.
Best-in-Class executives understand and appreciate that a GTM strategy needs to be jointly developed and totally aligned with a pragmatic and doable execution plan so as to effectively leverage and exploit corporate resources.
A GTM strategy is viewed by ‘best-in-class’ organizations as a strategic long-term 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 center stage of strategic planning empowers company stakeholders to make the correct customer-focused decisions on what should be included in the GTM strategy!
GTM Strategy: Value
Successful GTM strategy generates business value that provides:
- Decreased cost associated with failed product and services launches and promotional activities.
- Elimination of reputation (brand) risk.
- Improved productivity.
- Improved revenue and profitability.
- Increased ROI through new and innovative marketing strategies.
- Increased customer awareness.
- Increased customer engagement through better customer experiences.
- Maximize profit by minimizing workload and service cost.
- Reduced time to market.
- Reinforced corporate brand.
GTM Strategy: Focus
GTM strategy development encompasses an analysis and key decision-making for the below corporate elements.
- Product and Services
GTM Strategy: Development
A GTM strategy is developed with research, analysis and decision-making to:
- Align corporate mission, vision, and business model.
- Define target markets.
- Profile target customers.
- Position corporate brand.
- Develope 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 sales and marketing 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 company position in 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 segments identified consist of prospects who generally respond similarly to business strategies and share similar traits, interests, needs, and locations.
The key common factors that are usually considered when performing a GTM strategy market segmentation exercise include prospective customer’s:
- Behavior related to the product or service such as the customer buying from a competitor or examining the responsiveness to selling effort.
- Benefits and value due to buying the product or service.
- Geographical locations.
- Industry and segments.
- Information which is required to be provided by the company.
- Profitability to company.
- Size and sales potential.
- Usage – How, When and Where the product or service is used.