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    What Is PEST Analysis

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    mannojpai
    The document discusses PEST analysis, an important framework for analyzing the macroenvironmental factors that may impact an organization. PEST stands for Political, Economic, Sociocultural, and Technological factors. It provides examples of key questions to consider within each category, such as how stable the political system is, economic indicators like GDP and inflation, sociocultural considerations including attitudes and demographics, and relevant technological changes. Understanding these external influences is vital for effective strategic planning and marketing.

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    What Is PEST Analysis

    Uploaded by

    mannojpai
    22 views3 pages
    The document discusses PEST analysis, an important framework for analyzing the macroenvironmental factors that may impact an organization. PEST stands for Political, Economic, Sociocultural, and Technological factors. It provides examples of key questions to consider within each category, such as how stable the political system is, economic indicators like GDP and inflation, sociocultural considerations including attitudes and demographics, and relevant technological changes. Understanding these external influences is vital for effective strategic planning and marketing.

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    What is PEST Analysis

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    The document discusses PEST analysis, an important framework for analyzing the macroenvironmental factors that may impact an organization. PEST stands for Political, Economic, Sociocultural, and Technological factors. It provides examples of key questions to consider within each category, such as how stable the political system is, economic indicators like GDP and inflation, sociocultural considerations including attitudes and demographics, and relevant technological changes. Understanding these external influences is vital for effective strategic planning and marketing.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    22 views3 pages

    What Is PEST Analysis

    Uploaded by

    mannojpai
    The document discusses PEST analysis, an important framework for analyzing the macroenvironmental factors that may impact an organization. PEST stands for Political, Economic, Sociocultural, and Technological factors. It provides examples of key questions to consider within each category, such as how stable the political system is, economic indicators like GDP and inflation, sociocultural considerations including attitudes and demographics, and relevant technological changes. Understanding these external influences is vital for effective strategic planning and marketing.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    What is PEST Analysis?

    It is very important that an organization considers its environment before beginning the marketing process. In
    fact, environmental analysis should be continuous and feed all aspects of planning.

    the organization's marketing environment is made up of:

    1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc.

    2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc.

    3. The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural forces, and
    Technological forces. These are known as PEST factors.

    political Factors.
    The political arena has a huge influence upon the regulation of businesses, and the spending power of
    consumers and other businesses. You must consider issues such as:

    1.How stable is the political environment?

    2.Will government policy influence laws that regulate or tax your business?

    3.What is the government's position on marketing ethics?

    4. What is the government's policy on the economy?

    5. Does the government have a view on culture and religion?


    6. Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others?

    Economic Factors.
    Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true
    when planning for international marketing. You need to look at:

    1. Interest rates.

    2. The level of inflation Employment level per capita.

    3. Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and so on.

    Sociocultural Factors.
    The social and cultural influences on business vary from country to country. It is very important that such factors
    are considered. Factors include:

    1.What is the dominant religion?

    2.What are attitudes to foreign products and services?

    3.Does language impact upon the diffusion of products onto markets?

    4.How much time do consumers have for leisure?

    5.What are the roles of men and women within society?

    6.How long are the population living? Are the older generations wealthy?

    7.Do the population have a strong/weak opinion on green issues?

    Technological Factors.
    Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following
    points:

    1. Does technology allow for products and services to be made more cheaply and to a better standard of quality?

    2.Do the technologies offer consumers and businesses more innovative products and services such as Internet
    banking, new generation mobile telephones, etc?

    3.How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc?

    4.Does technology offer companies a new way to communicate with consumers e.g. banners, Customer
    Relationship Management (CRM), etc?

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