go-to-market-strategy

What Is A Go-To-Market Strategy? Go-To-Market Strategies Examples

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:

Product Development:

In today’s digital landscape, when it comes to digital products or physical products that have digital components, built-in growth features enable a successful go-to-market strategy.

For instance, frameworks like growth hacking; engineering, data analysis, and marketing come together to enable a successful product launch.

That’s because product features can switch on the viral growth engine, thus speeding up adoption. Companies like Dropbox, Slack, and Zoom know that pretty well.

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:

market-types
A market type is a way a given group of consumers and producers interact, based on the context determined by the readiness of consumers to understand the product, the complexity of the product; how big is the existing market and how much it can potentially expand in the future.

And from there elaborate a growth strategy:

growth-strategies
In the FourWeekMBA growth matrix, you can apply growth for existing customers by tackling the same problems (gain mode). Or by tackling existing problems, for new customers (expand mode). Or by tackling new problems for existing customers (extend mode). Or perhaps by tackling whole new problems for new customers (reinvent mode).

Zoom Multipronged go-to-market strategy

zoom-business-model
Zoom is a video communication platform, which mission is to “make video communications frictionless.” Leveraging on the viral growth from its freemium model, Zoom then uses its direct sales force to identify the opportunity and channel those in B2B and enterprise accounts. 

Zoom defines its go-to-market as a “multipronged go-to-market strategy for optimal efficiency.” It starts with “viral enthusiasm” triggered by users as they join the platform for free.

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

oyo-business-model
OYO business model is a mixture of platform and brand, where the company started primarily as an aggregator of homes across India, and it quickly moved to other verticals, from leisure to co-working and corporate travel. In a sort of octopus business strategy of expansion to cover the whole spectrum of short-term real estate.

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

partnership-marketing
With partnership marketing, two or more companies team up to create marketing campaigns that help them grow organically with a mutual agreement, thus making it possible to reach shared business goals. Partnership marketing leverages time and resources of partners that help them expand their market.

In some other cases, a successful go-to-market strategy can be primarily about finding the platform or the partner that can help your product to gain he right amount of traction.

This sort of go-to-market is a mixture of product, segmentation and distribution.

Other resources:

Published by

Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which target is to reach over two million business students, executives, and aspiring entrepreneurs in 2020 alone | He is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate | Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy | Visit The FourWeekMBA BizSchool | Or Get in touch with Gennaro here