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5C Analysis is a marketing framework that analyzes a company’s target market. With the help of 5C analysis in marketing, a business can gain a more precise and more accurate insight into the market in it operates.

5C analysis in marketing also minimizes the risk of making wrong or costly decisions. Because, with the help of this framework, the company makes more tactful and aware decisions about the situation in its target market.

Five main factors of 5C analysis

5C is derived from the five main factors in this method of market analysis. A company’s target market in the 5C framework is analyzed around these five factors. These five factors, all of which begin with the letter C, are as follows:

In the following, we will explain each of these five factors separately and learn how to use 5C analysis in marketing in general.

1- Company

When a company decides to use 5C analytics in marketing in its business, the first challenge it faces is recognizing the competitive market advantages that exist for that company. These competitive advantages can be related to the equality and value of brands in the market. Either they originate from the economic situation of companies and their financial budgets, or they are even influenced by the technology used by companies in the production of products.

Based on this factor, the company’s competitive advantages are measured. All angles and aspects of it that are considered an advantage compared to other companies in the same common market are identified, examined, and analyzed. In this way, it becomes clear that this company offers sustainable values ​​in the market or that it is an unstable and temporary company in the eyes of the audience.

2- Collaborators

Collaborators mean collaborators or helpers. Therefore, the purpose of this factor in 5C marketing analysis is to identify and examine all the elements and entities that are somehow helping the company. In this factor of the 5C framework, you, as a business owner, make a list of all the companies, partners, and agents that will help you along the way and in business.

To prepare this list, you must follow the prioritization so that your mental focus does not disappear while reviewing the items. For example, all the distributors or suppliers or advertisements that help you in the course of your business, in order from the largest and most important to the smallest and least effective in a list with contact information and work for You do, take notes.

3- Customers

All customers or audiences that have the potential to become customers of a business can be classified into the following three general categories:

• Total Available Market
• Serviceable Available Market
• Serviceable Obtainable Market

In general, a company’s target market can be categorized differently. For example, categorizing customers based on geographical location, ranking them based on psychological factors, or other situations. But these three general categories mentioned above actually classify business customers as follows, with the help of which you can also calculate the market size (Market Size):

• The first category, Total Available Market, also called TAM, refers to any potential customer who needs a particular product or service.
• Serviceable Available Market, also known as SAM, is a subset of TAM and refers to customers who have the potential to use our products and services.
• The Serviceable Obtainable Market, also known as the SOM, is a subset of SAM and is much more specialized and refers to a smaller group of customers. This section relates to customers who are exactly our target market and are precisely those people who need our products and services.

4- Competitors

Competitors are among all the companies in the same direction with our business and operate in the same field of work. One way to identify a competitor in the market is to look at the market share dominated by the competing company. In other words, you need to see what percentage of the market it operates in is dominated by a competing company and what share of your target market is constantly heard or seen by the name of the company and its products or services.

So make a list of all the companies you know are working in your field, and you can use the title of a competitor for them. Be sure to note this list in order of priority from the most potent competitor with its essential characteristics and move on to the weakest competitor.

5- Business environment or Context

If you are familiar with PESTEL analysis, you are well aware that the analysis of the environment in which a business operates is mainly done by this tool. So in the fifth factor of 5C marketing analysis, we use PESTEL to understand the external environment of our business.

PESTEL divides the external business environment into segments that can affect that business. These sections include any external environment that somehow affects the business, whether our company has control over it or does not have the slightest access to it.

As you can see in the image above, the external business environment is divided into several sections as follows:

Political

The political party of the external business environment; actually refers to the current policies in the country or territory in which the business operates. The political decisions made in the country can affect the growth and movement of business in any way.

Economic

The economic part of the external business environment; It is pretty clear that whatever happens to the country’s financial situation directly impacts business.

Social

The social part of the external business environment; If we want to analyze the society in which the business is operating, we must pay attention to many things that inevitably affect the state company’s dimensions, such as psychology sudden events that occur in society. The lifestyle of people in the community, the mood of people in the community, and many other things affect the growth and development of business.

Technological

The technology department of the external business environment; Technology is advancing every day, forcing every natural or legal person to adapt. Therefore, this part of the external business environment can completely change the course of the business with innovation.

Legal

The legal part of the external business environment; The rules and regulations governing the society in which a business operates can significantly impact the course of business, even with minor changes.

Environmental

The natural part of the business environment; It is possible for an accident or a change in the natural environment in which a business operates at any time; Therefore, this sector should be a factor whose changes can affect the business.

How to implement 5C market analysis for our business?

Now that we know the five factors in this analysis, we know what each letter C stands for and what it means. So it’s best to look at how we should implement this analysis in our business.

In each part of this analysis, ask yourself a question. All 5C analysis proceeds with questions and answers. The answers you give to the questions asked in each section are. The data with which you are going to build your lists.

The questions you ask yourself in each section can be as follows:

Company Questions

• What does your business sell?
• What are your main products?
• Why should customers buy from you?
• What would it be if you had to sacrifice part of your business to grow other features?
• What are the advantages of your products?
• Who are your competitors?
• In which market segment is it possible for you to progress?
• What is the common customer perception of your business?
• Which sector does your business make the most gain?
• What are the goals of your business?

Collaborators Questions

• Who is responsible for the day-to-day operations of the company?
• Did you have a partner in starting this business?
• Does your business have investors or shareholders?
• Who markets, distributes, and markets your products?
• Which company do you get help from to import or supply your products?
• Do you have staff and telecommuters?
• Forces that are not present in your company but work with you on a project (freelance) or telecommuting?
• Have you hired another force, team, or company for your social networks?

Customer Questions

• Who is your ideal customer?
• What are the personal characteristics of the customers you intend to target? (What are your customers’ personalities?)
• Who is buying from you right now?
• What are your best-selling and most popular products?
• Have you received negative feedback for your products?
• If you own a site, according to your Google Analytics, which pages of your website have received the most feedback?
• Which feature of your business do your customers find interesting and valuable. Which part has not been able to attract their attention?

Competitors Questions

• What are the names of the companies currently competing in your field?
• Are these competitors newcomers or veterans of the job market?
• Are your products very different from the products on the market?
• Research these competitors and see in which sectors they are strong and in which sectors they are weak. What methods do your competitors use to attract customer attention?
• What is the customer base that draws your attention to your competitors?
• How did your competitors appear on social media? Strong, weak, or ordinary?
• What do they do that you do not do? In what areas are they different from you?

Climate questions

• Has the economic situation of the country changed recently? If so, how much will these changes affect your business?
• What technological innovations might occur that change your business?
• Will these potential innovations become a competitor or an opportunity for you?
• Are there cultural resources or references rooted in people’s beliefs and lifestyles, through which you can expose your products to customers? If specific rules can change your business, what are those rules?

How does 5C market analysis help our business?

When we make a list of all the items listed in 5C for our business, the current situation of our company in the indoor environment, the target market environment, and the external environment become an evident and orderly board that Watching it regulates and clarifies our minds.

In fact, by answering the questions you ask yourself in each section, you face your fears, and with what happens, your business may even be destroyed. So you will be aware of any possible ups and downs in the path of Byzantium. You will make better and easier decisions.