Marketing Strategy for Web Hosts - Product Segmentation
Recently, I did some marketing brainstorm with my marketing director on how to compete with giant like 1&1. We take 1&1 as case study and visited their website and carefully look at how they present their products.
If you can see on the left hand menu, it started with the main product category, then goes down to subcategory. Something like this:-
1. Main Category
a) Sub Category
b) Sub Category
2. Main Category
a) Sub Category
b) Sub Category
Main Category is to their Product Division, like diversify into new product area. Whereas for Sub Category, it focus on a specific customer segment like Beginner, Home, Business, Developer. Features in the segments are scaled to only their needs to focus very much in selling on the segments.
In that way, let's say it sells 10 to every segments. Imagine you have 4 segments and it will give you 40 sales. This is just assumption. But what we are trying to look here is the difference on how they sell web hosting compared to others that may not realise about this. Most are just categorize into Linux Hosting, Windows Hosting.. business users dono what is Linux Hosting and Windows Hosting at all.
business users dono what is Linux Hosting and Windows Hosting at all.
They will either just pick one or the other at random - maybe based on price or Windows hosting because that's what runs on their computer. In either case, they'll probably be fine if they're using the site builders provided by 1&1.
If they aren't using a site builder, then either they know what they're doing or they will contact a web designer or someone who works for them for a proper choice.
Ankit Gupta - Cernax Hosting
"We're always second in the industry, the customer comes first."
I would say that when it boils down - 1&1 is doing the same exact advertising than any other web hosting company (with the expcetion of magazine advertisements). I wouldn't nessecarilly think that the navigation of their website persuades clients into purchasing (although it does have a very small effect).
IMHO, I would not say that 1&1 is a legimate "case-study". They oversell their servers like crazy, and offer massive amounts of space and bandwidth for rediculously cheap amounts! I would not say that any web hosting company (like the small-guys on here) really have a major fighting chance against them, when it comes to advertising. They are a large company with more money that you can shake a stick at, in their marketing budget.
Segmentation on a web site menu doesn't have anything to do with "success." This is a perfectly competitive market. Everyone offers the exact same service; the only true differentiating factor is service. It's all about how much you have to spend on reaching new clients, and very little else.
President & CEO, Think Computer Corporation
It's not just about segmentation of website navigation menu that i meant. It's about how the product is targeted in the feature aspects, advertising campaign planning, and so forth that are segmented to draw the sales.
You can't have a common hosting package that targets at everyone.