Pest 2


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Pest 2

  1. 1. Session on PEST Analysis
  2. 2. What is PEST Analysis? <ul><li>This analysis is essential for an organization before beginning its marketing process </li></ul><ul><li>Consists of internal environment and external environment </li></ul>
  3. 3. Break up of PEST <ul><li>P olitical Factors </li></ul><ul><li>E conomic Factors </li></ul><ul><li>S ocio Cultural Factors </li></ul><ul><li>T echnological Factors </li></ul>
  4. 4. Political Factors <ul><li>This is the most important influence on the regulation of any business. </li></ul><ul><ul><li>How stable is the political environment? </li></ul></ul><ul><ul><li>Influence the Government Policy / Law on your business </li></ul></ul><ul><ul><li>Government’s position on Marketing Ethics </li></ul></ul><ul><ul><li>Government’s policy on the economy </li></ul></ul><ul><ul><li>Government’s view on culture under religion </li></ul></ul>
  5. 5. Political Factors - Contd. <ul><ul><li>Political System is responsible for Law Making. </li></ul></ul><ul><ul><li>Immediate laws which affect any business in general are Central Excise, Sales Tax/ VAT, Corporate Income Tax, Personal Income Tax & Service Tax </li></ul></ul><ul><ul><li>Environmental Protection Law </li></ul></ul><ul><ul><li>Controls if any on Marketing Strategies </li></ul></ul><ul><ul><ul><li>Like Marketing / Advertising of Cigarettes, Tobacco, Alcohol etc. </li></ul></ul></ul>
  6. 6. Political Factors - Contd.. <ul><li>Control on Pricing </li></ul><ul><ul><li>like sugar, drugs etc. </li></ul></ul><ul><li>Government Policies on the Economy </li></ul><ul><ul><li>Role of Public Sector </li></ul></ul><ul><ul><li>Role of Private Sector </li></ul></ul><ul><ul><li>Role of Joint Sector </li></ul></ul>
  7. 7. Economic Factors <ul><li>Government outlook towards </li></ul><ul><ul><li>Bank Financing </li></ul></ul><ul><ul><li>Interest Rates </li></ul></ul><ul><ul><li>Exchange Rate Mechanism </li></ul></ul><ul><ul><li>Incentives for Exports </li></ul></ul><ul><ul><li>Restrictions for Imports </li></ul></ul><ul><ul><li>Inflation </li></ul></ul><ul><ul><li>Labour Policies </li></ul></ul>
  8. 8. Economic Factors - Contd. <ul><li>Level of Government Spending </li></ul><ul><li>Avenues for Capital Creation </li></ul><ul><ul><li>Size of the Capital Market </li></ul></ul><ul><ul><li>Role of the Regulator </li></ul></ul><ul><ul><li>Type of the Instruments </li></ul></ul><ul><ul><li>Nature of the Investors </li></ul></ul>
  9. 9. Economic Factors - Contd. <ul><li>Business Cycles </li></ul><ul><li>Monsoon </li></ul><ul><li>Energy Availability </li></ul><ul><li>Cost of Energy </li></ul>
  10. 10. Socio-Cultural Factors <ul><li>Demographics </li></ul><ul><li>Distribution of Income </li></ul><ul><li>Social Mobility </li></ul><ul><li>Life Style Changes </li></ul><ul><li>Consumerism </li></ul><ul><li>Educational Levels </li></ul>
  11. 11. Socio-Cultural Factors - Contd. <ul><li>Demographics & Distribution of Income </li></ul><ul><ul><li>Division of population - Male / Female </li></ul></ul><ul><ul><li>Age Group of the Population </li></ul></ul><ul><ul><li>Disposable Family Income </li></ul></ul><ul><ul><ul><li>Disposable Income in the hands of the different Age Groups </li></ul></ul></ul><ul><ul><ul><li>Education Level of the Age Groups </li></ul></ul></ul>
  12. 12. Social Cultural Factors - Contd. <ul><li>Life Style Changes & Consumerism </li></ul><ul><ul><li>Attitude to living </li></ul></ul><ul><ul><ul><li>Different Age Groups </li></ul></ul></ul><ul><ul><ul><li>In tune with available disposable income </li></ul></ul></ul><ul><ul><ul><li>Thrust on taking care of present needs by spending than saving for the future. </li></ul></ul></ul><ul><ul><ul><li>Joint living and nuclear families </li></ul></ul></ul><ul><ul><ul><li>Availability of various media tools </li></ul></ul></ul><ul><ul><ul><li>Reach of the media to the population </li></ul></ul></ul>
  13. 13. <ul><li>Advantage of Technology </li></ul><ul><ul><li>In terms of Economies of Scale </li></ul></ul><ul><li>New Discoveries & Innovations </li></ul><ul><li>Speed & Cost of Technology Transfer </li></ul><ul><li>Rate of Obsolescence </li></ul>Technological Factors
  14. 14. Other Factors <ul><li>Judicial System </li></ul><ul><li>Insurance System </li></ul><ul><li>Banking System </li></ul><ul><li>Regulatory System </li></ul><ul><li>Infra Structure </li></ul><ul><ul><li>Communication </li></ul></ul><ul><ul><li>Transportation </li></ul></ul>
  15. 15. Role of PEST <ul><li>Helps Assess the market including Competitors from the stand point of a Particular Business. </li></ul><ul><li>PEST is relevant for any type of Business large, small & medium. </li></ul>
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