Quick launch or careful planning? Navigating go-to-market strategies in 2024

At a glance

• The test-and-learn GTM approach offers speed and adaptability, ideal for rapid innovation cycles and industries where quick market entry can secure a competitive advantage.


• A researched-backed, fully planned GTM strategy provides a solid foundation for products requiring significant investment, targeting highly competitive markets, with a focus on thorough market research and risk mitigation.


• Hybrid GTM strategies, blending agile research with the flexibility of test-and-learn methods, enable businesses to optimise their market approach, combining speed with deep market insights for greater success.

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In the ever-evolving landscape of business, the strategy behind launching new brands, products or services has never been more critical. As companies navigate the complex macroeconomic environment of 2024, clients we work with frequently raise the question of whether to adopt a quick, test-and-learn go-to-market (GTM) approach or a research-backed, fully planned GTM strategy. This article explores the advantages and factors to consider for each strategy, providing guidance for businesses seeking to determine the most suitable approach for their needs.

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Fast iterations, faster learnings—the test-and-learn approach

The test-and-learn GTM strategy is characterised by its speed and agility. This approach allows businesses to launch products swiftly, gather real-time feedback, and iterate on the go. It's particularly appealing in industries where having a first-mover advantage matters or when market conditions are rapidly changing.

A study by the Product Marketing Alliance found that two in three (66.7%) product marketers do not have a formally defined launch process in place.

Most of these marketers hail from the tech and startup sectors, where innovation cycles are rapid and consumer preferences can shift quickly—highlighting a need to launch rapidly and learn on the go.

These businesses prioritise speed and adaptability to capitalise on emerging trends. Additionally, organisations with a strong digital presence find this approach invaluable for refining offerings based on direct user feedback.

Even larger, more established companies in the process of digital transformation or entering new market segments may adopt elements of this strategy to stay competitive in an environment that rewards agility and responsiveness.

Advantages

• This strategy's foremost benefit is its ability to quickly introduce a product to the market, capturing attention and potentially securing a substantial market share before competitors can respond.
• Immediate consumer feedback provides valuable insights, enabling companies to make swift adjustments to their offerings, thus better meeting customer needs.
• Engaging with the market early provides valuable lessons not just about the product but also about the target audience, competitive landscape, and potential partnership opportunities.

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Challenges

• The rapid nature of this approach can sometimes lead to launching products that haven't been fully vetted for market fit or consumer demand, risking the company's reputation and financial investment.
• In an effort to rapidly iterate based on feedback, companies may fall into the trap of endlessly adding features to please a vocal minority, complicating the product and straying from the original value proposition.
• Introducing a product that's not fully polished can harm a brand's reputation, especially if consumers perceive the offering as incomplete or substandard.

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Going to market with confidence—the researched-backed approach

In contrast, a research-backed, fully planned GTM strategy involves comprehensive market research, meticulous planning, and a structured launch process. This approach is favoured for products requiring significant investment, targeting highly competitive markets, or when the risk of failure is minimal.

Companies that typically embrace a research-backed, fully planned GTM strategy are often those in industries where the cost of entry is high, and the stakes for product launch success are significant.

This includes sectors like pharmaceuticals, automotive, and consumer electronics, where product development cycles are long, R&D costs are substantial, and consumer safety and satisfaction are paramount.

Additionally, enterprises in highly regulated industries, such as finance and healthcare, lean towards this comprehensive approach to ensure compliance with legal and regulatory standards from the outset.

Large multinational corporations with a global presence also favour this strategy, as it allows them to align their launch efforts across different markets and cultures meticulously. For these organisations, the depth of planning and research helps mitigate risks, optimise market entry timing, and ensure that large-scale launches are executed seamlessly.

These concerns are also further exemplified by a Gartner straw poll, which identifies personalisation and customisation (39%) and data-driven decision making (21%) as the top two emerging trends in GTM strategies—underscoring a pressing need to respond dynamically to consumer needs by leveraging in-depth insights.

Top emerging trends in GTM strategies‍

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Advantages

• Deep dive into market research offers profound insights into consumer behaviour, competition, and potential barriers to entry, enabling a more informed and strategic market introduction.
• Thorough planning identifies potential risks and challenges ahead of the launch, allowing companies to develop strategies to mitigate these risks effectively.
• A well-researched and planned launch can create a significant market impact, establishing a strong brand presence and long-term viability.
  

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Challenges

• The extensive research and planning required can significantly delay the product's market entry, potentially missing timely opportunities.
• The depth of analysis and preparation demands substantial resources, both in terms of time and financial investment, which could be prohibitive for some companies.
• Once a product is launched, the extensive planning and investment can make it more challenging to pivot or adapt based on market feedback.

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Blending speed and insight—the hybrid GTM strategy

The future of market leadership belongs to those who can skilfully merge the immediacy of the test-and-learn method with the depth of research-backed planning.

In today's dynamic market, the dichotomy between a quick test-and-learn approach and a thorough, research-backed strategy is becoming increasingly blurred, thanks to innovative solutions that allow for the best of both worlds.

Agile research methodologies are paving the way for businesses to conduct fast, cost-effective research that informs a strong initial launch, while still retaining the flexibility of the test-and-learn approach.

This hybrid model enables companies to quickly gather and analyse market data, consumer behaviour, and competitive landscapes to make informed decisions that guide their product development and marketing strategies.

As a result, businesses no longer have to choose strictly between speed and thoroughness. Instead, they can leverage the strengths of both approaches to optimise their go-to-market strategy, reduce risks, and increase their chances of success in the competitive landscape of 2024.

This balanced approach not only accelerates the innovation cycle but also ensures that products are launched with a solid foundation of market understanding, poised for rapid iteration based on real-world feedback.

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In conclusion

Looking forward, the ability to stay competitive and connect with consumers demands a nimble, data-driven approach to launching new products or services. Embracing this hybrid strategy is essential for businesses aiming to thrive in the competitive environment of 2024 and beyond.