PEST analysis 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 from:
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 forces Economic, forces and Sociocultural
, 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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