Go-to-market Strategy (GTM)

Definition: 

A go-to-market (GTM) strategy is a plan that helps you define your ideal customers, coordinate your messaging, and position your product for launch. If you're launching a new product in an existing market, an existing product in a new market, or testing a new product's market for growth, you'll need a GTM strategy. 

What are the 5 go-to-market strategy components?

A thorough GTM strategy will always include the following: 

1. Market definition: Which markets will you target when selling your product or service?
2. Customer definition: Who is the target audience/target market, and what do the demographics look like within these markets?
3. Distribution model: How do you intend on delivering your product or service to the customer?
4. Product messaging and positioning: What is being sold and what is its unique value or primary difference when compared to other products or services in the market?
5. Price: How much should the product or service cost for each customer group?

What are the 3 main parts of GTM?

1. Market intelligence: You should understand the market you’re trying to enter. Conducting market research is the best way to gain that knowledge. From conducting focus groups to fielding surveys, there are several research companies like Forrester and Gartner that can help you get the market information you need.
2. Market segmentation: Your market research findings should show what kind of person is most likely to buy your product or service. Use these insights to create buyer personas that will help you understand their pain points so you can best address them.
3. Product positioning: Now that you understand the market you’re entering and who your customers are, work on how best to convey your product’s key value proposition. Developing a product positioning and messaging strategy will enable you to stand out from competitors and resonate with customers. 
   
   

What is your GTM strategy?

There are several different GTM approaches your company can pursue, and all of them are equally valid. The strategy you choose should be the one that best aligns with your unique requirements. These are the four main GTM strategies SaaS firms follow: 

1. Differentiated strategy: This strategy focuses on providing something unique to customers. That allows you to boost your competitive advantage and the freedom to price your product competitively.
2. Dominant strategy: If you want to win different customer types, this is the strategy you should adopt. Importantly, in this case, your product must prove helpful to players in different industries.
3. Discrete strategy: This is an a less strategy to pursue. But it's ideal if you want to target restricted customers or those with limited options.
4. Disruptive strategy: This strategy is ideal for targeting an overserved market. It allows you to provide a cost-effective solution to customers looking for cheap alternatives.