What this digital marketing course does not cover

What this course is not about…

23E47000 Digital Marketing
Assistant Professor Jari Salo
HSE, Dept. of Marketing & Management
Jari.Salo@hse.fi
E.230

Digital Marketing - Salo 2

Course objective Schedule

• Course introduces students to different digital • Mondays 16-18.00 o´clock from August 31 to
marketing possibilities. Students are able to decide October 12 at a room AE341
on different types of digital marketing campaigns
and manage those accordingly in both consumer • Wednesdays 16-18.00 o´clock September 2 to
and customer markets. October 14 at a room AE341

• Different types of operationalizations of digital
marketing are introduced. Course creates basic
understanding of internet and mobile marketing.
Time is also devoted to pertinent issues in the web
2.0 e.g. social media, virtual worlds, blogs and
viral marketing.

Digital Marketing - Salo 3 Digital Marketing - Salo 4

Course and student competition working
Evaluation and grading groups

• Nokia student competition • 3-5 students
• Campaign solution (send ppt slide show and max • Group 1
20 page proposal to jari.salo@hse.fi by September • Group 2
28) • …
• Select project manager,…exchange contact details
• Nokia student competition max 50 points etc.
• Exam 50 points
• Total 100 points


1

Detailed schedule
• August 31 Course introduction and (Announcement of Nokia case competition)
Formation of case groups
• September 2 Digital marketing landscape
• September 7 DM planning and campaign management
• September 9 Mobile marketing in consumer markets (Karjaluoto)
• September 14 Teenagers and virtual worlds: Case Habbo Hotel (Mäntymäki)
• September 16 Digital marketing in virtual worlds (Hietanen+Runtoshop?)
• September 21 Digital Marketing and experience goods (Pöntiskoski)
• September 23 Search engine marketing and optimization(Pöntiskoski+Snoobi)
• September 28 Deadline for submitting Nokia case papers
•
•
•
September 28
September 30
October 5
Nokia competition presentation (groups 1-4)
Nokia competition presentation (groups 5-8)
Nokia competition presentation (groups 9-12) (or lecture by Salo)
Digital marketing landscape
• October 7 Finalists (3 groups) are announced A PAUSE FOR THOUGHT
• October 7 In game and other digital marketing
• October 8 Finalists feedback session at HSE room F-310 9.00-12.00 o'clock
• October 12 Digital marketing in business markets
• October 14 Digital marketing: past, present and future
• October 16 Finalist presentation and winner announcement at Nokia House
(Keilalahdentie 2-4, Espoo)


A working definition for digital marketing Digital marketing landscape

• In brief, digital marketing aims at creating, demonstrating, documenting,
communicating and delivering value in digitized way to customers (B2C and B2B)
and for managing customer relationships in ways that enhance digital joint value
creation of customers, organizations and stakeholders (Editorial of Journal of Digital
Marketing)

• Digital marketing includes all forms of marketing conducted in digitized way. These
include internet marketing activities in mobile and computer networks but also
those digital marketing activities that are conducted in private secured networks
(mainly industrial usage of digital marketing)

• Digital marketing is not replacing traditional marketing efforts but creating new
ways to conduct marketing and improve or “kill” old costly habits. Most of the
companies have already started their digital marketing efforts and some have their
only focus in digital activities. Digitization is visible in business, research, new
product development, customer communication, branding, advertising, sales, and
in relationship management (CRM and PRM)


Technology evolution – service
Evolution from presence to understaning development

2

Digital economy cube: Choi et al 1997 modified Digital marketing in practice

• Digital marketing is used to

– Create new customer relationships (CRM) (e.g. Fruugo)
– Enhance old relationships (CRM) (Nokia OVI.com)
– Improve service ”experience” (CEM) (mobile tickets, IRC-
gallery)
– Create and extend brand awareness (Facebook…)
– Simply the fuzzy front end of innovation (NPD/NSD/R&D)
(Dell Ideastorm)
– ?

• General marketing trends relationships, value
creation, innovation, service dominant logic of
Physical Digital Delivery marketing guide DM research and practice


Most popular DM tools today in Finnish
Why DM? companies?

