Before we dive into the complexity of the 5 c’s of marketing, let’s go over the preceding business process; which is as important as the 5cs of marketing. In today’s business dynamics the convolution of processes has become of paramount importance, every business process has become akin to one another. So, for that very reason let me enumerate a little about marketing mix and then we move on to our primary topic.
What is marketing mix and why is it so important for us to discuss it?
Well! To put it simply; marketing mix is a combination of elements that when put together creates the foundation of a business, missing out on any of these could result in the complete failure or shortcomings of your later business processes.
The marketing mix is the process of 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. All this when synced with goals and target form the core of any business.
The 5 c’s of marketing
The 5 c marketing analysis is one of the tool’s that managers use as part of the situation analysis. The other tools used are SWOT analysis and Porter five force analysis.
The 5 way analysis helps an organisation analyse its internal and external environment. It helps the firm understand its customers, its own capability to serve them and the environment in which this process occurs.
The 5 c marketing strategy are:
1. Customers: The analytics in accordance to the customer varies greatly. A company needs to analyse a vast array of things to determine what the customers want and work on its capacity to fulfil that. The company needs to analyse things like the market size and growth, study how the preference and desire of the customer changes 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 FNCG company or an international information technology company, you need to analyse the scope for improvement in your product line, the image you currently have in the market and this needs to be done on a regular basis. You cannot rely on data that is post-dated. The mood of the market changes constantly and you need to analyse that, the response of the customer towards your product. The goodwill of your company in the market, goals, missions and vision also needs to be analysed.
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 very important as it determines the present and the future of a business. Competitor analysis focuses on three things in the majority; identifying the competitor is one of the very first and the most important 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 in the near future, 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 help it enjoy more of the market share and optimize on its present customer.
4. Collaborators:Collaborators are those who have shared interests in the growth of the company, meaning if the company enjoys profit they benefit a share of it. Identifying collaborators is very important as they help the company discover many un-reaped opportunities that the company would otherwise never be aware of. Collaborators like distributors, suppliers, and alliances are the closest to the customers, so input from them 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.eg. GST, FDI, Tax imposed on corporations, and other taxes levied.etc.
- Economic analysis: Economic factors greatly affect the functioning of a business, like the recent 2008 crisis; if businesses could predict this, they could have shelled a lot of loss.
- Social analysis: The mood of the society and the current trend and fashion play a major role in determining the preference of a consumer.
- Technological analysis: A business needs to be alert about the new technologies and adapt themselves accordingly, bring in technologies that would help solve the customers needs more effectively. Like in the near future ‘internet of things’ is going to be the new big thing and businesses need to learn in advance of the possibility it poses.
Today, the world of business has become so competitive that even a small mistake on the part of a company or an entity can hamper the image of the company, to say the least. To match the competition, tools like the 5cs of marketing is a part of Strategic Marketing with SWOT analysis and Porter five force analysis is a must for any company trying to capitalise on the recovering economy, which is soon in the future to hit the boom.