Redefining Go-to-market: the modified 7Ps
So much has been written over the last five decades about the challenges of taking new products and services to market, that it seems there is little left to say. However, this extensive coverage has not always helped companies to focus on the things that matter, from an ‘external’ perspective.
The modified 7Ps model which we call ‘m7Ps’ is a key part of the overall Triple Chasm Model which tackles this in a coherent and integrated way. The key elements are:
Product: We clearly need to start with the product or service that is being delivered, understanding its key features and potential benefits to customers and users. What the 7Ps model conveys is that Product Management is the critical activity at the centre of any go-to-market plan.
Positioning: How this product is positioned in the market is just as important as the functionality it provides. This positioning needs to reflect attributes which are perceived as valuable by users and customers; for example, the additional collateral around the product may emphasize its value to certain customers or situations. This may also include branding considerations.
Pricing & Packaging: The pricing of a product or service can have a significant bearing on commercial take-up. Considerations here would include pricing strategy and tactics, and opportunities for dynamic pricing. Packaging of a product can be used as powerful tool in any pricing strategy.
Promotion: This covers how products and services are promoted, including advertising, marketing campaigns, and digital promotion across a wide range of media. Branding may be a key aspect of a promotional campaign.
(Sales) Process: This is a critical component of go-to-market, covering the sales process for how a product or service is actively sold to customers, both directly and using partners and channels. An effective sales process is critical for the commercial success of any product and this includes understanding and executing the different steps in the sales process.
Partners: For many products and services, the role of partners can be critical for go-to-market. Companies often start with a direct sales model but building scale may depend on a range of different partners, including agents, franchisees, and distributors, all of which can have implications for pricing and margins.
Place: Where the product is sold will affect many of the other P’s, including pricing and promotion. The importance of place has become more important with the increasing power of online commerce and the creation of new ‘weightless’ products such as online content delivery channels.
Our research data shows a systematic variation in the relative importance of the m7Ps, with increasing maturity along the commercialisation pathway.
Companies need to rigorously apply the ‘m7Ps’ approach incorporated in the Triple Chasm Model-this is likely to save them time and money, and improve the overall chances of success.