Go-To-Market (GTM) Strategy 101, A Beginner’s Guide

Have you ever been a part of the team that launched a new product or service?

How did the launch go – was it successful or did it fail to hit the goals? Was run up to the launch chaotic or the team coordinated well?

To a good extent, your answers will depend on the go-to-market (GTM) strategy adopted by the team. 

It is equally possible that no documented go-to-market strategy was formalized. 

This article is a beginner’s guide that covers the basics right from definition of GTM strategy to its components, benefits, when the need for it arises, methodologies & even some well-known examples. It it an in-depth piece that you may want to bookmark for future reference.

What is a Go-To-Market strategy?

A go-to-market (GTM) strategy is a detailed, comprehensive plan of action that outlines how a company will launch a new product or service, keeping in mind the applicable business constraints.  

These business constraints will include things such as launch OKRs, availability of resources, timelines & so on.

A go-to-market (GTM) strategy document is much broader & in-depth than the product launch checklist. In fact, it is also different from a business plan or a marketing strategy.

Let us understand these differences briefly.

GTM strategy vs. Business plan vs. Marketing strategy

When under pressure to deliver a successful product launch, it is rather easy to get bogged down by these confusing terms. At that point, it may not be feasible to search for the GTM meaning. Let us make it easier for you through the comparison below.

Aspect	Go-To-Market strategy	Business plan	Marketing strategy
Focus	Very specific approach for launching a product or a service	Comprehensive document that focuses on Vision, Mission & the overall business strategy	Strategy that is solely focused on product/service promotion & distribution to the target audience
Scope	Geared towards a specific product/service launch entering the market	Covers all aspects of the business	Deals with marketing activities across all products and/or services
Components	Target audience, Value proposition, Marketing & sales strategy, Distribution channels, Launch plan & more	Executive summary, Company description, Market analysis, Org structure, Product line, Marketing strategy, Funding needs & Financial projections etc	Market research, Target market or customer segmentation, Positioning, Marketing mix
Timing	Short term, Focused around the pre & post launch date	Long term, usually covering 3-5 years	Medium term, supporting the business plan but only in the marketing scope
Objective	Enter a market successfully & get initial traction for the product/service	Provide a roadmap to build a growth oriented/profitable/not-for-profit business	Sustainable lead generation, Brand awareness & Sales pipeline building

When do you need a go-to-market strategy?

Statistics reveal that almost 95% of new products fail, largely due to poor market fit and inadequate GTM strategies​.

As pointed out earlier, a GTM strategy will be needed

• When launching a new product/service in existing market or
• When launching an existing product/service in a new market

But that’s not it. A proper go-to-market plan may be needed even when you are introducing a major change in your product/service. In fact, some teams have a GTM motion when releasing new features to their customers. And that includes promoting feature adoption through release notes or changelogs.

The difference is in the scope of these go-to-market plans. Of course, the activities needed when going live with a major change are relatively smaller as compared to when entering a new market or launching a new product/service.

So, the answer to ‘when do you need a go-to-market strategy’ is – almost always when reaching out to the target audience in regards to a ‘launch’. Whether that’s a product/service launch, market launch or just a feature launch affects the scope of activities, that’s it.

Note – A company’s past success launching similar product/service/feature in the past does not guarantee that the same approach will work now.

Importance of GTM strategies

Entering the market with a new product or launching an existing product in a new market – both are fraught with risks. Go-to-market strategies help forecast some of those risks & mitigate them in time. 

Well-crafted GTM strategies help in understanding the market, positioning the product effectively, and aligning all stakeholders towards a common goal. 

Below are some of the key benefits coming out of thought through go-to-market strategies.

Benefits of a GTM strategy

• Market alignment – Research in the initial phase helps you align your offerings with the market demands. 
• Resource optimization – Based on the target market identification, resource allocation for the go-to-market activities becomes apparent. It is then easier to optimize the resources across different steps. 
• Risk mitigation – Riskiest of your assumptions are identified during the research stage. And that offers you an opportunity to mitigate them in advance.
• Effective messaging – Positioning the product or service to fit in the overall market becomes easier, resulting in effective messaging for the target audience.
• Sales enablement – Since the initial research is a major effort in understanding the target customers, creating enabler sales processes & collateral is a natural byproduct.  
• Cost effectiveness – Planning ahead reduces the chances of wasting resources on ineffective tactics.
• Customer experience – Understanding customer needs helps build delightful customer experiences.
• Brand building – Effective GTM strategies enhance brand visibility and trust.