• Even professional buyers have used and are using • Basic DM tools used in Finnish companies:
digital tools e.g. social media in their daily job – even – Company website
more than the sellers (see Davis 2008). – Search engine optimization and marketing
– Newsletters and internet advertising
• 65 % out of 1000 buyers operating in B2B markets (HSE:Divia report 2009)
tell that they start search process (new, rebuy,
modified buy) with general search engines and after
• Reasons that have influenced to adopt DM:
that move to industry specific search engines like
– Cost pressure
business.com
– Chancing consumer behavior

• Company websites are becoming even more
important sources of information for buyers but only • 33 % of the Finnish companies that responded have allocated
when time for closing deals comes apparent (Davis a budget for DM
2008b).

Change in DM Viral/WOM marketing

• Marketing shifts from the role of passive advertiser • For many DM activities aim is at creating Viral/Wom effect
into active creator of content and messages as well as
acquires a role of mediator who combines and • In practice these means that content or other marketing
material is so impressive or entertaining that customer
publishes content best way possible wants to send it to friends in form or another (+
commenting, continuing the story, making own video etc)

• Content is created jointly with customers and
• Effectiveness of viral marketing is based on the
marketers actively produce content for customer identification of sender and receiver (Lindgreen &
communities and their own communities (intra or Vanhamme 2005).
external)
• Viral marketing does not always work since when
consumers are at the further in their decision making
• Viral and effective digital marketing is becoming more process viral effect diminishes (De Bruyn & Lilien 2008).
visible in companies operating in consumer markets
and in innovative industrial companies

3

Viral/WOM marketing Crowdsourcing

Variations of viral/wom

• Case Snellman

• Recommendators = people that tell friends how good some
products are – get promotional material and products – not
real money

• 500 people, increased brandawareness !

• Movies and flopping (mobile example !)

• Mobile/digital wom / crowd sourcing…

Canvas for digital marketing E-retailing

• E-retailing / e-tailing • Men are seeking solutions – women experiences
• E-mailing (same relates to web advertising information
• Websites seeking behavior)
• Web advertising (banners etc)
• Search engine marketing / optimization • Both value personalized service, experience,
security, functional service, surprise gifts
• Blogs, RSS, vod/podcasts, Wikis, webcasts,
mashups and tags (physical browsing)
• User generated content (UGC) • Most popular purchases: trips and hotel
bookings 42 %, clothing and shoes 37 %,
• Social media and Web 2.0
books and magazines 35 %, tickets 31 % and
• Virtual Worlds music and videos 29 %
• Mobile marketing
• Examples: Innovation

E-retailing Trust in online markets (Salo & Karjaluoto 2007)

• In Finland 2006 e-retailing was evaluated to be worth of
3.3 billions (Itella)

• More than 2 million Finnish people have bought online

• 29 % consumers buy online regularly

• And 25-34 olds are activbe buyers

• 86 % of consumers have bought from Finnish shops
(TNS Gallup 09)

• E-retailing evaluated to grow 17% during next five years

4

E-mailing E-mailing

• Emails have impact on buying decisions: • Advertisers choices:
– Actively send emails to different groups –
spamming
• 77 % of men and 81 % women think jointly to
what type of social events like concert, movies, – Create interesting newsletter – better choice
restaurants etc to go to with help of the email – Help customers to speak about the products in
their emails to friends – innovative
• Safe strategy – all above !
• 78 % of women share plans about their trips
• Cultural differences: In B2B markets best choice in
• Younger generation discuss consumption of Australia is e-newsletter informing about products
music and services while in Brazil send good quality printed
paper

Websites Websites
• Websites (static – dynamic): • Evaluations from perspective of users / customer / investor
– Information for consumers, customers, decision
makers, investors etc. – Company and product information amount & quality
– Brand awareness – Customer service (replying e-mails, chat possibilities
– $, £. € revenues faqs)
– Trust and security of sites critical for those that enable
• Company websites shopping (see. Salo & Karjaluoto, 2007).
– Ease of use and navigation
• Evaluated by number of ranking organizations and
institutions • Ease of use and navigational issues give direction to how
good is the ”flow” of the site or how ”sticky” the site is
• Usually best sites in Finland are Nokia, Wärtsilä ja Neste
Oil. • Flow= positive overall feeling
• Sticky= time customers stay at the site (nowadays also
what they are doing is important)

