Know the Go To Market (GTM) Strategy so that your Business is right on Target
If you want to launch a product to market successfully, your company must implement a Go to Market (GTM) strategy. The goal is that our products can be accepted by consumers. So that all the time and energy you spend creating these products is not in vain.
It is not easy for a new brand to enter the market, but with the right strategy the brand can be well received.
The GTM strategy is divided into two types, namely for products and sales. The principle when doing GTM products is to play volume and provide offers to attract customers first. Meanwhile GTM sales focuses on achieving high sales.
What is go-to-market strategy (GTM strategy)?
A go-to-market strategy (GTM strategy) is a plan that outlines how a company will bring its products or services to market and reach its target customers. It encompasses the various activities and tactics that a company will employ to effectively launch, promote, sell, and distribute its offerings.
A well-defined go-to-market strategy takes into consideration factors such as target market segmentation, competitive analysis, pricing, distribution channels, marketing and sales tactics, and customer acquisition and retention strategies. It aligns these elements to ensure that the company's products or services are positioned correctly in the market and effectively reach the intended customers.
A go-to-market strategy typically includes the following components:
- Market Analysis: Understanding the target market, customer needs, and competitive landscape.
- Value Proposition: Clearly defining the unique value that the company's products or services offer to customers.
- Target Market: Identifying specific customer segments that the company will focus on and tailoring marketing and sales efforts accordingly.
- Pricing Strategy: Determining the optimal pricing structure that aligns with the value proposition and market dynamics.
- Distribution Channels: Identifying the most effective channels to reach customers, such as direct sales, online sales, or partnerships with distributors or retailers.
- Marketing and Promotion: Developing marketing campaigns and tactics to create awareness, generate leads, and drive customer acquisition.
- Sales Strategy: Outlining the sales process, sales team structure, and sales enablement activities to effectively convert leads into customers.
What is Go to Market Strategy McKinsey?
McKinsey's Go-to-Market (GTM) strategy is a framework that helps companies effectively bring their products or services to market. It focuses on understanding customer needs, defining target segments, and developing a comprehensive plan to reach and engage those customers. McKinsey's GTM strategy typically includes the following components:
- Market Segmentation: Identifying and segmenting the target market based on customer needs, preferences, and behaviors.
- Value Proposition: Defining a compelling value proposition that differentiates the company's offering from competitors and resonates with the target market.
- Channel Strategy: Determining the most effective distribution channels to reach the target customers, considering factors such as reach, cost, and customer preferences.
- Pricing Strategy: Developing a pricing strategy that aligns with the value delivered to customers and the company's financial goals.
- Sales and Marketing Execution: Creating a detailed plan for sales and marketing activities, including lead generation, customer acquisition, and customer retention strategies.
- Organizational Alignment: Ensuring that the company's internal functions, such as sales, marketing, and operations, are aligned and equipped to execute the GTM strategy effectively.
- Performance Measurement: Establishing key performance indicators (KPIs) to track the success of the GTM strategy and enable continuous improvement.
McKinsey's GTM strategy is tailored to each company's specific industry, market dynamics, and competitive landscape. It aims to optimize the company's market position, drive revenue growth
5 Go to Market Strategis
what are the 5 Go to Market Strategis?
There are various go-to-market strategies that companies can employ, depending on their specific goals and market conditions. Here are five common go-to-market strategies:
- Direct Sales: This strategy involves selling products or services directly to customers without intermediaries. It often requires a dedicated sales team and can be effective for companies with complex or high-value offerings.
- Channel Sales: In this strategy, companies leverage third-party channels, such as distributors, resellers, or retailers, to reach customers. It allows for wider market coverage and can be beneficial for companies with a broad customer base or limited resources.
- Online Sales: With the rise of e-commerce, many companies adopt an online sales strategy. This involves selling products or services through digital channels, such as websites, online marketplaces, or mobile apps. It offers convenience, global reach, and the ability to target specific customer segments.
- Freemium Model: This strategy involves offering a basic version of a product or service for free, while charging for premium features or additional functionality. It allows companies to attract a large user base, build brand awareness, and convert free users into paying customers.
- Partner Ecosystem: Companies can form strategic partnerships or alliances with other organizations to jointly bring products or services to market. This strategy leverages the strengths and resources of multiple companies to reach a broader customer base, enhance product offerings, or enter new markets.
It's important to note that these strategies are not mutually exclusive, and companies often combine multiple approaches
Go-to-market strategy vs marketing plan
What is the difference between a go-to-market strategy and a marketing plan?
What's more, are both related to the overall business plan?
At first glance, a go-to-market strategy sounds similar to a marketing plan, but they are actually different, and even more so, a go-to-market strategy is a derivative of a marketing plan.
The go-to-market strategy specifically focuses on launching new products or expanding into new markets.
Meanwhile, the marketing plan describes as a whole how the company will carry out the marketing strategy for a product or service and tends to be long term.
In terms of the timeline, the go-to-market strategy tends to be short term; instead, a marketing plan is a long-term approach.
Of course, both are part of the business plan.
Go to Market Strategy example
One example of a GTM (Go-To-Market) strategy is the launch of a new software product.
The GTM strategy for this product could include the following steps:
- Market Research: Conducting thorough market research to identify the target audience, their needs, and the competitive landscape.
- Product Positioning: Clearly defining the unique value proposition of the software product and how it solves the target audience's pain points.
- Pricing and Packaging: Determining the pricing model and packaging options that align with the target audience's budget and preferences.
- Marketing and Promotion: Developing a comprehensive marketing plan that includes various channels such as digital advertising, content marketing, social media, and email campaigns to create awareness and generate leads.
- Sales Enablement: Equipping the sales team with the necessary training, tools, and resources to effectively communicate the product's value proposition and close deals.
- Distribution Channels: Identifying the most suitable distribution channels to reach the target audience, such as direct sales, partnerships, or online marketplaces.
- Customer Support: Establishing a robust customer support system to provide assistance, resolve issues, and ensure customer satisfaction.
- Launch Plan: Creating a detailed launch plan that outlines the timeline, milestones, and key activities leading up to the product's release.
- Measurement and Optimization: Setting up metrics and analytics to track the success of the GTM strategy, making adjustments as needed to optimize performance.