A profitable business is dependent on several factors that interact together. This includes your go-to-market strategy (GTM). A GTM strategy for a new product is a minor but critical component of your overall marketing plan. A solid go-to-market strategy takes into account a variety of factors, such as pricing, distribution channels, and unique selling propositions.
A go-to-market (GTM) strategy is a step-by-step plan created to successfully bring a product to market. A good GTM strategy generally identifies a target audience, includes a marketing plan, and outlines a sales strategy. Although every product and market will be different, a GTM strategy should identify a market problem and position the product as a solution.
In simpler terms, a GTM strategy is how a company brings a product to market. It is a practical roadmap that measures the feasibility of a solution’s success and predicts its performance based on market research, past examples, and competitive data. It’s also worth noting that go-to-market strategies aren’t exclusive to physical products. One can create a GTM strategy plan for a new service, a new branch for a business, or even an entirely new business.
A go-to-market strategy (GTM) is a step-by-step plan to launch a new product or extend an existing product to a new market. It puts one’s initiative on the road to success by responding to the following questions:
- What product is one selling in the market, and what unique problem does it solve?
- Who is an ideal customer, and what pain points do they experience?
- Where to sell the product? What markets does one want to pursue, and what do the demand and competition look like in those markets?
- How will one reach the target customers and create demand?
Starting a product is a large investment. And no matter how advanced it is, the way one market and sell the product can make or break it. For example, in 2019, Microsoft conducted market research to understand the needs of its target audience and develop its GTM strategy for its Surface Laptop 3. The research helped Microsoft understand the demand for larger screens, longer battery life, and improved performance, which led to the creation of a product that met these needs.
Every time one put a product or service on the market and needs a go-to-market strategy. It includes:
- Launch a new product into an existing marketplace—for example, an established clothing brand that launches a line of beauty products.
- Bringing an existing product to a new market—for example, a local grocery chain that is expanding in another state.
- Testing a new product in a new market—for example, a tech start-up launching its first app.
Launching a new product does not seem easy
When it involves product release thoughts, manufacturers such as Apple usually control to get it right. In fact, they controlled the promotion of over 300,000 iPads on their release date. Every enterprise desire to make the maximum in their advertising investment, however now no longer anyone is like Apple.
The assignment is especially big while launching a brand-new product. Rapid innovation in the industry has led to product development in marketing. No matter how good the products and services are, they won’t do much until it satisfies consumer behavior.
Numerous factors can cause new products to fail, therefore here is a list of simple ideas to prevent the failure of the products.
1. Choose the appropriate audience
It can be difficult to know how to target the customers who will respond to a product. The example demonstrates how critical it is to consider whether people will use the product. To achieve excellent results, one must first understand the customer’s values and priorities. The product development is extensive due to audience demand.
2. Position the product correctly
Product failure results from incorrect product positioning. Only a few products are acceptable to consumers based on their functions.
The right positioning decides the image of the company among the customers.
Below are the features that lead to the proper product positioning.
- Place the product in the right ‘space’
- Conduct a market segmentation and analysis
- Define the target market
- Identify the product attributes
- Data collection from the target market of the identified product attributes
To maximize sales, the company should make clear efforts on which part of the image to show. To make long-term profits, proper positioning is required. Product positioning is an essential component of any product launch. Product development dimensions range from market profile to rapid competitive analysis at the highest level.
3. Agile release planning
In the overall scrum methodology, agile release planning comes first. It must be done correctly in order to set up the new products and their timelines. Consider an agile release plan as the foundation of the product roadmap in order to achieve more with a dedicated team. Consider the following factors when developing an agile release plan:
- Define a plan
- State of team velocity
- Prioritize the behavior of the product
- Clarity of vision and values
- Presence of stakeholders
- Product backlog
- Existing issues
- Communication plan
Perfect product release planning can aid in the development of the right strategy. Its goal is to value planning rather than to produce a well-documented plan. Be adaptable.
4. Conducting a beta test
The use of beta testers (real-world users) can provide a thorough understanding of the product’s real-world usage. Users can use the feedback to work on any problems that are discovered.
Consider beta testing for three reasons:
- To understand how interested users are in the product and features
- To observe product usage and its durability in usual circumstances
- To identify major and minor changes to increase the worth of the product
A higher-quality product would result from successful beta testing. Furthermore, the reduction in production costs monitors customer satisfaction and improves the product planning process.
