How Internet Reshapes Business Paradigm
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The document discusses how the internet has led to a paradigm shift in business through two-way communication, multiple content formats, user participation, and easy information transfer. It also describes how new internet ventures have replaced traditional businesses and driven innovation. Specifically, the internet allows companies to enhance symbolic, experiential, and functional benefits for customers while reducing acquisition and retention costs. Examples are provided of how companies have used online platforms like YouTube and social networks to capture audiences and engage customers.
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How Internet Reshapes Business Paradigm
- 1. Internet & Business Paradigm Janghyuk Lee Associate Professor of Marketing Korea University, Business School http://biz.korea.ac.kr/professor/janglee http://www.facebook.com/jangleeMKT
- 2. Paradigm Shift by Fixed Internet Unlike traditional media fixed Internet provides following advantages: Two-way communication Multiple contents (text, voice, video) User participation (e.g., community, forum) Easy transfer of information (e.g., post scrap) New ventures on the Internet Replacement & innovation $ 137.41B $ 298.58B © 2014, All rights reserved. Janghyuk Lee 2
- 3. Duality of Business Targeting Criteria Size Value for Customer Benefit Functional Symbolic Experiential - Cost Value of Customer Revenue Price Opportunity Price Volume Retention rate © 2014, All rights reserved. Janghyuk Lee - Cost Acquisition Retention 3
- 4. Duality of Business Targeting Criteria Size Value for Customer Benefit Functional Symbolic Experiential - Cost Value of Customer Revenue Price Opportunity Price Volume Retention rate © 2014, All rights reserved. Janghyuk Lee - Cost Acquisition Retention 4
- 5. Why Internet? Finding Key Attributes: Gas price & MPG © 2014, All rights reserved. Janghyuk Lee 5
- 6. Why Internet? Enhancing Symbolic Benefit © 2014, All rights reserved. Janghyuk Lee 6
- 7. Why Internet? Enhancing Experiential Benefit © 2014, All rights reserved. Janghyuk Lee 7
- 8. Why Internet? Enhancing Experiential Benefit © 2014, All rights reserved. Janghyuk Lee 8
- 9. Why Internet? Enhancing Experiential Benefit © 2014, All rights reserved. Janghyuk Lee 9
- 10. Why Internet? Enhancing Experiential Benefit © 2014, All rights reserved. Janghyuk Lee 10
- 11. Gucci on the Internet Experiential Benefit vs. Opportunity Cost © 2014, All rights reserved. Janghyuk Lee 11
- 12. Duality of Business Targeting Criteria Size Value for Customer Benefit Functional Symbolic Experiential - Cost Value of Customer Revenue Price Opportunity Price Volume Retention rate © 2014, All rights reserved. Janghyuk Lee - Cost Acquisition Retention 12
- 13. Capturing Eyeballs YouTube © 2014, All rights reserved. Janghyuk Lee 13
- 14. Capturing Eyeballs: On & Off-line Integration Off-line Campaign + YouTube: Coca-Cola © 2014, All rights reserved. Janghyuk Lee 14
- 15. Capturing Eyeballs: On & Off-line Integration New Beetle campaign: Facebook + Billboard Description Objective If people click ‘Like’ and upload their photos on VW Facebook page, then photos are displayed on the Billboard in Time Square with the big picture of the all-new Beetle VW launched their all-new Beetle, but, new car is far different from the original one. They needed a marketing strategy to stimulate interest in the new vehicle Results Over 26,700 people “Liked” Volkswagen USA on Facebook Over 1,000 postings on Facebook a day Over 3,000 Postings on blogs through viral marketing Created a good relationship with their customers © 2014, All rights reserved. Janghyuk Lee 15
- 16. Capturing Eyeballs: On & Off-line Integration Social TV: Bluefin Labs © 2014, All rights reserved. Janghyuk Lee 16
- 17. Customer Engagement Georgia Japan: Weekly Mobile Magazine © 2014, All rights reserved. Janghyuk Lee 17
- 18. Duality of Business Targeting Criteria Size Value for Customer Benefit Functional Symbolic Experiential - Cost Value of Customer Revenue Price Opportunity Price Volume Retention rate © 2014, All rights reserved. Janghyuk Lee - Cost Acquisition Retention 18
- 19. Targeting: Interest Base Keyword Advertising © 2014, All rights reserved. Janghyuk Lee 19
- 20. Targeting: Interest Base Search & Sales Share © 2014, All rights reserved. Janghyuk Lee 20
- 21. Targeting: Location Base AT&T Alerts (Mobile Coupon) © 2014, All rights reserved. Janghyuk Lee 21
- 22. Targeting: Network Base Facebook Advertising © 2014, All rights reserved. Janghyuk Lee 22
- 23. Evolution of Purchase & Impact of Mobile Internet Search & purchase Before fixed Internet After fixed Internet Search: on-line → Purchase: off-line Search: on-line → Purchase: on-line After mobile Internet Search: off-line → Purchase: off-line Search: off-line → Purchase: on-line Mobile Internet vs. Fixed Internet Instantaneous Context specific Ubiquitous (source: Google Think) © 2014, All rights reserved. Janghyuk Lee 23