Marketing models in 1 download file

8/12/2019 Marketing models in 1 download file

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A Go-To-Market strategy usually involves answering 5 key questions:

1. WHO will we actively target within the market?

2. WHAT will be our product portfolio for target customers?

3. HOW MUCH will we charge for our products for different customers?

4. HOW will we promote our products to target customers?

5. WHERE will we promote and sell our products to target customers?

Go To Market is a strategy mainly used by marketers of goods that are not for the mass market. The main focus of this market

the direct consumer or the one in authority who makes the buying decision. Specifically speaking, when a company wants to

bring together all the commercial actions marketing, sales, brand management, pricing, and consumer insight to drive the

raise a set of key challenges, and all companies face some unavoidable questions:

1. How can companies ensure that go-to-market strategy fits the current needs of certain type of business model, channels

2. What measures can companies take to improve integration across the lots of commercial functions?3. How can companies altering go-to-market approach help support cost-reduction efforts without harming the core busine

4. How can companies build the best-in-class capabilities required to support a functional go-to-market strategy?


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When companies go to market, they bring together all the commercial functionssales, marketing, brand management, pricin

insightto drive the bottom line. This raises a set of key challenges, and companies face some critical questions:

1. How can we ensure that our go-to-market strategy fits the current needs of our business model, channels, and customers?

2. What measures can we take to improve alignment and integration across the various commercial functions?

3. How can altering our go-to-market approach help support cost-reduction effortswithout harming the core business?

4. How can we build the best-in-class capabilities (processes, people, and infrastructure) required to support an effective go-t


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Why you need the Go-To-Market Strategic Framework.

Getting your innovation, idea, new product or technology to market is complex, much more complex than it used to be. This struc

assists you to find the ideal path to market.

This framework will result in the following business advantages:

1. Improved market awareness

2. Reduced time to revenue

3. Identification of more successful distribution channels

4. Stronger competitive advantage

5. Greater market/customer focus6. Improved re-use of existing go to market channels

7. Improved understanding of the cost and time implications of creating new channels to market

8. Better understanding of the skills, team and approach required to bring a technology to market

What makes it so useful?

Bringing your innovation to market has never been more complex. This methodology has been developed to assist you navigate th

simple structured process. Examples for every process step ensure that you can identify exactly what needs to be done, and how

utilising this methodology.

What outcomes can I expect?Making a decision on which path(s) to market should be explored is complex and time consuming. Each channel relationship that

significant time and energy to develop. By ensuring that you have analyzed the options effectively, in a logical manner will result i

and improved distribution decisions.

When should I start developing my Go-To Market Strategy?

Your go-to-market strategy is usually the only thing standing between you and revenue. The sooner you get started, the sooner yo

revenue. Clients that have employed this tool report that the Go-To-Market strategic framework takes approximately 2 weeks to c

months of time in chasing the wrong opportunities.

Procrastination is the enemy of progress, so move closer to revenue with this powerful consultant developed tool-kit.


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Create a go-to-market plan

By Larry Melillo

When your consulting company is ready to launch a new service offering, it's critical to develop a go-to-market plan. A comprehensiv

describes the goals of the new service and outlines the steps needed to achieve those goals. Just as important, a go-to-market plan h

identify key risks to address in order to make the plan become reality. By proactively addressing these risks, your organization will giv

best opportunity to flourish.

Elements of a go-to-market planA well-designed go-to-market plan describes the following key issues:

Value of service offering to existing and potential clients

Strategy, timeline, and scope of the service rollout

Revenue potential for the service line over a period of three years

Initial costs and resources (for example, marketing costs, head count, and capital expenditures) associated with rolling out the se

Ongoing costs of maintaining the service

Risks associated with achieving the targets within the budget, along with mitigating strategies for managing those risks

Developing a strong go-to-market plan requires thoughtful analysis and teamwork from leaders across your company. Depending

of the service offering you are planning, the process of developing a go-to-market plan can take anywhere from a few days to tw

Five steps to a better plan

To develop a thorough go-to-market plan, you'll need to take these five steps:

1. Define the market opportunity for the service.

2. Build a budget model to establish clear goals over a three-year period. Metrics should focus on revenue, profit margin, market s

3. Define the general strategy for how the service offering will be delivered.

4. Outline the specific tactics required during the first year to execute the strategy.

5. Identify the economic, competitive, and internal risks associated with executing the strategy, and develop mitigating strategies


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STEP DETAILED TASKS

Define the market opportunity Review current and prospective client feedback regarding the market opportunity.

Review feedback from employees.

Review trend data from trade publications, analysts, and industry groups.

Develop a clear hypothesis regarding the opportunity.

Conduct client/employee workshops, executive forums, and external focus groups to test the h

Define the primary customers who will be served by the new offering, and determine what wo

service from your organization.

Build budget models (for one-

year and three-year periods)

Develop a revenue model based on expectations for market penetration, average deal size, and

marketing efforts.

Estimate margins over one-year and three-year periods, based on startup and ongoing costs.

Based on how the market is defined, set clear goals for market share penetration.

Particularly for year one, estimate the head count required to sell the new services and then ex

head count isn't readily available, be sure to include recruiting and retainment costs in the budg

A go-to-market plan case studyTo put this process into action, let's use the example of a system integrator located in the southeast market that deploys financismall and medium-sized manufacturers. After reviewing the market environment, client feedback, competition, and its own streweaknesses, the firm found that it was ideally suited to provide strategic services related to demand forecasting.The firm performed a detailed cost, benefit, and risk evaluation of the new service line. The next step was to package the evaluaprovide a clear plan for how the firm would successfully release the new offering. The following table shows the specific steps tathe go-to-market plan.


