Launching a product or service requires thorough planning. More specifically, you need a go-to-market (GMT) strategy that outlines how you’ll position and promote your product.
A successful GTM strategy can help you enter and thrive in new markets while mitigating risks. Think of it as a business plan around specific products or services rather than your company. It highlights your unique selling proposition (USP), brand messaging, marketing efforts, and other relevant aspects.
Top brands like Apple, Microsoft, and Huawei use this approach to maximize their reach when introducing new products to the market.
Here’s what you can learn from them and how to create a winning GTM strategy.
What Is a Go-to-Market Strategy?
A go-to-market strategy is a detailed plan for launching new products or services. It is a roadmap that guides your efforts, from customer research to product pricing, distribution, marketing, and sales.
Companies can also use this approach when introducing existing products to new markets.
For example, Huawei had difficulty entering the Indian market in 2000. First, relations between China and India have worsened over the past decades. Second, Chinese products have a low perceived value in India.
After analyzing these aspects, Huawei decided to build several research and development (R&D) centers in India as part of its GTM strategy. It also sponsored several events and took steps to support the country’s economy, such as hiring locals.
These initiatives allowed Huawei to change people’s perception of its products and position itself as a competitor to Apple, Samsung, and other top brands.
As you can see, a GMT strategy differs from a marketing plan.
Marketing is just a small part of it.
The Components of a Successful GMT Strategy
Most companies implement GTM strategies to bring products or services to market in a way that maximizes their chances of success. But to achieve this goal, it’s necessary to understand the three Cs:
- Company
- Customers
- Competition
You’ll want to know your target market and who you’re competing against. You also need to analyze your company’s performance, finances, and long-term goals.
Next, use these insights to craft a GTM strategy that makes sense for your business.
Make sure it includes the following elements:
- Objectives and key results (OKRs)
- Market research
- Competitive analysis
- Product positioning
- Marketing and sales strategy
- Distribution strategy
- After-sales service
- Performance measurement and iteration
These processes vary from business to another, and you can break them down into smaller steps.
For example, market research involves collecting and analyzing customer data. At this point, you should also conduct a SWOT analysis to identify your company’s strengths and weaknesses and the opportunities and threats in your industry.
That’s what the acronym SWOT stands for.
It’s also a good idea to test your GTM strategy on a smaller scale before jumping in. This practice can help you identify areas for improvement and mitigate the risks associated with a full-scale launch.
Plus, it allows you to experiment with different tactics and technologies while keeping costs low. For instance, you can focus on finding the best ERP tools for your business without the pressure of a full-on launch.
Meanwhile, you’ll gain valuable insights into your market. Leverage this data to fine-tune your GTM strategy and allocate resources more effectively.
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Why Are Go-to-Market Strategies Important?
Companies worldwide launch nearly 30,000 new products yearly, but only 5% succeed. Even large enterprises like Coca-Cola and Google have had their share of failures.
While a go-to-market strategy doesn’t guarantee success, it can bring you closer to your goals. If anything, you’ll learn more about your target audience and what it takes to launch a product.
A GMT strategy can reduce costs, drive brand awareness, and improve resource allocation when executed correctly. It also sets a clear path for growth and innovation, driving your business forward.
Another advantage is it helps ensure product-market fit, reducing the odds of product failure.
With a GMT strategy in place, you’ll know who your customers are, what they expect, and how much they are willing to pay for your offerings. These aspects alone can increase your chances of success.
Now let’s take a look at other potential benefits:
- Bring your product to the market faster
- Clarify your business mission and long-term goals
- Improve the customer experience
- Gain a competitive advantage
- Increase brand recognition
- Drive sales and revenue
- Adapt to market changes more easily
For instance, developing a successful go-to-market strategy can help you launch new products more quickly.
With this approach, you’ll be better able to prioritize tasks and plan things out (e.g., choose the right distribution channels). Plus, you’ll have the data to improve your products or services before the launch.
These aspects can reduce your time to market (TTM), leading to cost savings. A short TTM allows you to keep up with the latest industry trends, resulting in a competitive advantage.
