Go-to-Market strategy is an action plan for a company when launching a new product. The GTM strategy describes what the business will do in the early stages of the product lifecycle after it enters the market. This plan covers the positioning of the product in the market, ways of distribution, competition, and other factors that are important for a successful start. The Go-to-Market strategy can be applied not only to new products or services, but also to newly created companies that are starting their operations.
A typical promotion strategy covers a long period of a company's activity. It describes how the product will be sold over one or several years and sets goals for this period. The GTM strategy, in turn, takes into account only the preparation for market entry and the first stages of staying in it. The GTM strategy does not address later periods.
Creating a Go-to-Market strategy consists of several stages:
- defining the target audience — it is necessary to know who will use the product and what problems the audience it can solve;
- studying competitors — it is important to understand who will compete with your product in the market and what advantages or disadvantages they have;
- choosing a pricing policy — knowing the prices on the market for products that are comparable to yours, decide how much your product will cost and justify such a cost;
- creating a unique value proposition — based on the needs of your target audience and the possibilities of competitors, decide on how your product will stand out in the market;
- choosing sales and promotion channels — determine through which platforms the product will be sold and which promotion channels you will use to advertise it;
- preparation of primary content — before entering the market, the company should already be ready for various work scenarios and immediately provide users with content that will interest them;
- Setting up data collection and analytics — it is important to collect data about the audience, the company's statistics, and sales from the moment it enters the market to be able to make adjustments in the future.
Developing a Go-to-Market strategy will simplify and accelerate entry into the market. The company will minimize the risk of mistakes and from the start will effectively work with customers. The business will get rid of unnecessary costs that may arise from chaotic planning, and from the first minutes of the product's presence in the market, it will work smoothly.