5 C’s of marketing is a useful framework to perform a situation analysis. The 5 C’s of marketing analysis allows doing environmental scanning of five important component that improves marketing decision-making process. These components include the internal and external environmental situation of a company.
The 5 C’s analysis is the extended version of 3 Cs analysis of marketing (customers, competitors and company) which is also called strategic triangle of success. Some marketing experts added 4th C known as Collaborators. The 5th C is known as macro environmental analysis (Climate).
In this marketing tutorial, I will explain the 5 Cs of marketing.
Company customers are the key focus areas of the business. To make the customer happy you should really understand your target market and customers’ needs and wants. Try to find out information through market research i.e.
- Market segmentation
- Market size and growth
- What are you selling
- Do u really selling what they need?
- Consumers decision making process
- Preference where they shop
- Quantity and frequency for their purchase
- Consumer preferences, attitude and trends
It is a very important analysis and determine the future of the business.
- Who are your primary competitors?
- Any substitute available for your products?
- Segmentation, Targeting and Positioning?
- Competitors activities and market share
- What are competitors strengths and weaknesses?
Company or Corporation
- Company culture
- Goals and objectives
- Product Line and Brand Image
- Your Strengths and Weaknesses
- Level of technological advancement
All those parties have outside but have shared interest in the company. your business operation can affect them both positively and negatively.
- Distribution channels
- Key opinion leaders
- Third parties
Company climate means macro environmental factors. PESTLE analysis tool is a good way to analyze this company environment.
- Political factors. Government rules and regulations that affect your business environment
- Economic factors. It is the interest rate, economic crisis, inflation, trade cycle all these economic factors affect the business operations.
- Socio-Cultural factors. social beliefs customs, attitudes and preferences are the social factors of a business.
- Technological factors. How you are technologically advanced and fulfilling your customer needs and want through automatic processes and communication infrastructure etc.
- Legal factors. corporations must comply with law and regulation if not will affect your business operation.
- Environmental factors. How your business is affecting the surrounding environment whether your business fulfilling the environmental regulations or not.
While performing 5 C’s of marketing analysis company can gather information from websites, annual reports, different industries reports. Government websites are also a good source of information. By this way, a company can identify opportunities to provide value to target customers.