Examples of Successful GTM Strategies in Tech
Whether a startup or an established business, you can draw inspiration from other brands to develop a winning GTM strategy.
Slack Leveraged Word-of-Mouth Marketing
Let’s start with Slack, one of the most popular collaboration platforms on the market.
In 2014, the company tested its idea on a small scale to check for product-market fit. Its founder, Stewart Butterfield, and his team asked Medium, Rdio, and other companies to try the platform before its official launch.
Those first users were satisfied with their experience and left positive feedback on social media. Their reviews went viral, inspiring other customers to sign up.
Basically, Slack’s GMT strategy focused on building a community of early adopters. The company leveraged word-of-mouth marketing to grow its customer base and drive brand awareness.
Apple Identified an Untapped Market Segment
Apple created a sense of exclusivity and scarcity around its products, targeting an untapped market segment. Its customer base comprises tech enthusiasts and business professionals with an above-average income.
Apple joined forces with Hermès, Nike, and other top brands to reach these customers and marketed its products in fashion magazines. The company’s GTM strategy revolves around innovation, hyper-targeted marketing, and limited product releases, driving demand for its offerings.
The brand has built a cult-like following among its customers thanks to these initiatives. The iPhone and other Apple products are now perceived as status symbols, making users feel part of an exclusive club.
Dropbox Implemented a Product-Led Growth Strategy
Dropbox’s GTM strategy involved offering a freemium model to attract early adopters. Users received 2GB of file storage for free, with the option to upgrade to a tiered paid plan for extra storage space. This approach helped the company gain traction and earn recurring revenue.
The brand also leveraged word-of-mouth marketing and referral programs for its GTM strategy. As the business grew, Dropbox built strategic partnerships with Apple, Microsoft, and other tech companies to reach more customers.
Vuclip Filled a Gap in the Market
Vuclip is a video-on-demand service for mobile users. While it’s not the only one of its kind, what sets it apart is its focus on emerging markets.
The brand’s GMT strategy targeted a very specific audience, namely users based in Egypt, Thailand, and other developing countries with older mobile networks. Consumers in those regions couldn’t use other streaming platforms due to slow video buffering.
Vuclip’s technology has addressed these issues, positioning the brand as the go-to platform for streaming video content. Between 2008 and 2019, the company acquired 37+ million customers, and its popularity continues to rise.
TaxJar Put Content at the Core of Its GTM Strategy
Another example comes from TaxJar, a tech company that leveraged content marketing to build a winning GMT strategy.
The American tax system is complicated and confusing, and the laws constantly change. That’s why TaxJar created quality content to inform and educate customers. Its website features an extensive library of videos, case studies, articles, white papers, and other helpful resources.
This approach allowed them to build trust and reach a wider audience. At the same time, it helped them succeed through word of mouth, leading to higher visibility and brand recognition.
TaxJar also positioned itself as a tech company rather than a tax company. This aspect alone gave it a competitive advantage and served as a market differentiator. Today, the company serves over 20,000 businesses, from startups to global enterprises.
Craft a Go-to-Market Strategy That Drives Results
Launching new products or services requires a tailored approach. First, consider your business size, goals, industry, and target audience. After that, collect the necessary data and put the pieces together.
Developing a sound GTM strategy is much more complex, but you don’t have to do it all at once.
Start by defining your value proposition, then proceed to the next steps. Research the market and your competitors, build a customer persona, and decide the best way to reach your audience.
Break each process into smaller steps you can tackle one at a time.
Most importantly, take your time with things. Test your product idea, see how the market reacts, and make improvements as needed. These extra steps can boost the odds of a successful launch and ensure a good product-market fit.
Author Bio
Andra Picincu is a digital marketing consultant and copywriter with over 14 years of experience. She works closely with small businesses and large organizations alike to help them grow and increase brand awareness.
Visit her LinkedIn profile to find out more!
Editorial Staff of the TechnoRoll, are a bunch of Tech Writers, who are writing on the trending topics related to technology news and gadgets reviews.
