by Market for product is big and diverse making it difficult for companies to be able to satisfy every customer. Companies need to identify a certain set of customer within a market and work towards satisfying them. This set of identification is market segment. Companies further need to understand the intricacy of how this segment behaves and operates. An approach known as target marketing is gaining prominence where companies identify the market segment on similar needs and wants, select one of the market segments and then focus in developing products and marketing program.
Earlier business operation was in the form of mass marketing. In mass marketing companies produce a product in large quantities and serve this product to as many consumers as possible. This made sense as markets were developing and not much variety was on offering. Now product offerings have under gone radical change thanks to advertising and communication reach. Therefore, companies look forward to marketing at segment, niches, local and individual level.
In segment marketing companies identify consumer with similar needs and wants. For example, an airline is looking forward to providing no frills’ connectivity between metro cities on US east coast compare. This segment is within airline industry but needs of customer is different. T target audience is low budget travelers. However, customers within the segment look for different attributes, for example, lunch or beverages as part of travel. Here companies can offer this by charging the customer.
In niche marketing, companies target limited customer set. A niche market is worth exploring where customers are willing to pay a premium for product, entry barriers are high and market has growth potential. In local marketing, customers are local neighborhood, trading stores, etc. For example, many banks prefer local marketing for better understanding of client and provide them right type of service. In individual marketing, companies look forward to satisfying needs and wants of individual customer. Internet is facilitating the process of individual marketing, where in customer log on to the site and creates products from available options. This process is not feasible for high technology products like automobiles.
The Five C Framework
- Customers
Company customers are the key focus areas of the business. To make the customer happy you should really understand your target market and customers’ needs and wants. Try to find out information through market research i.e.
- Market segmentation
- Market size and growth
- What are you selling
- Do u really selling what they need?
- Consumers decision making process
- Preference where they shop
- Quantity and frequency for their purchase
- Consumer preferences, attitude and trends
- Competitors
It is a very important analysis and determine the future of the business.
- Who are your primary competitors?
- Any substitute available for your products?
- Segmentation, Targeting and Positioning?
- Competitors activities and market share
- What are competitors strengths and weaknesses?
- Company or Corporation
- Company culture
- Goals and objectives
- Product Line and Brand Image
- Your Strengths and Weaknesses
- Level of technological advancement
- Collaboratives
All those parties have outside but have shared interest in the company. your business operation can affect them both positively and negatively.
- Suppliers
- Distribution channels
- Key opinion leaders
- Third parties
- Climate
Company climate means macro environmental factors. PESTLE analysis tool is a good way to analyze this company environment.
- Political factors. Government rules and regulations that affect your business environment
- Economic factors. It is the interest rate, economic crisis, inflation, trade cycle all these economic factors affect the business operations.
- Socio-Cultural factors. social beliefs customs, attitudes and preferences are the social factors of a business.
- Technological factors. How you are technologically advanced and fulfilling your customer needs and want through automatic processes and communication infrastructure etc.
- Legal factors. corporations must comply with law and regulation if not will affect your business operation.
- Environmental factors. How your business is affecting the surrounding environment whether your business fulfilling the environmental regulations or not.
While performing 5 C’s of marketing analysis company can gather information from websites, annual reports, different industries reports. Government websites are also a good source of information. By this way, a company can identify opportunities to provide value to target customers.
