PEST Analysis in the Marketing Plan Template

Among the Business Analysis, PEST Analysis is one of the important information to be included in the Marketing Plan Template. It is the most pertinent information as an input to the Marketing Strategy. Within the Marketing Plan Template, the Business Analysis include the following analysis:-

1)   PEST Analysis

The most sensitive factors to a business environment is the influential element of the market and customer base. Most of them are related to the stability of the country where the consumers are located. Then the viability of a business in that country depends on the current and potential profitability of a business in the country which has a direct impact by the investment policies as well as the employment workforce.

All these business elements can be captured by a template outline in a PEST Analysis. The components in a PEST Analysis are as follows:-

Political – Economic – Social – Technological

PEST Analysis is a wonderful analytical tool to assess the external situation in the four elements mentioned. A brief explanation of the four elements are described below:-

Political

The political situation in a country is an important factor to the business communities as it determine the its future growth potential. A political situation either attracts or drive away investment both foreign and local as investor view the country stability directly relate to the business opportunities.

Economic

The economic situation of a country determine the buying power of the populations hence the consumers. The higher the buying power, the bigger is the business potential. After all, if the consumers do not want to or cannot effort to spend, then there is less demand in goods which resulted in over supply that leads to price competition. A prolong price pressure will drive business away or hold on to any expansion plan of the existing business. If this economic situation arisen, there is lesser incentive for a business community to expand their business.

Social

Most business sectors depend on workforce in the country to conduct their business. Besides cheaper labor, workers job preference due to improved in the economy changes the availability of cheap labor in certain business sector. For example: when a country drives towards industrialization, labor force will migrate to these new business sectors leave behind a shortage in labor market for certain business sector such as agricultural sector. In another aspect, the existing industrialized sector faced with competition to hire or retain existing workforce as these groups of labor jump from one company to another company. this scenario happen because of pinching of staff among each others.

Technological

Consumers are smarter these days and demand higher standard of product or services. Business are faced with technology challenges of their product or services to a stage where they faced with financial burden to upgrade their business facilities to keep up with the pace of the higher quality and better features in end products. An example will be the face introduction of new model in handheld telephone. What the consumer gets is amber choice of new and better featured handheld telephone while the manufacturer faced with profit erosion due to “price war” of these product as competition is stiff.

In conclusion, having better understanding of PEST Analysis and perform a thorough data collection can help you to identify the external factors in a systematic manner. Your next task is to used these information in your Marketing Strategy process. One way is to incorporate PEST analysis into the SWOT Analysis.

2 Responses to “PEST Analysis in the Marketing Plan Template”

  1. [...] performed the PEST analysis and 5-forces of Competitions mentioned in earlier posts, the data collected from these two [...]

  2. [...] familiar with Strategic Planning Process, you should come across other evaluation tools such as the PEST Analysis which deal with the external factors in a macro environment which has a great impact to any [...]