Difference between revisions of "5C's of Marketing Strategy"
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| − | A useful | + | A useful framework for performing a situation analysis is the 5C Analysis. The 5C Analysis is an environmental scan of five key areas especially applicable to marketing decisions. It covers the internal, micro-environmental, and macro-environmental situations. The 5 C analysis is an extension of the 3C analysis (company, customers, and competitors), to which some marketers added the 4th C of collaborators. The further addition of a macro-environmental analysis (climate or context) results in a 5C analysis. <ref>Defining 5C Analysis? [http://www.netmba.com/marketing/situation/ NetMBA]</ref> |
| + | == The 5C's of [[Marketing Strategy]] Are:== | ||
*Company | *Company | ||
| − | When analyzing a company using the 5C marketing framework, the key issue is to identify the Sustainable [[Competitive Advantage]] that belongs to the focal company. It can be in the form of [[brand]] equity, economies of scale, technological development, etc. To identify if the assets belonging to the focal company is a sustainable competitive advantage, the VRIO (Variable Rare Imitable Organized) | + | When analyzing a company using the 5C marketing framework, the key issue is to identify the Sustainable [[Competitive Advantage]] that belongs to the focal company. It can be in the form of [[brand]] equity, economies of scale, technological development, etc. To identify if the assets belonging to the focal company is a sustainable competitive advantage, the VRIO (Variable Rare Imitable Organized) model can be utilized to distinguish if a company’s assets offer a temporary or sustainable advantage to the overall [[Business Model]]. |
| + | |||
*Collaborators | *Collaborators | ||
| − | Collaborators are entities that allow or enhance a company to provide its particular good or | + | Collaborators are entities that allow or enhance a company to provide its particular good or service in the way that it does. It primarily revolves around a company’s supply chain that ranges from spot contracts up to quasi-vertical integration. The direction of integration can only be upstream as downstream collaborators are more specifically defined as customers in the 5C Analysis framework. |
| + | |||
*Customers | *Customers | ||
| − | The group of potential customers a company can reach with its products or services can be broken down into three main sizes: Total Available [[Market]], Serviceable Available Market, and | + | The group of potential customers a company can reach with its products or services can be broken down into three main sizes: Total Available [[Market]], Serviceable Available Market, and Target Market. The market segments may be further segmented through demographics, psychographics, geography, and other distinguishing factors. The Total Available Market (TAM) is the most generalized [[customer]] segment that includes every possible customer that demands a particular [[product]] or service. The Serviceable Available Market (SAM) would be a subset of the TAM that is categorized by the potential use of a company’s product or service. The Serviceable Obtainable Market (SOM) sub-segment of the market is the narrowest definition that specifies the segment of a market a company would realistically aim to capture. |
| + | |||
*Competitors | *Competitors | ||
| − | Competition can be found in the form of other companies operating in the same [[industry]] as the focal company. To determine the industry, industry classification systems such as the North American Industry Classification | + | Competition can be found in the form of other companies operating in the same [[industry]] as the focal company. To determine the industry, industry classification systems such as the North American Industry Classification System exist to provide a standardized method of defining an industry. One common metric to identify players of interest is to examine the market share within the industry. It is typically stated through the concentration ratio CR4, which shows the percentage of the market share held by the four largest firms in the industry. Note, however, that industry classification systems may not provide a sufficiently thorough industry definition for certain companies. It can occur because a firm may adopt a pure play approach, i.e. operates across multiple industries or it may serve a niche market that differs from the traditional industry definition. |
| + | |||
*Context | *Context | ||
| − | The context in which a business operates is most often analyzed with the use of PESTLE analysis. It provides coverage into the areas that may affect a business but where the business exercises either no or limited | + | The context in which a business operates is most often analyzed with the use of PESTLE analysis. It provides coverage into the areas that may affect a business but where the business exercises either no or limited control over it. Changes to contextual factors may impact the industry as a whole rather than a particular company. As such, an advantage experienced by such changes may not translate into a competitive advantage for the focal company or vice versa.<ref>What is the 5C's of Marketing Strategy or 5C Analysis? [https://corporatefinanceinstitute.com/resources/knowledge/strategy/5c-analysis-marketing/ CFI]</ref> |
