GTM Strategy and Positioning: Which Comes First?

Finding a starting point for GTM strategy and positioning can feel like a classic “chicken or the egg” situation. Both are crucial steps to bring your product to market. So, which one should you tackle first?

The short answer: start with positioning, and check every positioning choice against how you’ll actually sell. Positioning decides who you’re for, what buyers compare you to and why you win. GTM strategy decides how you reach those buyers and close them. A segment you can’t reach, or can’t sell to at a profit, is a bad positioning choice however well the story fits, so the two get drafted together and tested together.

Go-to-market (GTM) strategy and product positioning are interdependent

One of the most overlooked aspects of achieving true product-market fit is thinking that distribution (GTM strategy) comes after the product is fully developed and positioned, rather than considering it from day one.

Entrepreneurs often focus heavily on building the perfect product, refining features, and fine-tuning the messaging (and positioning), only to later figure out how they’ll get that product in front of people.

But that’s like building a car and then trying to figure out how to put gas in it afterward. Not the most efficient route.

Here’s how GTM is often missed and why it’s a problem:

1. Distribution Isn’t an Afterthought

Entrepreneurs sometimes think, "Once we’ve nailed the product, we’ll figure out how to sell it." But the reality is that how you plan to distribute your product (your GTM strategy) should shape its development. Ask yourself early on: Who’s going to buy this? How do they buy? Where do they hang out? Will this product fit into their existing habits?

Imagine developing a high-end tech gadget and realizing your ideal customer isn’t easily reachable through the channels you had in mind, or worse—they don’t even buy through those channels. That’s a disaster that could’ve been avoided by considering distribution while building the product.

2. Different Audiences, Different Products

Thinking about GTM early helps you understand your audience better. Certain product features might only be appealing if you can easily reach the people who care about them. If your distribution plan involves social media influencers, maybe your product design needs to be visually striking. Or if your GTM involves B2B sales teams, maybe you need features that make the product easier to demo.

By thinking about distribution early, you can shape the product to better fit the channels and audiences that will matter most.

3. The Problem of Assumed Virality

A lot of entrepreneurs assume, “If we build a great product, it’ll sell itself!” This leads to overlooking the nuts and bolts of a proper GTM plan. Even great products don’t sell themselves—you need a smart, well-thought-out plan for getting them into customers’ hands. The viral loop isn’t automatic; it has to be intentionally built into both the product and your strategy. Ignoring GTM early on can lead to a product that’s hard to market or distribute, even if it’s great.

4. Iterating Both Product and GTM Together

When you consider GTM strategy during product development, you can test small versions of both at the same time. You might run early marketing campaigns while still building the product. Doing this will give you real-world feedback on how your product will actually be received, letting you tweak both your messaging and the product itself based on what you learn.

In short, GTM is not a “post-launch” task; it’s something that needs to shape the development of the product from day one. It ensures that you're not only building something valuable but also delivering it in a way that reaches your target market effectively.

Example: the positioning that worked on paper

Take a scheduling tool, call it Slotwise, that launches for sales managers at early-stage SaaS companies with a free plan and a product-led motion. The logic is sound enough. Sales teams book meetings all day, so a tool that cuts the back-and-forth should spread on its own.

Two quarters in, the numbers say otherwise. The startups have tiny budgets, most already get scheduling inside their CRM, and the free plan fills up with users who never upgrade, so churn stays high and revenue barely moves.

When the team looks at who does pay, a different group stands out: recruiting teams at fast-growing tech companies, who schedule hundreds of interviews a month across several interviewers. For them, the alternative is a coordinator spending half the week on email.

So the positioning changes, with a new best-fit customer, a new alternative and a new reason to buy. The GTM changes with it. Recruiting leaders have real budgets and want the tool connected to their hiring software, which makes a sales-led motion with longer cycles worth paying for. Either change on its own would have stalled.

8 Steps to Balance GTM Strategy and Positioning

Step 1: List Out Ideal Customer Profiles (ICPs)

Begin by identifying and documenting your Ideal Customer Profiles (ICPs). An ICP is a detailed description of a customer who would significantly benefit from your product and provide substantial value to your business. 

Consider the following for each ICP:

• Demographics: Industry, company size, revenue, location.
• Roles and Responsibilities: Decision-makers, influencers, end-users.
• Pain Points and Challenges: Specific problems your product can solve.
• Goals and Objectives: What they aim to achieve.
• Current Solutions: What alternatives they might be using.
• Buying Behavior: Purchase processes, budget cycles, and criteria.

Step 2: Prioritize ICPs with GTM Considerations

Once you have a list of potential ICPs, prioritize them by evaluating factors that impact your GTM strategy.

Below is a preview of a helpful framework to prioritize your ICPs. And here is the Google Sheets template.

