If you want to launch a new product or service in a new or existing market, you need a robust go-to-market strategy. So, what is a go to market strategy, and How to implement it?
A Go-to-Market (GTM) strategy is a comprehensive plan that outlines how a company will sell its products or services to customers. It encompasses all the steps and processes needed to move a product from development to the end consumer. In a GTM strategy, businesses decide on their target audience, determine the sales and marketing channels they'll utilize, set pricing and positioning, and establish a timeline for the product's launch.
In this guide, we’ll cover everything you need to know about it. So stay with us.
What Is a Go to Market Strategy?
A go-to-market (GTM) strategy is a plan that guides how you introduce a new product or expand an existing one to a new market. It helps you succeed by answering questions like:
- What does your product do, and why is it special?
- Who are your ideal customers, and what problems do they have?
- Where & when will you sell your product, and what’s the demand and competition like in those markets?
- How will you reach your target customers and make them want your product?
Who Needs a Go to Market Strategy?
Everyone needs a GTM strategy when they want to:
- Introduce a new product in a market they’re already in (like a clothing brand selling beauty products).
- Take an existing product to a new market (such as a local grocery store opening in a different state).
- Try a new product in a new market (for instance, a tech startup launching its first app).
Even big companies need a B2B go-to-market strategy framework for new product launches or market entries due to rapidly changing competition and market conditions. Past strategies may not yield the same results now.
6 Benefits of Using a Go to Market Plan
Using a go-to-market plan has many benefits that can help your business succeed. Here are six important advantages:
1. Alignment:
A good go-to-market framework keeps everyone on the same page, ensuring that all team members understand their roles and responsibilities.
This alignment helps prevent confusion and promotes efficient teamwork.
2. Market Understanding:
With a well-defined go-to-market plan, you can gain a better understanding of your target market.
This knowledge allows you to tailor your product or service to meet the specific needs and preferences of your customers.
3. Competitive Advantage:
A go-to-market plan helps you analyze your competitors, identify their weaknesses, and position your offering as a superior choice.
This competitive advantage can attract more customers and increase your market share.
4. Revenue Increase:
Having a good GTM plan helps B2B companies sell more stuff and make more cash.
When you know your customers and what they want, you can make products that they really like and bring in extra income.
5. Risk Mitigation:
A go-to-market plan allows you to identify potential risks and challenges in advance.
By addressing these risks proactively, you can minimize their impact on your product launch and reduce the likelihood of failure.
6. Measurable Results:
A go-to-market plan includes clear objectives and performance metrics.
This enables you to measure the success of your marketing efforts and make data-driven decisions to improve future campaigns.
What Are the Different Types of Go to Market Strategies?
The four chief types of go-to-market strategies are sales-led, product-led, inbound, and demand generation.
1. Sales-led Go-To-Market Strategy:
- Driven by skilled salespeople.
- Focuses on persuasive sales tactics.
- Demands significant resources.
- Suitable for well-funded companies, those seeking 1-on-1 relationships, and competitive markets with complex products and long sales cycles.
2. Product-led Go-To-Market Strategy:
- Relies on product usage and feedback.
- A self-serve model with minimal sales involvement.
- Empowers the product to provide essential information.
- Ideal for tech startups or SaaS sales companies in new markets, those with freemium models, and those emphasizing fast scaling at a low acquisition cost.
3. Inbound Go-To-Market Strategy:
- Attracts customers through content, SEO, and social media strategies.
- Requires investment for long-term gains.
- Precisely addresses customer needs.
- Suited for companies aiming to build strong brands and connect with customers online.
4. Demand Generation Go-To-Market Strategy:
- Creates demand through marketing activities.
- Involves B2B lead generation and demand capture.
- Requires identifying customer needs.
- Benefits include generating high-converting leads and reducing customer acquisition costs.
- Useful for companies in the growth phase, aiming to create awareness and strengthen customer relationships.
Each strategy offers a distinct customer acquisition and retention approach, catering to different business goals and resources.
6 Steps to Building a Go to Market Strategy
Launching a new product or service can be overwhelming, but it doesn’t have to be complicated.
Here are six easy steps you can follow to create a go-to-market strategy:
1. Identify Your Ideal Customer:
- Start by gaining a deep understanding of your perfect customer.
- Learn about their demographics, behavior, and the challenges they face.
- know the role of your customers in the buying process, which includes: initiator, user, influencer, determiner, buyer, approver, and gatekeeper
- Having accurate and up-to-date data is essential for this step.
