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Digital Content Marketing: A

Literature Synthesis
Nina Koiso-Kanttila
Published online: 09 Aug 2010.
To cite this article: Nina Koiso-Kanttila (2004) Digital Content Marketing: A

Literature Synthesis, Journal of Marketing Management, 20:1-2, 45-65, DOI:
10.1362/026725704773041122
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Journal of Marketing Management, 2004, 20, 45-65
Digital Content Marketing:

Nina Koiso-Kanttila1
A Literature Synthesis
Purely digital products are increasingly part of
the commercial landscape. Technology-
facilitated environments in general have received
considerable attention in the literature on
marketing. This article reviews the existing
knowledge base on digital products and the
differences these products suggest for marketing
activities. It first positions digital content in
Helsinki School of Economics
relation to other offerings, then further analyzes

the marketing implications with an adjusted
marketing mix framework. The key
characteristics of the digital content identified
are information recombination, accessibility,
navigation interaction, speed, and essentially
zero marginal cost. The text closes with a
discussion of the application of these
characteristics.
Keywords: internet applications, digital content, marketing mix, consumer

markets
Introduction
Digital content is steadily making inroads into the lives of European

consumers. A brief analysis of the most popular Internet sites, based on
NielsenNetRatings (2002) data, brings out a couple of issues. As of March
2002, the top ten Web companies across the region were primarily general
interest portals offering news, entertainment, chatting, and perhaps some
shopping. Exceptions were an online auction that attracts a large audience in
Germany and two banks that had also entered the top-ten Web listing in
Finland. The absence of dedicated online retailers among the most popular
properties was interesting. The diffusion of electronic retailing has been
slower in Europe than in North America (Digital Europe 2002). In terms of
usage, non-retail World Wide Web content accounts for a major part of
Internet consumption today.
1 Correspondence: E-mail [email protected], telephone +358 40

7042288
ISSN1472-1376/2004/1-2/00045 + 20 £8.00/0 ©Westburn Publishers Ltd.
46 Nina Koiso-Kanttila
In the literature, considerable attention has been focused on technology-

facilitated environments. Research has addressed how the nature of service is
transformed by technology in self-service machines and in virtual
environments (Grönroos et al. 2000; Heim and Sinha 2000, 2001; Meuter et al.
2000; Pitt, Berthon and Watson 1999). Also, the economics of digital products
and the prospects for related technologies have been analyzed (Bergeron
2001; Dertouzos 1997, 2001; Shapiro and Varian 1998, 1999). However, the
properties of purely digital products – where both the entity and the delivery
are digital – have still not been presented coherently from the marketing
perspective.
The present article contributes to this understanding by reviewing the
existing knowledge base on digital products and the differences these
products suggest for marketing activities. The text synthesizes current

thinking and its foundations. The objective is to assess the significance of
digitization for marketers through a review of the literature.
Within digital offerings and digitized transactions, the focus is on purely
digital products. Examples include news and academic articles online, virtual
pets and mobile micromovies, game and music downloads, and software
package updates. The text concentrates on digital consumer products
supplied by commercial enterprises. Consequently, digitized transactions in
e-banking, for example, are not part of the focus. However, the aspects
identified here can also be relevant for such related offerings.
Concept Definition and Terminology
The terms ‘digital content’ and ‘digital product’ are used interchangeably in
this work. The term ‘digital product’ is employed in the academic literature
(e.g. Hall 2001; Lessig 2001; Shapiro and Varian 1998). ‘Content’ is widely
used in industry analysis, along with the term ‘application’ (e.g. Durlacher
2001; Harter et al. 2001). Additionally, the following expressions appear in
the literature: ‘electronic information products’, ‘information goods’, and
‘virtual products’. In business communications, terms that describe the
specific usage of digital offerings have more descriptive power.
Digital content and digital products are conceptualized as bit-based
objects distributed through electronic channels. The term ‘electronic
channels’ is technology neutral. It refers to wired and wireless networks
alike. ‘Distributed’ covers the shipping of an entity to a client or alternatively
transmitting the data bits presenting the respective environment. The object
is downloaded for immediate viewing and use. It is essential that both the
distribution process and the actual entity acquired are digital (Strader and
Shaw 2000).
In the field, practitioners often describe digital content distributed via
Digital Content Marketing 47
wireless networks as ‘value added services’ or ‘mobile services’. The strength

