On today’s show we discuss product strategy and the impact on sales and marketing. Our guest is Peter Sheldon, the Vice President of Strategy at Magento Commerce. Magento is a leading e-commerce platform providing enterprise solutions. Before his position at Magento, Peter was one of the foremost thought leaders at Forrester on the topic of e-commerce.
The goal of the show today is to think through product strategy using Magento as a use case. Your company’s go-to-market model needs to flow out of the product strategy.
It’s nearly impossible to build a sales and marketing strategy that makes your number every year if you don’t fully understand the product strategy. The go-to-market strategy for sales and marketing changes significantly based on how you answer these product questions. Listen to Peter bring the question of product strategy’s impact on sales and marketing to life with the Magento use case.
Evaluate your Product Strategy at a deeper level by downloading our 10th annual workbook, How to Make Your Number in 2017. Turn to page 108 of the PDF.
There are different types of product strategy: Market Expansion, Market Share and Market Exposure. These represent very different product strategies. Spend the time to get these right. Your go-to-market model for sales will be very different depending on which strategy is selected.
Work with your product leader to get answers to these questions to align your strategies. Peter answers a series of questions to help sales and marketing leaders understand the impact of product strategy on the overall go-to-market strategy.
- Is your product strategy focused on participating in overall market expansion where rising waters raise all ships?
- As you compete in a mature market do you have to take market from your competitors to grow?
- Are you also exploring new growing markets and how to expose your products to grow?
- Do you find that the B2B market mimics the B2C world with a 2-3+ year lag time?
- Is your product strategy to enter fast growing product markets and take revenue from distant companies rather than direct competitors?
- Is your product strategy to define new products that are so innovative as to create an entirely new product category?
- Is your product strategy to grow by persuading existing customers to buy more of a product or related product?
- When adding new products requiring cross-sell/up-sell, how do you know when to use the existing sales force vs. a new sales strategy?
- Is the product strategy based on new product pricing and promotion in a mature market and is therefore likely to be temporary based on competitor retaliation?
- Is the product strategy to force smaller companies out of the market?
- For a concentrated market, is the product strategy to cycle through market share without sustainable share gain?
- Is the product strategy to execute bolt on acquisitions to complete or extend the product offering and leverage the current routes to market?
If you need more help, download our 10th annual workbook, How to Make Your Number in 2017. To request a workshop with a go-to-market strategy subject matter expert simply sign up for a MySBI account and check the box in your preferences to request a workshop.