Meeting the Digital Challenge Preparing Marketing and Key Executives for the Digital World

There is also a new digital divide opening up, between companies that truly understand the potential to go deep with their digital marketing efforts, and those that are still contemplating what to do with their Facebook presence David Ketchum President, Bite Communications (Asia Pacific) Educator Karl Fisch sums up the challenge: We are currently preparing students for jobs that dont yet exist, using technologies that havent been invented yet, in order to solve problems we dont even know are problems yet. By Dr Ira Kaufman President, Entwine Digital Assistant Professor, Lynchburg College School of Business and Economics LinkedIn: http://www.linkedin.com/in/irakaufman Facebook: http://facebook.com/irakaufman Twitter: http://twitter.com/ira9201

Digital Challenge

July27,2011

1|P age

There is little argument that social and digital media are profoundly changing how we engage with the media, our colleagues, family and friends, as well as how we do business. To maintain a competitive edge, executives and managers must embrace these changes and drive transformation in their organizations. This is the Digital Challenge!

The Revolution
In 2006 Rupert Murdoch, known as the global print giant, suggested we are entering a major revolution.
To find something comparable, you have to go back 500 years to the printing press, the birth of mass media ... Technology is shifting power away from the editors, the publishers, the establishment, the media elite. Now its the people who are taking control.

These statistics demonstrate the Power of the Revolution:

More uploads to YouTube in 60 days than all 3 major US networks created in 60 years 110 million tweets are sent per day on Twitter or 4+million per hour (Twitter) Facebook generates 770 Billion page views, 700+ Billion minutes, every month StumbleUpon (43%) has overtaken Facebook (38%) as #1 source for US social media traffic

In 2011 Google suggested that digital media has transformed our buying decisions. Marketing has a Changing Rulebook based on Zero Moment of Truth or ZMOT, the moment when you grab your laptop, mobile phone or some other wired device and start learning about a product or service. These statistics tell the story of how our buying behaviors have changed:

70% of Americans say they look at online product reviews before making a purchase 79% of consumers say they use a smartphone to help with shopping 83% of moms say they do online research after seeing TV commercials for products that interest them

Murdoch transformed his investments, building a global Integrated Media Empire including the purchases of MySpace, Hulu, Chinese Media company and Wall Street Journal online. As he suggested, The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow. In 2011, his companys phone scandal violated the foundations of social media (e.g., transparency, accountability) and is being challenged in the social media. Google has responded to these changes, Marketing strategies are simply not keeping pace.. .modern marketing strategies have to evolve with the changing shape of shopping. They are now providing core digital training in ZMOT for all members of their sales team internationally . How many Executives of U.S. Companies are prepared to respond to these challenges?

Digitally Handicapped
Even as marketing agencies reinvent themselves to respond to the digital revolution, the reality is that most managers are struggling to learn new skills and evaluate the impact of social media conversations. More than two-thirds (2/3) of managers admit that they are digitally handicapped in relating to understanding and measuring social media conversations and impacts on their brand. Many executives are afraid of it. Here are 28 reasons why CEOs fear social media.
80% [of] marketers admit they are concerned their brand is at risk from not being as engaged with customers, or failing to have a good grasp of how online conversations are impacting their brand. Less than 33% have a strong understanding of social media conversations related to their brand. 70% have very little understanding or use a few tools to measure social media conversations. Digital Challenge July27,2011 2|P age

Demand for Digital Training

Such rapid changes in the social landscape are fueling a growing demand for training.
Ad and marketing agencies are under enormous pressure to reinvent themselves as technology multiplies the ways to market to consumers. The velocity of change has marketers questioning whether the ad business is equipped to deal with the new landscape.

The job pool and expertise needed to fill these jobs is changing. Former U.S. Secretary of Education, Richard Riley, suggested the top 10 in-demand jobs in 2010 may not have existed in 2004. Social media jobs are among those new positions in the job pool. According to the CMO Survey future job opportunities in Social Media Marketing continue to grow. Social media continues to emerge as a central component of Internet marketing strategies and leads the increase in 2010 marketing budgets. Firms currently allocate 6 % of their marketing budgets to social media, expecting to triple in the next five years. From 2009 to 2011 social media jobs have increased by 232% according to Simply Hired.

New Digital Divide

Although the U.S. has led growth in digital media, marketers have been slow to respond. eMarketer reports that 78% of executives think that a social business strategy is important to future business success, but only 27% deem it a top priority. According to 2010 Economist Intelligence Groups annual e-readiness rankings,
In the race to stay competitive in the emerging digital economy, Nordic nations continue to rule the roost. The U.S. has gained ground, and Asian countries are on the rise.

In fact, inconsistent responses by U.S. marketers have brought forth a New Digital Divide between companies
that truly understand the potential to go deep with their digital marketing efforts, and those that are still contemplating what to do with their Facebook presence some of the world's most sophisticated work is being done in [Asia] this region, [while] other companies are still not going beyond the basics. On one hand, there is growing demand for

Digital Marketing services in U.S. but there is a gap in understanding, skill set, and application. There is a shortage of Business Schools and training programs to fill this need. To fill the void, some of the most innovative work in Digital Marketing is being put forward by groups in Asia, Scandinavia and Europe.