of these terms lies in how they are associated with the connection service. In
their own management work, businesses may want to keep in mind that
research has highlighted how software products and software services differ
in their value creation (Nambisan 2001; also Meyer and Zack 1996). Digital
content appears closer to what is understood as software products (see Gates
1999, p.214).
Positioning Purely Digital Products
The task of assessing digitization meanings for marketers starts with a

consideration of items developed in services research. The service and
product elements identified in such research are summarized in Figure 1. The

four dimensions in Figure 1 are based on the meta-analysis of Zeithaml,
Parasuraman, and Berry (1985). The literature continues to use these
dimensions – intangibility, perishability, heterogeneity, and simultaneous
production and consumption (e.g. Zeithaml and Bitner 2000). Their potential
for identifying services and goods has also been criticized by Ahtola (1985)
and Gummesson (1995, pp.295-296). However, the four dimensions can assist
in analyzing digital content. It is in that framework that they are employed
here. As a group, digital products are positioned in the framework by the
author. Figure 1 also appears in Koiso-Kanttila (2002, p.105).
Service characteristics Digital product position Product characteristics
Intangibility Physical form
Heterogeneity Standardization possible

Simultaneous production Production separate
and consumption from consumption
Perishability Possible to store / save
Figure 1. Digital Products as Compared with Products and Services
Figure 1 show how digital entities contain elements conventionally

associated with both services and products. This mixture of service and
product elements is significant. The abstracted positioning shown in Figure 1
would be quite similar for non-digital service products such as printed news.
In this connection, it can be noted that Freiden et al. (1998) made similar
observations on the position of information products in these dimensions.
In the degree of heterogeneity continuum, the positioning of digital
content towards the standardization end refers to the prospect of perfect
digital copies. The potential for storing arises through information saving.
Production is separate from consumption as the actual coding is done prior

to content consumption. These three elements place the aggregated balance
towards the product end.
Digital products are physically intangible, that is they cannot be touched.
Their bit-based core cannot be hugged like a teddy bear or clipped like an
article from a newspaper. However, tangibility can also apply to perception
by any of the senses, in which case digital products are tangible. They can be
viewed or heard with a device. When combining these aspects, the lack of a
material form is weighted more. This leads to the positioning of digital
content towards the intangible end of the continuum in Figure 1. The mental
intangibility of the entities is likely to be evaluated subjectively by consumers
(Laroche, Bergeron and Goutaland 2001).
The position of a specific digital product in comparison with service and

product elements has practical business value. For instance, the business
implication of advance coding and storing is that the entities are tradeable.
Another implication is that when digital entities are reasonably intangible,
making them mentally more concrete through marketing communication is
likely to be desirable.
Beyond the established dimensions of Figure 1, two service features are
relevant. One is continuous demand, meaning that a consumer can acquire
basically similar offerings several times (Turner 2001, p.55). This is partly
facilitated by the fact that storage of digital entities involves the saving and
deleting of information rather than the tangible stocking and disposal of
goods, which perhaps takes more effort. This implies an opportunity for
ongoing marketing with individual customers.
The other service feature is that buying digital entities does not include
transfer of legal ownership in the same way as with physical goods (Shostack
1977). This service feature may not match the product feature of tradeability.
Hence, concern for unauthorized copies hinders making creative works
available online. Managing this mismatch is crucial for building a healthy
market. Solutions may include technological safeguards and accompanying
legislation (see e.g. Slowinski 2003). In context with his hypertext ideas,
Nelson (1967) recognized the necessity of establishing both reliable royalty
provisions for contributors and something equivalent to ownership of a
copy, so that users would have unlimited access to material in their
possession. It is noteworthy that due to their design, commercially successful
wireless applications, such as ringtones and display icons, suffer less from
unauthorized sharing.
Marketing Mix Framework
The subsequent analysis employs the familiar framework of the Ps of

marketing. This tool is commonly referred to as the marketing mix (Lilien,
Kotler and Moorthy 1992, pp.169-170).

