What is a Go-to-Market Strategy & How to Create One
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A go-to-market strategy outlines how a company delivers its unique value proposition to its target market, helping improve time-to-market, reduce risks, and clarify growth paths. Key elements include target market identification, product portfolio, pricing, and promotion strategies. Successful implementation requires understanding customer needs and aligning with corporate strategy to create competitive advantages.
What is a Go-to-Market Strategy & How to Create One
- 1. What is a Go-to-Market Strategy & How to Create One? Tom Evans CompellingPM @compellingpm Copyright 2013. The Lûcrum Group, Inc. 1
- 2. Poll Question 1 Does your company create a formal Go-to- Market Strategy for each product? a) Yes, all products have a Go-to-Market Strategy. b) Sometimes we create Go-to-Market Strategy, but this is not a standard. c) No, we never create Go-to-Market Strategy. d) What is a Go-to-Market Strategy? Copyright 2013. The Lûcrum Group, Inc. 2
- 3. 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? Copyright 2013. The Lûcrum Group, Inc. 3
- 4. 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 Copyright 2013. The Lûcrum Group, Inc. 4
- 5. 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? Copyright 2013. The Lûcrum Group, Inc. 5 Source: http://en.wikipedia.org/wiki/Go_to_market
- 6. Poll Question 2 When do you typically create the Go-to-Market Strategy? a) Once the product is ready to launch. b) During product development. c) When planning the product. d) When an executive asks for it. Copyright 2013. The Lûcrum Group, Inc. 6
- 7. The Wrong Way to GTM Copyright 2013. The Lûcrum Group, Inc. 7 Build Product Define Channels Define Price Define Promotions Ready – Fire
- 8. Slightly Better Way to GTM Copyright 2013. The Lûcrum Group, Inc. 8 Build Product Define Target Markets & Positioning Define Channels Define Price Define Promotions Ready – Aim - Fire
- 9. The Best Way to GTM Copyright 2013. The Lûcrum Group, Inc. 9 Define Product Define Target Markets & Market Problems to Solve Define Channels Define Price Define Promotions Define Positioning Aim - Ready - Fire
- 10. When to Define GTM Copyright 2013. The Lûcrum Group, Inc. 10 Source: AIPMM & 280 Group
- 11. Building Your GTM Strategy Copyright 2013. The Lûcrum Group, Inc. 11
- 12. 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 12Copyright 2013. The Lûcrum Group, Inc.
- 13. Our Levers of Influence • We don’t create “Needs”. • We influence “Wants” & “Demands” with our Go-to-Market Strategy – Positioning – Product – Price – Place – Promotion Copyright 2013. The Lûcrum Group, Inc. 13
- 14. 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 Copyright 2013. The Lûcrum Group, Inc. 14
- 15. Strategy Drives Marketing Mix • Unique for each target market • Starts with positioning • Create competitive advantages • Marketing objectives and strategy changes through product lifecycle 15Copyright 2013. The Lûcrum Group, Inc.
- 16. 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. Copyright 2013. The Lûcrum Group, Inc. 16
- 17. 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 Copyright 2013. The Lûcrum Group, Inc. 17
- 18. Poll Question 3 Who typically owns the Positioning decision in your organization? a) Product Management. b) Product Marketing. c) Product Management & Product Marketing. d) Senior Executives. e) Never thought about it. Copyright 2013. The Lûcrum Group, Inc. 18
- 19. 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? 19Copyright 2013. The Lûcrum Group, Inc.
- 20. Whole Product Copyright 2013. The Lûcrum Group, Inc. 20 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
- 21. 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? 21Copyright 2013. The Lûcrum Group, Inc.
- 22. 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? 22Copyright 2013. The Lûcrum Group, Inc.
- 23. 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! 23Copyright 2013. The Lûcrum Group, Inc.
- 24. Poll Question 4 Which is the most important driver in creating your Go-to-Market Strategy? a) Clear understanding of your target markets. b) Aligning with your corporate strategy and strengths. c) Knowing how to compete against your competitors. Copyright 2013. The Lûcrum Group, Inc. 24
- 25. Key Drivers for GTM • Customers – Intimate Understanding of Target Markets • Company – Mission, Strategy, Strengths, Weaknesses • Competitors – Strategy, Strengths, Weaknesses Copyright 2013. The Lûcrum Group, Inc. 25
- 26. 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 Copyright 2013. The Lûcrum Group, Inc. 26 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
- 27. GTM Process Copyright 2013. The Lûcrum Group, Inc. 27 Source: http://www.strategyhub.net/2011/01/framework-of-week-45-strategic.html
- 28. GTM Summary Copyright 2013. The Lûcrum Group, Inc. 28
- 29. My Next Webinar How to Create Effective Sales & Marketing Tools That Actually Get Used By Sales and Prospects! Friday, Oct 4, 2013 http://bit.ly/192JLpd Copyright 2013. The Lûcrum Group, Inc. 29
- 30. Upcoming Training • Optimal Product Management & Product Marketing – Sep 9 – 11 (Austin) – Oct 14 – 16 (Dallas) • AIPMM Certifications – Nov 5 – 6 (CPM – Austin) – Nov 7 – 8 (CPMM – Austin) More dates/locations - www.280group.com Copyright 2013. The Lûcrum Group, Inc. 30
- 31. Free 1 Hour PM/PMM Consult • First ten to submit information on form • http://compellingpm.com/freeonehour/ • Please include background on topic or issue • Must include company info (no Gmail) Copyright 2013. The Lûcrum Group, Inc. 31
- 32. Thank You! Tom Evans CompellingPM tevans@compellingpm.com @compellingpm www.compellingpm.com Copyright 2013. The Lûcrum Group, Inc. 32