Description
PEST analysis which essential for an organization before beginning its marketing process. PEST stands for political, econmic, socio cultural and technological.
PEST Analysis
What is PEST Analysis?
? This analysis is essential for an organization before
beginning its marketing process ? Consists of internal environment and external environment
Break up of PEST
?Political Factors ?Economic Factors ?Socio Cultural Factors
?Technological Factors
Political Factors
? This is the most important influence on the
regulation of any business.
? ? ? ? ?
How stable is the political environment? Influence the Government Policy / Law on your business Government’s position on Marketing Ethics Government’s policy on the economy Government’s view on culture under religion
Political Factors - Contd.
?
?
?
?
Political System is responsible for Law Making. Immediate laws which affect any business in general are Central Excise, Sales Tax/ VAT, Corporate Income Tax, Personal Income Tax & Service Tax Environmental Protection Law Controls if any on Marketing Strategies
?Like
Marketing / Advertising of Cigarettes, Tobacco, Alcohol etc.
Political Factors - Contd..
? Control on Pricing ? like sugar, drugs etc. ? Government Policies on the Economy ? Role of Public Sector ? Role of Private Sector ? Role of Joint Sector
Economic Factors
? Government outlook towards ? Bank Financing ? Interest Rates ? Exchange Rate Mechanism ? Incentives for Exports ? Restrictions for Imports ? Inflation ? Labour Policies
Economic Factors - Contd.
? Level of Government Spending ? Avenues for Capital Creation ? Size of the Capital Market ? Role of the Regulator ? Type of the Instruments ? Nature of the Investors
Economic Factors - Contd.
? Business Cycles ? Monsoon ? Energy Availability
? Cost of Energy
Socio-Cultural Factors
? Demographics ? Distribution of Income ? Social Mobility
? Life Style Changes
? Consumerism ? Educational Levels
Socio-Cultural Factors - Contd.
? Demographics & Distribution of Income ? Division of population - Male / Female ? Age Group of the Population ? Disposable Family Income
Disposable Income in the hands of the different Age Groups ? Education Level of the Age Groups
?
Social Cultural Factors - Contd.
? Life Style Changes & Consumerism ? Attitude to living
Different Age Groups ? In tune with available disposable income ? Thrust on taking care of present needs by spending than saving for the future. ? Joint living and nuclear families ? Availability of various media tools ? Reach of the media to the population
?
Technological Factors
? Advantage of Technology ? In terms of Economies of Scale ? New Discoveries & Innovations
? Speed & Cost of Technology Transfer
? Rate of Obsolescence
Other Factors
? Judicial System ? Insurance System ? Banking System
? Regulatory System
? Infra Structure ? Communication ? Transportation
Role of PEST
? Helps Assess the market including Competitors from
the stand point of a Particular Business. ? PEST is relevant for any type of Business large, small & medium.
doc_678902729.pptx
PEST analysis which essential for an organization before beginning its marketing process. PEST stands for political, econmic, socio cultural and technological.
PEST Analysis
What is PEST Analysis?
? This analysis is essential for an organization before
beginning its marketing process ? Consists of internal environment and external environment
Break up of PEST
?Political Factors ?Economic Factors ?Socio Cultural Factors
?Technological Factors
Political Factors
? This is the most important influence on the
regulation of any business.
? ? ? ? ?
How stable is the political environment? Influence the Government Policy / Law on your business Government’s position on Marketing Ethics Government’s policy on the economy Government’s view on culture under religion
Political Factors - Contd.
?
?
?
?
Political System is responsible for Law Making. Immediate laws which affect any business in general are Central Excise, Sales Tax/ VAT, Corporate Income Tax, Personal Income Tax & Service Tax Environmental Protection Law Controls if any on Marketing Strategies
?Like
Marketing / Advertising of Cigarettes, Tobacco, Alcohol etc.
Political Factors - Contd..
? Control on Pricing ? like sugar, drugs etc. ? Government Policies on the Economy ? Role of Public Sector ? Role of Private Sector ? Role of Joint Sector
Economic Factors
? Government outlook towards ? Bank Financing ? Interest Rates ? Exchange Rate Mechanism ? Incentives for Exports ? Restrictions for Imports ? Inflation ? Labour Policies
Economic Factors - Contd.
? Level of Government Spending ? Avenues for Capital Creation ? Size of the Capital Market ? Role of the Regulator ? Type of the Instruments ? Nature of the Investors
Economic Factors - Contd.
? Business Cycles ? Monsoon ? Energy Availability
? Cost of Energy
Socio-Cultural Factors
? Demographics ? Distribution of Income ? Social Mobility
? Life Style Changes
? Consumerism ? Educational Levels
Socio-Cultural Factors - Contd.
? Demographics & Distribution of Income ? Division of population - Male / Female ? Age Group of the Population ? Disposable Family Income
Disposable Income in the hands of the different Age Groups ? Education Level of the Age Groups
?
Social Cultural Factors - Contd.
? Life Style Changes & Consumerism ? Attitude to living
Different Age Groups ? In tune with available disposable income ? Thrust on taking care of present needs by spending than saving for the future. ? Joint living and nuclear families ? Availability of various media tools ? Reach of the media to the population
?
Technological Factors
? Advantage of Technology ? In terms of Economies of Scale ? New Discoveries & Innovations
? Speed & Cost of Technology Transfer
? Rate of Obsolescence
Other Factors
? Judicial System ? Insurance System ? Banking System
? Regulatory System
? Infra Structure ? Communication ? Transportation
Role of PEST
? Helps Assess the market including Competitors from
the stand point of a Particular Business. ? PEST is relevant for any type of Business large, small & medium.
doc_678902729.pptx