Where and How to Apply PESTLE Analysis in a Marketing Plan

It is nothing short of incredible that brands today are achieving an unequivocal victory with top-notch marketing strategies. Beginning from the level of entrepreneurs to ginormous business leaders and trend setters, these strategies are delivering the results. There are several internal and external factors that have an impact on any organization’s environment, which are essential to create a sustainable bond with the customers. There are two kinds of marketing environments: micro and macro.

To understand PESTLE analysis, we have to study a backdrop of macro environments. A PEST analysis includes the social, economic political and technological factors. Likewise, a macro environment encompasses these factors along with legal and environmental factors as well. The organization has no command over these external factors that affect it. The only thing the organization can do about it is to rework and make alterations to its system.

PESTLE Analysis

PESTLE analysis is a tool which determines the external marketing factors (commonly known as macro environment factors) that have an effect on the organization. The outcome of a PESTLE analysis pinpoints certain threats and weaknesses that a business might be unknowingly exposed to. PESTLE analysis defines the way any business is shaped. Let’s dive deeper for a better and literal understanding of PESTLE analysis:


Political factors determine how the government’s decisions, such as tax and trade policies, affect a company’s economy and business. Generally, political factors have an influence on the way organizations tend to their businesses and they have to regulate and balance their marketing strategies according to the government’s requirements.


Economic factors, such as the rate of inflation, business growth, the level of employment and unemployment and trading goods and services have a serious impact on how an organization flourishes successfully and thrives economically. Economic factors may differ from one country to another, depending on the financial situation.


Undoubtedly, society is changing at a fast pace. Time and again, society adapts new traditions to follow and social media has a huge impact on the way people think and act. Social factors encompass several areas, such as population growth, health, education, safety, religion and benefits, social classes and more. These factors have a strong impact on businesses. For this purpose, businesses have to make sure they adopt the perfect analysis technique, such as PESTLE, to evaluate the impact of culture on their organization.


Technological factors hold a significant importance because they help in eradicating inflation and recession. The latest technology is beneficial for effective businesses. Information technology has given businesses a wider horizon of creativity and global reach. Technology shapes business models and the way a business’ products and services are distributed. It introduces the most efficient ways of communicating with the target market.


Factors such as consumer rights and product safety are included in legal factors. It is necessary that companies must know their legal rights and limitations and act according to the underlying laws and regulations.


Environmental factors are important because it is necessary to focus on a business that is productive and ethical at the same time because consumers of this day and age demand that the products must be produced using green methods sustainable resources.

When Apply PESTLE Analysis

PESTLE analysis is applied in a marketing plan when a company is targeting an audience, a product is produced for the market, or a potential partnership and investment opportunity is enabled. PESTLE analysis requires know-how of external events taking place outside a company. Any reliable source can provide information for PESTLE analysis, such as newspapers, current books, trade organizations, government agencies, industry and financial analysts. It must be ensured that data collected from any secondary source is reliable.

How to Apply PESTLE Analysis

The macro environment encompasses the microenvironment. It actually acts as a huge cell that holds everything else inside it. None of the factors inside the macro environment can be ignored, or else your business will face a considerable risk of loss, without you realizing the damages caused.

PESTLE analysis requires a deep understanding of methodologies that have to be clarified to maintain a sustainable view of the business. A thought provoking approach is necessary for this kind of analysis. Many companies which don’t pay close attention to PESTLE ultimately fail to address the significant impact of social factors, such as the use of the internet, especially for e-commerce dealings. The competitors of such organizations take full advantage of their weak strategy and offer superior products and services.


Consider the example of a fast food chain, applying PESTLE analysis for its marketing plan. This restaurant maintains its primary focus on economic and socio-cultural factors. For this reason, the restaurant’s marketing team must develop strategies based on the industry’s environment. The following PESTLE analysis shows there are several considerable threats the team must address to hold a firm position in the market.

Political Factors Affecting the Business

A significant factor is to reduce the impact of taxation on business. Apart from this, the most important factors affecting a fast food chain business are the evolving health policies. This may act as both a threat and an opportunity for business. The public health policies increasingly discourage people from consuming fast food. This external factor can be handled by ensuring healthy food.

Social Factors Influencing Business

The fast food chain must ensure increasing cultural diversity. If the prices of products are moderate and affordable, this is a huge opportunity for your business, as you are targeting customers from low-income households. Healthy lifestyle trends are among the most important social factors and your food chain might be overshadowed by negative judgment because health departments need to be satisfied with the use of good quality products.

Technological, Environmental and Legal Factors

Sales must be increased through mobile devices and the restaurant management must address environmental problems beforehand. Legal factors such as minimum wage and health regulations must be properly verified.


If PESTLE analysis is properly implemented, it can prove to be an effective marketing plan. It can be used for analyzing the basic factors that define the foundation of a business’s success.

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