Digital Marketing Training for Executives and Managers

The New Digital Divide raises three challenges: How is the U.S. preparing our current and future managers to adjust, adapt and digitally strategize to gain a competitive edge? Who are the targets in U.S. companies? What is the response- Talent Challenge?

The How Business School Response

An analysis of the top 20 Business Schools in Executive Education (rated by Bloomburg BusinessWeek 2010),revealed that only six have a Digital Marketing Strategy or Social Media Marketing course offerings. These include Harvard, Columbia, and four programs from Europe (INSEAD, IESE, IE, ESADE).

Digital Challenge

July27,2011

3|P age

Business Schools at both the MBA and undergraduate levels are just starting to dip their feet into the digital waters. Many are treating Digital/Social Media as an addon to the marketing mix by adding a course or incorporating social media into an existing course. However, the critical challenge is changing the mindset from old school push marketing to pull marketing and integrating digital media into other marketing efforts. The digital strategy is a roadmap to engage the customer, develop relationships and encourage sharing the message with social communities. Placing ads or posts on social media sites without developing conversations is continuing the old school sales focus without leveraging the power of the new media strategy.

The Who
The next challenge is The Who who in companies and service organizations do you target to address the Digital Divide and how do you reach them? With regard to the digital space, all executives, advertising agency professionals and managers are not equal! This is not a homogenous market. Some are challenged to adopt the new mindset and learn new skill sets while others, struggle to develop engaging and integrated strategies. Five different segments are defined in terms of culture, digital mindsets, technical skill sets and usage. Understanding each of these market segments, how they intersect, and preparing targeted strategies is a key for success. Digital Natives Digital Immigrants Digital Aliens Digital Integrators Digital Explorers

Digital Natives are born digital, think social, need to implement strategic. They were born after 1990 and the advent of the Internet and will become the future managers. Information technologies rule their communications and in the future will guide their decision-making. But with regard to social and mobile applications, most Natives use these tools socially; they have not made the transition to strategic applications. They need training in designing and implementing Integrated Digital Marketing Strategies. Digital Immigrants think strategic, need to implement digital. From 30 65 years, they are experienced internet users; but they are not native to the internet/digital revolution. Most Immigrants were born before the existence of digital technology and adopted it to some extent later in their life. They have accepted the realities of the digital revolution and are scurrying to understand their role and learn the basics. They usually are dabblers, not consistent in their efforts and implement social media as an add-on to their current market efforts. They need to be guided to develop a digital mindset, become proficient in selected social tools and integrate these tools into their business strategy. Then they can expand their social toolbox. Digital Aliens think strategic, need to experience digital value. They are old school executives and managers that are digitally resistant and blind to the impact and potential opportunities. They have a basic skill set with computers and the internet but are slow to change and adapt. They stereotype social media as kids play and challenge if the digital revolution will last. Most see it as a passing fad; at best it will have a marginal impact on their bottom line. Aliens need to be guided to discover the value of a digital strategy and make a commitment to step-by-step implementation in their company.
Digital Challenge July27,2011 4|P age

Digital Integrators live digital, innovate strategic, need to integrate. Some are Natives, others are Immigrants. They are strategists designing customer engagement, developing sustaining relationships and implementing an integrated strategy. They understand the value of digital technology and seek out opportunities for making an impact. They need to focus on the integration of traditional advertising, public relations and online marketing with social/digital media. Digital Explorers live digital, search digital, influence digital. Explorers are all the online, social and mobile users that access any internet connected device to search out solutions, locations, online ratings, deals, videos, reviews, and product details as they consider a purchase. Targeting a specific group with a unique message (e.g., for a new product, training program or service) will increase the potential for success.

The Talent Challenge

Ad agencies are searching for digital talent to bridge this divide. Leo Burnett executive, Jeff Tritt, says The demand is greater than the supply, so there is a big war for digital talent right now." Will marketing academics respond in a timely fashion? Or will such training needs be addressed in new digital venues? With limited executive Digital Marketing programs at U.S. Business Schools, marketing academics are making a statement about the relevance of Digital Marketing. Professor Cliff Wymbs has suggested this is the time for Digital Marketing to become a new academic major. After surveying current Chief Marketing Officers (CMOs), Professor Christine Moorman suggests, it is pretty clear that marketing is NOT doing what ivory tower marketers think it is doing or would like it to do [Many marketing academics] dont contribute to building knowledge about successful marketing. Some 70% of those responding to the CMO Survey said they were responsible for social media. Yet, there are few relevant digital marketing courses to prepare current and future executives for this responsibility. Some ad agencies are developing apprenticeship programs with technical institutes in the U.S. and internationally. Some international programs, Hyper Island (Sweden) and IESE (Spain), are offering executives programs in New York City. Other agencies are spending roughly $750,000 to $1.5 million [on] formal online and in-house workshops that offer courses in social-media marketing and mobile marketing. To fill the void and remain competitive, U.S. executives must go beyond the confines of traditional marketing and embrace digital training as a strategic priority or risk falling behind. They must extend digital literacy and lead an organizational commitment to integrate digital marketing into their corporate plan. Meeting the Digital Challenge is required for survival and growth! Are You Prepared?

Digital Challenge

July27,2011

5|P age