A profitable business relies on a number of elements working in harmony, not the least of which is a go-to-market strategy that helps you deliver your goods to your customers. A good go-to-market strategy involves assessing multiple factors, such as pricing, distribution channels and the unique selling proposition, that helps a company stand out from its competition.
While it’s essential to have a go-to-market strategy when launching a product, a company needs to consider the constituent elements of its strategy all throughout the product life cycle. Good go-to-market strategies offer numerous benefits for businesses of all sizes. Not only do they shorten time to market, but they also help companies grow and develop while minimizing their costs. Here are five key steps for creating a go-to-market strategy for a new product.
1. Define the Market
It’s hard to craft a successful go-to-market strategy if you don’t first define your target audience. When introducing a new product, start by researching your ideal customer base, because few products are appropriate for all groups of people. Along with age and demographic factors, you should consider where clients are located, what jobs they hold and what spending power they have.
Next, determine whether or not those customers are already part of your customer base or if you need to locate them elsewhere. Don’t forget to consider what your competitors are offering. If your product already exists at a lower price point, you may need to readjust your strategy.
2. Determine Your Value Proposition
Identifying your value proposition—also known as your unique selling proposition—enables you to find the right audience and set a reasonable price. Start by assessing the top benefits offered by your product or service. Once you’ve identified the various advantages of your product, determine the possible solutions that those advantages offer for your target customers.
The goal is to think like the customer. Ask yourself what problems or challenges in your life need solving. Once you do this, then you can figure out how customers will use your products to meet their needs and align your marketing efforts accordingly. Once you’ve identified your specific value proposition, start setting your pricing strategy. Depending on your customer base and goals for market penetration, you may want to use subscription-based pricing, value-based pricing or price skimming.
3. Define Product Strategy
Naturally, a key aspect of a go-to-market strategy involves selecting products to sell and determining how you will position your brand. In most cases, you will want to create a unique product strategy for every one of your target markets. This step may include setting promotions or specifying bundling plans. Additionally, marketers should look for opportunities to differentiate their products from those of competitors and recognize that their strategies may need to shift after a launch based on customer reactions.
4. Discuss Your Channels
It doesn’t matter how great your product is if you don’t have a strategy for reaching your ideal marketplace. As a result, selecting the right channels, or places to promote and sell your products, is essential. Once you determine your target market, you can identify the places this group shops, including internet sites and online marketplaces, retail stores and trade shows.
You may also want to consider using indirect sales channels or even sending sales staff door to door. Additionally, you should consider the type of product you sell and make sure the channel is logical. If your products are very expensive, such as diamond rings, you might see better returns through offline sales channels.
Whatever channel you select, it’s important to put sufficient time into developing your brand and making sure it’s consistent. The goal is for customers to have consistent experiences no matter where and when they purchase your goods.
5. Evaluate Success
Determining the objectives of your go-to-market strategy now makes it easier to measure success down the line. The fact is that many companies will need to adjust their tactics to achieve the desired results. Before you launch a product, determine what constitutes success. Is your goal to achieve a particular sales volume? Do you want to target early adopters? Be specific and clear to keep your sales team on target and boost your chances of success.
Creating an incredible product is only the first step. A successful company is one that finds ways of putting its goods into the hands of its target audiences. By taking time to consider all the elements of your go-to-market strategy—including whom you will target and how and where you will reach these individuals—you can give your business the best chance of going the distance.
A good go-to-market strategy goes hand in hand with the right pricing. Continue on to learn the things you need to avoid in order to create a great pricing strategy.
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