There are many other benefits (such as a shortest path to Product market fit or PMF) that a well-crafted GTM strategy would materialize.

Core components of a GTM strategy

A go-to-market strategy is a detailed document & its content would inevitably vary based on different factors. Such as size of the business, geography & the domain in which it operates, monetization model & more. 

Below, we cover some of the core components that will make it to any GTM strategy – irrespective of the above-mentioned factors.

Market definition

That’s the starting point. Identifying and defining the target market is crucial. 
This component involves documentation on understanding the specific groups of people or businesses that will benefit from the product or service.

Customer segmentation

If you are targeting the product or service to a very broad group, most likely the launch is going to fail. Dividing the target market into specific segments helps tailor marketing and sales efforts. This includes creating buyer personas & user personas to represent different customer types.

Distribution model

It is vital to choose the right distribution channels for delivering the product to target customers. The model will continually evolve, but it does not hurt to start with a plan in the go-to-market strategy. Typically, this will include direct sales, online platforms, or third-party distributors.

Product messaging and positioning

Supporting the overall marketing strategy, developing clear and compelling messaging that communicates the product’s value proposition is a key goal of any go-to-market strategy.

Pricing strategy

Product or Service’s perceived value plays an important role in finalizing its price. Setting a price that reflects the product’s value and market position is important. This shouldn’t just cover costs but also help you build a sustainable & growing business.

Types of go-to-market strategies

Usually your go-to-market strategy would fall into one of the three buckets below. However, for a more sophisticated offering it is not uncommon to see a GTM strategy that relies on more than one types.

Sales-led go-to-market strategy

In today’s SaaS lingo, you would call this relying on ‘outbound’. In the sales-led GTM strategy, salespeople reach out to prospects to convert them into customers. This approach relies heavily on B2B marketing to generate interest and leads.
Mind you though, the list below is not exhaustive.

Product-led go-to-market strategy

A product-led GTM strategy uses the product itself to acquire and retain users. By offering value through the product, users are encouraged to upgrade and become paying customers.

Marketing-led go-to-market strategy

A marketing-led GTM strategy focuses on creating demand and awareness through marketing efforts. This approach leverages various marketing channels, such as digital marketing, content marketing, social media, and SEO, to attract potential customers.

Irrespective of the type you choose, monitoring the success or failure needs to happen via go-to-market metrics that are appropriate for your product/market.

Go-To-Market plan methodologies

Whichever of the types (from earlier section) you choose, the nuance of following a methodology is needed. You don’t have to reinvent the wheel. Some common methods for approaching the GTM plan exist. We cover some of them below.

Blue ocean strategy

Innovation is at the heart of Blue ocean strategy. If your product/service is creating new market space & does not have any direct competition (at launch), you are rowing in the blue ocean.

Red oceans are opposite of this, where the market is crowded with various providers that have identical offerings.

Blue ocean approach often results in high growth of the business owing to lack of competition & focus on innovation.

For example, Slack changed how teams communicate by combining different tools into a single platform. And that lead to its rapid growth in the initial days.

Note – Blue ocean can easily turn into a red one once the first entrant proves the existence of a large market.

Faster horse

Credit to Henry Ford for putting this so succinctly – “If I had asked people what they wanted, they would have said faster horses.”

Here you are looking to come up with breakthrough innovation. The market exists in this case (as opposed to Blue ocean), however the existing product/service are reimagined from the ground up. Like moving to automobile industry shift to IC engines rather than to faster horses.

Similar to the Blue ocean strategy, this one is difficult to get it right. However, design thinking can help in ideation & execution.

For example, Apple’s iphone is a prime example of the faster horse scenario. It disrupted communication & music industry almost instantaneously.

Me too

Most obvious one, we think!

You see a product/service succeeding in the market & instead of taking on a fresh perspective, you just imitate the existing player. That’s the ‘Me too’ strategy.

One advantage with this approach is you can enter the market quickly & there is no need for validating the need for your product/service. It may sound like a bad strategy to follow, but it isn’t.

