How 3Cs Works As A Marketing Strategy

Marketing businesses often use strategic models and tools to analyze marketing decisions. There are three main models that can be applied and used within a business to receive better results and reach business goals. This include:

The 3C’s

The 3C’s stand for: Customer, Corporation and Competitor, is a strategic model that uses these three key factors which lead to a sustainable competitive market. This strategy was developed by a Japanese strategy guru called Kenichi Ohmae.Each factor is key to the success of this strategy; The corporation factor mainly focuses on maximizing the strengths of the business from which the business can influence the relevant areas of the competition to achieve success within the industry. Customers are the basis to any business.

Without customers you have no business. The most important factors of customers and the wants, needs and requirements that the business needs to fulfill in order to attract buyers. The competition can be looked at in various different ways such as; purchasing, design, image and maintenance. The more unique steps a business takes the less competition a business will face in that field.

The Ansoff Matrix

The Ansoff Matrix model was invented by H. Igor Ansoff and is a model that focuses on four main areas, which are; Market penetration, Product development, Market development and Product/ Market Diversification. These are then split into a further two areas known as the ‘New’ and ‘Present’. From this strategy, businesses are able to determine the product and market growth. This is done by focusing on whether the market is a new market or an already existing market, and whether the products are new or already existing.

Market penetration covers products that are already on the market and are familiar to the consumers, this creates a low risk as the product is already on the established market. Product development is the introduction of a new product into an existing market. This can include modifications to an already existing market which can create a product that has more appeal in the market.

Market development, also known as market extension, is when an already existing product is introduced to a new market in order to identify and build a new clientele base. This can include new geographical markets, new distribution channels, and different pricing policies. The last area, Diversification, is the riskiest area for a business.

This is where a new product is sold to a new market at the same time. There are two type of Diversification; Related which means the business remains in the same industry that they are familiar with. The other is Unrelated which is when there are no previous relations or market experiences for the business.