By definition go-to-market strategy is the plan of an organization, utilizing their inside and outside resources (e.g. sales force and distributors) to deliver their unique value proposition to customers and achieve competitive advantage. The end goal of a go-to-market strategy is to enhance the overall customer experience taking into account various aspects of the value proposition such as the quality of the product and pricing.
Developing a Go-to-market strategy
In the earliest stages of developing a go-to-market strategy for a new product or a service, your company has to initially conduct an accurate definition of the target market. You have to decide whether you already have prospective customers within your customer base but using different services.
After defining the market, the product or service is researched until a final decision has been made on what the value proposition will be. Then you must determine your pricing strategy. It is one of the most challenging aspects of a GTM strategy to decide what pricing strategy to follow as it differs from one product or service to another. Even when the product or service remains the same, but the strategy changes – for example switching to subscription-based pricing (an example for this is Adobe‘s major shift from selling its Creative Suite software which included all Adobe‘s products such as Photoshop and Illustrator, to a $50-per-month Creative Cloud and various other subscription plans).
Moreover, choosing the right distribution and marketing channels followed by promotion are very vital steps in a go-to-market strategy. You have to decide which distribution model to choose, what kind of support and services are required and addressing the possibility of creating a competitive advantage. Afterwards, you decide how you’re going to promote the final product or services and what kind of marketing campaigns are the most influential to follow.
Driving factors in a Go-to-market strategy
- Customers – Delivering exceptional customer experiences leads to loyalty and advocacy of the customer. Consequently, that triggers increase in product purchase, customer retention and low cost of service.
- Competition – Understanding the competition is crucial in deciding what product or service to offer. Gathering information about how competitors are performing in the market, what customers think of the different products available and what is missing in the market through conducting research using different methods such as SWOT and PEST analyses.
- Company – Taking company’s mission and vision into account is a key determining factor when performing a go-to-market strategy. Motivating employees to perform well is a decisive factor to include. Thus, defining company’s vision and what kind of impact it is trying to create is essential in the earliest stages of a go-to-market strategy.
The Blogging Nation is keen to help you identify your costumers, their needs and how your company’s mission could feed into the current market needs.
Market segmentation is the process by which one divides prospective customers into different groups (segments) that have common needs and the same expected reaction to a marketing action. This approach enables companies to offer customers full value proposition of their products or services.
There are common factors considered when performing a market segmentation in a go-to-market strategy:
- Industry: The industry in which the customer is involved.
- Customer size and sales potential of the customer.
- Customer behavior: Studying the customer’s behavior related to the product or service such as the customer buying from a competitor or examining the responsiveness to selling effort.
- Geography: Geographical locations of prospective buyers.
- Application and use of the product or service by the customer.
- Benefits earned by the customer due to buying the product or service.
- Information which is required to be provided by the company to the customer.
- Usage situation: When and where the product or service is used.
- Profitability of selling to a certain customer.
Example of a Go-to-market strategy
If you associate quality products with the likes of Apple and Samsung, what would a new Chinese company called Huawei do to win a market?
Here was the problem Huawei had in India
“The Indian telecom supplier market was heavily saturated and to make an impact, Huawei needed to separate itself from the rest and create a distinct identity as well as a reputation for reliability. Historically, Indians have viewed Chinese companies as hard to form relationships with and Chinese made products as subpar and inferior. In addition, China and India have relatively uneasy diplomatic relations.”
Huawei first got a foothold by building local R&D centres
“Huawei began establishing its foothold in India by setting up R&D and service center facilities in India and hiring predominantly locals to show commitment to creating value for Indians rather than just extracting benefits. India is now Huawei’s second largest research center outside China.”
They positioned it as an aspirational product
“Huawei is now working on positioning its smartphones as aspirational products by working with local English Language channels to hold contests and beat the stereotype of a low quality Chinese product.”
Establishing trust and building relationships
“The lesson to learn is that establishing trust, building and sustaining relationships and showing continuing commitment to the new market can lead to a successful foothold and increased opportunities.”