Let me first set the context.
I was given the highly coveted title of ‘Digital Marketing Intern’ in the organization where I was working – because you know, in this pandemic, you have no other option but to increase your social presence. You can’t just go out and market/sell your products in this time.
Over a call with my mentor, I was assigned the task to study how Facebook promotions are done and how can we leverage it. Now, MBA students have the habit of sounding fancy in front of their peers and bosses, and I was no exception.
I had come across the term ‘GTM Strategy’ just a day before the call, and my brain (which always lands me in trouble) kept on saying ‘Use it. Use it. Use it’.
I responded “Okay Sir, can I develop a GTM Strategy on how we can use social platforms? We can then take it further and discuss.” And he replied with a ‘YES’.
Trust me, I didn’t exactly know what it was. Google helped me a bit, and I finally came up with this article.
GTM stands for Go-To-Market. And a GTM strategy is a plan which tells you how to reach the target audience and deliver your product or service to the end user.
Imagine you have to launch a new product in the market. You’ll worry about the different aspects such as your target customers, pricing, the value which you aim to provide, and the channels used to deliver the product. All this will be the part of your GTM strategy.
Isn’t this the same as a business plan?
Well – to an extent ‘YES’, with a major difference in the scope of both of them. In a business plan, we consider other aspects like financial plans and teams also while in a GTM strategy, we are only considered about the product and its end reach.
Now. It is not always necessary to build a GTM strategy only for new product launches. Such a strategy can also be designed to introduce a product in a new market, or for that matter even re-launching the product or brand.
Anything which we want the customer to use, we create a market strategy.
Have a look at the Ansoff Matrix. We can use GTM strategy to strategize for any of those four boxes.
It helps us in answering questions like:
- Why am I launching this?
- How do I offer a unique value to the customer?
- For whom are we launching this?
- What differentiates us?
- How do we launch this?
- How do we make sure this reaches the end user?
Any business has numerous stakeholders involved – with their own respective objectives and desired results. A GTM strategy creates a timeline and develops processes to achieve those outcomes, and helps in aligning all the stakeholders.
Let me take an example.
Consider a company X. X operates in the sports goods sector, and is now looking to develop and launch an online portal, which can be used for the purpose of reaching out to the customers in a better manner. Mr. Bob has been bought in as the Product Manager, and has been assigned this project.
For Mr. Bob, the stakeholders identified are:
Distributors, vendors, retailers, manufacturers, customers, website developers, designers, advertisers, strategists.
Having a GTM strategy will give Mr. Bob a chance to take care of the interests of all the stakeholders, as well as assuring the product reaches the end-user.
GTM strategies often include the following components:
- Market Definition:
Identification of markets which we aim to reach and which are suitable to our product/service.
Identify the target audience, and look into new customer acquisition processes. Have specific customers who can buy/use your product.
- Distribution Model:
Identification of different ways in which the product can be distributed to the customer.
- Value Proposition & Positioning:
Formulate how you want to position your product/service & what unique value do you provide to the customers accordingly.
The cost which the customer has to pay once he gets the product. Should compare between the perceived value and the actual value given out to the customer.
People generally tend to go wrong as they start with their products/services. But instead, we should identify the market which we need to cater, and then go ahead with building the product. You will have a firm grip on the project once you know the market and the customers.
That’s not to say that a GTM strategy always has the same five components. But trying to focus on these factors to develop a sound strategy will be one that can take you to wonders.