28

Web advertising Web advertising

• Evolved from informative websites • Traditional web advertising
• Classified ad (e.g. craigslist.org)
• 1995 first banner ads appeared • Banner = graphic display keyword banner,
appears on the search engine when keyword
• To some extent targeted inserted, random banners, dynamic – based on
user info banners e.g. Facebook)
• Pop up pop up/under, interstitial(between clicks
• Information about effectiveness – comparing / downloading used to capture attention, similar
e.g. newspaper advertising to TV-commercials)
• Advergames (in game, branded game, between games)
• Call to action – from click to shop • Static – dynamic

• 24/7/365 • Counter software development to eliminate
these
29 30

5

Web advertising measurements Web advertising effectiveness
• Ad view = number of times customer calls up the page,
• To some extent targeted:
• Synonyms : impression or page view
• Price for a Facebook ad for a month 30.000€ ?
• Click, ad click: visitor clicking the banner • Many brands involved
• Not always optimally targeted
• CPM=cost per thousands impressions: Fee for a 1000 page clicks

• Conversion rate = percentage of clickers who buy, usually with • Targeted:
non-targeted without permission, non personalized low !
• Permission based, existing customer relationship with
a brand (well known, trusted brand)
• Click through ratio= Number of clicks / times seen – success of
banner ad • Customers want to keep up the relationship ( favorite
nightclub…)
• Click through rate= number of visitors exposed to a banner and
click it
• Eye-tracking !
31 Digital Marketing - Salo 32

Search engine marketing and optimization Search engine marketing and optimization

• Google is one of websites used daily (development of Bing by
• Searh engine marketing – advertising Microsoft)

• Search engine optimization • Even professional buyers use it

• When customers are looking for steel producers or make up
• Mobile search engine marketing / optimization providers your company must be present (preferably first or
second at the list) and offer customer experiences that engage
online

• Search engine marketing can be divided into advertising in
search engines and Search engine optimization (SEO)

• Use of mobile phones and other mobile gadgets is one specific
are of search engine marketing

• Search engines Google, Bing, Yahoo, Ask Jeeves (Ask), Dogpile
33 34

Search engine advertising Criticism on Google Adwords

• Since companies are buying a search word for e.g. up to 500USD or
• Using Googlen AdWords service any company (or as much as they will other companies when they know competing
organization) can buy almost any keyword with a companies search word eat some of the search words paid by
competitor
certain amount (using creadit card) (see Turban et
al., 2008 ja Poutiainen, 2007). • This is suitable e.g. for companies competing directly with those
advertising (hotel advertising in web trying to sell directly –
aggregators like Hotels.com)

• Launching anti-campaigns against some brands…

• Aim is to consume competitors account so that customers are
directed to other site

• Rare but possible !

35 36

6

Search engine optimization Search engine optimization

• Basically the search engine ranking of any given
webpage is based on two main factors: • In SEO website is modified to be more search
– The keywords on that webpage. The more focused engine friendly i.e. the search engine understands
and clear the content is on the webpage and the the site better- in order to get a better ranking at a
clearer that content is indicated in the page’s title, search page
metatags, headings and body text the greater are
the chances of high ranking for the main keywords
on that webpage. • In practice (those who know how to do it) this
– The pattern of links to a domain name – quantity, means changing site structure, terms used,
quality, and context of incoming links to its domain modification of links etc. see Langeville & Meyer
name. 2006).

Digital Marketing - Salo 37 38

Google AdSense Blogs is

• In the AdSense service internet website operators • Created by someone to present ideas in text form usually like diary

and owners (like bloggers with traffic) can gain
• Blogs can include video and music (compare to v-blogs which use mainly
fees from Google if they put banner to their video)
website.
• Possible places to blog: create own site, let someone provide you a blog
(some costs) or blog to a someone's site (blog collecting sites making
• In Adsense the advertiser gets more relevant money out of your blogging)

content for the ad which makes the ad more
• Why from DM marketing perspective interesting?
relevant to the website.
• According to Statistics Bureau of Finland in year 2008 38 % of Finns read
blogs and 35 % write to different types of news forums.
• For example, site that deals with new energy
sources is more suitable for wind power company
ads than showing that ad on forest industry
specific portals.

