Competitive Positioning and Strategy of Recruitment Advertising - Report Example

Recruitment Advertising Table of Contents Competitive position of the newspaper 3 Strategic options for future 4 Other information required 6 Competitive position of the newspaper Recruitment advertising is the main source of revenue for the newspapers. However over the past two years the revenue is declining at a steady rate. The industry is of very competitive nature as there are several potential players. The present competitive position of the newspaper can be better understood from the given graph. This graph is based on the two factors, perceived price and perceived use value. It is quite clear from this graph that apart from the local newspaper, recruitment advertisements are published in recruitment publications, trade publication, recruitment website, other local press, company website and national press. According to the graph, perceived price has been increasing over the past few years. Local newspaper is positioned at a higher position with respect to the line that represents the perceived price and perceived use value. It is clear that the perceived price of giving recruitment advertisements in the local newspaper is much higher than recruitment websites, other local press and company website. However the perceived price regarding local advertising is lower than various trade publications, national press, local radio etc. On the other hand the perceived use value of local newspaper is higher than most of other players, except the recruitment publication. Overall it can be said that local newspaper is ahead of its competitors like trade publication, national press, and local radio. However, now it is facing tough challenges from players like recruitment publication, company website, and other local press. Strategic options for future In order to stay ahead in the competition and to maintain sustainable revenue for a long period of time, the newspaper needs to find out various strategic options that it can capitalize on. Various options include market penetration, product development, market development, and diversification. Theoretically market penetration can be done by increasing the volume of sales of the existing products in the existing market. In case of this newspaper, the product is the advertisement space. As a result these spaces must be sold in more numbers to the existing customer base in order to penetrate the market more deeply. This can be achieved by increasing the number of direct marketing executives and by giving proper training to these marketing personals so that they can increase their efficiency. Advertisement spaces must also be properly promoted. Spaces can be advertised in the newspaper itself. Electronic media, especially the internet can also be used. Moreover attractive price discounts can be given to those organizations that choose the newspaper frequently. Another strategic option that can be used is new product development. In this strategy new product is developed with the purpose of selling it in the existing market. As far as the newspaper is concerned, it can come up with a special publication that will be only for recruitment advertisements. There will be no other news item in this special publication. It can be made on a weekly or a fortnightly basis. Since it will be a newly launched product, it needs to be heavily promoted to attract both the organizations and the job seekers. This promotion can be done in the present publication of the newspaper. The newspaper can also think of coming up with a new recruitment website as today most of the job seekers search their job online. However there is strong competition in the job site market, as a result of which this new website must also be highly promoted. The third strategic option which can be used is market development. In this strategy Existing products are sold in newly identified market. In case of this newspaper, “present market” is referred to the local organizations that are looking for candidates in order to fill up their vacant positions. If this market needs to develop, the newspaper will have to focus on those organizations as well that are located in other regions. The newspaper can then target these organizations and market its advertisement space to them. This will certainly increase its readership and popularity among the jobseekers who are looking for jobs that are outside their locality. Another strategic option that can be used by the organization is ‘diversification’. Usually diversification is the extreme option for any organization. When an organization, after trying out all the possible solutions, realizes that it cannot sustain with its present business model, it decides to diversify. In case of this newspaper diversification should be considered as the last strategic option. It is true that over the last few years its revenue from recruitment advertising has reduced significantly, but there are options which can be explored to overcome the situation. However if the newspaper anyway decides to diversify, it should get into the electronic media. It can launch its own news channel or more specifically a business news channel where recruiters will be allowed to give their recruitment advertisement. Other information required Access to information is crucial in order to take a strategic decision. It is very important to have a clear understanding regarding the present condition of the organization, capability of competitors, the needs and demands of customers and the overall situation of the market in order to make effective decisions. Apart from these it is also important to have long term objectives, so that decisions can be made accordingly. In the present case of a local newspaper, strategic decisions are required with the objective of having sustained revenue. An overall position of the newspaper can be obtained from the given chart. However the information that can be gathered from this chart is not enough to make proper strategic decisions. In order to make such decisions, information is required regarding the current revenue from recruitment advertising, revenue of other players like recruitment publications, trade publications, recruitment websites etc. Moreover it is important to know the present economic condition of the locality. Information regarding unemployment rate in the locality, number of total jobs that have been created over the past few months, number of jobs that are likely to be created in the next six months, needs and demands of job seekers are also required for effective decision making. The newspaper needs to gather the exact figure pertaining to the revenue earned not only by itself but also by its competitors so that clear idea can be framed regarding the present financial condition and the way it is changing over the past few years. If the change is inferred to be drastic then the consequent decisions should also be taken quickly and an aggressive attitude needs to be adopted. However if it is found that revenue is decreasing at a marginal rate then more time can be devoted to the process of decision making. Unemployment rate in the locality must be estimated because it gives a fair idea about the present condition of the labor market. This is also important because readership of the newspaper will depend on it. Moreover it is important to know the number of jobs that are likely to be created because based on this number the demand of recruitment advertisement spaces in the newspaper will vary. Decisions regarding the launch of a new recruitment publication or a new recruitment website will be based on this demand as well. Furthermore it is also important to know the needs and demands of job seekers. Organizations can be approached by the marketing executives of the newspaper to find out the exact nature of their demand. If they want jobs outside their locality then the newspaper has to approach those organizations that have vacancies in other states. Hence in conclusion it can be said that detailed information is required to make proper strategic decisions. Read More