PEST ANALYSIS

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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

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PEST ANALYSIS

• Its 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

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PEST ANALYSIS

• The organization's marketing environment is made
  up from
• 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
• Supplierprovider, deliverer, someone whose
  business is to supply a particular service or
  commodity

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PEST ANALYSIS

• THE PEST FACTORS

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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
• 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 sand-strewn area

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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.

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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

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PEST ANALYSIS

• Sociocultural Factors.
• 4. How much time do consumers have for leisure?
  E.g. The long and split working days in Spain
  gives us so few leisure time.
• 5. 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.
• 6. 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
  relaxationfreedom to choose a pastime or
  enjoyable activity
• Issue matter, factor some situation or event
  that is thought about

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PEST ANALYSIS

• Technological Factors.
• Technology is vital for competitive advantage,
  and is a major driver of globalization. Consider
  the following points
• 1. Does technology allow for products and
  services to be made more cheaply and to a better
  standard of quality?
• 2. Do the technologies offer consumers and
  businesses more innovative products and services
  such as Internet banking, new generation mobile
  telephones, etc?
• 3. 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