MACRO ENVIRONMENT – affect every business 4.

TECHNOLOGICAL FACTORS
encompasses the broad context in which a - Rapid Technological progress /
company is situated and is comprised of six innovations
principal components. - Improvement in production
technologies
P.E.S.T.E.L ANALYSIS (Strategic Management)
- Data storage / protection technologies
 Is used to identify the threats and
weaknesses which is used in SWOT analysis.
5. LEGAL FORMS
It is important to view PESTEL analysis as a part
- Laws relating to wages / employment
of an external analysis for conducting strategic
- Employment taxation changes
planning on strategic analysis. The PESTEL
- Working practices regulations
analysis provides an overview of the macro-
environmental factors that are important to an
6. ENVIRONMENTAL FACTOR
organization.
- Carbon emissions / footprint
- Environmental protection regulations
Factors can be evaluated using PESTEL analysis:
- CSR policies
 Political Factors
 Economic Conditions
MARKET SEGMENTATION- is the process dividing a
 Sociocultural Forces big market into smaller segment of buyers with
 Technological Factors district needs, characteristics or behaviors, so that
 Environmental Factors they can be reached more efficiently and effectively
 Legal Conditions and offered with products that match their needs.

1. POLITICAL FACTORS
MOST COMMON BASES FOR MARKET
- Government Tax Policies / Regulations
SEGMENTATION
- Business regulation policies
 Geographic
- Government laws on competition in the  Demographic
marketplace  Psychographic
 Behavioral
2. ECONOMIC CONDITION TARGET MARKET
- Currency value / exchange rates - set of buyers who have common needs and
- National GDP(Gross Domestic Product) characteristics that the company decide to serve.
- Public spending power
IN CHOOSING THE RIGHT SEGMENT FOR THE
3. SOCIAL FACTORS PRODUCT A COMPANY MAY CHOOSE
- Changes in styles / choices  Mass Market – targeting the entire market.
- Population demographics  Multi Segment Market – multiple product
in one manufacturer.
- Community groups and pressure groups
  Niche Marketing – opposite to the mass
market. They choose their target market, or
the costumers are the one who adjust.
 One-to-one Marketing- they are giving a
service to one product. One costumer at a
time.

POSITIONING – is placing a product’s distinct

characteristics-brands, offerings, endorse, history in
the consumer minds relative to its competitors.

DIFFERENTATION STRATEGIES
 Competitive Advantage
- They give distinction.
 Unique Selling Proposition (USP)
- Why should a costumer buy this
product instead of the competitor?