In its original form, the Ps construct contains four interacting variables:
product, place, promotion, price. These four Ps are components that the
company can control (McCarthy 1960). The relevance of this traditional
marketing mix in an e-environment has been questioned (Rayport and
Sviokla 1994; Webster 1996). Also, a mental checklist specifically for an e-
environment has been proposed, the e-marketing mix (Robins 2000). Critics
have argued that in an interactive marketplace the variables interact and
cannot be separated. But even McCarthy’s (1960) presentation emphasizes
the interrelatedness of the four Ps. The interaction is likely to be more
intensive online. Nevertheless, the classification can provide a systematic
analysis tool, as in other recent applications (Allen and Fjermestad 2001;
Bhatt and Emdad 2001; Melewar and Saunders 2000).

While the 4P variables are considered applicable, it is recognized that their
early conceptual development mainly concerned tangible goods (McCarthy
1960, p.46). The preceding section outlined how digital content includes
features associated with services. It is therefore appropriate to evaluate the
services extension of the construct. The three additional service Ps suggested
by Booms and Bitner (1981) are participants, physical evidence, and process.
Of these added variables, participants could refer to other customers, but
is excluded as the variables should be within the control of the firm, and
physical evidence can be integrated into product and place instruments (van
Watershoot 1995). Neither is process extension indispensable, although it is
expected to substantially improve the clarity of the construct in the context.
Interaction with digital content can be distinct and affect user perception.
Empirical research found that the Web site interface type affects the
perceived shopping experience and further indicated a strong positive
relationship between the shopping experience and the number of actual
online purchases made (Koivumäki 2001). The manner in which product
outcomes are delivered does not appear to be fully amenable to the four
classic P variables.
This produces a combination of variables for the area. The five Ps of
digital content here proposed and employed are thus product, place, process,
promotion, and price. They are used to illustrate the scope of marketing in
this context. Using this tool as a framework, the literature was scanned for
the specific opportunities and dilemmas inherent in digital content.
Following this emphasis, functions that are not limited to a technical
environment were not addressed. Such functions include quality control and
brand building. The main results of this scanning and synthesis are
presented next. To maintain perspective, each section opens with a quote
about the element.
Product
The consumer buys the product for the benefits or satisfaction derived or expected
to be derived from its use (McCarthy 1960, p.209).
In the product area, the binary-digit-based form allows integration of

different types of information in the same system. When these elements can
be approached from multiple points, the character of the communication
changes (Castells 2000). In many applications today, multidimensionality is
implemented with embedded links and hypertext. Hypertext derives from
the notion that ideas are not necessarily in a linear sequence. In a truly
interconnected hypertext system, readers may jump around and try different
pathways until they find the ones they want to study most closely (Nelson
1987). The links could also be editable by users, as in early proposals for the
World Wide Web software (Naughton 2000, p.237).
In other applications there can be flexibility about an object’s parameters
so that slight variations are possible. This is relevant in virtual pets, for
example. The customer benefit from these aspects is more room for
exploration and greater potential for involvement. From a supplier point of
view, the key is information recombination (see Castells 2001). A further
implication of recombination is how things may be sold in smaller slices; for
instance, individual music tracks instead of a complete CD. In the book
publishing industry, this might mean offering separate pages of practical
advice books (Fischer 2002).
Place
The consumer cannot possess the product at the right time unless it is at a place
convenient to her (McCarthy 1960, p.314).
Electronic proximity and accessibility describe developments in place.

Electronic proximity means that distance is a function of keystrokes rather
than of physical distance (Dertouzos 1997). Accessibility in turn is a common
feature of virtual offerings (Grönroos et al. 2000; Wolfinbarger and Gilly
2001). Combining these two aspects, the convenience of accessibility is here
understood as the electronic proximity of content offered through electronic
channels. The feature allows customers to choose their purchase time and to
reach a wider selection than is available locally. The other side of such
consumer convenience is that the use of digital products will require network
connections and devices.
Early e-commerce literature tended to stress the prospect of direct
exchange between producers and consumers: disintermediation (Carr 2000).
However, running a virtual store requires skills in audience creation and
maintenance, product display, and order and payment processing (Yesil
1997). In an e-environment, the cost of coordinating intermediaries can be
lower than in the physical world, thereby reducing the transaction cost based
incentive to internalize channel activities (Sarkar, Butler and Steinfield 1998).
Further, intermediaries can have a consumer reassurance role (Jallat and
Capek 2001). These aspects affect channel structuring. Electronic channel
partners and customers still need to accept the company. Nevertheless,
consumer peer-to-peer processes may disrupt delivery structures (Sharma
and Tzokas 2002).
Software robots could enlarge the place that is convenient to consumers,
but would thrive only with an industry agreement on how to present
information (Dertouzos 1997, 2001). In repeat buying, consumers, however,
have the means to find the place again by adding it to their bookmark list.
Website bookmarks are commonly used as an external memory to reach
familiar favorites (Brown and Sellen 2001; Koiso-Kanttila 2003).
Process
The process dimension refers to the actual procedures, mechanisms and flow of
activities by which the offering is delivered (Booms and Bitner 1981, p.48).
Navigation interaction refers to how the flow of activities proceeds in an

