What is a Go-To-Market strategy?
When a new product is getting launched, the last thing you need is a lack of clarity and time or resources to get wasted in the process of bringing the product to the market. What you need is a clear-cut, well-thought-out plan. Without proper planning, it’s impossible to judge if you are targeting the right audience, if your timing is right or if the market is already saturated with similar products.
A go-to-market strategy, as the name suggests is the way in which a business brings a product to the market. It is an action plan that describes how a company will reach its target customers and gain a competitive advantage. It is a plan where the target audience, the sales, and marketing strategies are clearly outlined. It maps out how a product or service will be delivered to the end customer, considering factors such as pricing and distribution.
Ecommerce businesses can use a go-to-market strategy in a wide range of situations like that of launching a new product or service in an existing market, or extending a current offering to a new market, or introducing new products to new markets.
Online sellers often mistake the go-to-market for a business plan. While there are similarities, a business plan has a broader scope, while the go-to-market plan is niche and meant for a particular product or market.
What components make up the go-to-market plan for your online store?
A perfect go-to-market plan for your ecommerce business will have the following 5 core components to it:
a) Product strategy: It defines why a product exists, the company’s intent for launching it, and how it will provide solutions in the long run. The product development team works closely with all other departments in developing the roadmap for the product. They also come up with the Product messaging which if positioned well is an opportunity to stay ahead of the competition.
b) Pricing and Promotion strategy: It involves setting the price of your product. The price should be set taking into account the market position of your product and the information you’ve gathered on buyers. Promotions need to be a part of every new product launch looking at how to attract buyers with an introductory offer.
c) Distributions Strategy: It takes into account how a product or service will be delivered to a customer.
d) Marketing strategy: It includes all the efforts put into attracting and creating awareness with customers.
e) User experience strategy: It focuses on the customer, mapping their journey and experience with the brand.
Why is a go-to-market strategy important for your online store?
With a GTM strategy, your ecommerce business stands to benefit in more ways than one. It helps you to define why a product is being launched, who it is meant for and how you can engage with customers and persuade them to purchase your products or services. Simply put, for ecommerce business owners it becomes imperative to build go-to-market strategies and drive efficiencies across numerous marketplace channels.
Apart from this, a GTM strategy benefits an organization by -
- Providing a clear-cut plan for all stakeholders involved.
- Reducing the risks of failure on a product launch.
- Reducing the chances of added costs associated with failed launches.
- Creating an effective and well-rounded customer experience.
- Effectively managing crises and challenges.
How to build a go-to-market strategy?
Here are 5 steps to help you build an effective and forward-thinking go-to-Market Strategy-
- Identify target markets: This is where you need to start. Figure out what is your total addressable market then go to find out what markets you want to venture into first. Select markets based on growth, current client base, and geographical locations.
- Identify target client: Within a bigger market, there are a large set of clients. Find out what segments are you capable of adding value to. Which segments are ideal for your firm? They represent your target clients.
- Brand positioning: This refers to how you want your company to be perceived among competitors. Will be it positioned as an innovator, a leader, or a low-cost alternative?
- Define your product offering: A lot of businesses start with this step and then search for the right audience. It should be the other way around. Define what product is well suited to the niche audience you are focusing on.
- Define your marketing strategy: Your marketing strategy should take your target customers’ preferences into consideration. A campaign that addresses their pain points will be more successful in reaching them.
Before you head out with a go-to-market strategy in place, be sure to ensure that your customer game is strong to handle all the incoming queries and customer requests. If you need help with this, give DelighChat a try and offer engaging experiences across the customer’s journey.