[[File:5C Analysis.jpg|400px|5C's Marketing Strategy]]<br /> | [[File:5C Analysis.jpg|400px|5C's Marketing Strategy]]<br /> | ||
Source: [http://www.smstudy.com/article/5c-analysis SM Study] | Source: [http://www.smstudy.com/article/5c-analysis SM Study] | ||
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===References=== | ===References=== | ||
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=== See Also === | === See Also === | ||
| − | [[ | + | *[[Business Strategy]] |
| − | + | *[[IT Strategy (Information Technology Strategy)|IT Strategy]] | |
| − | + | *[[E-Strategy|e-Business Strategic Planning]] | |
| − | + | *[[IT Governance]] | |
| − | + | *[[Enterprise Architecture]] | |
| − | + | *[[IT Sourcing (Information Technology Sourcing)|IT Sourcing]] | |
| − | + | *[[IT Operations (Information Technology Operations)|IT Operations]] | |
| − | + | *[[Chief Information Officer (CIO)|Chief Information Officer (CIO)|CIO]] | |
| − | [[IT Strategy (Information Technology Strategy)|IT | + | *[[Leadership|Leadership]] |
| − | [[E-Strategy|e-Business Strategic Planning]] | ||
| − | [[IT Governance | ||
| − | [[Enterprise Architecture | ||
| − | [[IT Sourcing (Information Technology Sourcing)| | ||
| − | [[IT Operations (Information Technology Operations)| | ||
| − | [[Chief Information Officer (CIO)|Chief Information Officer (CIO)]] | ||
| − | [[Leadership|Leadership]] | ||
Revision as of 14:01, 18 November 2022
A useful framework for performing a situation analysis is the 5C Analysis. The 5C Analysis is an environmental scan of five key areas especially applicable to marketing decisions. It covers the internal, micro-environmental, and macro-environmental situations. The 5 C analysis is an extension of the 3C analysis (company, customers, and competitors), to which some marketers added the 4th C of collaborators. The further addition of a macro-environmental analysis (climate or context) results in a 5C analysis. [1]
The 5C's of Marketing Strategy Are:
- Company
When analyzing a company using the 5C marketing framework, the key issue is to identify the Sustainable Competitive Advantage that belongs to the focal company. It can be in the form of brand equity, economies of scale, technological development, etc. To identify if the assets belonging to the focal company is a sustainable competitive advantage, the VRIO (Variable Rare Imitable Organized) model can be utilized to distinguish if a company’s assets offer a temporary or sustainable advantage to the overall Business Model.
- Collaborators
Collaborators are entities that allow or enhance a company to provide its particular good or service in the way that it does. It primarily revolves around a company’s supply chain that ranges from spot contracts up to quasi-vertical integration. The direction of integration can only be upstream as downstream collaborators are more specifically defined as customers in the 5C Analysis framework.
- Customers
The group of potential customers a company can reach with its products or services can be broken down into three main sizes: Total Available Market, Serviceable Available Market, and Target Market. The market segments may be further segmented through demographics, psychographics, geography, and other distinguishing factors. The Total Available Market (TAM) is the most generalized customer segment that includes every possible customer that demands a particular product or service. The Serviceable Available Market (SAM) would be a subset of the TAM that is categorized by the potential use of a company’s product or service. The Serviceable Obtainable Market (SOM) sub-segment of the market is the narrowest definition that specifies the segment of a market a company would realistically aim to capture.
- Competitors
Competition can be found in the form of other companies operating in the same industry as the focal company. To determine the industry, industry classification systems such as the North American Industry Classification System exist to provide a standardized method of defining an industry. One common metric to identify players of interest is to examine the market share within the industry. It is typically stated through the concentration ratio CR4, which shows the percentage of the market share held by the four largest firms in the industry. Note, however, that industry classification systems may not provide a sufficiently thorough industry definition for certain companies. It can occur because a firm may adopt a pure play approach, i.e. operates across multiple industries or it may serve a niche market that differs from the traditional industry definition.
- Context
The context in which a business operates is most often analyzed with the use of PESTLE analysis. It provides coverage into the areas that may affect a business but where the business exercises either no or limited control over it. Changes to contextual factors may impact the industry as a whole rather than a particular company. As such, an advantage experienced by such changes may not translate into a competitive advantage for the focal company or vice versa.[2]
Source: SM Study
References
Further Reading
- Consider 5Cs--Customers, Collaborators, Capabilities, Competitors, Conditions--In Onboarding Prep Forbes
- The Five Cs of Opportunity Identification HBR