An introductory lecture to digital marketing course at University of Oulu, Fall 2015.

1. Joni Salminen
PhD, marketing
Email: joolsa@utu.fi
Tel. 044 06 36 468
DIGITAL MARKETING
– an introduction
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2. Why is it important to learn digital
marketing?
• Both people’s time spent on
media and corporate marketing
budgets are moving more and
more into digital media.
• Digital marketing tends to be
the fastest growing form of
marketing – there is a need for
experts (job opportunities).
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3. Who am I?
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Joni Salminen
PhD, marketing
• Bachelor’s thesis 2007: Search-
engine marketing on the Internet
• Master’s thesis 2009: Online
advertising exchange
• Dissertation 2014: Strategic
problems of platform startups on the
Internet
Experience:
• Teaching digital marketing at the Turku
School of Economics (since 2012)
• Responsible for digital in ecommerce
company ElämysLahjat.fi (since 2011)

4. Course description
Digital marketing is the fastest growing field of
marketing. This course will help students understand
digital marketing in theory and learn some practical
skills. In addition, students will have the opportunity to
go deeper into their chosen sub-field of digital
marketing. As a whole, the course will prepare students
to apply digital marketing in real contexts.
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5. Goals
After completing the course, the students will have a
basic understanding of currently important areas of
digital marketing. In addition, they will get familiarized
with a chosen sub-field of digital marketing, and learn
to run a digital marketing campaign in practice.
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6. Content
The following topics will be covered: introduction to
digital marketing, search-engine marketing (SEM),
social media marketing, Web analytics, management
of digital marketing channels, and strategic use of
digital marketing. In addition, guest lecturers will
introduce a topic on their own field of expertise.
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7. Schedule
(let’s look at syllabus)
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8. Requirements
• Course participation consists of three requirements: 1)
obligatory participation in lectures and guest lectures, 2)
active participation in the group assignment, and 3)
individual essay.
• The group assignment is carried out with max. 5 team
members. It includes planning, creating, running and
reporting a Facebook advertising campaign for a case
company. The teams will be briefed on class, but will work
independently throughout the course. The individual essay
requires choosing a sub-field of digital marketing, reading
the provided articles relating to it, and writing a reflective
essay on the topic.
• The course will be carried out in an intensive time
schedule, and each participant is expected to invest a
considerable amount of time and effort in the course.
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9. Materials
Digital Marketing book (Chaffey, 2012), lecture slides,
Facebook Blueprint learning material, and article
package from the lecturer.
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10. Evaluation
The course provides 6 study credits (ECTS). The
grading will be on the scale of 1–5. The group
assignment will make 40% of the final grade, and the
individual essay will make 60% of the final grade. Lack
of meeting the course requirements will lead to rejection.
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11. INTRODUCTION TO DIGITAL
MARKETING
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12. Digital marketing: The Definition
(Wikipedia, 2012)
”Digital Marketing is the promoting of brands using all forms of
digital advertising channels to reach consumers. This now
includes Television, Radio, Internet, mobile, social media
marketing and any other form of digital media.
Whilst digital marketing does include many of the techniques and
practices contained within the category of Internet Marketing, it extends
beyond this by including other channels with which to reach people that
do not require the use of The Internet. As a result of this non-reliance on
the Internet, the field of digital marketing includes a whole host of
elements such as mobile phones, sms/mms, display / banner ads and
digital outdoor.”
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What do you think of this
definition?

13. What is digital marketing?
• Digital marketing = A form of marketing that
utilizes digital media.
– Marketing = 4P variables (product, price, place,
promotion), i.e. marketing communications, market
research, advertising, customer service, distribution
– Digital media = Internet, mobile apps, digital screens,
etc.
• So, it’s ”just” marketing in a digital context.
• Another definition: ”[Digital marketing is] marketing
with technology” (Malthouse & Hofacker, 2010)
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14. The Digital Marketing Mix (d4P)
(Salminen, 2015 wp.)
Analogue Digital
Product
Price
Place
Promotion
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15. The Digital Marketing Mix (d4P)
(Salminen, 2015 wp.)
Analogue Digital
Product Tangibility, rigid
adaptability
Digital products (virtual
goods), e.g. apps,
e-books, MOOCs
Price
Place
Promotion
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16. The Digital Marketing Mix (d4P)
(Salminen, 2015 wp.)
Analogue Digital
Product Tangibility, rigid
adaptability
Digital products (virtual
goods), e.g. apps,
e-books, MOOCs
Price Heavy cost structure,
possibility for local
monopolies
Price comparison, removal of
physical barriers, decrease of
price dispersion (except
brand), zero pricing
Place
Promotion
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17. The Digital Marketing Mix (d4P)
(Salminen, 2015 wp.)
Analogue Digital
Product Tangibility, rigid
adaptability
Digital products (virtual
goods), e.g. apps,
e-books, MOOCs
Price Heavy cost structure,
possibility for local
monopolies
Price comparison, removal of
physical barriers, decrease of
price dispersion (except
brand), zero pricing
Place Bullwhip effect, slow
delivery, importance of
supply chain
management and
storage
Digital distribution, marginal
distribution cost approaching
zero, long-tail effect
Promotion
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18. The Digital Marketing Mix (d4P)
(Salminen, 2015 wp.)
Analogue Digital
Product Tangibility, rigid
adaptability
Digital products (virtual
goods), e.g. apps,
e-books, MOOCs
Price Heavy cost structure,
possibility for local
monopolies
Price comparison, removal of
physical barriers, decrease of
price dispersion (except
brand), zero pricing
Place Bullwhip effect, slow
delivery, importance of
supply chain
management and
storage
Digital distribution, marginal
distribution cost approaching
zero, long-tail effect
Promotion Expensive mass
media, waste, media
sales people and
minimum purchases
Super platforms, self-serving,
performance-based pricing,
programmatic buying (”one
man marketing machine”)
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19. What makes digital marketing different?
The 8 features of digital marketing
1. Speed of diffusion (network effects)
2. Low entry barrier (+1M apps in app store, start ads
with 5€ in biggest platform of the world)
3. Low switching cost (search results, ecommerce)
4. Long tail (of content, products)
5. Measurability
6. Targetability
7. Hyper-competition (in ecommerce, search-engines,
social media feeds, etc.)
8. Role of technology (algorithms, automation)