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Define the strategy Focus on these issues:

How will the service be delivered?

Why do clients need this service?

Why will clients buy the service from you?

How will activities such as hiring, marketing, and training affect the ability to deliver during the star

service?How will the strategy evolve after the startup phase (typically defined as the first 90 days)?

Outline the tactics for the

first year of operations

Define how the organizational structure needs to be changed to accommodate the new service.

Identify the new skill sets that need to be developed to sell and implement the service.

Outline the marketing activities needed to generate awareness in and to create leads from the targ

Determine the tools and systems required to support operations.

Identify and mitigate risk Outline the biggest risks that may affect your ability to reach the goals of the new service line.

Develop strategies to address how risks can be mitigated.

After completing these five steps, the system integrator has developed a detailed go-to-market plan that prepares it to launch a service. The go-to-market plan clearly defines the market opportunity, establishes the financial goals, and identifies a strategy fo

objectives.

Most importantly, the firm was able to identify key risks that might prevent the offering from being successful. Before launching

developed strategies for overcoming some of these potential obstacles.

The thorough preparation required by the go-to-market plan placed the firm's new service offering on sound ground, providing a

future growth and success of the service launch.

About the author Larry Melillo is a manager of CFO Advisory Services at KPMG, a leading provider of audit, tax, and advisory s

Services professionals help organizations implement strategies and process changes that drive a more value-added finance funct

G t S G t M k t S l M d l M B Bi C titi Ad t Th th P d t B i S ld


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Gartner Says Go-to-Market Sales Models May Be a Bigger Competitive Advantage Than the Product Being Sold

Gartner Special Report Examines the Future for IT Sales Strategies

One of the biggest barriers to innovation in the traditional technology providers' sales model is lack of flexthemselves without placing quarterly revenues at risk, according to Gartner, Inc."As technology has continued its unprecedented advance in recent years, the sales models used by providproducts to market have failed to keep up," said Tiffani Bova, vice president and distinguished analyst at Ginnovation challenge for providers today may be in finding the means to reinvent the sales organization ato meet new market demands, while at the same time continuing to protect and defend existing custome

revenue."One of the most consistent patterns in business is the failure of leading companies to stay on top of their technologies or markets change. However, technology advancements are challenging the status quo in mathis, the market will split into three types of provider that approach the market in very different ways smodels of selling to protect their installed bases, some evolving their products to compete better and somapproach with radical new products and business models.While there are numerous technology-related forces at work on sales models, the customer is also having providers take their products to market. Newly empowered and informed buyers are taking control of the should be cause for concern for many sales leaders. Providers have long been accustomed to defining notwill buy (the product), but also how they will buy it (the sales model). Where once their focus was pushin

loosely defined customer segment, now it needs to be redirected to connecting customers to their desireddesired purchase experience.

"The existing ways of selling, based on specific segments, high-touch, often face-to-face sales, with a seleheavy investments in lead generation marketing, are beginning to be less effective as people's buying behexpectations of IT shift," said Ms. Bova. "The key to moving forward is to take a customer-centered appromodels that support customers' new buying processes, rather than fight against them."As the market changes, to compete successfully, providers will have to base their growth initiatives aroundThe products and services they offer (and what need they fulfill)Their target customers (beyond standard segmentations)

The sales models they deploy to sell to customers (a combination of direct and indirect activities)

Focusing too much on any one of these without considering the other two in the equation will reduce the


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Focusing too much on any one of these without considering the other two in the equation will reduce the go-to-market approach and sales performance.It is relatively rare that providers consider all three elements when attempting to differentiate and compeconnecting them into a deliberate strategy, every crucial decision can be shaped by all three working togebe built to anticipate market changes and their subsequent impact."A connected sales model can't be created overnight, nor will it be a one-off task," said Ms. Bova. "Makinsignificant changes takes time and will continue to evolve with each new product introduction and new mincreasingly, providers that fail to make changes now could find themselves in a worse situation in two totechnology and its buyers have advanced even further."

Additional information is available in the Gartner Special Report "The Future of IT Sales" This special repobest practices for making go-to-market choices a source of differentiation and competitive advantage, insafterthought. The special report can be viewed athttp://www.gartner.com/futureofitsales and includes lincommentary that examine the future of IT sales and factors driving this evolution.Ms. Bova will provide additional analysis during the Gartner webinar "The Future of IT Sales" on August 13register for this complimentary webinar, pleasevisithttp://my.gartner.com/portal/server.pt?open=512&objID=202&mode=2&PageID=5553&ref=webinarss&resId=2546721&srcId=1-2994690285.
http://www.gartner.com/futureofitsaleshttp://my.gartner.com/portal/server.pt?open=512&objID=202&mode=2&PageID=5553&ref=webinar-rss&resId=2546721&srcId=1-2994690285http://my.gartner.com/portal/server.pt?open=512&objID=202&mode=2&PageID=5553&ref=webinar-rss&resId=2546721&srcId=1-2994690285http://my.gartner.com/portal/server.pt?open=512&objID=202&mode=2&PageID=5553&ref=webinar-rss&resId=2546721&srcId=1-2994690285http://my.gartner.com/portal/server.pt?open=512&objID=202&mode=2&PageID=5553&ref=webinar-rss&resId=2546721&srcId=1-2994690285http://my.gartner.com/portal/server.pt?open=512&objID=202&mode=2&PageID=5553&ref=webinar-rss&resId=2546721&srcId=1-2994690285http://my.gartner.com/portal/server.pt?open=512&objID=202&mode=2&PageID=5553&ref=webinar-rss&resId=2546721&srcId=1-2994690285http://www.gartner.com/futureofitsales


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Marketing models in 1 download file