Now that we've defined what the new products are and what makes them successful, let's talk about go to market strategy and go to market strategy is the key concept in new products. And this concept is also highly important because your project in this class is all about go to market strategy. We will be talking about four key things, which I wanted also you to include in your class projects. First, let's talk about the market sizing and in particular, bottom up market sizing. What does it mean? We talked about the market in the new product section.

So market is again total amount of money that customers pay or the total amount of pain or like that your product is solving on the total amount of value that your product is creating to the customers. Why is it important to market size? It is always important to know how big of a problem you're solving like when you do the market sizing one thing you may learn is that the problem is actually not that big. Even if you succeed on a big scale. The problem is so small that the company will itself not be a success. Second, as you Do as you do market sizing, you'll learn a lot more about your customers in the segments and how much money they will be willing to pay.

And in general, you deepen your understanding of the market, and you deepen your understanding of what kind of product could be servicing this market. Third, why is it important to do bottom up market sizing relative to top down and what is top down and bottom up? top down market sizing is basically you say the market for Coca Cola is a trillion dollars. And if I take 1% of this market, there'll be a $10 billion company and I'll be an amazing success. So that's the top down market sizing, which is different from bottom up, bottom up, you would say that, hey, how many people on earth drink coca cola? How many people would probably buy at least one Coca Cola bottle a day and how much money would they pay for those Coca Cola bottles and you multiply those things and you get to bottom up market size.

It is critically important for you to be able to do both, but it is even more critical for you to emphasize and focus on bottom up market sizing just because it shows it helps to learn way more about the market and your product. So in your project you will be talking about Bottom of market sizing. Second, let us talk about the product vision. So product vision is a key part of your go to market strategy. And it is important because it defines the star that you're shooting for. As you launch your product, there will be a lot of routine tasks and things you need to do which are not necessarily consistent consistent with your product vision.

We just talked about doing things which do not scale talking to customers. And actually you will need to be able to do lots and lots of things which are counterintuitive, announced that they do not even fit with your product vision. So why is product vision important in this stage? It is important because again, it always keeps you organized and disciplined. And it always makes you makes you think how the things you're working on fit in a bigger picture, and always makes you maybe even reconsider the big picture as your role as your new information comes from the market. Like the vision is something that defines your star and basically that defines your course, without the product vision, it's really hard to build a successful company.

Third key key piece of go to market strategy is customer segmentation being able to define different groups of Customers you will be serving, what differentiates those group of customers from each other, how big they are, what their needs are, etc. And also you'll need you'll need to be able to clearly outline which of those groups of the customers you will attack first, which go second, which go third, and what specifically you will be doing to attract each of those groups of customers. This is customer segmentation and plan of attack unique by each segment. First part of go to market strategy is milestones. Now that you've defined your market size, and you did the bottom of market sizing, now that you define your product vision, and now that you define your customer segments and plan of attack for each segment, it's critically important for you to lay out the plan like how you will be accomplishing milestones and what those milestones will be.

Those milestones may be customer acquisition related how many customers do you plan to have in a month in a year in two years from now and a half a year from now? Then it may be related to product which product features Do you expect to launch? And then it may be related to financials How much money do you expect to have in your bank and how much money do you expect to be spending next month and it can be seen related. For instance, how many employees do plan to have and what kind of employees do plan to have? Why are those milestones important? It's these two factors.

First, thinking about milestones makes you more organized and it forces you to plan ahead, right planning is everything. Those results of the planning may not actually apply in in real life, but without planning you will definitely not succeed. So milestones are critically important for you to display ability to plan and to display that your plan actually makes sense. Second, once you're able to explain once you're able to prove that you're able to plan your you need to be able to show that you can deliver to that plan. Those are key aspects of milestones. First you plan and second you deliver up to those milestones and you clearly clearly outline timelines when those deliverables should be made.

So for instance, for the product when you want to ship certain feature by December, you need to be able to ship the feature by December. If you plan to hire your key marketing person, the chief marketing officer by March, you need to be able to first of all plan for it and then deliver on that And finally, if you plan to have a million dollars in your bank by the end of 2016, you need to be able to also clearly outline this goal and your milestones and deliver on it.