The concept of beachhead market

The concept of beachhead market

The concept of beachhead market is redefined in the same manner when it is applied to both small nonprofit startup and a commercial startup. Bill Aulet asserts that large Commercial companies have a trend of test-marketing new products in small unexposed countries or geographic regions, before advancing worldwide (Aulet, 2013). This concept equally applies to small startup firms. Nonprofit startups will need to start with a small market segment of most available consumers who can easily buy their ideas and concepts and spread it across various groups. Similarly, commercial startups would need to test new products or services on a more accessible and appreciative market segment, who will give their feedback and influence other customers.

The target customer audience for both the small nonprofit startup and the commercial startup will, therefore, be the small market segment that is easily accessible and where there would be less resistance. The author asserts that there are huge risks involved with approaching a large market, as compared to approaching a small narrow market segment (Aulet, 2013). Therefore, the concept of market segmentation dictates that the entrepreneur selects a relatively small market with specific predetermined characteristics. The customers in the small market must be purchasing similar products, the customers’ sales cycle are alike, they expect identical value for all the products, and the existing customers function as high-value references for other prospective buyers.

Therefore, regardless of the size and purpose of any startup, when introducing a new product or making an entrance in an industry, they have to adhere to beachhead market principle. This principle would dictate that an event such as Frieze Los Angeles, for instance, have to first identify a small group of art fanatics within Los Angeles and its environs. The identified market should be of those willing to spend on the expedition, and who can quickly spread information about the event to bordering States.