electronic store and when consuming digital products. This is important
because there is usually no human interaction between the company’s
employees and the customers in the process. A digital interface needs to
guide customers and to let users know what they can do and how to proceed
(Underhill 1999, chap. 17). Current implementations do not always provide
adequate guidance (e.g. IconMedialab 2001). Consistent interface designs
across platforms and applications smooth navigation interaction by making
the interface more predictable for users (Nielsen 1989). This can lower the
barrier to trying new applications. Differentiation can then come from nice
touches and add-ons.
Speed means fast transactions and digital deliveries. As an end result,
speed relates to the possibility of receiving content instantly in the best case.
This prospect of immediate gratification is a key advantage of digital content.
In this respect, digital products differ importantly from entitlement to
physical goods or services purchased via electronic channels.
Transaction time depends on the user’s connection type. Though
projections can be overoptimistic, data speed rates gradually improve and
enable a wider range of applications. For example, actual wireless data
speeds available to European and many Asia Pacific consumers have been
estimated at about 50 kbps in 2003 through the GSM network’s GPRS
upgrade (Durlacher 2001, p.55). Businesses can alleviate bandwidth
limitations primarily by being alert about application bit size and server
capability. Added complexity easily slows down applications, as observed in
a Zona Research (2001) study. Speed is also associated with freshness of

content.
Promotion
The objectives of promotion are to inform, persuade, or remind consumers of the
company’s marketing mix (McCarthy 1960, p.480).
Targeted technology-based persuasion may merge with consumer choice of

content. This is enabled by channel interactivity and digital downloading of
the object. Such direct response advertising can bring consumers value
through information acquisition, lower prices, and smart entertaining.
Consumer permission, however, is a prerequisite. The practice has therefore
also been called “permission marketing” (Sharma and Tzokas 2002). User
control and message relevance distinguish between acknowledged and
irritating direct advertising (Barwise and Strong 2002; Eriksson and Lähde
2001; Mehta and Sivadas 1995).
Customer relationships risk becoming more superficial and fleeting in a
technical environment (Barnes, Dunne and Glynn 2000). The electronic
proximity of suppliers online can make it easy for consumers to switch. It is
therefore essential to make it beneficial for a customer to stay. Subject to
client consent, client information could facilitate this marketing task.
Nevertheless, technological systems in marketing may result in one-sided
benefits to the seller, and no relationship will exist unless the customer feels
that one exists (Barnes 1995). Reinartz and Kumar (2002) studied this
subjective loyalty feeling with purchase records. They found that regular
customers who felt loyal to a company promoted it more often and generated
much more profit than did customers who scored high on behavioral loyalty
alone. They also noted that transactional focus is adequate for some
customers.
Gwinner, Gremler, and Bitner (1998) studied the benefits of remaining a
loyal customer from the customer’s perspective. Their findings point out the
importance of confidence benefits for consumers. Confidence benefits
include faith in the trustworthiness of the provider. Research results on
consumer concerns in the area of online system security interlink, as do
findings emphasizing the value of becoming a known and trusted Website
(Miyazaki and Fernandez 2001; Reichheld and Schefter 2000). Hence, as user
control is crucial to direct advertising, trust appears equally important for
loyalty.
Price
Any transaction can be thought of as an exchange of money – the price – for
something else (McCarthy 1960, p.577).
Content pricing forms an interesting area. Pricing may be implemented as

