A go-to-market strategy is one that helps businesses deliver their goods and services to customers. Though frequently associated with launching new products, this strategy can also come in handy in every stage of the product lifecycle. Go-to-market strategies offer a wide range of benefits to both large and small businesses. They not only shorten marketing time and minimize costs, but they can also play a major role in business growth.
Here are some great tips for an effective go-to-market strategy:
1. Establish your value proposition
The first thing you need to do before marketing anything is to determine what your unique selling proposition (USP) is. This will make it easy for you to set an appropriate price and target the right audience. Establishing your USP begins by evaluating the main benefits your service or product offers. Step in the shoes of the customer and think of the challenges or problems they would want to be solved. This way, you will be able to align your marketing strategy with the customer’s needs. However, you don’t have to initially set your price based on the value of your product or service. You could use price skimming or subscription-based pricing to penetrate the market, and then adjust your price later.
2. Define your target audience
Defining your market is crucial for the success of any go-to-market strategy. Before launching a new product, take a time to carry out some research on your ideal target audience. Most products usually appeal to only specific groups of people. Besides age, gender and other common demographic factors, you should also consider their spending power and where they live. This way, you will be able to adjust your price accordingly.
3. Consider your product strategy
Besides pricing, you should also consider how to position your brand. For instance, if you have different target markets, you might want to come up with a unique product strategy for each. This could involve special promotions, bundling plans and other strategies that could enhance your sales. You could also consider cross-selling and upselling to your existing and new customers. In your sales messages, don’t forget to mention why your products stand out in comparison to those of your competitors.
4. Define your channels
There is a wide range of channels that you can use to promote and sell your products. After defining your target audience, you need to think about where these people are likely to shop. This could be trade shows, retail stores, online marketplaces and e-commerce sites. At times, it would even be advisable to send your sales team on a door to door campaign. Just make sure the distribution channel selected is appropriate for the kind of product you are selling. However, regardless of the channel used, make sure your customers have a consistent experience. For example, the kind of customer care offered in a retail store should be the same one they will experience when purchasing online.
5. Create a timeline
A GTM strategy should have a clearly laid out timeline for execution. This timeline should be broken down into different steps, as well as key milestones that need to be achieved. However, this does not mean that go-to-market tactics should be cast in stone. As time progresses, you might need to fine-tune your strategy so as to attain your goals.
6. Gauge your success
Before launching a product into the market, you need to be very clear on what exactly you want to achieve. For instance, you could set a specific target for sales volume. When you have clear objectives for your GTM strategy, it will be easier to evaluate your success in the long run. To enhance your chances of success, make sure your sales team is informed of the desired outcomes from the beginning.
7. Avoid common pitfalls
One mistake can end up ruining your whole go-to-market strategy. Here are some of the pitfalls you need to avoid:
- Engaging too many distributors – In an attempt to make as many sales as possible, some companies engage as many distributors as possible when launching their products. However, managing multiple distributors can be very overwhelming when starting out. If there is a spike in demand, you might find it difficult to fulfill orders. On the other hand, low sales will mean that your products will end up stuck in multiple retail stores. Therefore, it would be advisable to start with one or two, and then increase the number as your business grows.
- Incorrect pricing – If you don’t calculate the price properly based on value, you might just end up underpricing or overpricing your product. If the price is too high, you might be forced to lower it quickly, thus negatively affecting the credibility of your product. On the other hand, if you set a low price, it might be difficult to increase it later. Therefore, before making the final decision, take a time to carry out to measured price testing to find out what customers are actually willing to pay.
- Focusing too much on online marketing – With the advent of technology, companies are investing more in online marketing through social media and e-commerce sites. However, long-term success cannot be achieved by marketing online exclusively. A good GTM strategy involves a balance between online and traditional marketing tactics.
Creating a great product is not enough. You need to have a strategy for it to reach your target market. By taking a time to consider the tips above for a go-to-market strategy, you will significantly enhance your chances of success.
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