What is a Go-to-Market Strategy?
An organization’s go-to-market strategy is an action plan that outlines how it will bring its product to the marketplace, deliver on its key value propositions, satisfy customers and meet revenue generation and profit goals and expectations. The go-to-market strategy answers all of the most important questions that should be posed when bringing the product to market:
- Where is the market for this product?
- Who are the buyers of this product?
- What is the value of this product to the buyer?
- How much should the product cost? What is its value to the buyer?
- How will the product be marketed? How will it be distributed to buyers?
- How will the product be differentiated from its competitors?
Go-to-Market Strategy vs Marketing Strategy - What's the Difference?
On the surface, it seems like the terms “marketing strategy” and “go-to-market strategy” could be used interchangeably, but in fact, there are subtle differences (and big similarities) between the two.
Let’s start with what’s the same: both of these types of strategy cover product pricing, value propositions, marketing channels, and distribution.
Marketing strategy is often associated with the marketing mix, also known as the 4Ps of marketing: product, price, place, and promotion:
- The product aspect deals with product planning, including what features and quality level the product will have, how it will be branded and packaged, what guarantees or warranties will be offered and what products will be included in the product line.
- Marketing strategy for pricing includes price-setting, pricing tactics (in relation to competition, market factors, etc.), rebates and discounts.
- The concept of place in the marketing mix refers to physical (or digital) locations where a consumer will be able to purchase the product. The marketing organization must create a distribution plan for the product that supports its business objectives.
- The final component of the marketing mix, promotion, deals with the selection of advertising channels and the creation of content and materials to promote the product.
Marketing strategy involves communication between the marketing and product development teams, as marketers contribute to the product planning and development process through the collection of user needs and by assessing demand for product features. The promotion of products may also include direct selling, so there is a need for communication about promotions between sales and marketing teams within the organization.
While marketing strategy describes a broad approach to generating marketable products and bringing them to customers, a go-to-market strategy goes slightly deeper into the tactics that will be used to deliver on unique value propositions and establish a competitive advantage in the marketplace.
With a product or service offering already realized, a go-to-market strategy identifies target markets for the product as well as constructing buyer personas for customer segments within the target market and establishing a unique value proposition (UVP) for each buyer persona. The go-to-market strategy also includes decision-making and strategic thinking about product positioning, or how to differentiate the product and brand from its competitors in the marketplace.
Broadly speaking, organizations should think of marketing strategy as a long-term approach to marketing success over time and go-to-market strategy as a tactical outline for a new product launch or for launching an existing product into a new marketplace.