Avoiding pitfalls: crafting a fail-safe go-to-market strategy - Part 1

Launching a new product without a robust go-to-market strategy is like setting sail without a map—you might eventually find land, but the chances of getting lost along the way are incredibly high.

As a professional who guided companies through the complex process of bringing products to new market, I've observed that even the most innovative products can falter without meticulous planning and execution. Today, I'm here to share critical insights into the common pitfalls of go-to-market strategies and provide guidance on how to skillfully avoid them. Let’s explore what can make or break your success in the competitive market landscape, both domestically and internationally.

Deep dive into market research

Effective market research is the backbone of any successful go-to-market strategy. It provides a deep understanding of the competitive landscape, customer preferences, and market trends. Many companies make the mistake of relying on outdated or superficial data, leading to strategies that misalign with current market dynamics.

Consider the launch of the iPhone in Japan. Initially, Apple faced challenges initially as it underestimated the Japanese consumers' preference for feature-rich phones, rather than the iPhone's minimalist design.. Through ongoing market research, Apple understood this unique market demand and adjusted its strategy by emphasizing the iPhone's ecosystem and unique user experience, which eventually led to its success in the Japanese market.

There are numerous tools and solutions available that can aid in gathering this essential market intelligence. Over time, my colleagues and I have utilized several that stand out for their effectiveness :

• Semrush Market Explorer for its competitive intelligence
• Frost & Sullivan – Provides comprehensive industry analysis and growth strategy support, for understanding industry trends and competitive dynamics.
• Forrester’s Technographics – Offers detailed technology-driven insights, invaluable for B2B technology companies aiming to align their offerings with client expectations and industry standards.

Additionally, international B2B market entry can benefit from tools like GlobalData and Statista, which offers tailored insights into different industries and how they operate across various countries.

For Small and medium-sized enterprises (SMEs) looking to expand internationally, you should not overlook the resources available through your financial partners, such as banks. Many banks, with their extensive networks of offices and subsidiaries across the globe, offer invaluable support for international expansion at a reasonable cost. These services can include market analysis, competitive landscape assessment, identification of potential partners, and even interviews with key stakeholders. From my personal experience, utilizing these services significantly streamlined the expansion process. For example, I have engaged with CIC International on several occasions to assist with expansions into Spain, the Nordics, and North Africa. Their on-the-ground knowledge and support has proven to be regularly relevant to navigating these new markets effectively, underlining the crucial role that your banking partner can also play in your global strategy.

Craft a compelling value proposition

A value proposition that clearly articulates the benefits of your product is essential. Customers don't simply buy your products or services, they hire them to accomplish specific jobs. Historically, the primary cause of failed products and services is a misalignment with customer needs. This is not surprising given that majority of product teams do not agree on what a customer “need” even is.

The Jobs-to-be-Done (JTBD) framework revolutionizes how companies approach product design and market entry by focusing sharply on the customer's true needs.

Its power lies in its structured approach to defining, capturing, and organizing all customer needs. It shifts the focus from products to the outcomes customers really want. For instance, when a customer buys a drill, they're not seeking the drill itself but the hole it produces. The JTBD framework digs deeper into this concept by categorizing the various jobs customers need to complete and the specific outcomes they desire from those jobs.

For product teams, especially in B2B companies, aligning around this framework can dramatically enhance innovation efficiency. By utilizing the JTBD framework, teams can rapidly and accurately identify unmet needs, leading to the development of breakthrough products that are more likely to succeed in the market.

Moreover, the framework delineates three main categories of customers that B2B companies often serve: the job executor, the product lifecycle support team, and the buyer. Each has distinct needs and jobs to get done. For example, in a company using portable gas detection, the field technician (job executor) needs devices that provide accurate and rapid detection of hazardous gases to ensure safety in potentially volatile environments. The maintenance team (product lifecycle support team) requires equipment that is easy to calibrate and maintain, ensuring minimal downtime and consistent performance. Meanwhile, the industrial safety manager (buyer) focuses on the long-term durability and cost-effectiveness of the detectors, as well as their compliance with industry safety standards.

By understanding these roles and their respective jobs, even B2B companies can tailor their innovations to meet specific needs across the product lifecycle, from installation and maintenance to upgrade and disposal. This approach not only enhances the product’s value proposition but also ensures all customer interactions are optimized for satisfaction and efficiency.

The JTBD framework offers a profound advantage by bringing predictability to the innovation process. By mapping out customer jobs and the desired outcomes for each, your company can systematically identify where they can add real value. This methodical approach transforms innovation from a hit-or-miss endeavor into a targeted, customer-oriented strategy that significantly enhances the chances of market success.

This structured way of understanding and responding to customer needs is not just theoretical; it's a practical, powerful tool that has been shown to align marketing, development, and R&D efforts. It ensures that every product feature, every marketing message, and every sales strategy is built with the customer's jobs-to-be-done in mind. This alignment is crucial in today's competitive landscape, where understanding and meeting customer needs swiftly and effectively can make the difference between a product's success and its failure.

