Definition

A Go-To-Market (GTM) strategy is an actionable plan that outlines how you will launch a new solution –or enter a new market with an existing solution– and reach your target customers. A GTM strategy can be as comprehensive as you want it to be, but should always include (1) how you will position your solution, (2) communication guidelines, (3) distribution model, (4) resource requirements, (5) the pricing strategy, and (6) success metrics. Essentially, everything from how you will identify and reach your target audience to how you're planning to close deals.

Importance of GTM Strategies

The main reason to create and document your Go-To-Market strategy:

• Business Case: Before investing time, money, and energy into your product or service, it's worth asking: what will it take to bring it to market and what returns should we expect?

• Roadmap to Success: No company ever got successful just by doing "something". It's essential to have a plan to organize your team around and that enables you to discuss progress and make decisions.

• Risk Mitigation: Doing your homework will (slightly) reduce the risk of investing in new markets and products.

• Scalability: Once you figure out which parts work and which don't you can start optimizing and scaling your efforts.

Core Components of a GTM Strategy

You GTM strategy should include:

• Opportunity Sizing: Deep research into the market size, competition, customer pains and needs, market maturity, and overall opportunities and threats.

• Define ICP: Comprehensive description of your ideal customer profile (e.g. demographics, pain points, budget, authority, how to find and approach, etc.).

• Unique Selling Proposition (USP): Key differentiator that sets your product or service apart from everything else.

• Messaging: General brand guidelines for how you will communicate with the market online and offline.

• Distribution Model: Decide how your team will reach and interact with the customers. Will you opt for a Sales-Led Growth (SLG), Product-Led Growth (PLG), or Marketing-Led Growth (MLG) motion?

• Pricing and Packaging: How will you charge for the use of your product or service and how much? Include how you compare to the rest of the market and what the relationship between your value creation and value capturing is.

• Success Metrics: How will you measure and track success? Establish Key Performance Indicators (KPIs) or Objectives and Key Results (OKRs) for the team.

• Resources: Make an assessment of the budget you will need and the timeline to validate your GTM strategy. Successful operators include milestones to unlock new budget.

GTM Strategy vs. Marketing Strategy

The terms 'Marketing Strategy' and 'GTM Strategy' are used interchangeably by many people. However, the GTM strategy is much broader and comprehensive than a marketing strategy. The marketing strategy mainly focuses on positioning and promoting your product or service. The GTM strategy covers the entire process from identifying the target audience, to bringing a product to market, to closing, managing, and even expanding deals.

When to Use a GTM Strategy

While no organization is ever too big or mature to have a GTM strategy written down, it's especially important when:

• Starting a new business

• Launching new products or services

• Entering new markets (e.g. geographic, demographic, verticals, etc.)

• Increasing existing market share

• Increasing competitive pressures

Conclusion: Why Is the GTM Strategy Important?

Your Go-To-Market (GTM) strategy is essentially your roadmap to future success. Without it you're just groping in the dark. When done correctly, your GTM strategy provides a framework for your entire commercial organization. All things being equal, companies can win from the competition based solely on their go-to-market strategy.