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Psychology Research 06 (2012) 1838—658X Contents lists available at SEI Psychology Research Journal Homepage: www.seiofbluemountain.com Analysis of Marketing Behaviors in Enterprise Recruitment Jianlei BAI School of Business Administration, Shandong Institute of Business and Technology, Yantai 264005, P.R.China KEYWORDS ABSTRACT Recruitment, Mutual marketing, 4Ps theory, Human resource product (HRP) Marketing behaviors in the enterprise recruitment are analyzed. Recruitment activity of the enterprise is regarded as mutual marketing, and the product strategy, pricing strategy, channel strategy and communicating strategy of enterprises and applicants in recruitment activity are analyzed with 4Ps Theory in Marketing Management. © ST. PLUM-BLOSSOM PRESS PTY LTD 1 Introduction Recruitment activity of enterprise can be regarded as a kind of marketing activity. Different from general marketing activity, recruitment activity of enterprises is mutual marketing [1]. That means that both sides in recruitment look for exchange actively. For the enterprise, it is both a marketer who sells enterprise’s human resource products and a customer with expectation of recruiting suitable employees to satisfy its human resource demands. For the applicant, it is both a marketer who wants to be accepted by the enterprise by making a sell and also a customer expecting to get human resource products offered by the enterprise. Recruitment activity of the enterprise will be analyzed with 4Ps theory in this paper. 2 Both Sides’ Product Strategy in Recruitment Activity The concept of human resource product (HRP) is brought forward firstly in this paper. Human resource products include two types: enterprise’s HRP and individual’s HRP. Enterprise’s HRP is the benefits that the employee acquires from the enterprise, such as the position, salary, insurance and experiences etc. Individual’s HRP is his/her abilities that can create value for the enterprise, such as knowledge, skills and experiences etc. 2.1 Enterprise’s product strategy Enterprise’s HRP includes tangible product and intangible product. Tangible HRP includes position, salary, bonus, insurance and welfare etc. Intangible HRP includes employee’s career development, work experiences, superiority and so on. Product theory in marketing management can be used to analyze enterprise’s product strategy in recruitment activity. (1) According to the product hierarchy theory [2], Enterprise’s HRP can be divided into three levels: core products, basic products and extended products. Core products are the basic utilization and benefits offered to the employee by the enterprise; Basic products are the tangible forms of core products, including salary, allowance, bonus, welfare and various insurances etc.; extended products are Corresponding author. E-mail address: [email protected] English edition copyright © ST. PLUM-BLOSSOM PRESS PTY LTD DOI: 10. 5503/J. PR. 2012.06.018 97 extra services and benefits acquired from the enterprise when the employee ―buy‖ the HRP, such as the employee’s career development, acquired experiences, superiority and so on. (2) According to the product mix theory [2], general marketing theory emphasizes the combination of different products. To meet different customers’ demands, the enterprise has to provide various products [2]. However, in terms of the enterprise’s HRP, the enterprise has to meet different employees’ demands with different HRP. Employees on different levels have different total incomes, and different income structures. The HRP of lower-level employees are salary and bonus, but for the higher-level, his/her HRP mainly consists of On-the-job Consuming, satisfaction, stock share and options etc. On the other hand, even for an employee, the enterprise needs to meet his/her different demands with different product mix. For example, the salary meets the basic needs and the bonus can activate employee’s enthusiasm. Career development and satisfaction meet the employee’s fulfillment needs. In a word, the enterprise’s HRP is a combination for a single person, and that is the difference from general product mix theory. (3) Viewed from the angle of new product development [2], along with the change of labor market, enterprise’s status and salary level of the industry and other enterprises in the area, the enterprise needs to adjust employees’ income levels and income structures constantly. It means that the enterprise’s HRP will change constantly too. This is the enterprise’s new product development. In addition, because of the lack of high level talents, enterprises increase higher ―price‖ and more abundant HRP to attract them. This is enterprise’s new product development too. 2.2 The applicant’s product strategy Different from the enterprise’s HRP, the individual HRP includes mainly intangible products, such as knowledge, experiences, working time and attitude etc. Product theory in marketing management can also be used to analyze the applicant’s product strategy in recruitment activity. (1) According to the product hierarchy theory [2], the employee’s HRP can be divided into three levels: core products, basic products and extended products. Core products are the abilities that the applicant can meet the position’s requirement. Basic products are the tangible forms of