As a marketer in the business-to-business world, you are likely always looking for new and innovative ways to reach your target audience. Yet whatever type of business you do, your business will always struggle without a solid B2B go-to-market strategy.
In this blog post, we have outlined a plan for getting your product or service in front of the right people, at the right time, and for the right price. We’ll also provide tips on how to get started with a B2B GTM strategy of your own.
What is B2B?
Business-to-business (B2B) is a transaction between two businesses, such as a manufacturer, wholesaler, or retailer.
B2B can also refer to the relationship between a business and its suppliers. For example, a company might buy raw materials from suppliers to create its products.
The term can also describe the relationship between a company and its professional service providers, such as accountants, lawyers, or consultants.
B2B transactions are typically more complex than business-to-consumer (B2C) transactions because more decision-makers are usually involved.
What is a Go-to-Market (GTM) Strategy
A go-to-market strategy (GTM) outlines the steps a company takes to bring a new product or service to market. This sales strategy outlines tactics that enable the company to match desired outcomes with its resources and capabilities and navigate industry complexities.
Components of a Go-to-Market Plan
The main components of a go-to-market plan are market segmentation, target markets, product positioning, and sales channels. An effective GTM strategy should be customized to the specific needs of the product and the company, and it should be regularly updated as the market landscape changes.
Here are some common elements that all successful GTM strategies share.
Market Segmentation.
It is the process of dividing the overall market into smaller groups based on shared characteristics. Market segments can be defined by geography, demographics, psychographics, or behaviors.
Target Market Identification.
Once the market has been segmented, the next step is to identify which segments offer the best opportunity for growth. It involves the size of the segment, its potential for growth, and its fit with the company’s products and services.
Value Proposition.
The value proposition is the #1 thing you need to include in your go-to-market plan. Why? Because your value proposition is what tells prospective customers why they should buy from you instead of your competition. It differentiates you in the marketplace and sets you apart from everyone else.
An effective value proposition is clear, concise, and positioned front and center in all marketing materials.
When crafting your value proposition, consider these three key components:
- The specific needs of your target customer base
- The unique benefits of your product or service
- How your solution is superior to other options in the market
Sales Channel Utilization.
One of the key challenges in marketing a new product or service is getting your offering in front of target customers at the right time and the right price. One way to do this is by employing a sales channel strategy. You may use online channels like social media or search engine marketing or offline channels, such as trade shows or direct mail.
Another common approach is to develop a direct sales force. It involves hiring salespeople and giving them specific territories or quotas to reach. You may also use indirect channels, such as distributors or retailers.
The 5 Most Common GTM Strategies
Inbound Marketing.
Inbound marketing involves creating content for your target customers and then attracting them with online tools, such as social media ads, SEO, email marketing campaigns, or webinars.
Outbound Marketing
Outbound marketing is reaching out to potential customers directly through traditional channels like print advertising or direct mail.
Partner Programs
Partner programs work by partnering with other companies in your industry to promote your products or services jointly. It can be done through co-marketing campaigns, joint webinars, or cross-selling arrangements.
Account-Based Marketing
Account-based marketing, or ABM, is a strategic approach to marketing that focuses on building relationships with key decision-makers at large companies.
It can be accomplished by sending direct mailers or emails to these individuals, hosting in-person events, or engaging with them on social media.
By targeting specific individuals and companies instead of a large audience, businesses can build stronger relationships and position themselves as influencers in their industry.
Imagine a software company that wants to expand into the healthcare industry to explain how this might work in practice. With ABM, they might first conduct market research and identify decision-makers at leading hospitals. Then, they can use the information to develop tailored messaging that appeals specifically to the needs and preferences of these contacts.
Demand Generation
Demand generation is a go-to-market strategy designed to generate new leads and bring potential customers into the sales funnel.
This strategy involves various marketing activities and tactics, from creating and sharing content on social media and blog platforms to reaching out to potential customers via email and phone calls.
Some key components of demand generation include evaluating performance metrics such as open rates, click-through rates, conversions rates, and conversion values can help companies improve their demand generation strategies over time to deliver more high-quality leads to their sales teams effectively.
Developing a GTM Strategy for B2B of Your Own
Knowing how critical a go-to-market strategy is to the success of your B2B Marketing, here are some steps that you can take to develop an effective B2B GTM strategy.
