Are you wondering how to define your go to market strategy?
A good go to market strategy is essential for startup businesses. It can make all the difference in success or failure, and how quickly you gain traction. Aside from the team, you choose to recruit, this is probably the most important factor in ensuring your venture makes it.
So, what is a go to market strategy exactly? What difference can it really make? What are the steps for defining it and making the right choices through the process?
Go To Market Strategy 101
Go to market strategy is one of the key pillars of starting a business.
It is much like a marketing strategy. With one big difference. This is your initial getting to market plan. Versus an ongoing marketing plan. This is how you are going to get started and get your company, product, and service out there.
When thinking about how to define your go to market strategy, keep it mind that GTM also answers the main foundational questions every company needs to handle before they really start marketing. As well as projecting the results from this strategy.
See below a good example of how you would be presenting the go to market strategy in your pitch deck.
Remember that you need to master the story which is what raising money is all about and for that, you need a pitch deck. This is being able to capture the essence of the business in 15 to 20 slides. For a winning deck, take a look at the template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash.
Remember to unlock the pitch deck template that is being used by founders around the world to raise millions below.
In this regard, you may find interesting the video below where I cover in detail how to create a pitch deck.
The Importance Of Go To Market Strategy
The importance of tackling how to define your go to market strategy relies on being able to present it well cannot be overstated.
Taking the time to define a good go to market strategy from the beginning means getting it right out of the gate. If you don’t, then at best you may waste months of time and a great deal of your precious capital.
Get this right and you’ll prove your concept fast, and can begin turning your idea into real users and revenues fast.
Defined well, it will give you the credibility to recruit the best team members too. Plus, even beyond your own business plan and budgeting, one of the top things potential investors are going to be looking at when evaluating your pitch is the strength of your GTM, and how much effort you’ve put into it.
So, where do you start with creating your go to market strategy?
Define Your Target Market
Where will you begin with targeting customers as part of how to define your go to market strategy?
Are you going to begin focusing on a certain geographic market? Or a segment of the market? Be as specific as possible at the beginning. The world is your oyster and there is a great chance you can expand and go global later. Though the most focused you are from the start, the most impact you can have with your budget and time.
What category are you in, and who are you solving this problem for?
Define Your Target Customer
Inside your target market, who is your target customer? This is a critical part when it comes down to how to define your go to market strategy.
Be precise. At least as precise as you can be with the information and research you can get your hands on.
Get really granular on these demographics. If this is a B2B business, what size company is your target? How new or established are they? Who are their customers? Who within the organization is your target contact?
If this is a B2C business, who exactly is your target customer? How old are they? How much do they make? What are their interests, and the other brands they shop and affiliate with? What are their lifestyle preferences?
Create customer profiles and personas to guide everything else you do.
Define Your Brand Positioning
Equipped with the information above you can now really select a brand position that will resonate and be effective.
If you’ve done a really great and detailed job with your personas, and have some basic knowledge of psychology you can even perfectly pinpoint the optimal fonts and colors to use in your brand identity.
You’ll know whether you should lean on the side of trendy, luxury, discount, or something else. You’ll have a clear picture of the words, designs, and everything else you need to create a winning brand.
Define Your Unique Selling Proposition
What is your unique selling proposition or unique value proposition for your target customers?
As part of addressing how to define your go to market strategy, it is key to understand what’s so special about your company or product that makes it stand out so much from everyone else? What is so moving that they can’t ignore you or pass up the chance to try you out? What can you do 10x or 100x better than anyone else?
If you don’t know yet, then you really need to go back and start from scratch and find a real problem to solve, and a solution people are hungry for.
Define Your Marketing Channels
How will you reach out and connect with your target customers?
Will you do it directly or through affiliate partners or third-party marketplaces?
Which channels will you use? Will it be via email, phone sales, outdoor, or broadcast advertising? Will it be LinkedIn, SEO content marketing, podcasting, or in-person sales?
How will you both build brand awareness and get real sales?
While the focus is good and important at this stage of business, it is also smart to have some diversification in your marketing. Don’t put all of your eggs in one basket, but don’t spread yourself too thin and become ineffective or run out of money either.
Create Your Financial Model
This is where the rubber meets the road and ties all of these parts together.
If you are new to sales and marketing and unleashing a go to market strategy, then it is wise to consult those with some fresh expertise in this arena. Lacking this, begin with solid industry benchmarks for the types of results you might expect from any given campaign.
Using a dynamic financial model you can test various scenarios and back out the math or work forward based upon your goals and milestones you need to hit, or what you really believe is realistic from past industry experience, and any sales commitments and contracts you have secured so far.
How many customers and dollars will you achieve if you invest X in this strategy?
Hopefully, this post provided some color as you are exploring how to define your go to market strategy.