The factors I'm considering here are:

1. Market Size and Opportunity:
   • Assess the potential revenue from each ICP.
   • Larger markets may offer more opportunities but could be more competitive.
2. Product-Market Fit:
   • Determine how well your product addresses the specific needs of each ICP.
   • Identify where your solution offers the most significant competitive advantage.
3. Ease of Access and Reach:
   • Consider how easily you can reach and engage with each ICP.
   • Evaluate existing channels and relationships.
4. Sales Cycle Length:
   • Shorter sales cycles can lead to quicker revenue and feedback.
   • Longer cycles may require more resources and patience.
5. Resource Requirements:
   • Estimate the marketing and sales efforts needed for each ICP.
   • Align with your team's capabilities and budget.
6. Competitive Landscape:
   • Analyze the level of competition within each segment.
   • Identify underserved markets where you can stand out.
7. Regulatory and Compliance Considerations:
   • Be aware of any industry-specific regulations that could affect your GTM strategy.

Step 3: Select High-Priority ICPs

Choose one or a few ICPs that score highest based on the criteria above. Focusing on a select group allows you to tailor your efforts and gather meaningful data.

Step 4: Define Positioning for Each Priority Segment

For each segment you picked, write down four things. The competitive alternatives are whatever these buyers would use if you didn’t exist, including a spreadsheet, an agency or doing nothing. Your unique value is what you do better than those alternatives. The best-fit customer is the specific kind of company that cares most about that value, and the market category is the frame that makes the value obvious to them. That structure comes from April Dunford’s Obviously Awesome, and it’s the one I use with clients.

Messaging comes next, and it changes by person while the positioning stays put. A CFO on the buying committee needs the business case. The people using the product every day need to see what gets easier for them. If you want a template for both, I’ve put one in value propositions vs. positioning statements.

Step 5: Align GTM Strategy with Positioning

Design your GTM strategy to support and deliver on your positioning:

1. Choose the Appropriate GTM Approach (the six main GTM motions are covered in a separate guide):
   • Product-Led Growth (PLG):
     • Ideal if your product is user-friendly and offers quick wins.
     • Leverage free trials, freemium models, and viral features.
   • Sales-Led Strategy:
     • Suited for complex products requiring consultation.
     • Invest in a skilled sales team and longer sales processes.
   • Hybrid Approach:
     • Combine elements of both to cater to different segments within your ICPs.
2. Select Distribution Channels:
   • Digital Marketing:
     • Content marketing, SEO, social media for broad reach.
   • Direct Sales:
     • Personalized outreach, demos, and relationship building.
   • Partnerships:
     • Collaborate with complementary businesses or influencers.
3. Plan Buyer Journeys:
   • Map out the steps each ICP takes from awareness to purchase.
   • Ensure your positioning addresses questions and concerns at each stage.

Step 6: Test Your Strategy and Positioning

Implement your GTM strategy on a small scale to validate assumptions:

• Pilot Programs:
  • Run targeted campaigns for each ICP.
  • Offer trials or limited-time offers to encourage engagement.
• Metrics to Monitor:
  • Conversion rates, engagement levels, sales cycle duration.
  • Customer acquisition cost (CAC) and lifetime value (LTV).

Step 7: Gather Feedback and Analyze Data

Collect insights from multiple sources:

• Customer Feedback:
  • Surveys, interviews, and feedback forms.
  • Understand their perceptions and experiences.
• Sales and Support Teams:
  • Gather frontline insights on objections and common queries.
• Market Response:
  • Monitor social media, reviews, and industry discussions.

Step 8: Iterate and Refine

Based on the feedback and data:

1. Adjust Positioning:
   • Refine messaging to better align with customer needs.
   • Emphasize features and benefits that resonate most.
2. Modify GTM Strategy:
   • Shift resources to channels that show higher engagement.
   • Consider altering your GTM approach (e.g., from PLG to hybrid).
3. Reassess ICP Prioritization:
   • If certain ICPs show more promise, adjust your focus accordingly.
   • Be willing to deprioritize segments that are less responsive.

Questions about GTM and positioning

What is GTM positioning?

It’s the positioning you take to market for a specific launch or segment: who the product is for, what buyers compare it to and why it wins, matched to the channels and sales motion you’ll use to reach them.

Does positioning come before go-to-market strategy?

Mostly, yes. You can’t pick channels or write a campaign until you know who you’re for and what you’re up against. Price, sales cycle and how hard a segment is to reach should still shape which positioning you pick, so in practice you draft the positioning, check it against the GTM and adjust both.

What’s the difference between positioning and GTM strategy?

Positioning is the decision about where you compete and why you win. GTM strategy is the plan for turning that into revenue, covering segments, channels, sales motion, pricing and launch.

How do you know if your GTM and positioning are misaligned?

Lots of interest and few deals is the most common sign. Others I see: a free plan full of users who never pay, sales cycles far longer than your price can carry, and wins coming from a segment your marketing never mentions.

Final thoughts

In conclusion, go-to-market (GTM) strategy and product positioning are inherently intertwined, with each informing and shaping the other. A well-aligned GTM strategy will define your audience, channels, and approach, while positioning ensures that your messaging resonates with that audience.

Both are crucial for successfully bringing a product to market, requiring constant feedback loops, iteration, and strategic adjustments. The key is to balance these elements to create a cohesive, well-targeted approach that meets the specific needs of your ideal customer profiles and delivers consistent value throughout the buyer journey.