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The Market Segmentation, The Brighter Future

The Market Segmentation, The Brighter Future

“Market segmentation” was put forward by the American market scientist Wendell Smith in the middle 1950s. It refers to the marketer partitions one product‘s market into multiple markets catering to various customer groups in accordance with the market research, the needs and desires of consumers and the variances of purchasing behaviors.

So, the virtual server industry should also focus its attention here, yep, to initiate the market segmentation. Basically, the virtual machine can be divided into China Mainland’s, American, Hong Kong, foreign and backup-free web hosting.

In most cases, enterprises have many methods to promote one product or service into the target market within those different domains. However, when facing the fierce and tense competition worldwide, it is totally important to figure out the product positioning. To a large extent, the product positioning can help enterprise avoid the competitions arising from the price, performance and tech. However, sometimes the client doesn‘t even care about your product, but the value and profit behind it. The balance between the enterprise and the customer’s supply and demand is usually disciplined by the interests and values of both parties.

No diversified enterprise would say that they have no need of the product positioning. Take the hosting industry as an example, inland enterprises only focus on the domestic market at the very beginning and form a closes loop. But, with the increasing foreign business, more and more foreign hosting is accepted in China Mainland. In addition, the strict backup regulation also accelerates the birth of Hong Kong virtual hosting, which reduce the inconvenience of going through the dull and longtime approval procedure to the least.

So, you see the importance to do the product segmentation and product positioning. Only in this way can enterprises satisfy the different market needs and improve the company‘s performance. Anyway, hope the above information can bring you some inspirations and give the hosting industry a more promising future.

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