39 40

Blog marketing basics Blogs and business

Creating a blog that matters: • Collecting information: MI, CI, BI
• Is interesting – creating new content
• People want to comment and share ideas • Reacting to competitors announcements (new products,
brand messages etc)
• Some business leaders and visionaries can even develop their
business and industry by influencing bloggers (strategies: own
blogging site, commenting other blogs) • Collect ideas for new products, campaigns…
• Advertising / new product launches etc.
• Build up relationships (customers, partners, investors,
• Especially corporate blogs are many times considered boring experts etc)
(CEOs or CTOs telling about performance and new products)

• Soften company image (directors blog)
• Why? Almost identical print to press releases see Techworld,
2008).
• Internal company blogs (internal marketing + creating
/influencing organizational culture)

41 42

7

Some simple blog strategies RSS, Pod- vodcasts

• Commenting those blogs important to your business • RSS Really Simple Syndification:
(those that have influence)
• A format for delivering regularly changing web
• This activates and also keeps your company in content like weather, news, blogs, updates, voice
”beat/pulse” files etc, podcasts

• Advertize on selected blog sites (about 25 % of web • Many news-related sites, weblogs and other online
users visit blog sites) (International data) – getting the publishers syndicate their content as an RSS Feed to
niche audience
whoever wants it.

• Create blogging tracking / analysis performance system
• RSS solves a problem for people who regularly use
the web. It allows you to easily stay informed by
• Join blogs to RSS (Real simple syndication) / Mashups
retrieving the latest content from the sites you are
interested in. You save time by not needing to visit
each site individually.

43 44

Pod- vodcasts Pod facts and strategies

• Podcasts = Traditional Ipod voice files that • Nielsen/NetRatings survey conducted from 2005 to the
customer has ordered from a source (short, long, present revealed that Internet users aged 25 to 34 are
fact, fiction, music, radio shows etc) those who download more video podcasts.

• See e.g. podcast.com several hundreds of podcasts. • Video podcasts were among the top ten tech trend in
2006 achieving a level of Internet cult status.

• Besides podcasts customer can order video content
• ” Users can subscribe to vlogs to get the latest videos or
and term used is vodcast/v-pods or video even the ones they missed and then have them
podcasting. automatically sent to their computer desktop.

• In DM new terms are created eventough we don’t • Create, advertise, increase user experience by engaging
necessarily need those – acronym battles ! a community to create pods/vpods.

45 46

Pod strategies Blogs and pods (industrial company interviews)

Passive strategy:
– What other companies are posting on external
pods and vods. Marketing intelligence and
industry trends follow ups.
Active strategy:
– Pods /vods created and casted that fit company
strategy and image. If customers are active and eager
to use digital tools then active strategy is suitable.
Company can also sponsor some pod/vodcasts or
directly advertise in those. Especially technical
solutions and innovations seem to be adopted quicker
if information is available from many sources including
pods/vods.
• Lehtimäki et al. 2009
• Some thinking points: identifying right pods/vods,
coverage, costs, audience type, etc

47 48

8

DM landscape Webcast - webinar

Wikis • Direct webcast - streaming media
• Form of social writing when multiple users
modify content (like in Wikipedia)
• Finnish industrial companies (Outopedia etc) • One or multiple receivers
• Idea is to develop community which collects
information
– Can enhance/create brand relationship
• Meeting, education (e.g. Elmar webcasts),
– can be used to educate new personnel !
speech, football match etc
– Include video and simulation – interactivity
– To further develop ideas (see Ryan & Jones,
2009).

49 50

Webcast use and performance Liverpool webcast

• Decrease travel and conference /meeting costs

• Registrations to webcasts – known recipients –
voting systems

• Webcast system reports (activity of people and
activities done) (e.g. everyone must click/vote
”can not sleep” while watching
-First live audio commentary for free
-Then video archieve, downloads and
• Webcast analytics afterwards merchandising
- After that pay-per-view

51 52

Liverpool - results Technical detail: Mashups
• Webpage or Website that combines information and services
• Liverpoolfc.tv from multiple sources on the Web. Information and/or
complementary functionality from multiple Web sites or Web
applications can be mashed up.
• E-season ticket $ 7.85 month all digital material • Web mashup server lets you connect, collect, and mash up
anything on the Web as well as data on some back-end
systems.
• Online presence seen as brand platform • Picture – location Google maps –Flickr/Panorami

• Alerts as ad channel • Seven categories:
– mapping,
– search,

• 3 million unique visits per month – mobile,
– messaging,
– sports,
– shopping,
– and movies.

