Thursday, 30 October 2008

Buzz Words - Beachheads

Why are Beachheads important?
Beachheads - small groups of tightly defined consumers a brand can use as a springboard to a wider market.

By focusing on share of customer over market share, a brand can engage a consumer niche through value communication, partnership marketing and crowdsourcing.

How does traditional marketing view Beachheads ?
Traditional marketing is about volume and market share - large numbers don't come easily in niche markets. Compare for example Apple's long term attempt to convert PC users to Mac. Didn't happen until, that was, they had built a beachhead with iPod consumers from which they could cross-sell the Mac.

Who gets it?
Apple, Google, Nike, Facebook (originally), Myspace, Japanese auto brands (Honda for example)

Who doesn't?

Most mobile operators, Newspapers, Facebook (now)

Key points about Beachheads
* Defined beachheads offer greater marketing density and are therefore more conducive to word of mouth influence, such as with Ethnic groupings.
* Defined beachheads are more profitable than generic markets in undifferentiated markets (eg Banking)
* Beachheads can also form along gender lines.

Resources
* Share of customer vs Market Share (article)

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