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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
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Unlike traditional media fixed Internet provides following advantages:
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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
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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
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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
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5. Why Internet?
Finding Key Attributes: Gas price & MPG
© 2014, All rights reserved. Janghyuk Lee
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6. Why Internet?
Enhancing Symbolic Benefit
© 2014, All rights reserved. Janghyuk Lee
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7. Why Internet?
Enhancing Experiential Benefit
© 2014, All rights reserved. Janghyuk Lee
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8. Why Internet?
Enhancing Experiential Benefit
© 2014, All rights reserved. Janghyuk Lee
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9. Why Internet?
Enhancing Experiential Benefit
© 2014, All rights reserved. Janghyuk Lee
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10. Why Internet?
Enhancing Experiential Benefit
© 2014, All rights reserved. Janghyuk Lee
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11. Gucci on the Internet
Experiential Benefit vs. Opportunity Cost
© 2014, All rights reserved. Janghyuk Lee
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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
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13. Capturing Eyeballs
YouTube
© 2014, All rights reserved. Janghyuk Lee
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14. Capturing Eyeballs: On & Off-line Integration
Off-line Campaign + YouTube: Coca-Cola
© 2014, All rights reserved. Janghyuk Lee
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15. Capturing Eyeballs: On & Off-line Integration
New Beetle campaign: Facebook + Billboard
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Description


Objective

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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
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
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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
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16. Capturing Eyeballs: On & Off-line Integration
Social TV: Bluefin Labs
© 2014, All rights reserved. Janghyuk Lee
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17. Customer Engagement
Georgia Japan: Weekly Mobile Magazine
© 2014, All rights reserved. Janghyuk Lee
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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
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19. Targeting: Interest Base
Keyword Advertising
© 2014, All rights reserved. Janghyuk Lee
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20. Targeting: Interest Base
Search & Sales Share
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21. Targeting: Location Base
AT&T Alerts (Mobile Coupon)
© 2014, All rights reserved. Janghyuk Lee
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22. Targeting: Network Base
Facebook Advertising
© 2014, All rights reserved. Janghyuk Lee
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23. Evolution of Purchase & Impact of Mobile Internet
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Search & purchase
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Before fixed Internet
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After fixed Internet
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Search: on-line → Purchase: off-line
Search: on-line → Purchase: on-line
After mobile Internet
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Search: off-line → Purchase: off-line
Search: off-line → Purchase: on-line
Mobile Internet vs. Fixed Internet
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
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Instantaneous
Context specific
Ubiquitous
(source: Google Think)
© 2014, All rights reserved. Janghyuk Lee
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