core products, including knowledge, skills and working experiences. Extended products are extra services and benefits acquired from the enterprise when the employees ―buy‖ the HRP, such as the effects of the employee’s behavior on the enterprise’s reputation. (2) According to the product mix theory [2], it also emphasizes the combination of employee’s HRP. Different skill combinations are employee’s HRP combinations because the same position needs different skills. Besides the basic requirements of the position, every job needs the employee’s abilities of communication and self-adjustment, which add more dimensions on the employee’s HRP. (3) Viewed from the angle of new product development [2], the employee’s HRP development means improvement of position competency during working in the enterprise, including all kinds of learning, exercising and training etc, all of which belong to the employee’s new product development. 3 Both Sides’ Pricing Strategies in Recruitment Activity Different from general marketing activities, both sides’ price strategies are combined with their product strategies tightly. HRP offered by the applicant looks more like labor, while HRP offered by the enterprise looks more like capital, so the recruitment of the enterprise can be regarded as purchasing while the job application of the applicant as selling. Thus, the pricing strategy of the enterprise can be defined as how to price the labor it purchases and as for the applicant, how to price their labor. 3.1 Pricing strategy of the enterprise When the enterprise prices different positions, besides considering salary levels of competitors, power of the enterprise, and local income level, it also needs to consider its pricing goal and the applicant’s situation [3]. Enterprise’s pricing goal changes with different positions. For example, when the enterprise recruits CEO or senior research employees, the pricing goal is to attract and keep them. At the same time, their focuses are more on fulfillment of self-value. So the enterprise will offer higher prices to them, including high salary, better welfare, even stock share and options. But for the lower-level workers, the enterprise’s pricing goal is to reduce costs, and their goal is to meet their basic life needs. So the enterprise only needs to offer them a reasonable price according to its ability, the industry and local standard. 3.2 Pricing strategy of the applicant Generally speaking, the applicant always expects a higher price. To some extent, the applicant’s price is accord with the HRP of the enterprise. Since different applicants acquire different HRPs from the enterprise, different applicants have different pricing goals. When the applicant prices himself, first, he needs to consider environment factors that affect his price, including the income and consuming levels of the area and the industry salary level etc. Second, he needs to consider his/her own elements, including human capital investment, uniqueness from other applicants and salary expectation. At last, the applicant needs to consider the highest salary level that the enterprise can offer and the importance of the position. 98 4 Both Sides’ Channel Strategies in Recruitment Activity General channel theory in marketing management mainly solves the problem how the product reaches the consumer, but the channel strategy of the enterprise recruitment emphasizes more on how to recruit suitable applicants for the enterprise. HPR of the enterprise can be realized only after the applicant joins the enterprise. Because the recruitment activity of the enterprise focuses more on which channel it can purchase suitable products, like procurement. While application channel strategy focuses on how to be found and acquired his individual HRP, application channel of the applicant is more consistent with the concept of channel in marketing management. 4.1 Recruitment channel strategy of the enterprise The enterprise recruits suitable employees through media, job agencies, schools, job fairs, the internet, recommendations and internal selections etc. Compared with general channel strategy in marketing management, internal selection is an important channel. Compared with general product, especially consuming products’ channel, the management of recruitment channel is simpler. Recruitment channel strategy focuses more on what kind of employees can be recruited through which channel. For example, generally speaking, senior talents are recruited through headhunter companies, lower-level workers are recruited through labor market or acquaintances and school job fairs, the internet etc. In addition, enterprise chooses recruitment channel also according to the environment, job requirements and recruitment costs etc. 4.2 Channel strategy of the applicant The strategy of the applicant is almost the same as that of the enterprise. Otherwise they cannot reach agreement with one another. So, channel selections of the applicant include media, labor market, schools, job fairs, the internet, self-recommendation, acquaintance recommendation and internal selection, etc. Applicants can find suitable job openings through recruitment advertising posted by the enterprise in mass media. Applicants also can go to job fairs. For the school graduates, they can find job opportunities on campus recruitment fairs. The Internet job-hunting becomes more and more popular nowadays. Applicants also can get job opportunities if his/her relatives or acquaintances are close to a company. If the applicant is interested in the job opening offered by a company, he/she also can contact the company directly. 