When creating strategic marketing plans for our larger clients, we often include a PESTEL analysis to complement a SWOT analysis. Our PESTEL analysis audits the external macro-environmental factors that affect a company’s marketing plan.
It’s an acronym (Political, Economic, Social, Technological, Environmental, Legal) for the factors beyond our control. It helps identify latent or future opportunities and threats that can be applied to SWOT.
What PESTEL factors may affect your supply and demand?
-Political climate
-Tax policy
-Labor laws
-Environmental laws
-Trade restrictions
-Tariffs
-GDP/economic growth
-Exchange rates
-Inflation rate
-Interest rates
-Employment rate
If inflation rises, will profits be squeezed?
If interest rates rise, will the economy slow?
-Cultural norms
-Health consciousness
-Population growth rate
-Age distribution
-Career attitudes
-Emphasis on safety
-Emerging & potential enablers/threats to your product
-Climate
-Pollution
-Natural resources
-Consumer
-Antitrust
-Employment
-Health & safety
This analysis helps create and adjust marketing strategy, objectives, investment plans, and resource preparation. Additionally, a PESTEL analysis gives your business or organization a strong basis for ethics and accountability. By understanding all of these different factors, you are able to develop a business plan that more closely aligns with the macro-environment. The world is a very dynamic place with a lot of these things changing every single day and you want to make sure you are prepared and able to execute correctly.
Obviously, every industry is different so no two analyses will be exactly the same. However, the principle remains the same: those who are aware of their external environment are more likely to adapt strategically and reap the benefits of these changes. By using a thorough PESTEL analysis, we are able to form a smart marketing strategy that will complement the SWOT analysis as well, and put you in a position to succeed.
For even more information, check out this article about the reason to do a PESTEL analysis. Click here
David Murphy is a writer who specializes in search engine optimization, website design, and information technology. With over 10 years of experience working in the tech industry, he provides practical tips and advice to help small businesses and entrepreneurs improve their online presence. David has authored numerous articles and eBooks on topics like increasing website traffic, speeding up load times, and integrating analytics. His passion lies in making complex technical subjects easy for the average reader to understand. When he's not writing or researching the latest in SEO and web development, David enjoys hiking, camping, and exploring the great outdoors near his home..
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