• More than 40 percent of mashups are mapping mashups (see
53 Vlist et al 2006) Digital Marketing - Salo 54

9

Tags, social bookmarking, physical browsing, games= geo-
Technical detail: Mashups treasure hunt

• HousingMaps (http://www.housingmaps.com) • Keywords added to articles in blogs or Web pages via
social page tag tools such as del.icio.us
• It pulls sales and rental information from the classified (http://del.icio.us) Technorati,and Yahoo’s My Web.
advertisement Web site Craigslist (http://www.craigslist. com)
and displays the listings on interactive maps pulled from Google
Maps. Users can drag the map to see what is available for sale • Most blogs and Web publications use tags. Tags are also
or rent in a given region. Several other new-breed Web known as labels, and the process of creating tags is
applications similarly integrate multiple services under a rich known as tagging.
user interface.
– Etuovi.com
• Social bookmarking is the process by which users
– Hotels on Google etc.
bookmark interesting pages and assign tags to each.
– For personal use as well
Users can then share their tagged bookmarks (see, for
example del.icio.us).
• It’s easier and quicker to create a mashup than to code an
application from scratch in a traditional way. This capability is
one of Web 2.0’s most important and valuable feature. • Social bookmarking is a great way of capturing
contextual knowledge (photos of Rio de Janeiro or
Sodankylä tagged and presented on a map etc)

Tags, social bookmarking, physical browsing, games= geo-
treasure hunt Webisode, Digi/mobile/internet - TV

• Physical browsing, objects marked with readable
tags (RFID or similar) • Movie / series / preview / promo episodes
downloadable online (download or stream)
– See e.g. NBC webisodes sponsored by… Sprint etc
• Route or objects marked or presented on website
• Digi/mobile/online TV portals
• Using mobile phone or other device to reads tags – See e.g. MTV3 Katsomo
and browse information
• Digi/mobile/online movie portals
• Near field communication (NFC) technology
• Different types of news/fan ”groups” or websites
• Combined to a game geohunt (treasure hunt –
outdoors=


Widgets Widgets

• Widgets are mini applications that provide a single utility • Widgets that reside locally are useful only to the person
or service to the user like the current weather or a who installed them.
dictionary.
• Ten thousand installs means an engaged audience of ten
• They can reside either locally on a computer thousand.

• Widgets that need to be downloaded onto the computer • Widgets that appear on a personal site or blog are seen
or on HTML like those provided by Typepad for its and potentially used by all of that site's visitors. Here,
bloggers. ten thousand installs could mean that actually the
application is used by hundreds of thousands.

• When the widgets are intended to sit on web pages, like
some popular blogs, it is important that the visitors of
the site are the target group for the marketer, as with
banner advertising.


10

Widgets Webopinions

• Widgets can be used for brand building efforts • User opinions
• Recommendations
• Their function is less to drive traffic on the website • Bias / or not
but more to engage users to the brand (Pishevar • Impact on CB
2006).

• The success of a widget can be measured by the
amount of downloads and usage.

• Acura: Developed the Acura RDX Traffic widget
that delivers real-time information about traffic
flow, traffic incidents, road construction, and traffic
speed of specific area to a user's computer.


Digital marketing landscape Digital marketing landscape
Entertainment industry pushed Pull for consumer generated
• User generated content (UGC) content content
• Entertainment industry as • Consumers/Users create and
• Sharing others content and specifically created own creators of the content publish content
content
• Music industry companies • Fans sending movie clips to be
create videos for bands included in the video of their
• User can be a individual, company, non-profit favorite band
organization or government
• Newspapers and TV-stations
are publishing reports by • CNN etc. Send your videos and
professional reporters pictures concerning current
events (Hudson River plane
crash, Mumbai – mobile
videos, pictures, Tweeting)


UGC: From broadcasters to audience driven content UGC: Digital marketing landscape