Basic market research
Basic market research for a Business to Business go-to-market strategy involves gathering information about potential clients. A customer profile helps understand the market landscape and identify opportunities or challenges.
Surveys, focus groups, or interviews with key stakeholders are effective methods. Quantitative data from public records and government databases also provide valuable insights into consumer demographics and preferences.
After collecting this data, you can analyze and use it to create effective marketing strategies that align with customer needs and preferences.
Well-executed B2B go-to-market strategies focus on understanding the pain points of your target market and being able to communicate those needs effectively to win their business.
Identify Key Influencing Factors
Once you better understand your target markets, you can identify the key factors that will influence their purchasing decisions.
The main influencing factors are pricing, product features or benefits, brand awareness, reputation, or distribution channels. Customer insights are critical in understanding and addressing these factors, as they can help you decide which marketing strategies will be most effective.
Research your competition
In addition to understanding your market landscape, it is also important to understand the competitive landscape and how you build up against your competitors.
You may perform a SWOT analysis of your business and competitors or conduct industry research to better understand trends, customer needs, and gaps in the market.
SWOT stands for strengths, weaknesses, opportunities, and threats. Here’s how to do it:
- List your strengths and weaknesses. Strengths are things your business does well; weaknesses are things your business does poorly.
- List the opportunities available to you and the threats you face. Opportunities could help your business grow; threats are things that could hurt your business.
- Analyze each item on your list and determine what actions you can take to capitalize on the strengths, address the weaknesses, take advantage of the opportunities, and mitigate the threats.
- Track your progress and revise your SWOT analysis as needed.
Develop pricing and packaging strategies
Pricing and packaging are two important aspects of any go-to-market strategy.
- Packaging
Good sales plans always pay attention to packaging. Your packaging should be designed to catch the attention of every ideal customer and communicate the salient features and benefits of your products or services.
- Pricing
A competitive pricing strategy that offers value for money will attract potential buyers and keep your sales cycle healthy.
It is important to know the current market conditions and trends impacting both supply and demand for your product. When setting a price point, it is good to know how high or low your competitors’ prices are compared to yours.
There are a few key factors that you should consider when determining the pricing of your product.
You need to consider your costs and your expected profits.
Your production costs will determine the lowest price you can afford to sell at to make a profit while also considering any necessary expenses such as marketing or development costs and customer acquisition costs (CAC).
How to reduce your CAC?
There are ways to reduce customer acquisition costs (CAC) in a B2B setting. One way is to focus on qualified leads. You must have a process to ensure that you only target leads that are likely to convert into customers. You can do this by using lead scoring, which ranks leads based on firmographics, technographics, and engagement data.
Another way to reduce CAC is by using effective lead nurturing tactics. It involves maintaining consistent contact with leads over some time to turn them into sales-ready customers.
Develop a messaging strategy
A messaging strategy is a key component of any effective go-to-market plan. Messaging is an essential element in all sales funnels stages, so be intentional in the planning process.
Here are a few key things to note when crafting a messaging strategy for your B2B go-to-market (GTM) efforts.
First, you must align your message with your target buyer persona. This means understanding their specific pain points and what they’re looking for in a solution.
Then, you can craft a message that resonates with them and speaks directly to their needs.
Your messaging should be consistent across all channels – from your website to your sales collateral to your social media posts. It will help create a cohesive brand image and make it easier for prospects to remember your company when they’re ready to buy.
Finally, don’t forget to test, test, test! Try out different messages and see what works best with your target audience.
Choose Your Sales Channels
The final step in developing an effective GTM strategy is to choose the right sales channels to attract more customers. It considers your budget, target markets, and product positioning.
Common B2B sales channels include trade shows, online marketing, direct mail, and telemarketing.
Trade Shows
A trade show is an exhibition where companies in a specific industry showcase their products and services.
Trade shows are one of the most common B2B sales channels, as they allow you to showcase your products or services directly in front of target customers.
They provide a chance for companies to network and build relationships with target customers. Meeting face-to-face with suppliers and other industry professionals is a great way to learn about new products and trends in your industry.
Direct Mail
Direct mail is a marketing strategy that utilizes letters and other printed materials to communicate with potential customers in the business-to-business setting.
Unlike other marketing channels, direct mail targets a specific audience segment and allows personalized, one-to-one messaging.
