Developing an Effective Go-to-Market Strategy
A Go-To-Market (GTM) strategy outlines how a company will launch a new product or service. It is a comprehensive plan for achieving business goals like increased market share, brand awareness, and lead generation.
Key GTM Objectives
A GTM strategy aims to not only introduce a new product or service to the market, it is also designed to develop plans to increase market share, get leads, and build brand awareness for the new offering. Some of the key objectives include:
- Increase market share: Capture a larger portion of the total market demand to drive revenue and profit growth.
- Generate new leads: Identify and connect with potential new customers to build the sales pipeline.
- Improve brand awareness: Strengthen consumer knowledge and perceptions of the brand to support lead generation and sales.
Demand generation services may include strategy or consulting, but that can also be limited to implementation. That's great if you already have a plan you believe in, but there are a lot of benefits to having a team of experts provide their insight into the viability of your strategy or working with you to develop of plan that has a high likelihood of success. (At FullFunnel, we do consulting as well as implementation, completely dependent on the client's preference.)
GTM Strategy Components
A GTM strategy typically includes the following four elements, as well as a framework to measure the effectiveness of each. The key components include:
- Marketing Plan: Defines strategies and campaigns to promote awareness, website traffic, lead capture, and sales. Outlines target audience, competitors, marketing tactics, and key performance indicators.
- Sales Plan: Details the strategies and processes to achieve revenue goals. Includes target customer analysis, sales strategies, and progress metrics.
- Customer Support Plan: Outlines the channels, resources, and procedures to provide excellent customer service. Focuses on support goals, satisfaction metrics, and building loyalty.
- Performance Measurement: Establishes quantifiable objectives and metrics to track progress in market share, leads, awareness, and other areas. Enables data-driven refinement of the GTM strategy.
Defining Target Markets
A GTM strategy should clearly define the organization's target market. A target market is a specific group of customers that an organization wants to sell to. For business-to-consumer organizations, this group is usually individuals with similar demographics and interests. For business-to-business organizations, it is often businesses in the same industry or with similar needs.
Defining a target market helps organizations focus their marketing and sales. It allows them to use resources more strategically. And it helps them make products that best meet the needs of their ideal customers. In the end, a well-defined target market helps organizations sell more effectively.
Ideal Customer Profiles
While target markets define market segments, an ideal customer profile reflects a singular persona that is especially aligned with the product. Together they guide strategic sales, marketing, and product decisions to appeal to the most valuable customers.
Here is an example of how an organization might use a target market and an ICP:
- Target market: Women aged 25-45 who are interested in fashion and beauty.
- ICP: Female, aged 32, lives in a major city, earns $100,000 per year, works in marketing, is married with two children, shops at high-end stores, and is active on social media.
By having a clear understanding of its target market and ICP, an organization can make more informed decisions about its marketing, sales, and product development efforts. This can help the organization to achieve its business goals and become more profitable.
The Value Proposition
The GTM strategy must convey how the new product or service delivers unique value. The messaging should focus on exclusive product attributes, customer benefits, pricing tiers, and quality of service. This value proposition convinces target markets to purchase.
Examples of value proposition elements:
- Product features: What makes the product or service unique?
- Benefits: How does the product or service benefit the customer?
- Price: What is the price of the product or service?
- Customer service: What kind of customer service does the organization offer?
By considering these factors, organizations can develop a GTM strategy that will help them achieve their business goals. FullFunnel consultants have helped organizations of all sizes, in a wide range of industries create custom Go-To-Market strategies that resonate and deliver. Why not schedule a free consultation today?