The Importance of a PESTEL Analysis

First and foremost let define what is a PESTEL analysis and then why a business need to conduct one.

A PESTEL analysis is a framework or tool used by marketers to analyse and monitor the macro-environmental (external marketing environment) factors that have an impact on an organisation. The result of this is used to identify threats and weaknesses which is used in a SWOT analysis.

Pestel stands for Political, Economic, Social, Technology, Environmental and Legal. We are going to look a bit more into each criterion and why it's important to conduct a PESTEL analysis prior to conducting a SWOT analysis for your business.

It is very useful to conduct A PESTEL analysis prior to starting up your own business or if you have an existing business, as it would give you a strong indication of the impact the criterion has on your business depending on the industry you decide that you want to start up a business or currently operating if you would require any legal or political standard that you will need to abide by and other important factors which can affect your startup or your business hampering your customers' acquisition C=NC2.

Let's delve into each criterion:

Political Factors: These are all about how and to what degree a government intervenes in the economy. This can include – government policy, political stability or instability in overseas markets, foreign trade policy, tax policy, labour law, environmental law, trade restrictions and so on.

Political factors often have an impact on a business and how they do business. Businesses need to be able to respond to the current and anticipated future legislation and adjust their marketing policy accordingly. (example of this Brexit, COVID-19, Cost-of-living, The war - Russia vs Ukraine) are all economic factors that affect the UK.

The cost of living currently affects millions of small businesses in the UK and our business Girlfridayz Limited adapts to the latest government crisis because the cost of living is just the residue of COVID-19 bringing with it a declining economy amid economic factors.

Lots of staff striking for better pay to make ends meet to feed their family because of price hiking. I stand here knowing that my story is no different than the millions of small businesses affected by the crisis. My story is no different than yours but I share abundant faith in the possibility of your business growth using Girlfridayz services because of the credit line facilities available to the millions of small businesses.

Economic Factors: Economic factors have a significant impact on how an organisation does business and also how profitable they are. Factors include – economic growth, interest rates, exchange rates, inflation, disposable income of consumers and businesses and so on.

These factors can be further broken down into macroeconomic and microeconomic factors. Macro-economical factors deal with the management of demand in any given economy. We heard the interest rate is at its highest.

Governments use interest rate control, taxation policy and government expenditure as their main mechanisms and they used these Micro-economic factors that are all about the way people spend their incomes. This has a large impact on B2C/B2B organisations in particular the millions of small businesses helping the UK economy to thrive and bring back the boom time.

Girlfridayz in the face of difficulty and uncertainty knows that my story is part of your story—I stand here as part of a larger UK small businesses story and believe that this crisis will not stop you or us because we find common ground and solidarity in the face of difficulty and uncertainty.

It is just circumstance and belief that the odds are on our side, the hope of a woman who dares to define the odds and knows that UK small businesses with theories and hypothesis knows that UK Businesses can use the Core Assets + The Cellar and MBA students The Core Assets of Marketing With its dual implementation support system --The Cellar because they will find that their stories are part of our stories and that there is no Black, White, Asian...businesses but businesses with unique problems to solve hoping to sail through the Cost of Living Crisis unscaled because they are using the credit line facilities available to the millions of small businesses in the UK that meets the criteria...

Social Factors: Also known as Socio-Cultural factors are the areas that involve the shared belief and attitudes of the population. These factors include – population growth, age distribution, health consciousness, career attitudes and so on. And you also include the Social Media movement and belief, plus social technology advancement and innovation.

Girlfridayz knows that her adversities do not define who she is—suffering from dyslexia since childhood and teachers did not understand her plight, how her mind works, haters liking to slice and dice people due to ignorance.

Girlfridayz has a gift and unique abilities with people, an approach that draws people towards her, never gave up and took care of her destiny with a shared belief that we are all connected as people and care about people even if it is not my child and created and developed Girlfridayz15 for the millions of small businesses facing difficulty and uncertainty because of the Cost of Living Crisis contributing to the advancement of the marketing industry.

These factors are of particular interest as they have a direct effect on how marketers understand customers and what drives them. The formula is pretty simple C=NC2, you just have to be approachable, knowledgeable, skilful, understanding, friendly, and empathetic to the customer's problem and shift your focus from driving transactions to maximizing customers' lifetime value.

That means products, services and brands must be subservient to customer relationships. That simply means cultivating customers by providing solutions to problems identified rather than pushing products or services to satisfy performance metrics and bringing under the marketing umbrella all customer-focused in the same pot.

Small businesses need to understand that all customers are not the same even if they end up purchasing the same products or services as their neighbours because the decision to buy was not the same and it is this nuance and difference that a good marketer should grasp and master to achieve massive sales for years to come. The non-obvious ideas that work is a good place to start learning with its collection of ideas and best practices for aspiring and experienced leaders alike.

Technological Factors: We all know that we entered the digital age and how fast technology changes the face of business and how this impacts the way we market our products or services. With the boom of Social Media platforms, app development, and mobile phone used for business deals these days it is a commodity and a way of conducting business nowadays.

Technological factors affect marketing and the management thereof in three distinct ways:

1. New ways of producing goods and services

2. New ways of distributing goods and services

3. New ways of communicating with target markets

Emerging technology in its infantry, like ChatGPT trying to pierce the market with AI (Artificial Intelligence) but the program is inaccurate and needs to be regulated fast as strongly recommended by Elon Musk that thinks it has gone out of hand.

The blatant infringement on the intellectual property of other notable people famous for their mark left in this society and dutiful hard work for years to come has been taken without proper consent and used in ChatGPT.

