PESTEL Analysis

Microenvironment and Macroenvironment

professionalacademy.com
 What is PESTEL ANALYSIS

•A PESTEL analysis is a framework or tool

used by marketers to analyze and monitor
the macro-environmental (external
marketing environment) factors that have an
impact on an organization.
 Political Factors

• These are all about on how & to what

degree a government intervenes in the
economy. This can include – government
policy, political stability or instability in
overseas markets, foreign trade policy,
tax policy, labour law, environmental law,
trade restrictions and so on.
 Economic Factors

1. Economic growth
2. Interest rates
3. exchange rate
4. Inflation.
 Social Factors

• Also known as socio-cultural

factors
• population growth
• age distribution
• health consciousnes
• career attitudes
 Technological Factors
• Technological factors affect
marketing and the management
• New ways of producing goods
and services
• New ways of distributing goods
and services
• New ways of communicating
with target markets
 Environmental Factors

• scarcity of raw materials

• polution targets
• doing business as an ethical and sustainable company
 Legal Factors
• Legal factors include -
• health and safety
• equal opportunities
• advertising standards
• consumer rights and laws
• product labelling and product
safety.
VISUAL OVERVIEW
 MICROENVIRONMENT

• The micro environment in marketing includes all

those micro factors that affect business
strategy, decision making and performance.
Microenvironment includes:
 The Company
•The firm itself is
an aggregate of
a number of
elements like
owners like
shareholders or
investors.
 Suppliers

•Actions of a supplier can influence the

business strategy, For instance, if
their services will not reasonable and
timely , it will affect the production
time and the sales due to delayed
process of production.
 Marketing intermediaries

•May include wholesalers,

distributors, and retailers that
make a link between the firm
and the customers.
 Customers

• The customers are the central part of any business

as they tend to attract and retain most of the
customers to generate revenue. Therefore,
organizations must adopt a marketing strategy
that attracts the potential customers .
 Competitors

• The competitors of an organization can have a

direct impact on business strategies. The
organization must know how to do a competitive
analysis of competitors .
 PUBLICS
Media and Social Media (Shareholders)

• The way media acts can make or break an

organization. Organization should manage to keep a
good relationship with media as whatever it shows
will directly influence the organization business. If
media will show positive aspect, this will increase the
business of organization and vice-versa.
 MACROENVIRONMENT

• A macro environment is the condition that exists in the

economy as a whole, rather than in a particular sector or
region. In general, the macro environment includes
trends in gross domestic product (GDP), inflation,
employment, spending, and monetary and fiscal policy.
Reflection
 ANSWER THE FOLLOWING :

1. S -
2.W -
3.O -
4.T -
1. P -
2. E - P E S T E L FACTORS
3. S -
4. T -
5. E -
6. L -
• 1' 7 P”S
• 2.
• 3.
• 4.
• 5.
• 6.
• 7.
 4 M”S
1.
2.
3.
4.