Time & again we have seen some Me too products topple the existing Goliaths in their respective markets.

For example, owing to Microsoft’s distribution muscle MS Teams owns significant more market share than Slack (who ‘invented’ the space).

How to build a go-to-market strategy?

With all the previous sections leading up to this, now is the time to build your gtm plan. While the nuances for each product/service/market would vary, in general you can follow the steps detailed below –

• Document the core problem – First & foremost, identify & document the core problem your product or service is vying to address. This may sound overly simple, however, its probably the most important step in getting the rest of the stuff right.
• Identify your target market – Organically, the next step is identifying one or more group/s of the target audience. Most likely you won’t get these group/s right in the first shot & you will have to iterate/refine. At this stage, you are looking for group/s who want to address their problem urgently. And this is the same problem that you’ve documented as the ‘core problem’ in the first step.
• Research demand & competition – To differentiate your product/service in the market & allocate proportionate resources, research the demand & analyse competition.
• Find your positioning & messaging – All the three steps prior to this one feed into this. This is where you position the product/service in the market & document key messaging for your target personas. Your goal is to ensure clarity & strong appeal for the target groups.
• Create a buyer’s journey map – Build & they will come is a myth. You need to create a demand generation machine that will guide buyers at various stages into your funnel. So creating this buyer’s journey map becomes important part of the gtm plan creation process.
• Pick marketing channels – Based on your intuition, market research & competitor analysis – pick the marketing channels that you want to prioritize. This step comes so low in the process since the steps before this act as inputs.
• Planning sales – It might seem very basic to be documented, however, it is crucial to plan the purchasing experience of your buyers. Whether you are product-led, marketing-led or sales-led will have an impact on this step.
• Document goals & make them easy to track – Despite all the efforts you invest, success can be elusive. And you want to be ready to pivot/refine various aspects of your go-to-market plan. So, start by documenting specific & measurable goals even before you begin. Make these goals easy to track & access.
• Refine & iterate – There’s a good chance that some parts of the plan will work & others will fail. Assess the failed parts objectively & refine them for next iteration. Keep in mind that you cannot get stuck with one approach or the other forever.

Bottomline – be flexible in solving the relevant problems at hand. Don’t worry about scaling at this stage. You are just trying to find initial traction & feedback.

Go-to-market strategy optimization

As you gain traction, the market will evolve. New competitors will enter the market, customers will have their expectations raised. You have no other option but to continue optimisation of your GTM strategy. Here are some tips to get it right –

• Deeply understand the target market – There is no other option but to understand your target audience in much more detail. The outcome of this deeper understanding will influence almost every other aspect of your GTM plan.
• Refine your value proposition – Your value proposition is the cornerstone of the GTM strategy. Continuously evaluate and refine it to ensure it clearly communicates the unique benefits of your product or service. Consider how your value proposition addresses the specific pain points of each customer segment and differentiates your offering from competitors
• Leverate data & analytics – Utilize data-driven insights to guide your GTM decisions. Track key performance indicators (KPIs) such as customer acquisition cost (CAC), conversion rates, and customer lifetime value (CLTV). Analyzing these metrics will help you identify which channels and tactics are most effective, allowing you to allocate resources more efficiently.
• Align sales & marketing efforts – Ensure that your sales and marketing teams are working in sync to deliver a cohesive and consistent message across all customer touchpoints. Develop a shared understanding of the buyer’s journey and create aligned strategies that guide prospects smoothly from awareness to conversion.
• Optimize the pricing strategy – Pricing plays a critical role in your GTM plan. Continuously assess market conditions, competitor pricing, and customer willingness to pay. Consider dynamic pricing models that allow you to adjust prices based on demand, customer segment, or purchase context. This can help you capture maximum value and remain competitive.
• Focus on customer experience – A seamless customer experience is key to driving adoption and retention. Remapping the customer journey from initial contact to post-purchase support, identifying potential friction points is crucial. Optimize each stage to ensure a smooth, enjoyable experience that encourages repeat business and positive word-of-mouth.

What is a go-to-market strategy template?

A go-to-market (GTM) strategy template is a simplified framework that helps businesses organize and execute the key steps needed to successfully introduce a product or service to the market.

It serves as a guide to ensure all essential aspects of the launch are covered, from identifying the target audience to measuring success.

