A go-to-market strategy represents how companies market their new products to reach target customers in a scalable and repeatable way. It starts with how new products/services get developed to how these organizations target potential customers (via sales and marketing models) to enable their value proposition to be delivered to create a competitive advantage.
What do you take into account in a go-to-market strategy?
When launching new products successfully there are a few elements to take into account:
Marketing, segmentation, and pricing:
Other elements like market segmentation (where do we start? who do we target?), and pricing can be critical elements to build up momentum. For instance, Facebook started from specific niches, at selected campuses across the US, before opening up to anyone else.
Market context and distribution
A great product without proper distribution won’t go far, or too far. Distribution can be built in several ways. And based on the kind of product, you will structure your organization’s go-to-market strategy.
For instance, for the kind of product type and whether the market is ready or not for that, do you need a sales force able to deal with large enterprise customers? Or rather marketing power to push through a larger number of people?
For that, it will be extremely important to understand the market context:
And from there elaborate a growth strategy:
Zoom Multipronged go-to-market strategy
The good experience is channeled by sales efforts to identify customers opportunities, such to transform a non-paying user into an enterprise customer.
For instance, as pointed out by Zoom in its 2019, 10K “back in 2019, 55% of the 344 customers that contributed more than $100,000 of revenue started with at least one free host prior to subscribing.”
Therefore, the sales model combines the viral demand generation from the free Zoom Meeting plan with direct sales looking for potential customer opportunities.
The Zoom direct sales force includes:
- Inside sales
- Field sales
Those are organized by customer employee count and vertical.
In short, Zoom the workflow looks like he following:
- Free accounts are channeled through the right sales representative.
- SMBs opportunities will be assigned to an inside sales team member for the acquisition of the paid account.
- Larger SMBs accounts or potential enterprise accounts are assigned to field sales.
This sort of go-to-market is skewed toward product and distribution.
OYO octopus go-to-market strategy
The process of standardization of the experience starts with what OYO claims to be a 150 point checklist that goes from the booking experience to the support center and the on-ground Cluster Managers, ready to solve any problem it might arise during the experience of guests.
Thus the go-to-market (expansion) strategy looks like the following:
- Identification of the next opportunity/area/vertical to tackle.
- Acquisition via a growth representative expert in building up partnerships.
- The expansion team will apply the 150 point checklist to make the property in line with the OYO standard.
- Support and assistance provided by ad hoc OYO’s representatives.
- The expansion process ends when the company is able to properly manage the end-to-end customer experience.
This sort of go-to-market is skewed toward distribution.
Partnerships as a go-to-market strategy
This sort of go-to-market is a mixture of product, segmentation and distribution.
- What Is Business Model Innovation
- Growth Strategies To Expand, Extend, Or Reinvent Your Business Model
- What Is a Business Model
- What Is Business Strategy
- What is Blitzscaling
- What Is Market Segmentation
- What Is a Marketing Strategy
- What is Growth Hacking
- Speed-Reversibility Matrix
- Ansoff Matrix
- Innovation Matrix
- Digital Growth Matrix