This makes it an effective tool for targeting key decision-makers within an organization, such as purchasing agents or executives, who can be powerful advocates for your product or service.
Since direct mail relies on the physical delivery of items like brochures, flyers, and catalogs, companies can leverage this personal touch to connect with their target audiences and build lasting relationships over time.
Telemarketing
Telemarketing is a direct marketing strategy that involves making phone calls to potential or existing customers to promote a product or service.
While telemarketing can generate leads or make sales, it can also be used for appointment setting, market research, or customer service.
In the business-to-business (B2B) world, telemarketing is often used as part of a comprehensive go-to-market (GTM) strategy. When used correctly, telemarketing can be an effective way to reach out to target customers, build relationships, and close deals.
Online Marketing
As the name suggests, online marketing in B2B Go-To-Market strategy is the process of marketing goods or services online.
You may use search engine optimization (SEO), pay-per-click (PPC) advertising, and social media marketing.
Businesses need to carefully consider their target market and craft their marketing messages accordingly to be successful. They need to track various data points to measure the effectiveness of their campaigns.
Online marketing in B2B GTM strategy can be a complex and time-consuming process, but it can be an extremely effective way to reach new customers and grow a business.
We will cite a few examples of tremendously successful social marketing campaigns that increase these brands’ customer base and get high-quality leads.
Create an advertising and promotion plan
Advertising and promotion are important aspects of any go-to-market strategy. To generate awareness and interest in your products or services, you need to develop an advertising and promotion plan tailored to your target markets.
It could involve developing print ads, online banner ads, or conducting promotional events. The key is to create an effective and efficient plan while staying within your budget.
An excellent example of this is Coca-Cola. They have a well-defined GTM strategy that has been tailored to their target markets. This strategy includes using a mix of advertising and promotional channels, developing catchy slogans and logos, and focusing on customer satisfaction. As a result, they have been highly successful in the global beverage market.
What You Need to Ensure a Successful Product Launch
Marketing and promotion are the key factors in ensuring a successful product launch.
With the marketplace being too crowded, you must have a solid online presence and a well-crafted marketing plan that can help to draw attention to your new product.
We cannot emphasize this enough; right pricing is crucial in product launches. Pricing your product too high or too low can harm sales. Hence, finding the sweet spot between them is crucial.
Lastly, a strong distribution network can ensure that your products reach customers quickly and efficiently.
The Right Sales Team for Your Marketing Strategy
When it comes to marketing your business, having the right team of professional sales reps can make all the difference.
A successful sales strategy requires individuals knowledgeable about your products or services and effective interpersonal skills, and a commitment to customer service.
To determine the best sales team for your B2B go-to-marktet strategy, you must consider different factors, such as:
- the size and structure of your organization
- the nature of your target audience
- your budget for hiring new sales representatives
Ultimately, it is up to you to create a team that can effectively communicate your brand message and brings in new customers.
With careful planning and attention to detail, you can build the right sales team that will help support all of your marketing goals.
Conclusion
A successful go-to-market strategy in the B2B world requires careful planning, thorough research, and the right execution. However, you can create a foundation for success if you focus on your target market, use the right mix of advertising and promotional channels, and assembe a team of skilled sales reps, you can create a foundation for success. Keep in mind that as your business grows, your GTM strategy will need to evolve along with it.
FAQs
Here are other questions about B2B Go-to-Market Strategy that we have not discussed in the article.
A go-to-market strategy framework is a structure that provides a high-level view of how your company will bring its products or services to market. It should answer the question, “How will we get our products in the hands of our target customers?”
There are many go-to-market frameworks, but most fall into one of five categories: product launch, lead generation, partner marketing, sales acceleration, or market expansion. Each framework has its own set of steps and activities that need to be carried out to succeed.
The biggest risk is that you may not achieve the scale you need to make a profit. You may also cannibalize your current business or alienate your existing customers. Another risk is investing too much money in marketing and not seeing a return on that investment. Finally, you may not be able to execute your strategy correctly and lose market share to your competitors.
The most important practice is to ensure you’re aligned with your sales processes. Marketing departments often get siloed and disconnected from the sales teams they’re supposed to be supporting, so it’s crucial that you have a close working relationship. When everyone is on the same page and working towards common goals, that’s when you can really start to see results.
Other than that, some other best practices to keep in mind are:
Continuous experimentation
Personalization
Keeping an eye on the latest trends.