This new technology will advance slowly as society is not prepared to move into the robotic age and still favour the hard work which requires our neuron processes to bring out the information we need to do whatever we set out to do and learn at our pace without unnecessary stressors or external pressure outside our control.

Another new business emerging is online bank establishments like Chase, Monzo, and Pockit. We also see large businesses offering credit and new businesses like Very Pay that's offering payment in 3 plus pay nothing for 20 days to ease customers suffering and keep the demands and economy growing.

Girlfridayz Limited jump on the new trends and offers a credit line facility available to millions of UK small businesses up to £3000 if they meet the criteria of Girlfridayz Credit with a low APR keeping with the demands of her services and her customers love it since its emergence many small businesses have used this new facility of payments and enjoy the defers payment offer —nothing to pay until next month— 30 days after the date of purchase then pay in 3 or 6 payments maximum.

Bitcoin, Ethereum...digital currency gaining traction over the years but people are not used to trading in digital currency or refuse to, however, the growth rate is a slow grind because people still prefer hard cash and debit/credit cards seen as more tangible and reliable currencies to trading due to their longevity of use and settlement for a long time and it is also make up the identity and strong foothold of a country and hold the same value as their flags.

Environmental Factors: These factors have only really come to the forefront in the last fifteen years or so. They have become important due to the increasing scarcity of raw materials, pollution targets, doing business as an ethical and sustainable company, and carbon footprint targets set by governments (this is a good example where one factor could be classed as political and environmental at the same time).

These are just some of the issues marketers are facing within this factor. More and more consumers are demanding that the products they buy are sourced ethically, and if possible from a sustainable source.

Legal Factors: Legal factors include - health and safety, equal opportunities, advertising standards, consumer rights and laws, product labelling and product safety.

It is clear that companies need to know what is and what is not legal in order to trade successfully. If an organisation trades globally this becomes a very tricky area to get right as each country has its own set of rules and regulations. So it is best to conduct market research so to speak doing your homework to ensure that you are not breaking any laws prior to starting your own business or conducting your business.

The latter is the explanation of each criterion, hence you can clearly see that a PESTEL analysis is a very useful tool to determine the steps you have to take to conduct business in your chosen industry to remain legal and ensure that your company can be sustainable in the current economic climate, the technology involves for your business sustainability or product developments, consumers and government influences, plus environmental-climate can make or break your business.

For example, during COVID-19 we heard of small businesses closure and large businesses on the brink of closure on government bailed out getting furloughed to help the economy and demand flow.

It is important to look at all these factors which can either affect or benefit your business, once you conduct a thorough in-depth PESTEL analysis you can then proceed to conduct a SWOT analysis as it is important to incorporate a SWOT analysis within your PESTEL and if you are a conscientious business and care about the processes of your business the importance of PEST analysis in strategic management and in marketing strategy become relevant to your overall growth strategy.

A Pestel including its SWOT analysis should be part of your business plan and also a base for your content strategy.

Also using Maslow’s hierarchy in your Marketing is very good. Maslow is the creator of the Maslow hierarchy a specialist in human psychology needs and desires. The hierarchy was first developed in 1943 when Abraham Maslow in paper proposed A Theory of Human Motivation to help explain the connection between basic human needs and human desires.

He remains uncontested throughout the years because his theory verify true and truly represents human needs and human desires stating the obvious until Girlfridayz developed on 28/11/22 Girlfridayz's Behavioural psychological model of consumers' wants and needs based on Maslow's self-actualisation top-of-pyramid criterion which an explanation on how Trisha derived to the development of her behavioural psychological theory model of consumers' wants and needs can be found in The non-obvious ideas that work.

Maslow's pyramid contains 5 criteria which are described below:

If marketers know the wants and needs of their target market (which every good marketer should!) then this can be used as a selling point to influence sales.

A great deal of research is undertaken to segment, target and position (STP) customers by various criteria such as demographics, social class, geography and so on. From this marketers will have a very specific idea about who their target consumers are and tailor their marketing strategy accordingly.

For example, a sweet manufacturer targeting young families is more likely to focus on young people and children in their advertising campaigns and also on the cost of making their sweet healthy for consumption and abiding by legal and governmental regulations.

It is important to note that your target market’s level or needs and desires may not stay the same, especially in times of political and economic change. Therefore remember to keep your marketing strategy up-to-date and relevant.

Conclusion

A PESTEL analysis is a very important tool and it helps you to determine the steps you should take in starting up or conducting your business and the bases for your SWOT analysis.

Also using Maslow's pyramid in your marketing enable you to treat your customers correctly and access the right target market for your product or services by segmenting your market accordingly and your promotional adverts targeted to the right group of consumers for your products or services as well as using Girlfridayz 15 theories in customers acquisition can help you target and relate to your audience for your products or services.

C=NC2 is the theory of customer acquisition relative equivalent in Marketing developed by Trisha CEO of Girlfridayz 4/02/2023 and the simplified working out of this quadratic equation can be found in The Cellar attached to The Core Assets + The Cellar: A Winners Combination.

It also helps you to provide what your customers need and wants; leaning towards being a business solution orientated for their customers.

If you like this blog post and found it useful by all means share it with your peers who might be interested in reading it. The Importance of a PEST Analysis in Strategy Management and The Importance of Customers Acquisition

Girlfridayz is your marketing expert contact us for all your marketing need either be Website Design, Lead nurturing, Social Media Optimisation and more ... we are here to help. To our customers and prospect the millions of UK small businesses struggling due to the Cost of Living.

visit our site girlfridayz.com we support you with all aspects of your business and create content that grabs attention and generates sales — Businesses use us because of the flexible options found throughout our website. Many of our clients enjoy favourable rates — Join us today to start up your own Girlfridayz Business, the franchise only costs £20,000 initial fee.

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