PEST ANALYSIS

Ø  IBPS SO MAINS MARKETING LECTURE 6
ENVIRONMENT ANALYSIS
PEST ANALYSIS

·         MARKETING MANAGEMENT

·         PRINCIPLE OF MARKETING

Ø  ENVIRONMENT ANALYSIS

·         PHILIP KOTLER,” A COMPANY’S MARKETING ENVIRONMENT CONSISTS OF THE ACTORS AND FORCES OUTSIDE MARKETING THAT AFFECT MANAGEMENT’S ABILITY TO BUILD AND MAINTAIN SUCCESSFUL RELATIONSHIP WITH TARGET CUSTOMERS.

·         ENVIRONMENT SCANNING INCLUDES GATHERING,FILTERING AND ANALYZING INFORMATION RELATED TO THE MARKETING ENVIRONMENT. ALSO INCLUDE MONITORING THE CHANGES THE CHANGES TAKING PLACE AND FORECASTING THE FUTURE TRENDS.

·         THE MARKETING ENVIRONMENT PROVIDES BOTH OPPORTUNITIES AND THREATS.

·         COMPONENTS OF  EXTERNAL ENVIRONMENT

·         PEST ANALYSIS

·         P-----POLITICAL FACTORS

·         E-----ECONOMIC FACTORS

·         S-----SOCIO CULTURAL FACTORS

·         T-----TECHNOLOGICAL FACTORS

·         POLITICAL FACTORS

1. IDEOLOGY OF THE RULING PARTY
2. STABILITY OF THE GOVERNMENT
3. PHILOSOPHY AND VALUES SYSTEM OF THE GOVERNMENT
4. INDUSTRIAL POLICIES
5. TAXATION POLICIES
6. PRIORITIES IN SOCIAL SECTOR
7. REGULATIONS TOWARDS GLOBAL BUSINESS

·         ECONOMIC FACTORS

1. STATE OF THE ECONOMY IN THE SHORT RUN AND LONG RUN
2. TRENDS IN GROSS NATIONAL PRODUCT
3. ECONOMIC POLICY
4. INFLATION RATE
5. UNEMPLOYMENT
6. DISPOSABLE INCOME
7. BUSINESS CYCLE

·         THESE ECONOMIC FACTORS INDICATES THE NATURE AND DIRECTION OF THE ECONOMY IN WHICH A MARKETER OPERATE

·         SOCIO CULTURAL FACTORS

·         DEMOGRAPHICS CHARACTERISTICS

a)    POPULATION

b)    AGE

c)    DISTRIBUTION

d)    RURAL URBAN MOBILITY

e)    INCOME DISTRIBUTION

·         CULTURAL FACTORS:-

1. SOCIAL ATTITUDES
2. VALUES ,BELIEFS CUSTOMS,RITUALS

3.     TECHNOLOGICAL FACTORS

4. VERY SIGNIFICANT FOR COMPETITIVE ADVANTAGES
5. PROVIDE OPPORTUNITIES OR THREATS
6. TECHNOLOGY INNOVATION CAN INFLUENCE MARKETING OF PRODUCTS/SERVICES
7. CAN ALSO REDUCE OR ELIMINATE COST BARRIERS BETWEEN BUSINESS
8. IMPACT OF INFORMATION TECHNOLOGY IS VERY SIGNIFICANT AND IT HELPED THE ORGANIZATION TO REDUCE THEIR COST.

·         ENVIRONMENTAL FACTORS

1. GREEN MARKETING IS GAINING POPULARITY
2. ENVIRONMENT CONSERVATION AND PROTECTION HAVE BECOME VERY IMPORTANT

·         IMPLICATIONS OF PEST ANALYSIS

1.     IDENTIFY THE SPECIFIC FACTORS WHICH MAY INFLUENCE THE INDUSTRY IN WHICH THEY OPERATE AND FORCE THEM TOWARDS FOR COMPETITIVE ADJUSTMENTS

2.     THEY ARE THE STRUCTURAL DRIVERS OF CHANGE AND THESE KEY DRIVERS ARE ANALYZED BY PEST ANALYSIS

3.     LIKE INCREASING GLOBALIZATION AND IT ENABLED AREA THE EXAMPLE

4.     THE ANALYSIS WILL ENABLE THE MARKETER TO PROACTIVELY STRATEGIES FOR FUTURE

5.     EXAMPLES