Identify and understand your target audience

Knowing your audience is crucial, yet many companies falter by assuming they understand their customers without investing in detailed research. This misunderstanding can lead to features that don't resonate, marketing messages that fail to engage, and ultimately, unsuccessful product launches.

Develop detailed buyer personas that include not only demographic information but also psychographic and behavioral insights. For example, a tech company launching a new app might segment its market into tech-savvy early adopters and more traditional users, tailoring its messaging and functionalities to meet the specific needs and preferences of each group.

When expanding internationally, understanding cultural nuances becomes even more critical. A product successful in one country might not resonate in another due to cultural differences. For instance, when Microsoft adapted its video game console, Xbox, for the Japanese market. Initially, the Xbox struggled in Japan due to its large size, lack of Japanese game titles, and controllers that were considered too bulky for the average Japanese consumer. Recognizing these cultural preferences and differences, Microsoft eventually introduced the Xbox 360, which was designed with a smaller, more aesthetically pleasing form factor suitable for Japanese living spaces. They also partnered with Japanese game developers to offer games that catered specifically to local tastes and narratives, improving their market penetration.

For SMEs and startups, accurately gauging market response to a new business idea might be challenging, especially when relying on feedback from those close to us. This is where "The Mom Test " a methodology outlined by Rob Fitzpatrick in his book of the same name, becomes interesting. This approach helps entrepreneurs avoid the common pitfall of receiving overly optimistic and often misleading feedback.

"The Mom Test" teaches you to craft questions that go beyond mere opinions about your business idea—questions that are tough for even your mom to give you a biased answer to. It focuses on understanding customer behaviors and the real problems potential users face, rather than just gathering their initial impressions of your idea. By focusing on actionable customer behaviors and specific issues, the feedback you collect is based on actual needs and experiences, making it a more reliable foundation for business decisions. This method ensures that the feedback you receive is both honest and constructive, helping you to refine your business model effectively.

Align and integrate marketing and sales efforts

Alignment between marketing and sales is crucial for the seamless execution of go-to-market strategies. Misalignment can lead to inconsistent customer communication and missed sales opportunities.

The importance of having our sales and marketing teams work in tandem ; often referred to as 'Smarketing' ; is more critical than ever. This approach ensures that both departments operate as a unified organization, enhancing our marketing activities, boosting sales effectiveness, and ultimately growing our revenue. In many organisations, marketing and sales might have operated in silos, with marketing generating leads at the top of the sales funnel and sales taking over once leads were ready. However, in today’s interconnected world, this model simply doesn’t work anymore. Your customers interact with you at various stages of their journey, and it’s essential to avoid clunky handoffs and duplicated communications, which can sour their perception of the business and result in lost revenue.

To foster better alignment, you should implement regular alignment meetings and establish shared Key Performance Indicators (KPIs). Utilizing CRM systems (Hubspot and Zoho CRM are strong enough at the beginning of your activity and easy to scale, Monday is a tool in a class of its own, very different from what we're used to seeing. It's a very powerful software tool for managing and automating all kinds of processes, beyond sales) can greatly enhance your ability to share real-time data across teams, improving communication and enabling more personalized customer interactions. This integration ensures that your marketing strategies support direct & indirect sales efforts, making your marketing efforts more relevant and supportive of sales objectives.

In international markets, aligning marketing and sales is particularly crucial as local teams need the flexibility to adapt strategies based on real-time feedback while staying aligned with your global business objectives. The dynamic nature of global markets requires your teams to be flexible and responsive to local customer needs and preferences, yet consistent with your overall corporate strategy.

Studies, like those from Gartner, have shown that organizations that prioritize sales and marketing alignment are nearly three times more likely to exceed their new customer acquisition targets. This demonstrates that a well-aligned team is not just aware of our company’s goals but is also equipped to execute them effectively.

Moreover, adopting the 'Smarketing' approach means ensuring that marketing and sales teams not only share goals but also strategize together. This involves regular discussions on lead generation, customer journey mapping, conversion rates, and other critical metrics that influence both departments. You must agree on processes, embrace uncomfortable conversations for continuous improvement, and centralize your communications to enhance alignment.

Clear and Consistent Messaging

Clear and consistent messaging across all channels is essential to reinforce your brand identity and value proposition. Confusion arises when messages are inconsistent or unclear, leading to diminished brand perception and customer confusion. I strongly suggest you to develop a messaging guide that outlines key phrases, brand tone, and communication styles suitable for different markets and platforms. This guide should be used by all teams to maintain consistency. It helped me maintains a consistent brand voice across over 10 countries by adhering to detailed brand guidelines that address local market nuances without compromising global brand integrity.

In the next part of this article, we will take a deep dive into channel management, budget allocation, and the strategic necessity of pivoting. Each of these components plays a critical role in the refinement and execution of a go-to-market strategy that's both resilient and dynamic. Stay tuned as we explore these vital topics in greater depth, equipping you with the insights necessary to effectively navigate the complexities of the market and achieve enduring success.