What is a go to market strategy?
Go to market (GTM) strategy is the piece of the overall business strategy a company uses to deliver its product to customers. GTM focuses primarily on identifying the points where consumers can access a new product.
How go to market strategies work
Go to market strategy starts with setting the right price for the product. The price might be determined by a number of factors, including target market demographics, distribution access points, and warehousing and distribution costs.
Distribution channels. A company knows its target market for a product, knows what the market will pay for the product, but needs a strategy to get the product to consumers. Identifying distribution channels -- online and off -- that give consumers the highest-level of access to purchase the product is a key part of the go to market strategy.
A company needs to position a product at its distribution channels or find a way to draw consumers to them. This might be a special display at a grocery store or a co-branding strategy with an online retailer. B2b partnerships can be key to delivering products to consumers.
Why go to market strategy matters
It involves research
A solid go to market strategy forces a company to utilize all of the data it has on its target market; demographics, purchase habits, and other types of data provide the foundation for a successful go to market strategy. If the data is not there, a company had better go and get it.
It defines the target market
The process of thinking through GTM strategy starts with finding and understanding the target market. For specialty products, if a company doesn't know where its market lives, online and off, it cannot identify the right distribution channels to reach its customers.
It positions the brand
A well-thought-through GTM strategy will enhance a company's brand along the way. At each stage of the process, from pricing to delivery, GTM strategy hones brand messaging and deepens ongoing relationships with consumers and potential customers.