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Go-to-market (GTM) and marketing strategies are both essential toolkits and roadmaps. The differences between the two can vary based on perspective and use, but most crucially, where a company or product is in its lifecycle. It’s important to understand and apply the facets of both strategies.
In so far as general definitions go, a marketing strategy is an ongoing and long-term plan, while a go-to-market strategy focuses on a new market or new product. Let’s take a look at the features, components, and benefits of each in a little more depth.
A marketing strategy or marketing plan centres on a business’s long-term goals. It’s ongoing and company-specific and incorporates elements such as overall company brand, value proposition promotion, and achieving and retaining competitive advantage for the long haul. It creates a roadmap for product promotion, sustained demand generation, and overall company growth.
Marketing strategies can include:
A GTM strategy includes elements of a marketing strategy and contributes to the entire marketing plan. However, a GTM strategy can be particularly intense, specific, and narrow in the short term and will focus on a new market, a new product launch or the critical first steps to market of a startup. A GTM strategy can be considered a sub-section of a broader marketing plan. It will outline how a product will be introduced to a market and how it will reach target customers. It is developed before a product launch but is aligned with any broader business goals, vision, and values.
Rebecca S, a Forbes contributor, defines:
“GTM strategy as the blueprint for building a house, and the marketing strategy as the construction plan. The blueprint (GTM strategy) defines who will live there (target market) and why they'd choose it (pricing & packaging, differentiation, and value proposition). The marketing strategy is how you'll get people to move in. It involves choosing materials (marketing channels you'll use to reach people), and defining aesthetics (brand identity) to turn the blueprint into a desirable, livable home.
Without the blueprint (GTM strategy), you build something that doesn't meet your residents' needs. Without the construction plan (marketing strategy), even the best blueprint won't materialize. Both are essential.”
A GTM strategy begins with the product, market, and competitor research, all of which must be solid to stand any chance of success. It goes beyond marketing and messaging and covers segmentation, pricing, packaging, channel strategy, and sales. A GTM strategy will also have a clear roadmap, timeline, goals, metrics, and KPIs, as well as a monitoring and review process to enable leaders to adapt, iterate, and revise in as near to real-time as possible.
GTM will include the specific features and benefits of a product, how it differs from the competition, and how competitive advantage will be achieved. There will be particular sales collateral for the product and for the customer pain points the product will overcome. The size of the product or market opportunity will be clearly defined as a business case.
Knowing the explicit competition for a particular product is vital to setting and promoting pricing, product features, and customer targeting to gain a competitive advantage. In a GTM strategy, companies usually start from a position of zero product competitive advantage, although they may have features and pricing that could quickly deliver an actual advantage.
Understanding the definitive market for a new product is essential when targeting what may need to be a significant marketing and advertising budget for a product launch. An existing product launched to a new market will require that market to be clearly defined, or else there’s the danger of falling into the dreaded “hit and hope” approach of marketing or sales.
Well-positioned pricing and any pricing and discounts are also crucial to entering a market effectively and performing well over the medium and long term. Price decisions will be based on sound competitor and market research.
A GTM strategy is comprehensive and detailed. It may break down an approach per channel, including targeted advertising and collateral for a particular route to market and audience.
The details of a new product or a product for a new market are vital, but a broader value proposition is also essential as new customers will look beyond just features for added value and long-term customer benefits.
Factoring in the customer journey, from lead to conversion and from conversion to ambassador or repeat buyer, is essential to sustaining GTM strategy and product or market success in the long term, particularly from a standing start. GTM also demands a clear persona or target customer identification, deeper knowledge of customer requirements and behaviours, and intertwining with delivering the personalisation required for successful sales.
The sales team, sales processes, and revenue generation are also critical elements of GTM, which is conversion and revenue-driven, especially if a RevOps methodology is at the heart of an operation. GTM sales require customer profiling, segmentation, pre-qualification, efficient lead-handling processes, and much more besides.
From a marketer's perspective, GTM helps validate a product idea, identify the target market, and establish a competitive advantage. In contrast, a marketing strategy builds brand awareness, consistent and compelling messaging, and customer loyalty but also drives leads and conversions.
As a leader, it’s important to observe that, too often, companies operate with only a marketing strategy that perhaps has some specific product elements. Although a strategy can contain short—and long-term elements, it focuses too much on the long-term brand and value and not on quickly conquering today’s highly competitive and fast-paced markets.
Operating solely with a marketing plan can see a business rapidly outperformed by competitors conducting the right amount of intense, short-term activity for products and markets. Where once it was feasible to take years to achieve product or market success, today, make or break occurs in a matter of months, making GTM strategy foundational for any business.
A GTM strategy focuses on product, marketing, and sales teams and reduces time to market. When combined with a marketing plan, it facilitates a powerful market entry to the right customer base and builds momentum for long-term success.
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