PESTLE Analysis - Marketing Plan
PESTLE analysis is a useful tool for understanding the industry situation as a whole, and is often used in conjunction with a SWOT analysis to assess the situation of an individual business.
PESTLE stands for “Political, Economic, Sociological, Technological, Legal and Environmental” factors. The questions to ask yourself are:
- What are the key political factors likely to affect the industry?
- What are the important economic factors?
- What cultural aspects are most important?
- What technological innovations are likely to occur?
- What current and impending legislation may affect the industry?
- What are the environmental considerations?
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Factor
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Often Comprised Of
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Political
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- Current taxation policy
- Future taxation policy - The current and future political support - Grants, funding and initiatives - Trade bodies - Effect of wars or worsening relations with particular countries |
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Economic
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- Overall economic situation
- Strength of consumer spending - Current and future levels of government spending - Ease of access to loans - Current and future level of interest rates, inflation and unemployment - Specific taxation policies and trends - Exchange rates |
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Sociological
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- Demographics
- Lifestyle patterns and changes - Attitudes towards issues such as education, corporate responsibility and the environment - Social mobility - Media views and perceptions - Ethnic and religious differences |
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Technological
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- Relevant current and future technology innovations
- The level of research funding - The ways in which consumers make purchases - Intellectual property rights and copyright infringements - Global communication technological advances |
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Legal
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- Legislation in areas such as employment, competition and health & safety
- Future legislation changes - Changes in European law - Trading policies - Regulatory bodies |
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Environmental
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- The level of pollution created by the product or service
- Recycling considerations - Attitudes to the environment from the government, media and consumers - Current and future environmental legislative changes |