Recently I ran into the “5C Marketing Analysis Model”. This model is a commonly used technique to analyze the current situation of an organization, through the lens of a marketer. The “5 C’s” stand for “company”, “customers”, “competitors”, “collaborators” and “context”. In short, five important factors that your company comes into contact with on a daily basis. Today I take you on a journey of discovery through this model.
The 5C marketing analysis model is similar to a health check of your organization; we only focus on the vital parts. This allows us to identify what works well and what doesn’t and to make the right decisions in a well-considered way. The 5C analysis is one of the most popular situational analysis models due to its effectiveness and simplicity, and is a great tool for small to medium-sized businesses.
The model trimmer
I can already hear you thinking: “another model”. The 5C analysis is part of a family of so-called “situational analysis models”. There are several ways to perform a marketing situation analysis, you are probably the most familiar with the generic but effective SWOT model, which exposes strengths, weaknesses, opportunities and threats. With the 5C model we approach situations a little deeper than the SWOT model.
Another popular model is the Competitive Forces Model developed by Michael Porter. This model aims to determine the profit potential of a market. In every market, according to Porter, this potential is influenced by five factors (simplified, perhaps a little short-sighted): suppliers, buyers, substitutes, new competitors and existing competitors. Personally, I find the 5C model easier to apply than the Five Forces model.
The 5c marketing analytics model
As the name implies, the 5c model concentrates around 5 key “C’s”. Each C represents an important element that relates to your overall business model.
The first “C” stands for “company”, both its purpose and distinctiveness. You can approach this from Simon Sinek’s “Golden Circle” (remember them? Why, How, What) or even by applying the Hedgehog Concept. At the end of the ride, it is important that you have a good idea of what your organization has to offer.
Make a list of the most important product (categories) and how they distinguish themselves in the market. But also an analysis of your company and brand should not be missing. Business objectives, vision, identity, values, and so on. If you are struggling to shape this part, you can start with a simple SWOT analysis. This helps to gain better insights into your company.
2. “Collaborators” (contributors)
The second “C” in the 5C model is “contributors”. These are other companies, organizations and individuals that make it possible to do what your company does. In this section, list any people or services your business works with. Think of it as an address book or phone book for your business. For each contributor, write down the primary contact, their email address, phone number, and how they affect your business.
After you fill out the contributors section, you probably realize that it takes more people (or services) to run your business than you initially realized. By listed all those entities here, you can keep track of who is responsible for what. It also gives you tools to make your business more productive or efficient.
Numbero 3 in the list: “customers”. One of the most important parts of any business is the customers who buy your products. By getting a good idea of who your customers are, what they want, and how well your product meets their needs, you can deliver products that your customers want to buy (and continue to buy) much more effectively. You are also better prepared when it comes to your marketing efforts; you not only promote your products to the right target group, you also know which language and images resonate with your potential customers.
Finally, customer analytics is one of the best ways to learn more about your products and business. By finding out what customers like and don’t like about your products and business, you’ll gain first-hand insight into what matters most. Understand their behavior and their underlying motivations. If you’re having trouble with this section, you’re not alone. The hardest and most important part of marketing is truly understanding the customer.
In fourth place are your “competitors”. Identify their strengths and weaknesses, market position and marketing strategy. Insight into your competitors is just as important as insight into your own company. After all, you can’t compete effectively if you don’t know who your real opponents are.
You’ll probably want to focus on companies that are similar in size to yours, but it’s fine if your competitors are bigger or better established. Even if it may not seem like it at first. Smaller companies also have a number of advantages over larger companies. They can usually switch faster and respond to trends or changes in the market. Also, small organizations are often more inventive, creative and daring in their marketing.
Also, look for weaknesses, gaps, and other opportunities, rather than talking to larger competitors about the things they’re best at. The key to defeating a larger competitor is to focus on small, achievable victories, and collect them over time.
5. “Context” or “Climate”
The fifth and final part of the 5C model is the analysis of everything else in the world that affects your business and its marketing. When you look at the climate, focus on factors outside of your own business that can affect your way of working. This includes industry trends, societal trends, legal trends and new technologies.
With this analysis, you’re trying to get a general idea of where the market is going. For example, when looking at societal trends, consider how people think or feel and what kind of things are important to them. For example, if your target audience is increasingly concerned about environmental friendliness, fair trade practices, or the country of manufacture, you should be aware of these feelings. This not only helps you lead your business to success, it also helps to prevent potential disasters.