Small to medium-sized enterprises (SMEs) including small application service providers (ASPs) are playing an increasingly important role in the development of global economies particularly in developing countries like China. This paper studies marketing strategies of small application service providers (ASP) with a focus on what the important factors are to establish a new ASP business in China. An analytical hierarchy process (AHP) method is used to analyse critical factors of the ASP industry. The research surveyed CEOs or senior managers who are working in ASP firms, to identify how a marketing strategy can be developed for an ASP firm to start business in China. It is found that the localisation of middle level managers, the localisation of products and services, the protection of intellectual property (IP), and infrastructure and transportation system are the most important factors for small ASP firms to do business in China.<br /