65 66

11

Digital marketing landscape Twitter: short message service

• User generated content (UGC)

• Places to share content and publish your own
content

– CNN (iReport)
– Youtube
– Flickr (photo management and sharing)
– Helsingin Sanomat (send a picture)
– Creating a blog (see e.g. blogs.com)
– Twitter
– Slideshare (consulting, teaching – demonstrating
Gosalves, Antone: “Dell Makes $3 Million for Twitter-
experience) related Sales”, InformationWeek 12 Jun 2009
@ delloutlet=600.000 followers



• Teaching

• Further education

• Tele, satellite,
video broadcastings


Social media & web 2.0

• Social media is a term that refers to services based
on a sense of community, information generation
and sharing (Hintikka 2008)

• Social media is a term that refers to services based
on a sense of community, information generation
and sharing (Hintikka 2008) and it also includes web
2.0 technologies (Lehtimäki, Salo, Hiltula &
Lankinen 2009)


12


• Lehtimäki, Salo, Hiltula & Lankinen 2009
73 74


Social media in the music industry
Web 2.0 marketing Sony Indie Scandie Affiliate Consumers
actions attitude

Asking to join a X X X +
community

Advertising new X X X +
songs and albums

Promoting concerts X X X X +

Advertising fan X X X +
merchandise

Up loading videos to X X X X +
e.g. YuoTube

Asking to tell friends X -

Advance listenings X +

Salo & Härkönen 2009



• Social media, communities and NPD
• Social media and online communities provide new ways for
companies to digitize business:
– Front end of Innovation - ideas
– NSD/NPD
– Testing

• Creating own communities / participate established
communities
– Inform about new products
– Ask review and recommendations
Apple Ipod
• Competitions and games Nike
Nissan
Dell
• Press events & education virtually

Digital Marketing - Salo 77 78

13


Virtual worlds
• 3D online world. Sense of presence and simultaneous
experience in context

• Avatar is used to present you (or not)

• There are over dozens of virtual worlds: Second life,
Kaneva, There, Habbo Hotel

• Virtual worlds vs. MMORPGs (massive multiplayer online
role playing game i.e. games like World of Warcraft
12 million users)

• Simsonline, EVEonline etc


• Virtual businesses & brands

Business purposes:
• Virtual world developers and agencies • Education & Training
• Communication & collaboration
• Sales
• Virtual world providers •Branding
• Innovation

• 3D physics engines and 3D modelling platforms

Digital Marketing - Salo 81

MoiPal (cross platform PC+mobile)

83 84

14


DM and innovation Use for innovation
• Coke: Virtual Thirst ”send ideas for portable virtual • Observation of consumer behavior - generating
vending machine” new ideas and improving products, retail store
• Steelcase: ”design new innovative executive chair” layouts etc
Kohler 2008
• BMW: BMW series 1 Use Facebook application • Evaluation of the new product ideas
graffiti wall to design new and customize your
BMW 1. Over 10.000 participated and 600.000
voted for a best design • Actively generating new ideas

• T-shirts… • Concept testing and design



DM communities taxonomy (Salo & Härkönen 2009)
Mobile technologies introduction
Content creation and sharing

MySpace
High

YouTube

Flickr Facebook

Habbo Hotel
LinkedIn
Second Life
Classmates
services
Low

Low High
Social orientation

87 88

Digital marketing landscape Current status of mobile markets
• Voice and SMSs no. 1 services
• Handset technologies • The penetration of 3G and ”smartphones” continues to
grow
– Especially in Western and Asian markets
• Network technologies
• Consumers are starting to use more mobile services
other than SMS and voice
• Application technologies
• However:
– The penetration of advanced mobile services has been
slower than expected
– Still relatively few mobile service success stories
Changes in consumer behavior take time, the benefits
(for both consumers and companies) dependent on the
critical mass


15

Introduction to mobile technologies – consumer Introduction to mobile technologies – company
perspective
perspective

• Mobile technologies used within companies are many times
internally focused (e.g. mobile office solutions)

Context Informati – Market-Vision conducted survey in Finland in 2008 and 46 % of
Personal Interactive Entertainment companies use some kind of mobile solution
sensitive on
Value
– In the forest industry 68 % companies are using mobile
Require solutions
ments
– 84 % aims to improve their processes with mobile technologies

