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Session On PEST Analysis
Session On PEST Analysis
• Political Factors
• Economic Factors
• Socio Cultural Factors
• Technological Factors
Political 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
– Government’s position on Marketing Ethics
– Government’s policy on the economy
– Government’s view on culture under religion
Political Factors - Contd.
– 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
• Like Marketing / Advertising of Cigarettes,
Tobacco, Alcohol etc.
Political Factors - Contd..
• Control on Pricing
– like sugar, drugs etc.
• Government Policies on the Economy
– Role of Public Sector
– Role of Private Sector
– Role of Joint Sector
Economic Factors
• Business Cycles
• Monsoon
• Energy Availability
• Cost of Energy
Socio-Cultural Factors
• Demographics
• Distribution of Income
• Social Mobility
• Life Style Changes
• Consumerism
• Educational Levels
Socio-Cultural Factors - Contd.
• Advantage of Technology
– In terms of Economies of Scale
• New Discoveries & Innovations
• Speed & Cost of Technology Transfer
• Rate of Obsolescence
Other Factors
• Judicial System
• Insurance System
• Banking System
• Regulatory System
• Infra Structure
– Communication
– Transportation
Role of PEST