Why do we need macro environmental factors analysis PESTEL?
Before you think about “why do we need macro environmental factors analysis (PESTEL)”, you need to understand “what are the macro environmental factors in marketing planning”.
Marketers; marketing managers, product managers, brand managers, and different levels of marketing jobs are doing macro environmental analysis or external environmental analysis as 1st step to write their marketing plan, because there are external environmental factors should be considered, and those factors are going to affect their business in marketplaces.
I will tell you example about why we need macro environmental analysis:
You are the brand manager of stars cinema, which is presenting American movies for their target audience. And then your managers to decide to open their new branch in country called “X”. and when you conduct the analysis of macro environmental factors on that country, you found that the inflation rate in high in that country (let’s say inflation rate was 12 or 13) then you should expect that your consumer behavior is getting affecting by price sensitivity which will affect your pricing strategies, therefore you can expect that Cost leadership marketing strategy will be more profitable with those target segment rather than differentiation marketing strategy; because the disposable income of those target segment isn’t high as other countries which their inflation rates are much less than “X” country.
The following are tips to highlight about why we need macro environmental analysis:
- Helping in decision making process and planning generally.
- It’s a tool to assess the Basis for change and evolution within the company.
- To anticipate the opportunities.
- To identify and predict the trends and coming opportunities in the international markets.
- To reconsider the physical and financial resources.
- To foresee and consider any Political, Economical, Regulatory changes and make the implementation successfully.
- In forecasting the potential supply and demand from the market and supply chain.
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