(Salo & Tähtinen 2004) • Some studies highlight the role of mobile technologies in
Mobile marketing usage business relationships (e.g.)
– J22. Salo, J. (2009). The role of mobile technology in a buyer-
Marketing Customization supplier relationship. Journal of Business & Industrial Marketing.
content & targeting of (in press).
advertising

91 92

General trends: Trends
• The importance of the Internet • “Time poverty”
– Demands for the efficiency of time use increasing
– Increasing consumer power:
• Information available for consumers is constantly increasing – Consumers demand more complete and complex services.
Simultaneously, they are willing to invest less time in the
• Competition for consumers is constantly increasing
purchase process
– Randall Travel Marketing (2006): Top ten travel and
tourism trends: • Demographic changes - The emergence of ”m-generation” as
• 78% of all purchase decisions based on internet-based relevant market player, huge business opportunities
product information – LSE study (08/2006):”UK youth prefer mobile over TV”
• 56 % use the Internet as sole information channel
• Consumers value the opportunity to participate in value creation
– Mobility is BIG, especially in Finland
– Yet, the Internet already builds upon human mobility • Consumers value multichannel service


Business perspective change: from value chains
to value networks i-Phone facts:
• Rubicon Consulting (2008):

Customer driven • A third of iPhone users carry a second phone
Service-
enhanced VALUENET • A quarter of iPhone users say it’s displacing a notebook computer
customization - Digital system
- Customer driven ideas • 28% of iPhone users surveyed said strongly that they often carry their iPhone
- ”open innovation” instead of a notebook computer

• The iPhone increases phone bills.
– The iPhone has increased its users’ monthly mobile phone bills by an
average of 24%, or $228 extra per year

• E-mail is the #1 function
– The most heavily used data function on the iPhone is reading (but not
Industrial age writing) e-mail
corporation
Supplier driven • Note: iPhone data is skewed towards the early adopters
Mass
production
Physical INFRASTRUCTURE Digital
/ OFFERING Digital Marketing - Salo 95 Digital Marketing - Salo 96

16

Results from Rotuaari -project Mobile Marketing

• University of Oulu’s multidisciplinary research
project which studied mobile services • SMS/MMS/Web – Case Onnela (studied in Fummas
• 6 mobile services field trials implemented during project)
2003-2006 • Video clips
– SmartRotuaari1, 2 &3, TiernaJack, MobileKärpät, • Music
SmartCampus • Games
– Almost 2000 consumers/end users surveyed • Internet
– Hundreds of interviews

• The main result - Consumers valued:
– Location-based, context-specific services
– Multichannel services
– Community services


Mobile marketing process Mobile marketing recall

Salo et al., 2008


Mobile sources of value Advertising mediums compared

• Peer content creation
• Presence, personalization, location and context-
awareness
• Multi-channel services
• Mobile marketing, M-CRM
• Social media, virtual communities
• User experience
– Coherent user experience in multi-device
environments
– Ease of use still most important !

Salo & Karjaluoto 2007

17

Digital marketing in practice
Homework and thinking exercise
Role of DM in 2008 Role of DM now / future
• How (why, for what) different companies (B2C/B2B) can use SEO and
• Try (everybody else is in Second life • Improve (why we are using SE marketing?
and Twitter) these, how many customers
with what costs, cost of brand
awareness etc.) • How (why, for what) different companies (B2C/B2B) can use social
networks/social media?
• Trial campaigns and problems (like in
mobile marketing in 2002) • Central part of company
Marketing actions (sales, • How (why, for what) different companies (B2C/B2B) can use virtual
advertising, R&D, CRM + worlds?
budget)
• Belonging to a social web / • How (why, for what) different companies (B2C/B2B) can use mobile
community –presence (like in internet marketing?
marketing 1995-2000) • Creating and leveraging
communities for business
• DM strategic or peripheral?
• Something new and shiny: blogs,
wikis, webinars, webisodes, twitter, • New and shiny: Where's the
etc. beef for company value, brand
value, CRM, Sales, NPD/R&D
(value, roi, effectiveness)

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What this digital marketing course does not cover

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