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Leigh Cowan
CEO, Australia
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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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Norman Dragt
Netherlands
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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.
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john 18
Consultant, Singapore
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7Ps of the Marketing Mix PEST, PESTLE, STEEPLE... are acronyms of the environment, mainly external. In marketing, the mix is what the organisation considers to optimise the stakeholders gain. It is and should not be in the element of the mix so as to allow the clear intention the organisation partake.
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Jean Lostaunau
Consultant, Peru
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PEST+ for Project Feasibility Study I find the PEST methodology (and all of the variants) more useful in the early stages of a project development, more in order to decide the feasibility on a more macro view.
Once you pass that stage and your project has a preliminar "go", then I find useful all the marketing "P's", a SWOT, and so on.
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Jaap de Jonge
Editor, Netherlands
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PEST versus 7P You are right Leigh that neither strategy formation nor marketing are possible without some form of PEST Analysis.
At the same time, I think @john 18 is also correct in arguing that
- PEST is used for strategically analyzing the external environment. Things the company/strategist/marketer has little or NO control over.
- On the contrary, the Marketing Mix (4Ps/7Ps) is what is says: a "mix" of "ingredients" that the company/marketer CAN control.
That is why I don't recommend to view PEST as an 8th P. It's better to use each management tool for the purpose it was designed for. As Jean Lostanau says PEST is and should typically be used before the Marketing Mix. It's the basis for the marketing mix.
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Molokanova
Professor, Ukraine
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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 project, it is foolish not to do an environmental analysis. And in a social project, it is necessary to check the ethical side of the services provided. If we want the project's product to be successful, we choose the right helpful tool to create it.
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Leigh Cowan
CEO, Australia
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In Defense of PESTLEED as the 8th P of Marketing All valid and noble contributions - inspiring dialogue! But...
What is "marketing"... Isn't marketing "the integrated and coordinated management of all the elements of exchange"? (If not, what is your definition?) But if so, don't we, as marketers, "manage exchange" by coordinating the other 7Ps with the environmental conditions that must be "appeased"?
Norman made a great point, but isn't every P reliant on every other P?
John 18 says the environment is NOT a valid consideration for the marketing mix... but isn't every "coloured" by PESTLEED issues? PARTICULARLY if the mix is "what the organisation considers to optimise the stakeholders gain"?
John L... Back "in the day" SWOT" was originally "SWAT" where "A", stood for "Adaptabilities" rather than "Opportunities". It was operational folk who adapted it with the "opportunistic O". There's a good topic for another discussion! :-)
Jaap: Surely every good marketer must accept and work within the constraints of the environment... otherwise their marketing plan is unrealistic. EG. Cocaine is illegal, but internally nothing could stop Coca-Cola from using it instead of caffeine as they did prior to 1927, but stepped BECAUSE the uncontrollable factors (legality, ethics) were a factor that determined product, promotion, perception, processes, people, price and place. In a world of change, isn't PESTLEED as dynamic as any other variable and as much a part of operational management as any other factor?.
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Anonymous
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PEST AND 7Ps Let's use PEST for strategic planning purposes and SWOT analysis. Marketing should concentrate on matters they can control like the 7Ps. Political and environment issues are unforeseen matters and are unpredictable when dealing with Marketing issues. The Russian and Ukraine war nobody new will affect the global business and some countries also took advantage of the situation and made good business. The same with the coronavirus pandemic which also affected the world, but some pharmaceutical companies were made rich.
The 7Ps are issues we can discuss and predict on marketing relationships. This is my opinion and I stand to be corrected.
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Norton Carbajal
Manager, Peru
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PEST Analysis Within Organizations A PEST analysis (and its extensions) must always be present beyond strategic planning, it must consider a broad perspective within the sector in which we work and include other potentially critical sectors for our business. The environment is constantly being reconfigured and it is necessary, despite the fact that we do not have control over this, not to lose sight of it for better strategic planning and correct tactical execution within all areas/functions/activities of the organization.
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Michael Nwosu
Entrepreneur, United Kingdom
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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 are external factors, for any given product or service. So, including the PEST as one of the P's of ...
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Maurice Hogarth
Consultant, United Kingdom
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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 organisation and its operations.
It seems, therefore, that the other marketing 'Ps' (Product, Price...
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Norton Carbajal
Manager, Peru
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PEST Analysis Within Organizations @Maurice Hogarth: Definitely, a PEST analysis goes beyond marketing, I totally share your opinion. Greetings....
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Woon Chet Choon
Business Consultant, Singapore
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From a MECE POV @Leigh Cowan: Thanks for sharing Leigh.
SWOT works because of the MECE nature of Strength and Weaknesses being internal and Opportunities and Threats being external. In that sense too, PEST or its va...
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Naresh Singh
Innovation Consultant, India
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PESTEL Analysis an Outstanding Methodology? Agreed with Mr. Cowan from Australia. As such Why is PESTEL Analysis an Outstanding Methodology?
Many Management Strategists consider PESTEL analysis or simply PESTEL as one of the most outstanding m...
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Vijay Salunke
Manager, India
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Need to Broaden the PESTEL Model for Marketing Strategy In Marketing Strategy PESTEL Analysis along with Competition Factor and Positioning Factor also play vital role and there is need to extend the PESTEL Model to include these two factors....
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Naresh Singh
Innovation Consultant, India
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Need to Broaden the PESTEL Model for Marketing Strategy @Vijay Salunke: Competition and Positioning Factors are concerned with the competition within the industry in the manner for competitive advantage. The SWOT framework is an analysis for competitive ad...
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Jaap de Jonge
Editor, Netherlands
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PEST and Marketing Mix are Complementary My conclusion from this discussion so far is that no doubt PEST analysis is an important tool for strategists and strategic marketers.
However it should not be added as an extra P to the marketing mi...
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Maurice Hogarth
Consultant, United Kingdom
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PEST Plus and Within Just knowing the PEST factors seemed insufficient so I always thought that it needed adding to. Consequently I always saw PEST as one axis of a matrix along with SWOT.
For example, in relation to Pol...
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Leigh Cowan
CEO, Australia
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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 definition of marketing is the management of exchange... If we accept the marketing concept as the optim...
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