5 C’s of marketing are useful framework to perform a situation analysis. 5 C’s of marketing analysis allows environmental scanning of five important component that improves marketing decision-making process. These components include the internal and external environmental situation of a company.
Five C’s of Marketing are Company, Customers, Collaborators, Competitors and Climate. These are five most important areas of marketing. When marketing executives make marketing decisions, they should consider the five C’s of marketing.
5 C’s of Marketing
- Company: This includes analysis of factors that need to be improved in a product line and market image. Such analysis is often done on a regular basis to remain hands on with changing market dynamic and customer’s response towards the product.
- Collaborators: This analysis deals with understanding the shared interests that helps is company’s growth. It involves spotting of collaborators such as distributors, suppliers, and alliances to tap un-reaped opportunities.
- Customers: A company analyses a range of factors such as market size, its growth trend, customers changing tastes and preference, seasonal demand of products, their frequency of purchase, reason for customer’s choice of a particular brand, benefit vs. cost analysis, tapping of specific market segment. These help to determine needs of customers and assessing capacity of its own to fulfill the same.
- Competitors: It helps to analyze present and the future of a certain business. This analysis focuses on 3 major aspects namely that include mapping out the competitors, products sold by them, chalking out potential opportunity along with understanding threat that competitors might impose in the near future. It also includes ratio of market share as compared to competitors and identifying focus area to enjoy largest market share.
- Context or Climate:The analysis of context or climate is often referred to as PEST analysis. PEST is the analysis of the macro-environment, it affects every company whether big or small. Each syllable of the word PEST stands for Political analysis, Economic analysis, Social analysis, Technological analysis.