A Go to Market (GTM) plan is a strategy to attain profitable growth and market share.
A good market strategy ensures the alignment of the company’s business objectives, product roadmap, and marketing plan.
Because of the numerous factors and the uniqueness of each business case, it is more of an art than a science. Nonetheless, for the strategy to be effective, certain key concerns must be addressed.
Define the Target Segment
We need to figure out who has the biggest proclivity to acquire our products and services. We’ll need to restrict or broaden the target audience as needed.
Because reach is the most expensive component of a marketing strategy, the more precisely we can define the target market, the more effectively we can sell.
You might, for instance, identify your target audience as “Marketers.” That is a massive market. It might drop a little if you classified it as “Marketers in India.” It would decrease even more if you defined it as “Indian marketers who work for IT businesses.” It would be modest if you defined it as “Marketers in India who work in IT businesses with a turnover larger than $100 million.”
Typically, companies, especially B2B brands, would find starting with a limited audience and then growing to other categories.
Select Target Area
The audience might be concentrated in a few areas or dispersed throughout the globe. We must first determine where they are for a successful GTM approach, and then put filters around them where:
– there may be less competition
– the audience is more focused and efficient to reach
– your brand name is more well-known
– operating costs are lower
Most Indian IT businesses, for example, have grown by focusing on the US market rather than India since you can charge a lot more for the same service there. If you look at their financials, you’ll see that their profitability in the United States is usually higher than in India.
Define the MISSION
This is a question that must be answered inside the organization. What motivates you to do what you do? This is important to your GTM approach since it is utilized to properly frame your offering. When you see this, you can see why they are so enthusiastic about driverless vehicles, Google Maps, and everything else. Things would have taken a completely different path if they had conceived of themselves as a search firm. It’s not inherently terrible, but it’s unique. Even though they both operate in the same sector, a product that wants to save their client time will be significantly different from one that wants to save their customer money.
Define Product / Services
In one phrase, define the product or service.
For example, “When a, b, and c about the client is true, the product or service does x, y, and z for the customer.”
The more client kinds and variants your product has, the more sub-definitions you will require.
As a result, your product may simplify CRM for financial services businesses. However, it may behave differently for a bank, a credit union, and an insurance business. You’d have to define it differently for each audience. Depending on how distinct each product version is, a separate GTM approach may be required.
Define the Positioning
This is the most difficult portion. You must genuinely respond to these queries:
What makes your offering appealing to your target audience? And why should customers select your product above all the others available?
In addition to the GTM Strategy framework, we utilize a variety of frameworks to build the answer to this as part of your Go to Market Plan, such as the 4Ps, ABCD Model, and SWOT Analysis. We will discuss these frameworks further down the road.
We must assess the competitive environment and choose the price point at which we want our product or service to be offered. There are numerous forms of payment and pricing techniques. Pricing is also a positioning lever; it communicates quality, value for money, or luxury, depending on the situation. If we are going for a specific competitor, our pricing must also take their price point into mind.
KPIs, KPIs, KPIs
What are this company’s key performance indicators? They must be measurable. To achieve these objectives, your GTM approach must be in sync. Keep in mind that choosing the correct KPIs might be crucial. Should you focus on client acquisition or profit? Is it better to have a high churn rate or a high lifetime customer value? EBITDA or revenue? We might simply keep it simple and say, “We want to open five branches of our fashion brand in a year.” Create a procedure to guarantee that each branch is profitable.
Because the success of your GTM strategy and marketing plan will be assessed against these KPIs, they must be straightforward, attainable, and quantifiable.