Four Cs: in the seven Cs compass model
After Koichi Shimizu proposed a four Cs classification in 1973, this was expanded to the seven Cs compass model to provide a more complete picture of the nature of marketing in 1981. It attempts to explain the success or failure of a firm within a market and is somewhat analogous to Michael Porter's diamond model which tries to explain the success and failure of different countries economically.
The seven Cs compass model are:
• (C1)Corporation– The core of four Cs is corporation (company and non profit organization). C-O-S (Organization, Competitor, Stakeholder) within the Corporation. The company has to think of compliance and accountability as important. The competition in the areas in which the company competes with other firms in its industry.
The four elements in the seven Cs compass model are:
• A formal approach to this customer-focused marketing mix is known as Four Cs (Commodity, Cost, Channel, Communication) in “the seven Cs compass model". The four Cs Model provides a demand/customer centric version alternative to the well-known four Ps supply side model (product, price, place, promotion) of marketing management.
o Product = Commodityo Price = Costo Place = Channelo Promotion = Communication
• (C2)Commodity – (Original meaning of Latin: Commodus=convenient) : the goods and services for the consumers or citizens. Steve Jobs has been making the goods with which people are pleased. It is not "product out".
• (C3)Cost – (Original meaning of Latin: Constare= It makes sacrifices) : There is not only producing cost snd selling cost but purchasing cost and social cost.
• (C4)Channel – (Original meaning is a Canal) : marketing channels. Flow of goods.
• (C5)Communication – (Original meaning of Latin:Communio=sharing of meaning) : marketing communication : Not only promotion but communication is important.
The compass of consumers and Circumstances (environment) are:
• (C6)Consumer – (Needle of compass to Consumer)
The factors related to consumers can be explained by the first character of four directions marked on the compass model. These can be remembered by the cardinal directions, hence the name compass model:
o N = Needs
o W = Wants
o S = Security
o E = Education (consumer education)
• (C7)Circumstances – (Needle of compass to Circumstances )
In addition to the consumer, there are various uncontrollable external environmental factors encircling the companies. Here it can also be explained by the first character of the four directions marked on the compass model:
o N = National and International
o W = Weather
o S = Social and Cultural
o E = Economic
These can also be remembered by the cardinal directions marked on a compass. The seven Cs compass model is a framework in co-marketing (symbiotic marketing). It has been criticized for being little more than the four Ps with different points of emphasis. In particular, the seven Cs inclusion of consumers in the marketing mix is criticized, since they are a target of marketing, while the other elements of the marketing mix are tactics. The seven Cs also include numerous strategies for product development, distribution, and pricing, while assuming that consumers want two-way communications with companies.