unit price collecting or as access-based pricing and smaller prices may be
aggregated into larger sums for billing. At times, some digital products are
offered free of charge. In such cases, the goal may be to generate revenue
with something else, for example by charging for a network connection.
Other motivations for free offers include acceptance building. To approach
the area, consideration of the cost structure is needed.
In cost structure, the prominent feature is the dominance of indirect costs.
The prospect of low marginal cost is not new. Nevertheless, digitization puts
the marginal cost near zero. In the literature this is regarded as quite
exceptional (Shapiro and Varian 1998; Turner 2001). Essentially zero
marginal cost is based on the fact that digital assets do not have to be scarce
resources (Mitchell 1995, p.136; see also Glazer 1991). It means that the
increase in spending resulting from an incremental transaction or customer
can be near zero. Commercial agreements, for example license fees, are
independent of this feature. The dominance of indirect costs is further
coupled by competitive pricing pressures, by the Internet shareware legacy
that computer tools ought to be free (Rheingold 1993; Schlosser and Kanfer
2000), and by confusion about where viewing ends and consuming starts in
an e-environment. Together, these aspects pose challenges to enterprises.
The Nobel-prize winning economist Arrow (1962) noted that creating a
market for information is inherently difficult, should such a market be
desired, since optimal allocation would call for distribution at marginal cost.
In addition to technological safeguards and legislation, marketing can alter
the scenario. While greater amounts of information should increase price
sensitivity among comparable goods, they should reduce price sensitivity for
differentiated goods as information on attributes other than price is readily
available (Alba et al. 1997; Lynch and Ariely 2000; Mitra and Lynch 1995; also
Bakos 1997). Research also suggests that marketers ought to be able to charge
premiums for hedonic goods that consumers are used to having, as
consumers may be more reluctant to accept cuts in hedonic dimensions than
in utilitarian benefits (Dhar and Wertenbroch 2000). Empirical evidence so
far appears to support these theory predictions. First, studies on online book
sales show that prices can vary substantially even in fully developed e-
markets (Brynjolfsson and Smith 2000; Hall 2001, pp.131-134). The
implication is that total package differentiation can work online. Second,
wireless application developers contend that there would not be a margin in
generic information provision, but that entertainment can generate revenue
(Harter et al. 2001).
Conclusions
The main conclusions derived from an analysis of the literature are presented
in this section. The first part of the article compared digital content with
other commercial offerings. The comparison revealed conceptual similarities
with regard to both products and services. The conclusion is that
conceptually, digital content entails both conventional product and service
features. In essence, digital content is a product that also behaves in a service-
like manner, thus creating its own offering subtype.
Next the literature was scanned for novel aspects in content design. A set
of marketing mix variables was framed for that purpose. The findings of this
literature review suggest a few salient aspects. They form the basis for
proposing that from the perspective of marketing, the key characteristics of

digital content are information recombination, accessibility, navigation
interaction, speed, and essentially zero marginal cost. Together, these five
characteristics can form the essence of content digitization. The definitions of
these five characteristics are summarized in Table 1.
Table 1. Proposed Key Characteristics of Digital Content and Their

