Principles of Marketing: What is PEST LE Analysis?

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Notes from Principles of Marketing Lecture 9/12/17

Berkeley College NYC Midtown Campus

Mad Men Marketing

PEST LE

Ex. Cigarettes/Marlboros

Political: Taxes in states with major metropolitan markets. No smoking indoors by law. Legalization of marijuana.

Economic: Cost of cigarettes due to taxes. Consumers who use product most are lower income most cases. 

Societal: Stigma of being a smoker. Peer pressure to smoke or not smoke. Social smokers. Cancer risk and health risk.

Technological: E-cigs cutting into market share. Vape cigs.

Legal: N/A; Cancer Lawsuits

Environmental/Ethical: Marketing in stores near schools. Posters eye level with kids. Making cigarettes look cool.

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Principles of Marketing: PEST (LE) Analysis
is a principle of marketing through analysis. It is used as a tool by marketers to measure the environment a company is operating in or planning to expand or launch a new product within.

  • P is for Political
  • E is for Economic
  • S is for Societal
  • T is for Technological
  • L is for Legal
  • E is for Environmental/Ethics

PESTLEAnalysis.com suggests starting with certain questions when conducting this type of marketing analysis.

  • What is the political situation of the country and how can it affect the industry?
  • What are the prevalent economic factors?
  • How much importance does culture have in the market and what are it determinants?
  • What technological innovations are likely to pop up and effect the market structure?
  • Are there any current legislations that regulate the industry or can there be any change in the legislations for the industry?
  • What are the environmental concerns for the industry?

This analysis will prove vital in any niche or market. 

More  than understanding the consumers in the market, you will also understand different things that impact your ability to reach the consumer.

Things the consumer may not take into account themselves.