A Go-To-Market Strategy is essentially a plan of how a company is going to release a product after it has been developed and how it will be sold and promoted within the marketplace. The strategy is one that uses the internal and external resources of a business, advertises the overarching value of the product, and attempts to gain a competitive advantage in the market over its competitors.
The Go-To-Market Strategy should specifically set the exclusive value proposition of the product, or rather, convey the value that the product is going to give to the consumer. The strategy should take into account everything that falls within three chief branches of the business concern: the customer, the business, and the competition.
There are a variety of aspects that should be taken into account when conducting a Go-To-Market Strategy. The pricing point or points of the product are key and the market needs to be assessed to gain an understanding of how to pitch the cost of the product vs its value. Also, the distribution and channels of sale of the product need consideration alongside the tactics for marketing the product and devising any campaigns, while taking into account the budget needed to achieve them. Perhaps too, there will be a need to train staff to support consumer use of the product as well as to sell it. If there turns out to be an acute demand for the product or the product performs unexpectedly well in the marketplace, due consideration might also go to the recruitment of new staff members to fill product support roles.
Responsibility for a company’s Go-To-Market Strategy lies across multiple sectors of the business. However, it is significant that the tactics used in the launch of a product - such as the generation of leads, advertising the brand, promotion campaigns, public relations, and interacting with customers - are functions of the marketing department. As a consequence, it is they who will drive the strategy forward, and provide key guidance to the rest of the business. In particular, the Product Management team is instrumental to the product’s fate, and so would be expected to work closely with any marketing campaigns and the like.
When deliberating on the components of a Go-To-Market Strategy, it is important to bear in mind three factors; the consumer, the business itself, and the competition within the marketplace.
The consumer Creating a product that fits the consumer as well as it can is desirable not just because it will motivate them to buy the product, but can also capture their loyalty for successive product launches. Effectively achieving this can help to ensure the future of the business. Impressing and capturing consumer loyalty can also be a means of cost-effective marketing. A happy and loyal consumer is likely to recommend the product and expand the customer base. When considering the consumer, or the customer, the Go-To-Market Strategy will sometimes also include a concept called Market Segmentation. This is a practice of dividing consumers up into different groups depending on their needs. In doing this a business might then be able to predict a common response to an action by a group of consumers. There are a number of things to consider in segmenting the consumer market: the industry in which the consumer resides; the potential buying power of the consumer; how the customer behaves in the marketplace - for example, whether or not a competitor has, or can gain their attention; the location of the consumer; exactly how the consumer will use the product; how the consumer will benefit from the product; what information needs to be imparted by the company to the consumer; the times and locations in which the consumer might use the product; and how profitable it is to sell the product to each type of consumer.
The business The vision of the organization is important in motivating the workforce. So incorporating the ideals of the organization early on in the Go-To-Market Strategy can raise the performance of staff, which in turn will have an impact on the success of the product.
The competition Knowing the competition, either already in the marketplace, or still in development, can have a huge influence on the nature of the business’ final product, and therefore the strategy to send it into the marketplace. Competition already in the market can provide a business with intelligence on how consumers are reacting to similar products or what attitude consumers have to the array of products already on the market that is similar. Furthermore, having information about up-and-coming products of competitors can incentivize a business to speed up its product distribution and marketing campaigns. A business might also ultimately learn where new opportunities lie.
Using this strategy not only enables the user - typically a Product Manager or a Marketing Manager - to identify actions that lead to positive outcomes such as where to distribute the product, how, and perhaps how quickly, but also aids in determining obstructing factors of the entry of the product to the market. This might be sudden, new, and unforeseen competition for the product, an unanticipated shift in the attitude or the behavior of the consumer, public relations issues within marketing campaigns, or even complications with product sales channels.
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Having a strategy like this gives all the people involved in the release, dissemination, and sale of the product, a conceptual schematic to repeatedly refer to. A product release may be complicated, and depending on the planned saturation of the product, it might involve large numbers of different people in a variety of roles. It is worth considering the fact that the release is the outward-facing side of the organization. Poor performance or deficient strategies concerning the product’s entry into the market can profoundly and more widely affect the reputation of the business.