Definitions
Characteristic Definition
Information Integration of different types of information in
recombination the same system; modularity and hypertext
functionality.
Accessibility Electronic proximity of content offered
through electronic channels.
Navigation How the flow of activities proceeds in an
interaction electronic store and when consuming digital
products.
Speed Time dimension of the process: fast
transactions and the prospect of receiving
content instantly.
Essentially zero Potential for a near zero increase in spending
marginal cost resulting from an incremental transaction or
customer.
Discussion
This section positions the conclusions presented above in relation to prior
research. It also addresses the implications and applicability of these
conclusions.
The first conclusion is that digital content conceptually includes both service
and product features. This is a basic proposition, in line with earlier work by
Freiden et al. (1998), and also Rowley (1995). Nevertheless, this basic
proposition is still worth emphasizing. This mixture of conventional product
and service elements may enable opportunities, but it also makes digital
content marketing challenging. The Internet enthusiasm of the late 1990s
emphasized the opportunities, such as low-cost, wide-scale distribution. The
product features of standardization, advance production, and the possibility
to store facilitate such opportunities. These product features may be even
more pronounced for digital content than for conventional products.
At the same time, the service feature of relative intangibility can limit the
means of control available to content producers. No factories or raw
materials are required for making copies of digital content. Hence, for
example music and game companies may have an incentive to offer their
products through physically defined pieces, until the dilemmas associated
with the mixture of service and product features have been solved for
content delivered electronically. These dilemmas are further complicated on
the one hand by the marketing concern of end-customer-relations
management and on the other by the question of who is going to establish
the standards for digital distribution (Maltz and Chiappetta 2002).
The literature scan with the marketing mix variables further analyzed the
opportunities and challenges associated with digital content marketing. It led
to the proposition that from the marketing perspective, the key
characteristics of digital content are information recombination, accessibility,
navigation interaction, speed, and essentially zero marginal cost, and that
these five characteristics together can form the essence of content
digitization. It is central to bear in mind that the literature scan focused on
the differing aspects. Consequently, the findings reflect what distinguishes
digital content marketing from other business.
The five characteristics overlap the construct of product, place, process,
promotion, and price. Nevertheless, two features are from the process
dimension (navigation interaction and speed), whereas none are from the
promotion dimension. Within the promotion variable, the most promising
feature candidate was how promotional initiatives may merge with
consumer choice. However, this relates more to end results, such as
immediate gratification, than to actual product characteristics. Like the
original P variables from which they are derived, the five key characteristics
interact. For instance, accessibility and essentially zero marginal cost can
together facilitate expansion of the market. The connections and interactions
among the characteristics will be further addressed. However, the proposed
content characteristics are first compared with variables stressed by prior
research.
An early text on digital marketing in general listed attractive characteristics

of interactive media. In that context, the characteristics were on-demand
availability, addressability, two-way interaction, effective information
delivery, customization, and seamless transactions (Kierzkowski et al. 1996).
These appear to overlap with accessibility, navigation interaction, and
information recombination. A more recent text listed the key value drivers of
digital content specifically. These were accuracy, timeliness, completeness,
appeal, interactivity, and price (Rangan and Adner 2001). Here the overlap is
less apparent. The fact that the characteristics identified here are rather
technical and of a building-block nature is obvious from this latter list.
Together, the characteristics help to create product advantage and thereby
customer benefits. Management of separate building blocks of this kind
requires attention by marketers on each of the elements.

This building block proposition is elaborated next. The building block
metaphor implies that something can be constructed with the blocks. Figure
2 shows how the proposed key characteristics and themes relevant in digital
marketing can interlink. The five digital content characteristics from the
literature review serve as column titles in the figure. The row titles list
themes relevant in digital marketing. Privacy, customization and intellectual
property rights are examples of those themes. This list of themes is not
exhaustive, but it is perhaps broad enough to capture the most commonly
cited and researched ones. Then, for visual clarity, the strength of mutual
association for each characteristic and theme is marked with a circle. Stronger
association has a larger circle than moderate association, which in turn has a
larger circle than weaker association. As the strength of associations is
intended to be illustrative, they were defined by a subjective evaluation of
the researcher.
Information Navigation Essentially zero

re-combination Accessibility interaction Speed marginal cost
interactivity
network externalities
not used up in consumption
intellectual property rights
quality
customization
privacy
relationship building efforts
direct response advertising
actual pricing
Stronger association:
Moderate association:
Weaker association:
Figure 2. Association Strength between Proposed Content Characteristics

and Other Themes
Figure 2 can be interpreted by examining either rows or columns in the

