Question

What dose the 5 C’s mean

Answer 1

There are 5 C’s of Marketing which are used to analyze the five key areas involved in marketing decisions for a company. They act as a good guideline for developing a well defined market strategy and taking right decisions in the business. This are as follows : , Customers, Company, Competitors, Collaborators, and Climate.

1. Customer – One of the fundamental strategy areas would be to understand and know the needs of your clients and who they are. A few areas of research can be market segments, frequency of purchases, quantity of purchases, retail channel, and customer needs depending on trends over time.

2. Company – After letting know the customer needs, identify the position of the company in meeting those needs. A good tool to find out your company’s strengths and weaknesses is “SWOT” analysis.

• Strengths: innovative products, expertise and procedures

• Weaknesses: lack of knowledgeable technical support or average product quality

• Opportunities: a new international market or a market led by a weak competitor

• Threats: a new competitor or price war

3. Competition – It is always important to know about your competitors in the market and to understand what type of a competitor they are, how much threat they pose to your company, what are their products exactly, strengths and weaknesses, etc.

4. Collaborators – Determine if there is any outside source or third party help that can help the company such as distributors, suppliers etc.

5. Climate – Determine if there are any limitations due to

• Political issues: legal problems, trade regulations, taxes or labor laws

• Economic issues: growth rate, labor costs, and business cycle stage

• Social impacts: demographics, education, and culture

• Technological developments: impact on cost structures

This is also known as “PEST” analysis.