Pest analysis marketing
T — Technology Technology plays a huge part in business, and it can impact it either negatively or positively. For this analysis, look at interest rates, exchange inflation, unemployment, gross domestic product, credit availability and rise and fall of the middle class.
These factors can affect how a company operates, its costs, and the demand for its products. When she's not working, you will find her exploring her current town of Cape May, NJ or binge watching Pretty Little Liars for the th time. This has a large impact on B2C organisations in particular.
As we saw from our lesson on the marketing environment there is a macroenvironment, and internal environment and the microenvironment. Governments use interest rate control, taxation policy and government expenditure as their main mechanisms for managing macro-economic factors.
Our logistics and warehousing functions use forklifts and lorries as well as order tracking technology and software. To answer this question, a PEST analysis encourages management to carefully study what is happening in the environments that encapsulate their business.
Technological Factors We all know how fast the technological landscape changes and how this impacts the way we market our products. In fact, environmental analysis should be continuous and feed all aspects of planning.
Develop a better long-term strategy. Marketers need to consider the state of a trading economy in the short and long-terms.
By analyzing the market forces at play, the more strategic you can be in your planning and decision-making. Environmental factors include ecological and environmental aspects such as weather, climate, and climate change , which may especially affect industries such as tourism, farming, and insurance. It is very important that such factors are considered. These are known as PEST factors. It can even predict future prospects of a project or product by studying the PEST factors. These factors include — population growth, age distribution, health consciousness, career attitudes and so on. A market is defined by what is addressing it, be it a product, company, brand, business unit, proposition, idea, etc, so be clear about how you define the market being analysed, particularly if you use PEST analysis in workshops, team exercises or as a delegated task. Exchange rates can affect the costs of exporting goods and the supply and price of imported goods in an economy. To conducting a PEST Analysis, we can come up a set of brainstorming questions with answers and actions of them related to each of the four factors: Political Factors The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. What is the dominant religion? The analysis can be converted into a more scientific measurement by scoring the items in each of the sections. P — Political Environment According to Donna Lubrano, senior advisor at Northeastern University , the political environment is an analysis of what politics is doing to the business world. PEST is an acronym for Political, Economic, Social and Technological factors, which are used to assess the market for a business or organizational unit.
based on 4 review