8/12/2019 Lec 2 Pestle

1/17

8/12/2019 Lec 2 Pestle

2/17

This analysis is essential for an organizationbefore beginning its marketing process

Consists of internal environment and externalenvironment

8/12/2019 Lec 2 Pestle

3/17

Political Factorsconomic FactorsSocio Cultural FactorsTechnological Factorsnvironmental Factorsegal Factors

8/12/2019 Lec 2 Pestle

4/17

This is the most important influence on theregulation of any business.

How stable is the political environment? Influence the Government Policy / Law on your

business

Governments position on Marketing Ethics

Governments policy on the economy

Governments view on culture under religion

8/12/2019 Lec 2 Pestle

5/17

Political System is responsible for Law Making.

Immediate laws which affect any business in generalare Central Excise, Sales Tax/ VAT, Corporate Income

Tax, Personal Income Tax & Service Tax

Environmental Protection Law

Controls if any on Marketing Strategies

Advertising of Cigarettes, Tobacco,Alcohol etc.

8/12/2019 Lec 2 Pestle

6/17

Control on Pricing like sugar, drugs etc.

Government Policies on the Economy Role of Public Sector

Role of Private Sector

Role of Joint Sector

8/12/2019 Lec 2 Pestle

7/17

Government outlook towards Bank Financing

Interest Rates

Exchange Rate Mechanism

Incentives for Exports Restrictions for Imports

Inflation

Labour Policies

8/12/2019 Lec 2 Pestle

8/17

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

8/12/2019 Lec 2 Pestle

9/17

Business Cycles Monsoon

Energy Availability

Cost of Energy

8/12/2019 Lec 2 Pestle

10/17

Demographics Distribution of Income

Life Style Changes

Consumerism Educational Levels

8/12/2019 Lec 2 Pestle

11/17

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

8/12/2019 Lec 2 Pestle

12/17

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

8/12/2019 Lec 2 Pestle

13/17

Helps Assess the market includingCompetitors from the stand point of aParticular Business.

PEST is relevant for any type of Businesslarge, small & medium.

8/12/2019 Lec 2 Pestle

14/17

Advantage of Technology In terms of Economies of Scale

New Discoveries & Innovations

Speed & Cost of Technology Transfer

Rate of Obsolescence

8/12/2019 Lec 2 Pestle

15/17

Policies & Laws

Licenses and government permissions

IP & Trademark Laws

Speed of Case judgments

8/12/2019 Lec 2 Pestle

16/17

Environmental laws

Social Groups / organizations standing forconserving environment.

Environmentally Conscious Customers

8/12/2019 Lec 2 Pestle

17/17

Helps Assess the market includingCompetitors from the stand point of aParticular Business.

PEST is relevant for any type of Businesslarge, small & medium.