Here’s a concise breakdown of what a typical GTM strategy template includes:

• Executive summary
• Market analysis
• Target audience
• Value proposition
• Marketing strategy
• Sales strategy
• Distribution & fulfilment
• Customer support & success
• Metrics & KPIs
• Timeline & milestones
• Budget
• Risk assessment & mitigation
• Feedback & iteration

GTM strategy examples

Salesforce

Salesforce’s launch of its cloud-based CRM (Customer Relationship Management) is a prime example of a successful B2B go-to-market strategy. A pioneer in the SaaS model, Salesforce’s GTM strategy was multifaceted, combining elements of marketing-led, sales-led, and product-led approaches.

Some marketing campaigns from Salesforce involved hosting high-profile events like Dreamforce to generate buzz and establish thought leadership. Salesforce also invested heavily in content marketing and SEO to attract inbound leads.

On the sales front, Salesforce employed a robust sales team that targeted key decision-makers in businesses. They offered free trials and a freemium model to let potential customers experience the product’s value firsthand, which is a classic product-led strategy.

This comprehensive GTM strategy helped Salesforce rapidly gain market share, establish a dominant position in the CRM market, and ultimately become one of the most successful B2B companies in the tech industry.

Microsoft Surface

Microsoft already dominates the OS market with Windows, so why venture into hardware?

The answer lies in solving a key problem: traditional tablets were convenient but lacked the full functionality of a laptop, making it difficult and costly for users to own both.

Microsoft’s Surface line, starting with the third-generation tablet, bridged this gap.

It offered the power of a laptop in the portable form of a tablet, directly challenging the Apple iPad with more functionality at a similar price point.

Slack

Slack used the “Market Penetration Strategy” to gain traction in the crowded field of team communication tools.

By offering a free version with essential features and a user-friendly interface, Slack quickly attracted small teams and startups.

As the product proved its value, many teams upgraded to the paid version, leading to rapid growth and widespread adoption.

Tesla

The company’s go-to-market plan included a focus on “Product development strategy”.

Rather than joining the auto industry with a typical car, Tesla produced an electric vehicle that attracted early adopters and environmentally conscious consumers due to its remarkable performance.

Direct sales to customers, creating a strong corporate identity focused on sustainability and innovation, and building a network of Supercharger stations are all part of their strategy.

Dropbox

Dropbox utilized a “Viral Marketing Strategy“ to build its user base.

It offered a simple, easy-to-use cloud storage solution and encouraging users with additional free storage for referring friends.

Their approach focused on harnessing user networks to spread the word and quickly scale their platform.

Bottomline

There is just no alternative to a well-crafted go-to-market strategy, if you want to launch a product successfully.

FAQs

• What is the primary purpose of a go-to-market strategy?
  • A go-to-market (GTM) strategy’s main goal is to help a business plan how to introduce a new product or service and target the correct market. It serves as a roadmap to ensure that the product is delivered efficiently, making the business stand out and succeed in the marketplace.
• What is the difference between a go-to-market strategy and a marketing strategy?
  • A go-to-market (GTM) strategy is a broad plan that covers everything needed to launch a product, including marketing, sales, distribution, pricing, and customer support. It’s about getting the product to the right customers and positioning it well in the market.
    A marketing strategy is part of the overall business plan that focuses specifically on promoting the product/service. It involves creating brand messaging, advertising, and using different channels to generate interest and demand.
• How does a product manager contribute to the success of a GTM strategy?
  • A product manager plays a key role in making a go-to-market (GTM) strategy successful by:
    • Product-Market Fit: Making sure the product meets customer needs by conducting research and gathering feedback
    • Team Coordination: Working with teams like marketing, sales, and engineering to ensure everything is aligned
    • Value Proposition: Defining and communicating what makes the product unique and valuable to the target audience
    • Setting Goals: Establishing clear goals and tracking progress with specific metrics
    • Product Launch: Leading the planning and execution of the product launch for maximum impact
  • These efforts help ensure the product reaches the right audience and succeeds in the market
• What is a successful go-to-market strategy?
  • A successful go-to-market (GTM) strategy is a plan that effectively launches a product to the right customers, ensuring it meets their needs and stands out in the market.
    It involves coordinating marketing, sales, and distribution to achieve strong customer adoption and business growth.