As you prepare to launch a new product or service, you’ll need to create a go-to-market strategy. Essentially, this is an action plan for how you’re going to get your product or service to the end customer. To help you craft a carefully thought out plan, here is a 5 step process to developing a winning go to market strategy.
1. Identify Your Target Market
Before you can start selling a product or service, you need to identify your target market. Are your existing customers going to buy the new product or service? Or, do you need to find new customers? If the latter holds true, start to think about the demographics of these customers. How old are they? What’s their average age? Where do they live? Do they have children? As you answer questions like these, you can start developing your marketing strategy.
2. Determine Your Value Proposition
To determine your value proposition, you need to think about the value your product or service offers to the end user. If you’re selling a business-to-business service, for example, you should identify the pain points that businesses are likely experiencing. Then determine how your service eliminates those hassles.
If you’re selling a product, you need to establish how it improves your customers’ lives. Does it save them time? Make a routine task easier? Of course, your product doesn’t have to be functional. It may be a luxury product that gives your customer a certain level of status. Remember that value can be intangible. As you think about value, start to decide how much you should charge for your product or service.
3. Decide on Your Distribution Strategy
Once you know who your customers are and how they can benefit from your offering, you need to figure out how to get your products or services to them. This is your distribution strategy. If you have developed a new snack food, you may want to contact supermarkets and see if they will sell your product. If you’re selling clothing, you may want to convince retailers to buy your product. You can also use indirect distribution methods, where you sell your product to someone who sells it to the final end user. For example, selling your clothing to wholesalers who resell it further to retailers.
In other cases, you may decide that you prefer to distribute your product or service directly to the end user. For instance, if you own a store, you can sell your item in your store or on your website.
4. Develop Your Marketing Strategy
Marketing is essential if you want people to know about your product. Depending on your product, your budget, and your final objectives, you may want to launch a nationwide advertising campaign that includes TV commercials, radio ads, newspapers advertisements, and billboards. If you want to keep costs low, focus on social media marketing or word-of-mouth advertising. In other cases, you may want to do door-to-door sales or call prospective customers on the phone.
5. Refine Your Strategy
Your go-to-market strategy is your blueprint for how you plan to bring your product or service to your customers. Hence, it’s important to develop a plan before you launch your product. Remember, however, that your strategy is not set in stone. You should refine it as you go along. Assess your strategy on a regular basis. Then, get rid of elements that aren’t working and experiment with new things.
When you sell multiple products or services, you may also want to track which items are the most profitable. With cloud-based accounting software such as QuickBooks, you can track profitability and profit margins for your products. Then, you can use that information to decide where to focus your efforts.