Business Strategy

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 & even some well-known examples.

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.

AspectGo-To-Market strategyBusiness planMarketing strategy
FocusVery specific approach for launching a product or a serviceComprehensive document that focuses on Vision, Mission & the overall business strategyStrategy that is solely focused on product/service promotion & distribution to the target audience
ScopeGeared towards a specific product/service launch entering the marketCovers all aspects of the businessDeals with marketing activities across all products and/or services 
ComponentsTarget audience, Value proposition, Marketing & sales strategy, Distribution channels, Launch plan & moreExecutive summary, Company description, Market analysis, Org structure, Product line, Marketing strategy, Funding needs & Financial projections etcMarket research, Target market or customer segmentation, Positioning, Marketing mix
TimingShort term, Focused around the pre & post launch dateLong term, usually covering 3-5 yearsMedium term, supporting the business plan but only in the marketing scope
ObjectiveEnter a market successfully & get initial traction for the product/serviceProvide a roadmap to build a growth oriented/profitable/not-for-profit businessSustainable lead generation, Brand awareness & Sales pipeline building

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

Benefits of 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 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

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.

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.

Bottomline

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

Related blogs

Sorry, we couldn't find any posts. Please try a different search.

Stay Updated with latest news at Amoeboids

Your email will be safe and secure in our database

×