Entering new markets is always risky. However, a well-informed go-to-market strategy can soften the landing in a new area. This guide aims to help businesses with assembling a data-driven go-to-market strategy to mitigate the potential risks of expansion.
A comprehensive go-to-market strategy clearly defines how a company can enter a new market with a kind of product or service. In this Go-To-Market Action Plan you will find out what keys steps are required to develop such a plan. The action plan will tell you how to:
- Solve Key Issues of Go-To-Market Planning
- Identify Market Opportunity
- Plan for Budget
- Develop a Strategy
- Solve Key Issues of Go-To-Market Planning.
- Identify the value of your offerings to existing and prospective customers
- Develop a promotion strategy that outlines a timeline and scope of product advertising
- Make a forecast of revenue expected from product sales over a period of several years
- Estimate initial costs and resources associated with sales
- Estimate ongoing costs for maintaining the product
- Identify risks associated with achieving marketing targets
- Develop a mitigating strategy for managing those risks
- Identify Market Opportunity.
- Identify a market you want to enter
- Review current and prospective customer feedback regarding your market opportunity
- Review feedback from your company’s employees as well
- Analyze market trend data to have a clear vision about current situation and future events within the market
- Develop a clear hypothesis regarding your market
- Organize client/employee meetings, executive forums, workshops and brainstorming sessions to test your hypothesis
- Identify the target customers that will be served by your business in the new marketplace
- Define what barriers would force the target customers now to purchase from your organization
- Figure out what solutions can be applied to removing those barriers
- Plan for Budget.
- Review your sales expectations to develop a revenue model that will be assessed against market penetration and average deal size
- Establish profit margins over a 2-3 year period, considering your startup and ongoing costs
- Set market goals that must be linked to revenue expectations
- Develop a market penetration budget that covers all types of costs and considers revenue expectations
- Be sure to include staff recruiting and training costs in the budget
- Develop a Strategy.
- Determine how your product will be delivered to the target audience in the new market
- Figure out what triggers will make your prospective clients purchase the product
- Be sure your market plan takes those triggers into account
- Determine how staff-critical activities (such as hiring and training) will affect your products in the marketplace, and then adjust your marketing strategy appropriately
- Identify new skills and abilities that your salespeople must improve to generate higher revenues
- Outline the tactics for the first year of operations in the market
- Identify how your business structure will be changed to accommodate to new market conditions
- Outline marketing activities needed to generate brand recognition and awareness
- Have a plan for creating leads from your targeted market
- Determine tools and systems required to support marketing operations
- Identify and describe risks that surround your marketing campaign
- Develop a mitigating strategy for those risks.
When creating your product messaging ask yourself:
- How does your offer address the need in the market?
- What supports your claim that your solution will fulfill their need?
- Why should your target market believe you?
The components of a go-to-market strategy are simple: market intelligence, market segmentation and product messaging. But, the execution of those steps can be more complex depending on your product and the market you’re entering.