Transcript PEST ANALISYS - Helwan University

PEST ANALYSIS
Taken from www.marketingteacher.com,
accesed 17-11-2006, and adapted to the
Spanish environment, icluyding some
sinonymus to make easy the translation
PEST ANALYSIS
It’s 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.
To feed: introduce continuously; serve as
food for; be the food for
PEST ANALYSIS
The organization's marketing environment is made up from:
1.
2.
3.
The internal environment e.g. staff (or internal customers),
office technology, wages and finance, etc.
The micro-environment e.g. our external customers, agents
and distributors, suppliers, our competitors, etc.
The macro-environment e.g. Political (and legal) forces,
Economic forces, Sociocultural forces, and Technological
forces. These are known as PEST factors.
Wage: something that remunerates; a recompense for worthy
acts; The remuneration paid or benefits granted to an
employee
Supplier:provider, deliverer, someone whose business is to
supply a particular service or commodity
PEST ANALYSIS
THE PEST FACTORS
PEST ANALYSIS
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.
2.
3.
4.
5.
6.
How stable is the political environment?
Will government policy influence laws that regulate or tax your business? E.g. : Some
laws, like the new Ley de Dependencia, gives us new oportunitys for elderly cares.
What is the government's position on marketing ethics? E.g.: The XXL Burger King
case.
What is the government's policy on the economy?
Does the government have a view on culture and religion?
Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or
others?
Arena: a playing field where sports events take place; the central area of an ancient
Roman amphitheater where contests and spectacles were held; especially a sandstrewn area
PEST ANALYSIS
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. E.g.: Low interest rate alows to the largest
spanish builders makes takes over banks, electric
companies, etc.
2. The level of inflation and employment level. E.g.: In the last
ten years we had created more than 5 million of new
employies
3. Long-term prospects for the economy Gross Domestic
Product (GDP) per capita, and so on. E.g. : We are
expecting to reach the GDP per cápita levels of the Italy,
French or Germany in one or three years.
PEST ANALYSIS
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? In
many sectors, the Spanish consumer prefers foreing
products; but in bank, insurance, tourism, food or health
services, prefers national products.
3. Does language impact upon the diffusion of products
onto markets? E.g.: Our biggest transnational
companies, like Repsol, Santander, Endesa, Telefónica,
had expanded in Latin-América before in Europe
PEST ANALYSIS
Sociocultural Factors.
4.
5.
6.
7.
How much time do consumers have for leisure? E.g.: The long and split
working days in Spain gives us so few leisure time.
What are the roles of men and women within society? E.g.: Who take
finally the last decission about buy a new car? The promotion tools can't
ignore this fact.
How long are the population living? Are the older generations wealthy?
E.g.: Nowdays, in Sapin we have few elderlyies and they have small
pensions. The reason are two: Civil War ended 66 years ago and the
wellfare state have few years, so they have only assistential pensions.
In the next five years they'll increase and theirs pensions will be linked
with their last wages.
Do the population have a strong/weak opinion on green issues?
Leisure: Free time; time available for ease and relaxation;freedom to
choose a pastime or enjoyable activity;
Issue: matter, factor; some situation or event that is thought about
PEST ANALYSIS
Technological Factors.
Technology is vital for competitive advantage, and is a major
driver of globalization. Consider the following points:
1.
2.
3.
4.
Does technology allow for products and services to be made more
cheaply and to a better standard of quality?
Do the technologies offer consumers and businesses more
innovative products and services such as Internet banking, new
generation mobile telephones, etc?
How is distribution changed by new technologies e.g. books via
the Internet, flight tickets, auctions, etc?
Does technology offer companies a new way to communicate with
consumers e.g. banners, Customer Relationship Management
(CRM), etc?
Banner: long strip of cloth for decoration or advertising,
a newspaper headline that runs across the full page