5 Both Sides’ Communication Strategies in Recruitment Activity Besides product, channel and pricing strategies, communication is necessary before signing the employment contract. Enterprises should inform the applicant about their requirements and HRP. Applicants should let the enterprise know his willing and abilities. 5.1 Communication strategy of the enterprise First, all the enterprise’s communication activities with the public, including advertising, public relations and promotion activities, are also communications with the applicants, because they are also the enterprise’s potential public. Besides these communication activities, enterprise also needs other communications with the applicant aiming at recruitment, including recruitment advertising and recruitment meetings [4]. (1) Recruitment advertising. Compared with the media strategy of general advertising, the media strategy of recruitment advertising is simpler. The media of recruitment advertising mainly include newspaper, magazine, broadcast, TV, internet and recruitment fairs. The time arrangements of recruitment advertising need to connect with enterprise’s recruitment activities. Each medium has its advantages. Using which medium depends on the enterprise’s recruitment channel and the popularity of the media among applicants. (2) Recruitment meetings. First, it needs cooperation of recruitment advertising, including posters, leaflets and other POP advertisings. Second, recruitment activity is not only the human resource department’s job, but also departments who need new employees. Finally, recruitment activity is a very formal commercial behavior, so it requires great communication abilities and personal image of the recruiter. On the one hand, they deliver the enterprise image to applicants; on the other hand, it is the first face-to-face communication for both sides. 5.2 Communication strategy of applicants Besides improving his/her own hired-ability [5], applicants should prepare for interviews to make a successful sell. Preparations for interviews should include that, first, the applicant’s character should fit the enterprise culture. Second, the applicants’ ability fits the future position, which is called person-job fitness and person-organization fitness. Based on the understanding of position through recruitment information offered by enterprise, the applicant should prepare from these aspects: (1) Tailored a decent resume. The resume is the major approach for the enterprise understanding the applicant. It is the applicant’s advertising, like a poster or leaflet. Just like making a general product’s marketing strategy, the applicant should consider three aspects: self, competitors and consumer needs. A resume is not just a personal introduction, so it is not a list of life experiences. First, a decent resume should point out the 99 applicant’s USP. Second, this USP should be unique, distinctive from other applicants. And, this USP fits the enterprise and the position. (2) The applicant’s appearance. The applicant should consider his/her appearance from three aspects. First, because the recruitment is a formal commercial activity, applicant should wear formal dress to show his respect. Second, appearance should be accord with his status and age. At last, his/her appearance should be accord with the position requirements. Don not over - do it. (3) The applicant’s behavior during interviews. The interview is the most important chance for the applicant to sell himself. It needs certain skills. First, the most important thing is self-confidence. He/she should believe firmly that he/she is the most competitive candidate of the position. Second, he should stand out his strengths and personalities which are accord with the enterprise and the position. Third, the applicant could exaggerate a little, but should not lie. Fourth, talk with clear levels and a perfect logic, finally, the applicant should interact with the recruiter, adjust his/her thoughts to entertain the recruiter. Make him like you. 6 Conclusion Such a conclusion can be drawn from the above analysis: we can examine the recruitment activities of companies from the perspective of 4Ps marketing theory, both applicants and recruitments marketing themselves to each other in the human resource market. On the one hand, companies satisfy the needs of applicants by offering human resource products; on the other hand, the applicants satisfy the needs of companies through providing their labor. References [1]. [2]. [3]. [4]. GUO Guoqing, Marketing Management (2004), Wuhan: Wuhan University Publishing Press, 2004, p2 (in Chinese) Philip kotler, Marketing Management, 11th Edition, New Jersey: Pearson Education, Inc., 2003, p184-185 Gary Desser, Human Resource Management, Prentice Hall International Inc., 1997, p165-167 Adeyemi-Bello, Tope (2003). The impact of leader characteristics on the performance of organizational members: An exploratory study. Work Study, 52(6), 286–289. [5]. WANG Zgongqiu, Salesman’s self-marketing, Beijing: Xinhua Publishing Press, 2003, p85 (in Chinese) 100