My view of employer branding is that it is a limited realisation of what marketing principles could offer HR. Its narrow focus on recruitment, and particularly recruitment advertising, reflects the interests of those involved in employer branding. Recruiters who think branding is all there is to marketing are in dialogue with advertising and recruitment agencies who think recruitment is all there is to HR.
In order to understand the importance of brand in the marketing of employment, we first need to look at how people make purchasing decisions. For each of these purchasing behaviours, there is a seller’s marketing function looking at the transaction from the other end of the telescope. Their marketing strategy will cover developing the product, formulating the brand and advertising, choosing the appropriate routes to market, and setting a price that will appeal to the consumers they are targeted, and also meet the business plan.
f.m.c.g.
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Semi-durables
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Consumer
Durables
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Major purchases
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Business purchases
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Low cost >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> High cost
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Simple pricing >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Complex pricing
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Subconscious decision >>>>>> individual conscious decision >>>>> Collective conscious decision
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Fast-moving consumer goods. These are bought by habit. They are the kind of things you throw in the supermarket trolley with little conscious thought, such as breakfast cereals, canned drinks and toiletries. But the purchasing choice is not a random one; consumers are influenced by advertising and develop loyalty to their brand. The visual side of branding – product name, logos, package design – is essential to identify the product, and remind consumers of the advertising. When asked about their reasons for brand choice, consumers may find it hard to express; that’s why focus groups were invented. Items are low cost, and pricing is straight forward.
The visual identity of the brand, conveyed by the logo and the packaging, is the only means of communication with the consumer at the moment of purchase. Imagine if all soap powders were sold in unmarked plastic bags; how could you differentiate one brand from another?
Semi-durables. Fashion items are a good example. The brand is important, but consumers devote more conscious thought to the product choice e.g. does this suit me? The brand covers a wide range of products. Items are higher cost than f.m.c.g., but still one price for a simple transaction e.g. a £500 pair of shoes.
Whilst the marketing function will want to develop a strong brand identity, the brand identity does not feature prominently on the product. The products selected must be consistent with the brand; the vendor cannot swap randomly from “bargain basement” to “high-priced luxury”.
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Consumer durables. These are occasional purchases of expensive items. The purchaser is likely to put a lot of conscious thought into their choice. If buying a mobile phone or laptop, they are likely to read some special magazines, ask their friends what brand and model they have bought,perhaps have a list of questions to ask the shop assistant. The cost is high, and the pricing is often more complex than a spot price. Are there running costs or consumables costs to consider, and is it worth taking out the extended guarantee?
For the marketer, the marketing strategy will place great importance on product, as the features of the product are important to, and will be subject to prolonged assessment by, the consumer. Product features will also be reviewed by consumer magazines and websites, and PR to professional reviewers is important. In distribution channels where sale staff might answer consumers’ questions, part of the marketing plan will be training those sales people to sell the product.
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Major purchases. These are very expensive items that are bought rarely, such as a car or a house. The amount of conscious thought applied to the choice is usually in the realm of “agonising”. The consumer will be very specific about their needs, and put a lot of time into product selection. The pricing issues are complex. The consumer considers not just the initial price, but finance options, running costs and likely resale value. When buying a house, the purchaser will consider factors that they are not directly purchasing, such as what is the neighbourhood like, how good are the local schools? The decision will affect other purchasing decisions, such as commuting costs.
Brand, in the sense of logos and trademarks, are a minor part of the marketing plan. For example, house builders will have a marketing strategy that will define the sector of the market they are targeting, the areas and locations, and the features of the houses will be geared to the lifestyles of the target groups. They will have a logo, but that is infinitely trivial when it comes to buying and selling houses.
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Business purchases. When companies purchase things, the purchasing decision is very overt and rational, as it usually involves several people. Detailed reports are written, and alternative products are carefully evaluated. The cost is high, and the pricing complex.
The marketing plan from the manufacturer is likely to be very sales-led, and with great emphasis on the product. An organisation is not going to buy capital equipment, or buy in a service that is critical to their business plan, on the basis of an eye-catching logo on a website or in a brochure.
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So what has this got to do with HR and employment? If someone is choosing a job, what kind of purchasing decision are they making? Admittedly they are “purchasing” with their time and effort rather than their money, but they are nevertheless choosing between employment products. I don’t think it’s a fmcg kind of decision – they don’t just recognise your logo on an advert and say “Yes – that’s the one for me! I think for most people it is somewhere on the scale between consumer durable and major purchase. Before committing to a decision they will want to know what the features of the job are – what will they have to do? They will be thinking long-term as to whether this job fits into their life plan, and will it enhance their own “resale value” to future employers. They will be making a thorough assessment of the pricing structure of the employment product. The starting salary is only part of the picture; what about the future earnings prospects, the benefits, the non-financial features such as terms and conditions.
With any purchasing decision, one consideration for the consumer is what kind of people also buy the product. With the employment product, you are going to be spending most of your week with people who made the same purchasing decision. That is a more significant relationship than with the neighbours you will gain when buying a house.
As with consumer durable purchases, the consumer of the employment frequently re-evaluates the purchase. With a car, you will re-evaluate your choice when you buy fuel (should I buy a hybrid engine model next time?), when the servicing bill is presented, when the holiday luggage won’t fit in it, when you need more or fewer seats as family needs change, when friends and colleagues buy a new car, when you see new models advertised. If you really made the right choice for you, the questions might be infrequent, and always answered positively. How often do you re-evaluate your job? If you feel it is just the right job for you, the questions might be infrequent, and always answered positively. But the range of issues, the degree of emotional commitment to the job and the duration of the working relationship mean that you will re-evaluate your job choice with more deliberation than when choosing a box of breakfast cereals or a pair of shoes. Every appraisal, every pay review, every particularly good or bad week at work, and comparisons to how friends and relatives are faring in their careers are all opportunities to decide whether to stay or change jobs.
HR is concerned with marketing employment as a continuing relationship with employment consumers. Recruitment is a part of that, and brand (in the sense of image portrayed in recruitment advertising) is a small component of that part.
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