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This analysis is essential for an organizationbefore beginning its marketing process
Consists of internal environment and externalenvironment
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Political Factorsconomic FactorsSocio Cultural FactorsTechnological Factorsnvironmental Factorsegal Factors
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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
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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.
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Control on Pricing like sugar, drugs etc.
Government Policies on the Economy Role of Public Sector
Role of Private Sector
Role of Joint Sector
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Government outlook towards Bank Financing
Interest Rates
Exchange Rate Mechanism
Incentives for Exports Restrictions for Imports
Inflation
Labour Policies
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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
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Business Cycles Monsoon
Energy Availability
Cost of Energy
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Demographics Distribution of Income
Life Style Changes
Consumerism Educational Levels
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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
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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
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Helps Assess the market includingCompetitors from the stand point of aParticular Business.
PEST is relevant for any type of Businesslarge, small & medium.
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Advantage of Technology In terms of Economies of Scale
New Discoveries & Innovations
Speed & Cost of Technology Transfer
Rate of Obsolescence
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Policies & Laws
Licenses and government permissions
IP & Trademark Laws
Speed of Case judgments
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Environmental laws
Social Groups / organizations standing forconserving environment.
Environmentally Conscious Customers
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Helps Assess the market includingCompetitors from the stand point of aParticular Business.
PEST is relevant for any type of Businesslarge, small & medium.
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