Marketing for “DMB mobile phone”: Application of consumer theories

1. Marketing for “DMB mobile phone”:Application of consumer theories CSR631 Jooyeon Ha

2. What is DMB? • Digital Multimedia Broadcasting (DMB): A digital radio transmission system for sending multimedia to mobile devices such as mobile phones. Mobile TV service

3. Technology of DMB • DMB was developed in South Korea under national IT project as the next generation digital technology. • In 2005, south Korea started S-DMB (satellite) and T-DMB (terrestrial) service on May 1,and December 1, respectively. • S-DMB service in South Korea is provided on a subscription basis through a Media company with usage fee, but T-DMB service is provided free of charge.

4. S-DMB vs. T-DMB

5. DMB mobile phone • Mobile phone companies in Korea : Samsung, LG, KTF, P&C, SKY • Why Korean mobile phone companies interested in DMB? • Almost everyone use mobile phone • Successful case of restricted mobile internet service • Well-developed wireless internet service-mobile markets • Diverse functions of mobile phone trend

6. Target segment

7. Marketing strategy 1 • Commercial emphasizing “Free of charge” Commercial 1 • Word of mouth effect using Internet marketing - Purchase review - Search engine - Advertisement on Internet sites

8. Perceive Risk • Perceive risk: What an individual consumer perceive a possible hazard or chance of loss in a purchase - Uncertainty: Being afraid the purchase will be unfavorable - Consequence: The amount at stake will be lost if the purchase was failed • Perceive risk about adoption of new technology - What’s the benefits from the new technology? - Value for the money • How to reduce perceive risk? - More information : Marketer-dominated, Consumer-dominated, and neutral sources

9. Marketing strategy 2 • Event to try new technology Ex) LG: Street promotion event for consumers to experience DMB service by their mobile phones • Huge DMB mobile phone sculpture to attract consumers on the street • Emphasizing Mobile TV and Free of charge • Emphasizing “Enjoy TV program by mobile phone anytime and anywhere” • Opportunity to try new technology before purchasing

10. Consumer decision making • Decision-making Hierarchies 1. High involvement Beliefs  Affect  Behavior 2. Low involvement Beliefs  Behavior  Affect 3. Experiential/Impulse Affect  Behavior  Beliefs 4. Behavioral influence Behavior  Beliefs  Affect

11. Application of consumer decision making 1. Promotional strategy for “Low involvement” - Emphasize developing product-attribute beliefs through repetition of “simple messages”  Emphasizing Mobile TV and Free of charge - Place product and displays in high-traffic area  Huge DMB mobile phone sculpture to attract consumers

12. Application of consumer decision making 2. Promotional strategy for “Experiential/impulse” : Emphasize the fun and feelings that can be obtained by experiencing the product or service  Emphasizing “Enjoy TV program by mobile phone anytime and anywhere” 3. Promotional strategy for “Behavioral influence” : Use sales-promotion techniques, such as rebates, samples, or coupons  Opportunity to try new technology before purchasing

13. Marketing strategy 3 • Marketing for target segment reflecting consumer value Commercial 2 Commercial 3 • which dimensions of consumer value applied to the commercial?

14. Consumer value

15. Future marketing • Many mobile phone companies use the same technology(DMB), so the technology itself will not work anymore for consumers. Emphasizing unique attributes of DMB phone across different mobile companies is needed. • Target market is limited now, so extending the target segment is needed. Marketing strategies for different target markets should be developed.