matrix. In the column examination, accessibility and navigation interaction
have the largest number of connections with other themes. This implies that
those two characteristics may be the cornerstones of the digital content
characteristics proposed.
When the matrix is approached by row, customization is found in row six.
The figure illustrates that customization of content can be based on
information recombination and navigation interaction and supported by
speed. A further example of the analytical applicability of the matrix is
intellectual property rights. Figure 2 suggests a close association between
accessibility and intellectual property rights in an e-environment. This theme
also relates to the discussion of tradeability and transfer of ownership in the
first part of this article. However, in Figure 2 the theme is also associated
with the cost structure, as reasonable end-customer prices can reduce the
allure of unauthorized copies. These examples serve to illustrate the
connections between the characteristics, which interact similarly to the five
Ps from which they are derived.
To show how these five content characteristics apply in a specific business
context, a hypothetical case study is generated. In this thought experiment, a
potential entrepreneur is planning the introduction of digital nautical charts
for recreational yachtsmen. As the case is hypothetical, it may also include
aspects that are not currently used in this market.
Knowledge of marine charts is essential for this venture. However, here
the case moves directly to business implementation considerations. For ease
of perception, the case is structured with the proposed five content
characteristics that were also presented as column titles in Figure 2. They are
written in bold. The themes listed in Figure 2 are in italics.
As for accessibility, customers need an onboard chart plotter or a
computer and preferably the means to charge them before they can use
digital charts. If nautical charts are to be downloaded or updated offshore, a
wireless connection is also needed. The percentage of yachtsmen having
these facilities defines the business potential. To safeguard the firm’s
investment in marine chart knowledge, their intellectual property rights, for
example passwords may be employed to prevent unauthorized sharing of
the charts. But paper-based nautical charts retain their value, and it is
customary to resell them. To accommodate this custom, the company may
explore the possibility of allowing onward sales, as long as only one set of
the chart copy is active at any time.
For information recombination, the hypothetical firm will need a
database of the charts. Once this database is in place, the firm may explore
the viability of letting customers specify by coordinates the area for which
they want a chart. The eventual cost implications of such customization need
to be calculated. Integration with other types of information is a key

customer benefit of digital charts. For example, when a chart is connected to
the global positioning system, the chart shows the yacht’s position on the
chart. Another example is a connection to an autopilot. Here the yachtsman
can define the route by mouse clicks. Further, commercial cargo vessels
generally use digital connections. Should they transmit their position and
course, this data could be included in the chart, thus reducing the risk of
collision.
The navigation interaction design should allow use of the charts even in
rough conditions. This would mean simple commands. A key user interface
advantage of digital charts is that they can be zoomed to explore tiny details
of a particular spot. As a result, one digital chart can do the work of dozens
of paper charts. Here navigation interaction is also associated with quality, in

the sense of reliability. Despite the goal of dependability, yachtsmen are
advised to keep a paper copy of the charts as a backup in the event of a
technology failure in the chart software or in the devices needed to display
the charts. The more common the digital chart usage, the more likely other
content providers will be to align their offerings, allowing positive collective
side effects or network externalities. An example is having a chance to order a
weather forecast for the route by clicking on the nautical chart. That
information could then be recombined with the chart to show weather
symbols in the current position.
Due to the essentially zero marginal cost, and as the charts are not used up
in consumption or sales, the firm could offer an opportunity to sample part of
a chart to see how it works, prior to downloading it for a price.
Concerning speed, the potentially instant downloading of the charts
contributes to the perceived freedom of having an opportunity to sail
wherever one desires. The firm’s communications may employ this lifestyle
image. However, communications must be in line with actual accessibility for
the mobile yachtsmen. In practice, end-customer valuation of speed relates to
the amount of the connection costs. As the text discussed, speed is further
associated with freshness of content. From the end-customer perspective, it is
important that the charts can be updated. The company could proactively
offer chart updates to those clients that have chosen to participate in a direct
response advertising scheme.
This case can demonstrate the meaning of the conclusion that digital
content is a product that also behaves in a service-like manner. Digital
nautical charts are a product in the sense that the once downloaded charts
remain on the computer and can be updated. They can be examined and
zoomed. But the charts can also be combined with other types of information.
In that functional respect, digital nautical charts can behave in a service-like
manner from the customer yachtsman’s point of view.
The hypothetical case study shows the application of the proposed digital
content characteristics in one business setting. Hence, the case clarifies what
information recombination, accessibility, navigation interaction, speed, and
essentially zero marginal cost can mean for marketing. Nevertheless, once
there is an understanding of how the digitization specifics manifest
themselves in a business setting, the entrepreneur may well employ the
marketing mix framework for finalizing his or her business plan. As was
proposed here, that marketing mix framework would include the 5Ps in this
context.
This article is based on extant literature. Further development in research
and in markets may reveal additional features. Then it may be determined
whether the new features fit into the proposed five-content-characteristic
building-block proposition. Further, the information recombination and

