Go-to-market strategy, also known as a GTM strategy, is a strategy that focuses on how businesses will reach their target market and climb above competitors. The sole purpose of a GTM strategy is to show an outline for service and product development, delivery, and distribution. It’s easy to confuse a GTM strategy with a business plan, but GTM focuses more on the broader elements such as engaging with new markets or bringing a new idea to your existing client base.
GTM is key in helping businesses work through the “less exciting” parts of reaching your market. It provides a solid framework for assessing progress and identifying any problems that impact your business’s success. You can use a GTM strategy while launching a new service or product or even launching an old product to a new market. Some companies find themselves relaunching their brand after years of business and use this strategic plan for assistance.
When completed correctly, a business’ GTM strategy can put stakeholders on the same page and create a timeline to ensure that each stakeholder meets the goals and outcomes. Go-to-marketing processes generate a path to market success. Some benefits include:
- A clear plan and direction for stakeholders
- High chance of a successful service or product launch
- Less time to market products or services
- A defined path for growth
- Creation of practical customer experience
When it’s time to create a successful GTM strategy, businesses and companies first need to understand their work environment and target market better. Be sure to define both new and existing workflows to manage the GTM strategy.
Key Elements of GTM
Even GTM has specific components that are crucial to its overall success. The five essential elements include market definition, customers, distribution, product development, and price. Let’s take a closer look at each part:
- A market definition clearly defines the markets and groups willing to pay for the service or product.
- The customer component used research data to identify the market and eventually determine the target audience.
- Distribution highlights the path services and products will take to reach the end customer.
- Product placement is where you define the product or service and what it does. Additionally, you’ll identify how the target market will be informed of the product. Product placement will also determine where leads come from.
- Finally, the price component shares how the product or service is priced based on the market position and value proposition.
Overall, GTM helps you develop a comprehensive plan for the success of a product or service. When you have a solid GTM, you’ll see business success.