A how fast the technological landscape changes and how

A PESTEL analysis is a framework or tool used by marketers to analyse and monitor the macro-environmental (external marketing environment) factors that have an impact on an organisation. The result of which is used to identify threats and weaknesses which is used in a SWOT analysis.PESTEL stands for:• P – PoliticalThese are all about how and 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.It is clear from the list above that political factors often have an impact on organisations and how they do business. Organisations need to be able torespond to the current and anticipated future legislation, and adjust their marketing policy accordingly.• E – EconomicEconomic factors have a significant impact on how an organisation does business and also how profitable they are. Factors include – economicgrowth, interest rates, exchange rates, inflation, disposable income of consumers and businesses and so on.These factors can be further broken down into macro-economical and micro-economical factors. Macro-economical factors deal with the managementof demand in any given economy. Governments use interest rate control, taxation policy and government expenditure as their main mechanisms they use for this.Micro-economic factors are all about the way people spend their incomes. This has a large impact on B2C organisations in particular.• S – SocialAlso known as socio-cultural factors, are the areas that involve the shared belief and attitudes of the population. These factors include – populationgrowth, age distribution, health consciousness, career attitudes and so on. These factors are of particular interest as they have a direct effect on how marketers understand customers and what drives them.• T – TechnologicalWe all know how fast the technological landscape changes and how this impacts the way we market our products. Technological factors affectmarketing and the management thereof in three distinct ways:• New ways of producing goods and services• New ways of distributing goods and services• New ways of communicating with target markets• E – EnvironmentalThese factors have only really come to the forefront in the last fifteen years or so. They have become important due to the increasing scarcity of raw materials, polution targets, doing business as an ethical and sustainable company, carbon footprint targets set by governments (this is a good example were one factor could be classes as political and environmental at the same time). These are just some of the issues marketers are facingwithin this factor. More and more consumers are demanding that the products they buy are sourced ethically, and if possible from a sustainablesource.• L – LegalThese factors have only really come to the forefront in the last fifteen years or so. They have become important due to the increasing scarcity of raw materials, polution targets, doing business as an ethical and sustainable company, carbon footprint targets set by governments (this is a good example were one factor could be classes as political and environmental at the same time). These are just some of the issues marketers are facingwithin this factor. More and more consumers are demanding that the products they buy are sourced ethically, and if possible from a sustainablesource.

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