2. Research Your Competitors:
- Analyze your competitors thoroughly to position your product effectively in the market.
- Understand what customers like and dislike about their offerings to find your unique selling points.
3. Craft Your Message:
- Develop a compelling message that communicates the value of your product or service to your target customers.
- Address their pain points using language that resonates with them.
4. Set Clear Targets:
- Define achievable targets based on your available resources, whether it’s for outbound efforts like B2B sales cold calls or inbound marketing strategies like content marketing.
- These targets help you stay on track and measure your progress.
5. Choose Different B2B Sales Strategies:
- Choose the right strategy for your product and business model.
- Utilize a mix of strategies to reach your ideal customers.
- These tactics can include using high-quality data, implementing effective B2B marketing campaigns, creating valuable content, and forming strategic partnerships with companies that share your target audience.
6. Establish a Feedback Loop:
- Create a feedback mechanism that connects your marketing, sales, and product development teams.
- Regular meetings and communication will help you gather insights and make necessary improvements to your strategy over time.
In addition, By using great go-to-market strategy templates like PowerPoint templates that some companies offer for their users, like HubSpot, you can create a customized plan that positions your product in front of your intended audience effectively.
By following these six steps, you can build a robust go-to-market strategy that increases the chances of a successful product or service launch.
Go to Market Strategy Examples
Here are two examples of go-to-market strategies from B2B SaaS companies to try!
1. CUFinder
Overview: This is a powerful B2B lead generation & data enrichment tool for businesses.
When it was established: 2019
What products it offers: Converting company names to domains, emails, phone and mobile numbers, social media profiles, LinkedIn profiles, a free email verification tool, logo finder, CEO email finder, etc.
Why it works well: High accuracy, advanced filters, free trial, low pricing plans, real-time data extraction, a massive database, Chrome extension, CRM integrations, good UX & UI, compliance with GDPR & CCPA, API, international coverage, and more.
Pricing: Growth: $49.001 Seat Per Month, Premium: $99.001 Seat Per Month, and Unlimited: $149.001 Seat Per Month
G2 Review: 4.8 out of 5 stars
Now, you can use the CUFinder free trial with one click.
2. Cognism
Overview: It is a leading tool in the sales and lead generation process.
What products it offers: Providing contact data, such as verified email and phone numbers.
Why it works well:
Compliance with GDPR & CCPA, easy to set up, high-quality data, APIs, integration with CRMs, global coverage, etc.
When it was established: 2015
Pricing: No pricing information is available.
G2 Review: 4.6 out of 5 stars
Who Is Responsible for GTM Strategy?
Now, with that being said, you may be wondering who is responsible for the GTM plan. The person responsible for the GTM strategy is usually a product marketer or a GTM owner.
They work best when they are part of the marketing team and have the support of senior management. This person plans how to launch a product and sell it to customers.
What Is the Difference Between Market Strategy and Marketing Strategy?
If you want to know the difference between a go-to-market strategy and a marketing strategy, here are the main differences between them:
Go-to-Market (GTM) Strategy:
1. Used for launching products or entering new markets.
2. Focused on specific product launches or market expansions.
3. Tailored to address immediate market challenges.
Marketing Strategy:
1. A long-term approach for achieving overall marketing goals.
2. Provides a yearly roadmap or a comprehensive digital marketing strategy.
3. Aims to build customer loyalty and support marketing objectives over time.
What Is the Pricing Strategy in GTM?
If you want to know the pricing strategy in GTM. That said, it’s not just about setting a price for your product or service.
It also impacts the type of customers you attract. This may change as your business grows.
For instance, you might focus on small businesses first and then target larger mid-market and enterprise customers.
If you’re curious to know the pricing strategy in SaaS, follow the rest of the article.
What Does Freemium Mean in SaaS Pricing?
In the freemium model, the pricing strategy in SaaS is that these types of businesses offer a free trial for some of their products or services. And they try to sell the full version to their users after the free plan is over.
What Does Flat Rate Mean in SaaS Pricing?
In SaaS pricing, a flat rate means users pay a fixed price to access all features of the software. It’s like a single payment that covers everything, usually paid on a monthly or yearly basis. No additional charges or limitations on usage.
Conclusion
Let’s go back to the first question: What is a go to market strategy? It refers to a plan or framework that a company uses to successfully introduce and sell its products or services to customers.
The GTM strategy framework plays an important role in achieving business goals and effectively reaching target markets.