All About 5 C's of Marketing-Meaning and Definition
Before we dive into the complexity of the 5 Cs of marketing, let's go over the preceding business process, which is as important as the 5 Cs of marketing. In today's business dynamics, the convolution of processes has become paramount. Every business process has become akin to one another. Let me enumerate a little about the marketing mix and then move on to our primary topic.
What is a marketing mix, and why is it so important for us to discuss it?
Well! To put it simply, a marketing mix is a combination of elements that, when put together, creates the foundation of a marketing strategy for any business. Missing out on any of these could result in your later business processes' complete failure or shortcomings.
The marketing mix is placing the right product at the right price, place & time. These are called the four Ps of marketing. Looking into the broader perspective, there are seven Ps of marketing – product, place, price, promotion, people, process, and physical environment. When synced with goals and targets, all this forms the core of any business.
The 5 c's of marketing
The 5 c marketing analysis is one of the tools that managers use as part of the situation analysis. The other tools used are SWOT analysis and Porter's five force analysis. The 5-way analysis helps an organization analyze its internal and external environment. It helps the firm understand its customers, its capability to serve them and the environment in which this process occurs.
The 5 c marketing strategy are:
1. Customers: The analytics by the customer varies greatly. A company needs to analyze a vast array of things to determine what the customers want and work on its capacity to fulfil that. The company needs to explore things like the market size and growth, study how the preference and desire of the customer change over time, seasonal impact on sale and frequency of purchase, why a customer chooses a product, quantity purchased, how the customer knows about the company, what prompts the customer to buy the product, analysis between benefit vs cost, market segment, and the benefit the customer seeks – tangible or intangible.
2. Company: Whether you are an FMCG or an international information technology company, you need to analyze the scope for improvement in your product line and the image you currently have in the market. That needs to be done regularly. You must rely on something other than data that is post-dated. The market's mood changes constantly, and you must analyze the customer's response to your product. The goodwill of your company in the market, goals, missions and vision also need to be explored. All this helps the company to determine the areas of its weaknesses, its capability to serve its customers and detect any loophole in its strategy.
3. Competitors: This analysis is critical as it determines a business's present and future. Competitor analysis focuses on three things in the majority; identifying the competitor is one of the very first and the most critical factor in competitor analysis – identifying the product that the competitor offers; whether it's akin to yours, and if so, then how can you offer better, the potential opportunity for the company and the threat its competitors may post shortly, and the ratio of market share that its competitors are enjoying and its share in the market – this analysis helps the company focus on areas that would allow it enjoy more of the market share and optimize on its present customer.
4. Collaborators: Collaborators have shared interests in the company's growth, meaning they benefit from a share if the company enjoys profit. Identifying collaborators is very important as they help the company discover many un-reaped opportunities that it would otherwise never be aware of. Collaborators like distributors, suppliers, and alliances are the closest to the customers, so their input can go a long way.
5. 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: The government policies and regulations that affect the functioning of a company. e.g. GST, FDI, Tax imposed on corporations, and other taxes levied. Etc.
- Economic analysis: Economic factors significantly affect the functioning of a business, like the recent 2008 crisis; if companies could predict this, they could have shelled a lot of loss.
- Social analysis: The mood of society and the current trend and fashion play a significant role in determining a consumer's preference.
- Technical analysis: A business needs to be alert about the new technologies and adapt accordingly, bringing in technologies to help solve the customer's needs more effectively. Soon, 'the internet of things will be the new big thing, and businesses need to learn in advance of the possibility it poses.
The Bottom Line
Today, the business world has become so competitive that even a small mistake on the part of a company or an entity can hamper the company's image. To match the competition, tools like the 5cs of marketing are a part of Strategic Marketing with SWOT analysis. Porter's five force analysis is a must for any company trying to capitalize on the recovering economy, which is soon in the future to hit the boom.