5. Marketing channels that are appropriate
Constant research on what people are looking for, knowing their feedback and comments, support, and also looking for different ways to update the product online. Market research done incorrectly wastes time and money. During product launches, social media, event marketing, extensive PR, and print and digital marketing all play an important role. Outline marketing channels that will drive users, such as site pages, videos, social posts, emails, and other tactics.
Blog posting on social media platforms such as Facebook, Twitter, Instagram, LinkedIn, YouTube, and Pinterest keeps one up to date on the latest product launches.
6. Product evaluation
Examining all aspects of a potential product and its flaws. To treat the product as perfect, market testing is required. Before testing, the team must answer the questions of when, where, what, and how the product will be produced. A great deal of data is gathered to ensure the success of products. Take steps to reduce the risks of failure from development to deployment.
7. Prepare your execution
Product failure is caused by poor design, poor implementation, poor user experience, creepy features, and a lack of quality control. Poor execution causes a product launch to be delayed, and it can also have an unnoticed cost. The revenue stream is delayed due to poor execution.
A winning product launch comes up with the right execution of products.
Challenges when working on a new product initiative
1. Barriers to brand messaging and product positioning
The first challenge is persuading customers that they require a product. The majority of businesses struggle to convey their message in a way that resonates with their target audience. They fail to effectively position their new product and determine the appropriate brand messaging. Finally, they are unable to sell their new product.
The majority of companies aim to sell their products into the market; there are various agencies that assist in developing key messaging and positioning for the targeted audience rather than the product or brand. Do you need to promote the outstanding features of a new product? Explain how these features will benefit the audience. When created with the audience in mind, the key message will be communicated effectively.
To begin, concentrate on the primary target demographic. While it is possible to target multiple demographics at once, the one who will require and appreciate the product the most must be chosen. This will aid in the creation of an effective positioning statement. Companies must ensure that their User Value Proposition is compelling and relevant to their target audience. For example, Tesla’s UVP is to accelerate the world’s transition to sustainable energy. The UVP reflects Tesla’s mission and resonates with its target audience, which is environmentally conscious consumers.
Determine the problems that the audience faces and how the product can help them. Then, based on the information gathered, brand messaging and product positioning can be developed.
2. Problems with audience targeting
It is not a good idea to launch a new product without first conducting some preliminary research on the target audience. Making assumptions about demographics who might be interested in the product is a dangerous bet. Using stereotypes to determine the target audience is simple but ineffective. Without thorough research, it is possible to target the incorrect audience and thus miss out on a potential audience base.
To find the most relevant target audience, proper audience, and market research is critical. Investigate the demographics that perform the most searches for the product’s category. Next, conduct research on that specific demographic to determine which social media platform is most popular and what type of content is preferred.
There are numerous free and paid tools available on the market to assist with better market and audience research prior to the launch of a new product. These tools can be used to gain useful insights into consumer trends, preferences of various demographics, and how they browse and purchase. This data can then be used to identify the target audience base and market the new product to them.
3. Challenges with marketing the launch
Regardless of how good the new product is, it will not be successful in the market unless the marketing is done correctly. Otherwise, how will people buy the product if they are unaware of its existence? Most importantly, how will they be persuaded to buy the new product?
However, marketing the launch is the most effective way to address this issue. However, most businesses face several challenges in doing so. Marketing the product launch entails using the best platform to reach the target audience, disclosing just enough information to pique their interest, maintaining their interest, and building hype by keeping them updated on the progress.
There are numerous ways to market the product launch in order to generate enough buzz for a successful product launch. The first and most important step is to select the appropriate platform for product launch marketing. The goal is to market it on a platform where the audience can see it.
For example, if the target audience includes professionals, LinkedIn can be used to target millennials, and Instagram, Snapchat, or YouTube can be used to market to the general public. Television and print ads also appear to be viable options. A teaser campaign, a contest, or influencer marketing are all viable options.
Whether a company is in its early stages or has a large product marketing team, the above checklist can be extremely beneficial to product development.
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Based on insights by Nandini Vishist, Manager, Research & Innovation, TMT, Netscribes