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PEST Analysis: a Mandatory Component of Strategic Planning and Marketing!

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PEST Analysis
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Leigh Cowan
CEO, Australia

PEST Analysis: a Mandatory Component of Strategic Planning and Marketing!

🔥 PEST, PESTLE, PESTLEED, or other derivations, are all broadly described as "Uncontrollable Factors" when planning your Marketing - marketing being the management of exchange (rather than just Marketing Communications or "Promotion").
The issue is that you can't really analyse or plan without considering these factors; which makes the PEST/PESTLE/PESTLEED the 8th "P" of Marketing (in concert with the other 7 P's being Product, Price, Place, Promotion, People, Processes and Perception).
 

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3
Norman Dragt
Netherlands
 

Is it an 8th or a Matrix

I think it is even more complex than just adding PEST to your marketing mix.
What it boils down to is that you can do a PEST analysis of every of the 7 P's. Because for every P you can find political policies and whishes, economical influences, social expectations and norms and technological influences and developments that are of crucial importance to that P.
So it is not as much as adding PEST it becomes a completely new marketing analysis tool that might even make it more difficult to focus your marketing, as the amount of information that must be analyzed and integrated just grew beyond what most humans can oversee and comprehend in a useful way.
So it might be wiser to just limit PEST to Social and Technology, as those two are the most influential and can differ from market to market. And even within a market like the US or Europe, where there are highly technological submarkets next to underdeveloped markets that still rely on mouth to mouth for marketing. And limit Politics only to products that might get political attention, like TikTok getting into trouble because their product seems to be seen as an instrument to spy on western countries. Or a bank that uses P and E to address its marketing position in a market that has lost its trust in banks.

 
3
john 18
Consultant, Singapore
 

7Ps of the Marketing Mix

PEST, PESTLE, STEEPLE... are acronyms of the environment, mainly external. In marketing, the mix is ... Sign up

 
4
Jean Lostaunau
Consultant, Peru
 

PEST+ for Project Feasibility Study

I find the PEST methodology (and all of the variants) more useful in the early stages of a project d... Sign up

 
4
Jaap de Jonge
Editor, Netherlands
 

PEST versus 7P

You are right Leigh that neither strategy formation nor marketing are possible without some form of ... Sign up

 
0
Molokanova
Professor, Ukraine
 

PEST is Mandatory Component of Strategic Planning

I think that using a particular tool depends on the task we are solving. So in an environmental proj... Sign up

 
0
Leigh Cowan
CEO, Australia
 

In Defense of PESTLEED as the 8th P of Marketing

All valid and noble contributions - inspiring dialogue! But... What is "marketing"... Isn't marketi... Sign up

 
2
Anonymous
 

PEST AND 7Ps

Let's use PEST for strategic planning purposes and SWOT analysis. Marketing should concentrate on ma... Sign up

 
1
Norton Carbajal
Manager, Peru
 

PEST Analysis Within Organizations

A PEST analysis (and its extensions) must always be present beyond strategic planning, it must consi... Sign up

 
0
Michael Nwosu
Entrepreneur, United Kingdom
 

PEST as the 8th P's Will be PESTering

@Norman Dragt: Very correct, because each of the 7P's of Marketing is affected by the PESTEL, which ... Sign up

 
4
Maurice Hogarth
Consultant, United Kingdom
 

PEST as Context for Rather than Just Another P

I was introduced to PEST as an acronym for the external environmental turbulences impacting upon an ... Sign up

 
0
Norton Carbajal
Manager, Peru
 

PEST Analysis Within Organizations

@Maurice Hogarth: Definitely, a PEST analysis goes beyond marketing, I totally share your opinion. G... Sign up

 
0
Woon Chet Choon
Business Consultant, Singapore
 

From a MECE POV

@Leigh Cowan: Thanks for sharing Leigh. SWOT works because of the MECE nature of Strength and Weakn... Sign up

 
0
Naresh Singh
Innovation Consultant, India
 

PESTEL Analysis an Outstanding Methodology?

Agreed with Mr. Cowan from Australia. As such Why is PESTEL Analysis an Outstanding Methodology? Ma... Sign up

 
2
Vijay Salunke
Manager, India
 

Need to Broaden the PESTEL Model for Marketing Strategy

In Marketing Strategy PESTEL Analysis along with Competition Factor and Positioning Factor also play... Sign up

 
0
Naresh Singh
Innovation Consultant, India
 

Need to Broaden the PESTEL Model for Marketing Strategy

@Vijay Salunke: Competition and Positioning Factors are concerned with the competition within the in... Sign up

 
1
Jaap de Jonge
Editor, Netherlands
 

PEST and Marketing Mix are Complementary

My conclusion from this discussion so far is that no doubt PEST analysis is an important tool for st... Sign up

 
2
Maurice Hogarth
Consultant, United Kingdom
 

PEST Plus and Within

Just knowing the PEST factors seemed insufficient so I always thought that it needed adding to. Cons... Sign up

 
1
Leigh Cowan
CEO, Australia
 

Don't we Need Mutual Homogenous Thought to Ratify and Improve our Profession?

My dearest colleagues... These are all valuable perspectives. However... IF we accept that the defi... Sign up

 

More on PEST Analysis:
Summary
Discussion Topics
topic PEST Analysis for a Country
topic External Environment of a Service Company
topic PEST Analysis is Complementary to SWOT Analysis
👀PEST Analysis: a Mandatory Component of Strategic Planning and Marketing!
topic Market and System Risk in PEST Analysis
topic Extension of PESTEL + C (=Competitors) Analysis
topic Advanced form of PEST: PESTELEM Analysis
topic Actions in Unfavorable External Environment?
topic Direct and Indirect External Environment of the Firm
topic How to Conduct a PEST Analysis? Main Steps and Tips
topic The SPELIT Power Matrix
topic Improved PESTLE Analysis: SATERPLIDE Analysis
topic PEST Analysis on Retail
topic Other Marketing Environment Tools
topic History of PEST - Origins and Author
topic Interaction Between an Organization and Its Energy Environment?
topic Environmental Factors in PESTLE
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More on PEST Analysis:
Summary
Discussion Topics
topic PEST Analysis for a Country
topic External Environment of a Service Company
topic PEST Analysis is Complementary to SWOT Analysis
👀PEST Analysis: a Mandatory Component of Strategic Planning and Marketing!
topic Market and System Risk in PEST Analysis
topic Extension of PESTEL + C (=Competitors) Analysis
topic Advanced form of PEST: PESTELEM Analysis
topic Actions in Unfavorable External Environment?
topic Direct and Indirect External Environment of the Firm
topic How to Conduct a PEST Analysis? Main Steps and Tips
topic The SPELIT Power Matrix
topic Improved PESTLE Analysis: SATERPLIDE Analysis
topic PEST Analysis on Retail
topic Other Marketing Environment Tools
topic History of PEST - Origins and Author
topic Interaction Between an Organization and Its Energy Environment?
topic Environmental Factors in PESTLE
Special Interest Group

SIG Leader

Do you know a lot about PEST Analysis? Become our SIG Leader

Knowledge Center

PEST Analysis
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