A Go to Market (GTM) Strategy answers the following 5 questions:
– Whom will we target within the proposed market?
– What will be our product/solution for prospective customers?
– How will we market our products to prospective customers?
– Where will we sell our products to prospective customers?
– How much will we charge for our products for different customer segments?
A Go to market strategy is part of the Product Strategy definition. (See prior post “10 Steps to create an effective Product Strategy”). The scope of the strategy and plan covers all topics that must be addressed to successfully bring a differentiated, compelling and unique selling proposition to the market that will resonate with your target customers. Below are some tips to create one.
- As the product is defined with requirements start a clear and actionable blueprint of a “Go To Market” strategy and plan. Define the KPIs for success of GTM initiative along with revenue projections by location if necessary.
- Segment and analyze the target market. For a new product, use data driven information to decide the customer for initial market penetration. Recognize and understand the persona of the decision makers, recommenders and influencers.
- Build the collateral: digital, and print. Prepare for marketing campaigns.
- If required ensure compliance with legal, and regulatory requirements. Take into consideration any geographical and local needs.
- A comprehensive communication plan covers the Website Launch, Roadshow, and other events depending on the product and location. Don’t forget social media to get the word out.
- Differentiate and position the product from its competition. Have a pricing and packaging strategy that includes discounts.
- Partners need to be ready with training and communication so that they can build awareness, transact purchases, implement and support customers.
- Conduct Sales Training and arm the team with collateral, pricing, competitive differentiation information to close deals. Ensure ready relevant material to support choice drivers in the various stages of the buying process. Prepare Demand Servicing and Deal Closure templates.
- Build the support strategy, requirements, and training. Train the support organization to handle implementation and end user inquiries. Address all aspects of operational readiness.
- After completing the above, measure successes against the KPIs defined and learn using a post mortem exercise to improve for the next one.
As a Product Management leader, I have pondered ways to measure the effectiveness, maturity, growth and development of a team. Here is what I thought would be a holistic approach for the same.
1 Talent Review – Evaluate the strengths and opportunities for growth for each member of the team based on their grade level. Based on this assessment, craft a training plan by quarter for the fiscal year. Leverage it to build a mentoring program within the team where senior leaders can mentor junior PMs. Perform a SWOT analysis to gauge domain expertise on the team.
2 Leadership Sponsorship – It is a good idea to engage sponsorship from senior management to ensure the success of a Product Management organization. Defined roles and responsibilities also help in ensuring there is accountability and commitment towards achieving results.
3 Processes, Procedures and Documentation – As with any function in an organization, especially as it scales, effective and efficient processes and tools for the product development lifecycle. Use of productivity and collaboration tools to foster team work and sharing.
4 Customer Engagement – Does the team have formal customer engagement forums before, during and after implementation? Do these include cross sections of the customer segment especially the influencers and decision makers?
5 Emerging Technologies Investment – Progressive Product Management organizations allocate time for exploring and prototyping new ideas, and concepts for products. These could include capabilities with growth opportunities in existing products or entirely new product segments. While doing so, sunset products that provide little value to the business.
6 Marketing Processes –Go to Market processes and procedures are well defined and executed. Analysis using sales tools that capture customer interactions during the sales lifecycle. Measurement and reporting of product revenue, pricing effectiveness, and ROI. Marketing mix strategy and plans are in place. Marketing campaigns are governed with ROI calculations.
7 Continuous Learning – A culture of continuous learning from industry peers, organizations, conferences, and competitive research.
8 Operating Rhythms – Well defined and implemented Operating Rhythms that provide the right level of governance for the product’s success. These include Product and Operations Reviews.
9 Metrics for evaluating Effectiveness – Internal and external surveys to collect feedback with areas for improvement.
10 Vibrant environment – One that fosters and encourages collaboration, sharing, growth and having fun. Group events to bring teams together or competitions among team members are ways to build a creative environment.
Use the above list to gauge where you are in the progress and improvement of your team.
The Product Manager leads a cross functional team to build products and services that delight customers and create shareholder value. As a Product Manager, one of the first steps is to understand the market, customers, competitive landscape and formulate a product strategy to ensure a viable product and business.
The following are ten steps to guide in the journey.
- Mission – The mission of the product should express its core purpose. This should be powerful enough to rally the product teams (Product Management, Development and Quality Engineering).
- Vision – The vision of the product is the desired future state. This could be about two to three years out.
- Understand the customer – Complete a customer segmentation study. A mind map is a useful tool for analysis. Who are your customers? What kinds of attributes are similar in your customer base? Can you put them in categories? What problems do they currently have? Why do they buy your product? Does your product solve their current pain? Are there any future problems you can identify in this analysis? What capabilities in your product trigger buying decisions? Any future product ideas?
- Market Analysis – A thorough understanding of your current product and its capabilities is required as you understand the market. Doing a SWOT analysis will benefit. Look at your competition. Never forget “in house” development of capabilities as a competition. Be objective. Do a competitive analysis. Go down memory lane and study the past trends in the space. What can you predict in the future?
- Financial Analysis – You want to be in business to make a profit. Establish sound fiscal planning and reviews during the product life cycle. Forecast revenue projections a couple of years out. Break them out by quarter. Include revenue by geos and partners. Calculate gross margins and product profitability by phase of the product. Take into account any environmental factors that could impact revenue.
- Marketing Mix – Address the product launch plan. How do you plan to market your product? How will you create the demand for the product? Through which partners? In which geos? What is the optimal product price and discounting strategy? Adjust this by phase of the product. For new product introductions, there could be some early bird pricing.
- Business Performance – Quarterly Business Performance reviews are good to evaluate your product adoption and issues with customers. Examine service and support data and recommend any additional features or enhancements for the product. Can some of these be addressed with additional training and documentation to increase customer satisfaction? Explore for “Key Moments of Truth” opportunities.
- Roadmap – A two to three year roadmap is a useful tool to communicate with customers, stakeholders and partners.
- A looking glass into the future – Stay current on shifts and trends in your market, customers and competition. Look for adjacent opportunities to provide an “end to end” solution that addresses customer’s problems. This could include potential M&A opportunities and recommendations. Present these ideas and opportunities.
- Measure. Learn. Adapt. – Ensure that you have the right KPIs to measure business performance. Learn from it. Analyze data gathered in the process to guide product decisions in the future. Try to ensure that data used for analysis is accessible, auditable, automated to guarantee sound decisions.