What is a Go-to-Market Strategy & How to Create One?
Tom Evans
CompellingPM
@compellingpm
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What is a Go-to-Market Strategy
• A Go-To-Market strategy is how a company delivers their unique value proposition to their target market and creates a competitive advantage.
– How do you create value?
– How do you deliver the value?
– How do you capture the value?
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GTM Strategy Helps You Succeed
• Improves time-to-market
• Reduces risks of failure and brand damage
• Enhances customer experience
• Avoid the wrong path
• Establishes path for growth
• Clarifies plan and direction for all
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What’s Included in the GTM Strategy
• WHOM will we actively target within the market?
• WHAT will be our product portfolio for target customers?
• HOW MUCH will we charge for our products for different customers?
• HOW will we promote our products to target customers?
• WHERE will we promote and sell our products to target customers?
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Source: http://en.wikipedia.org/wiki/Go_to_market
The Wrong Way to GTM
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Build Product
Define Channels
Define Price
Define Promotions
Ready – Fire
Slightly Better Way to GTM
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Build Product Define Target
Markets & Positioning
Define Channels
Define Price
Define Promotions
Ready – Aim - Fire
The Best Way to GTM
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Define Product
Define Target Markets &
Market Problems to
Solve
Define Channels
Define Price
Define Promotions
Define Positioning
Aim - Ready - Fire
When to Define GTM
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Source: AIPMM & 280 Group
Building Your GTM Strategy
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Needs, Wants, Demands
• Need - is state of felt deprivation of some basic satisfaction.
• Wants – are desires for a specific satisfier of these deeper needs.
• Demands – are wants for specific products that are backed up by an ability and willingness to buy them.
Source: Kotler – Marketing Management
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Our Levers of Influence
• We don’t create “Needs”.
• We influence “Wants” & “Demands” with our Go-to-Market Strategy
– Positioning
– Product
– Price
– Place
– Promotion
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Target Markets
• Select most attractive market segments – Alignment with corporate strategy – Has biggest and most urgent pain – Gaps in the market – Core competencies best support – Ability to reach – Leverages strengths – Least competition – Largest market size
• Roll-out plan – Order to enter each market segment
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Strategy Drives Marketing Mix
• Unique for each target market
• Starts with positioning
• Create competitive advantages
• Marketing objectives and strategy changes through product lifecycle
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Key Strategy Decisions
• Positioning –designing the company’s offer so that it occupies a distinct and valued place in the target customer’s minds. (Kotler)
• Competitive Advantage - developing a combination of attributes that allows a company to distinguish itself and outperform its competitors.
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Key GTM Strategic Objectives
• Create awareness, first customers
• Maximize market share – Attack competitors
– New markets/users
– Increase usage
• Defend market share – Against competitors
– Defend a position
• Harvest product for maximum profitability
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Product
• What needs does customer need to solve?
• Which features best meet these needs?
• How will customer use it?
• What are important attributes?
• How is it differentiated?
• What is necessary for the whole product?
• What should Product Line look like?
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Whole Product
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Core
• Benefits
• Features
• Quality
• Packaging
• Brand
• Style
• Color
• Fashion
• Standards
• Installation
• Integration
• Services
• Warranties
• Finance
• Additional Software & Hardware
• Customer Care
• Delivery
Actual Product
Augmented
Source: AIPMM & 280 Group
Price
• What is the pricing strategy?
• What is the value of product to customers?
• Are there existing price expectations?
• How do we price relative to competitors?
• Can you create competitive advantage with pricing model?
• What are price points for product line?
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Place
• Where do buyers want to purchase your product?
• What is the right distribution model?
• How do you develop the right distribution channels?
• What types of support and services are required?
• Can you create a competitive advantage?
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Promotion
• How do you reach the buyers & influencers of your target market?
• What messages will motive them to awareness, consideration, purchase?
• These decision drive marketing programs!
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Key Drivers for GTM
• Customers
– Intimate Understanding of Target Markets
• Company
– Mission, Strategy, Strengths, Weaknesses
• Competitors
– Strategy, Strengths, Weaknesses
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Understanding of Target Markets
• Who they are
– Personas
• Why they buy
– Problems they want to solve
• How they buy
– What is their buying process
– Where do they look
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June 21 Webinar
http://www.aipmm.com/aipmm_webinars/2013/05/how-to-develop-a-deep-
understanding-of-your-target-markets---the-starting-point-for-great-product-ma.php
GTM Process
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Source: http://www.strategyhub.net/2011/01/framework-of-week-45-strategic.html
GTM Summary
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Thank You!
Tom Evans
CompellingPM
@compellingpm
www.compellingpm.com
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