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What is PEST Analysis?What is PEST Analysis?
This analysis is essential for an organizationbefore beginning
its marketing process
Consists of internal environment andexternal environment
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When to use PESTWhen to use PESTanalysisanalysis
Use a PEST analysis when youreconsidering any one of these
options:
Entering a new market
Launching new product or service
Considering a potential acquisition
Investigating a potential partnershipExamining an investment
opportunity
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Break up of PESTBreak up of PEST
Political Factors
Economic Factors Socio Cultural Factors
Technological Factors
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Political FactorsPolitical Factors
This is the most important influence on theregulation of any
business.
How stable is the political environment?
Influence the Government Policy / Law onyour business
Governments position on Marketing Ethics
Governments policy on the economy Governments view on culture
under
religion
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Political Factors -Political Factors -Contd.Contd.
Political System is responsible for LawMaking.
Immediate laws which affect any business in
general are Central Excise, Sales Tax/VAT, Corporate Income Tax,
PersonalIncome Tax & Service Tax
Environmental Protection Law
Controls if any on Marketing Strategies
Like Marketing / Advertising ofCigarettes, Tobacco, Alcohol
etc.
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Political Factors -Political Factors -Contd..Contd..
Control on Pricing
like sugar, drugs etc.
Government Policies on the EconomyRole of Public Sector
Role of Private Sector
Role of Joint Sector
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Economic FactorsEconomic Factors
Government outlook towards
Bank Financing
Interest RatesExchange Rate Mechanism
Incentives for Exports
Restrictions for Imports
Inflation
Labour Policies
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Economic Factors -Economic Factors -Contd.Contd.
Business Cycles
Monsoon
Energy Availability Cost of Energy
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Socio-Cultural FactorsSocio-Cultural Factors
Demographics
Distribution of Income
Social Mobility Life Style Changes
Consumerism
Educational Levels
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Socio-Cultural FactorsSocio-Cultural Factors- Contd.- Contd.
Demographics & Distribution of Income
Division of population - Male / Female
Age Group of the PopulationDisposable Family Income
Disposable Income in the hands of thedifferent Age Groups
Education Level of the Age Groups
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Social Cultural Factors -Social Cultural Factors
-Contd.Contd.
Life Style Changes & Consumerism
Attitude to living
Different Age Groups In tune with available disposable
income
Thrust on taking care of present needs byspending than saving
for the future.
Joint living and nuclear families
Availability of various media tools
Reach of the media to the population
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Advantage of Technology
In terms of Economies of Scale
New Discoveries & Innovations Speed & Cost of Technology
Transfer
Rate of Obsolescence
Technological FactorsTechnological Factors
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PEST analysis-Mobile PhonePEST analysis-Mobile
PhoneCompanyCompany
PoliticalHighly regulatedLawsInfrastructureBan on mobile use for
certainsituations
EconomicExpensive 3G/4G licenseCompetitorsReduced call
costEconomic downturnDeveloping countries
Socio-culturalUbiquityHealth concernDemographicCultural
trendsSocial networking
TechnologyMobile broadband3GGPRS/WAPSMS/MMScoverage
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Other FactorsOther Factors
Judicial System
Insurance System
Banking System Regulatory System
Infra Structure
CommunicationTransportation
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Role of PESTRole of PEST
Helps Assess the market includingCompetitors from the stand
point of a
Particular Business. PEST is relevant for any type of
Business
large, small & medium.
