This analysis is essential for an organization

before beginning its marketing process

Consists of internal environment and external
environment

olitical Factors
conomic Factors
ocio Cultural Factors
echnological Factors
Environmental Factors
Legal 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
Governments position on Marketing Ethics
Governments policy on the economy
Governments view on culture under religion

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
Advertising of Cigarettes, Tobacco,
Alcohol etc.

Control on Pricing
like sugar, drugs etc.

Government Policies on the Economy
Role of Public Sector
Role of Private Sector
Role of Joint Sector
Government outlook towards
Bank Financing
Interest Rates
Exchange Rate Mechanism
Incentives for Exports
Restrictions for Imports
Inflation
Labour Policies

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
Business Cycles
Monsoon
Energy Availability
Cost of Energy

Demographics
Distribution of Income
Life Style Changes
Consumerism
Educational Levels


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




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
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.
Advantage of Technology
In terms of Economies of Scale

New Discoveries & Innovations

Speed & Cost of Technology Transfer

Rate of Obsolescence

Policies & Laws

Licenses and government permissions

IP & Trademark Laws

Speed of Case judgments

Environmental laws

Social Groups / organizations standing for
conserving environment.

Environmentally Conscious Customers
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.