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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Taxation policy, political support
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Economic
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Overall economic situation, strength of spending, level of interest rates, inflation and unemployment
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Sociological
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Demographics, attitudes towards issues such as education, corporate responsibility and the environment, social mobility, lifestyle patterns and changes
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Technological
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Relevant current and future technology innovations
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Legal
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Existing legislation and likely future changes in the law – examples include employment, competition, health & safety and European law.
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Environmental
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The level of pollution, recycling considerations, and attitudes to the environment – linked in with political and sociological factors
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