20. 0
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4/26
Launch
5/1 6/01 7/01 8/01 9/01

21. However, there are some caveats…
• user is not synonym to customer
• strong pressure to give free products as a result of
1) hyper-competition and 2) minimal cost of digital
distribution
• strong pressure to find indirect monetization
models (usually advertising)
• digital influence is pervasive to business logic, not
only marketing.

22. Digital transformation (Järvinen, 2015)
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• companies have hired specialists to manage
change, but the success is influenced by
top management understanding
• there are both success stories (e.g.
Schibsted) and failure stories (e.g. Sanoma)

23. The influence of digital in organizations
(cf. Clausewitz, 1832)
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Strategic?
Tactical?
Operative?

24. The influence of digital in organizations
(cf. Clausewitz, 1832)
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Strategic? – What’s the role of
digital for us? (Just another marketing
channel, a new distribution channel, or
whole business logic?)
Tactical?– We need to
react faster
Operative?– Learning
new skills and tools, how
much time to spend in
channel management?

25. Influence of digital in consumers
(Järvinen, 2015)
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26. The end for mass media? (IAB, 2014)
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27. Budget gap in advertising spend
(Flurry Analytics, 2012)
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0
5
10
15
20
25
30
35
40
45
50
TV Printti Netti Radio Mobiili
%
Ad spend vs. media consumption
Mainospanostus
Vietetty aika
Marketing investments do not follow
customers instantly and perfectly! Why?
TV Print Online Radio Mobile
Ad spend (firms)
Time spent (people)

28. In the future…
• There is no ”digital marketing”, there is only
marketing.
• There is no ”ecommerce site”, there is only
store (omnichannel).
• There is no ”mobile analytics” and ”Web
analytics”, there is only analytics.
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29. Already now, everything you know
from marketing can be applied to a
digital context
Consumer psychology has not changed
(people are still people)
”…even if the medium had changed, basic human needs
have not. And, indeed, it turns out that there are a lot of
lessons from 1982 that are still quite useful for a 2007
search engine marketer.”
─David Rodnitzky, Online Retail Marketing
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30. Claude Hopkins,
1866–1932
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Download for free:
www.scientificadvertising.
com/ScientificAdvertising
.pdf
• Testing is like in the
1920s but today...
• we can test hundreds
or thousands of ad
combinations for tens
or hundreds of target
groups à 2€
• and the results are
ready the same day.

31. What areas are there in digital marketing?
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32. The (currently dominant) areas of digital
marketing
1. Online advertising
2. Search-engine marketing
3. Social media marketing
4. Content marketing
5. Blogger reachouts
6. Affiliate marketing
7. Email marketing
8. Marketing automation
9. Conversion optimization
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33. Online advertising = advertising on the Web
(often known as ”display advertising”)
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34. Search-engine marketing = improving ranking
on a search-engine results page with selected
keywords. Divides into organic and paid forms,
the paid form is performance-based (PPC
advertising).
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35. Social media marketing = two-way
communication (organic social media
marketing) and advertising (paid social media
marketing) in social networks/platforms.
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36. Content marketing = building an image as an
opinion leader in a given industry/field by
producing and sharing high-quality content.
Content marketing is often associated with
inbound marketing.
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37. Blogger reachout = a form of influencer
marketing by collaborating with bloggers –
typically gifting products/money in exchange for
more or less authentic blog posts. In addition to
bloggers, vloggers and Instagram stars are
popular target for reachout campaigns.)
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38. Affiliate marketing = a performance-based
form of marketing, in which an advertiser pays
a publisher for conversions that are directly or
indirectly attributable to visitors from the
publisher’s website. Usually takes place
through affiliate.
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39. Email marketing = a form of marketing
communications taking place via email, usually
newsletter but can also be transactional email,
lifecycle marketing and triggered behavioral
emails.
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40. Marketing automation = using automated
tools to identify, evaluate and nurture potential
or existing customers. Marketing automation
can take place on the website through
personalization/testing or in direct contact with
the customer (lifecycle and triggered emails).
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41. Conversion optimization = improving website
usability and marketing variables (product,
price, place and promotion) to increase the
likelihood of desired outcomes or conversions
(usually sales)
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42. Thank you!
• Slides available in Optima (later today)
• Add me in LinkedIn: http://fi.linkedin.com/in/jonisal
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