navigation interaction characteristics identified here are relatively new in
conceptual terms. It is possible that it will still take a few years until their
true potential is achieved. Future research may build real case studies in
different digital content business sectors to analyze the appearance and the
relative importance of the proposed digital content characteristics. For
consumer testing, these characteristics would need to be broken down into
feature and benefit variables.
The present literature synthesis also points to two other research
opportunities. Future research may conduct industry interviews to enrich the
digital content concept analysis. Future research may also verify - in the field
- whether the process variable enhances the fit of the marketing mix
framework for digital content. Here the marketing mix was examined as a
means of conducting research. The inclusion of the process variable here
followed from the concept analysis finding that digital content includes
features associated with services, which led to the evaluation of the services
extension of the marketing mix.
This article presented results of an effort to synthesize literature applicable
to digital content. Established concepts were used as a framework. This
highlighted a number of important aspects, in terms of both content
description and marketing implications. Consequently, the article enhances
collective knowledge of the area and may thereby facilitate better
management of virtual content.
Acknowledgements
The author thanks the reviewers, Professor Olli Ahtola, Professor Harri
Oinas-Kukkonen and David Miller for their comments, which helped shape
the article. This research is financed by grants from the Finnish Cultural
Foundation, the Yrjö Uitto Foundation, the Alfred Kordelin Foundation, and
the Foundation of the Helsinki School of Economics.
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About the Author
Nina Koiso-Kanttila has been a full-time researcher since November 1999,

during her recently completed four-year doctoral research project. Prior to
this academic project, she worked in the high-tech industry for six years in
Europe and in the Asia Pacific region.

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Digital Content Marketing:

relation to other offerings, then further analyzes

Keywords: internet applications, digital content, marketing mix, consumer

Digital content is steadily making inroads into the lives of European

1 Correspondence: E-mail [email protected], telephone +358 40

In the literature, considerable attention has been focused on technology-

products suggest for marketing activities. The text synthesizes current

Concept Definition and Terminology

wireless networks as ‘value added services’ or ‘mobile services’. The strength

Positioning Purely Digital Products

The task of assessing digitization meanings for marketers starts with a

product elements identified in such research are summarized in Figure 1. The

Service characteristics Digital product position Product characteristics

Intangibility Physical form

Heterogeneity Standardization possible

Figure 1. Digital Products as Compared with Products and Services

Figure 1 show how digital entities contain elements conventionally

Production is separate from consumption as the actual coding is done prior

The position of a specific digital product in comparison with service and

Marketing Mix Framework

The subsequent analysis employs the familiar framework of the Ps of

Kotler and Moorthy 1992, pp.169-170).

Bhatt and Emdad 2001; Melewar and Saunders 2000).

In the product area, the binary-digit-based form allows integration of

Electronic proximity and accessibility describe developments in place.

familiar favorites (Brown and Sellen 2001; Koiso-Kanttila 2003).

Navigation interaction refers to how the flow of activities proceeds in an

a Zona Research (2001) study. Speed is also associated with freshness of

Targeted technology-based persuasion may merge with consumer choice of

Content pricing forms an interesting area. Pricing may be implemented as

proposing that from the perspective of marketing, the key characteristics of

Table 1. Proposed Key Characteristics of Digital Content and Their

An early text on digital marketing in general listed attractive characteristics

requires attention by marketers on each of the elements.

Information Navigation Essentially zero

Figure 2. Association Strength between Proposed Content Characteristics

Figure 2 can be interpreted by examining either rows or columns in the

to be calculated. Integration with other types of information is a key

of paper charts. Here navigation interaction is also associated with quality, in

building-block proposition. Further, the information recombination and

Ahtola, O.T. (1985), “The Conceptual Meaning Of Marketing Services”, In:

Management, Vol. 14, No. 1/2, pp.14-23

Brynjolfsson, E. and Smith, M.D. (2000), “Frictionless Commerce? A

Change Our Lives, New York, HarperCollins

Management Decision, Vol. 38, No. 4, pp.243-252

World, New York, Random House

Vol. 9, No. 3, pp.21-32

information on a Web page, April 2002, current monthly update for

the Web”, Harvard Business Review, Vol. 78, No. 4, pp.105-113

About the Author

Nina Koiso-Kanttila has been a full-time researcher since November 1999,

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