What is a go-to-market strategy?
A go-to-market (GTM) strategy is a step-by-step plan that makes everything happen when launching a new product, service, or business to the market. A GTM is a roadmap that charts the introduction of a new product or service.
A good GTM strategy understands the product or service's viability. The plan should include performance predictions and documented details about the target audience, competitors, marketing plan, and sales strategy.
For e-commerce businesses, distribution details have great importance. Tools like marketplace software can help businesses list new products in their digital storefront.
Types of go-to-market strategies
The product or service being launched defines the type of GTM strategy a business uses. The four most common are:
- Inbound GTM strategies. Using a marketing mix like search engine optimization (SEO), social media, and content marketing, businesses build brand awareness and entice prospects to connect organically.
- Demand generation GTM strategies. Demand-gen strategies use sales-focused marketing strategies like cold calling or commercials to get in front of an audience. The idea is to create buzz around the brand or product launch.
- Account-based marketing (ABM) GTM strategies. Typically used in business-to-business (B2B) marketing, this GTM strategy relies on existing business relationships and customer knowledge to identify new, high-value businesses or customers to target. Personalized communication is a top priority with this kind of strategy.
- Sales enablement GTM strategies. This strategy uses sales team empowerment to drive more sales and speed up product sales cycles. By providing the salespeople with increased training, they have more resources to sell the product or service to customers one-on-one.
Basic elements of a go-to-market strategy
The heart of every GTM should be identifying a problem that a particular market is facing and clarifying how a product or service is the solution. The strategy should also include the following:
- What the product or service is. Details about the new offering, what it does, and how it works are crucial points to outline in a GTM strategy.
- Who the ideal customer is. A business has to do market research to understand its target customer. This information influences all sales, marketing, and distribution decisions.
- Where the product or service is sold. GTM strategy must outline exactly how the customer can purchase the product or service: online, in-person, or both.
- How the business reaches the target audience. The sales and marketing plans comprise a sizable percentage of the overall GTM strategy. Outlining marketing channels, specific launch tactics, and long-term advertising must be included here.
Benefits of a go-to-market strategy
Developing a new product or service takes significant financial and logistical resources, but the rewards make the time and effort worthwhile.
- A GTM identifies needs in the market. Launching a new product or service is costly, so businesses must know that the market wants what they plan to sell. Doing research upfront to find the niche spot where that product or service could live saves time and money.
- It narrows the focus on product positioning. Understanding how the new product or service differs from competitor offerings is essential, especially in oversaturated markets. Why should a customer pick this product over a similar one elsewhere? Building this question into the GTM strategy guides marketing and sales messaging to make the launch successful.
- It generates demand. Once marketing efforts start rolling out, customer buzz around the product or service will increase. GTM strategies should outline plans for sustainability past the launch.
- It increases the chances of a successful launch. A GTM strategy accounts for potential issues ahead of time.
Best practices for go-to-market strategies
Crafting an effective GTM strategy takes time and patience, but it saves businesses from numerous headaches during launch.
- Clearly define the target audience. Reaching the right potential customers is the only way sales get made. Knowing who these people are helps inform every other aspect of the GTM strategy. Ideal customer profiles (ICPs) and buyer personas are good ways to document the type of prospect the business is hoping to reach.
- Understand the competitive landscape. Before investing any money in product development, researching existing products or services solidifies how a new product stands out, which can be relayed in marketing and sales messaging.
- Set clear goals. Every plan should have an end destination in mind. Marketing objectives, key performance indicators (KPIs), objectives, and key results (OKRs) should be measurable against the data collected throughout the launch and immediately afterward to determine success.
- Map the buyer's journey or sales funnel. Knowing the steps from customer awareness to purchase means a business can appropriately tailor communications and content marketing efforts to reach the target audience at the most appropriate time.
- Choose marketing channels. How the product or service is promoted comes down to the type of GTM strategy used. Any marketing channels should align with the target audience and the platforms they use.
Bring a new product to market and explore the potential the best e-commerce platforms can offer your business.
Holly Landis
Holly Landis is a freelance writer for G2. She also specializes in being a digital marketing consultant, focusing in on-page SEO, copy, and content writing. She works with SMEs and creative businesses that want to be more intentional with their digital strategies and grow organically on channels they own. As a Brit now living in the USA, you'll usually find her drinking copious amounts of tea in her cherished Anne Boleyn mug while watching endless reruns of Parks and Rec.
