Question

Explain the PEST analysis and how a marketer would use this when putting together a marketing strategy.

Answer 1

PEST analysis is a strategic planning tool used by the management to identify and analyse the Political, Economic, Social and Technological factors that have effect on the project execution, performance and outcome. Therefore as a tool to prepare a risk management plan during the planning phase of the project.

A marketer could use PEST analysis to understand the market and consumers in terms of Political, Economic, Social and Technological factors for the organization. It would help forecast the future state of market i.e. it's blooming or declining or steady and help direct the processes and efforts in the direction of organizational growth. Also, potential risks can be determined and corrective action can be taken to ensure safety of the organization.