PESTEL Analysis: Essential Tool in Marketing Strategy - Essay Sample

Introduction

Marketing does not merely require having to promote products/services and encourage individuals to purchase. It calls for also introducing a pestel analysis tool.it is a tool in marketing if used; it gains a macro view of the industry environment as it takes into account external factors that can impact a business. Pestel analysis helps identify the business risk factors for the benefit of SWOT analysis in the end (Perera, 2017). Pestel is a summation of the following factors; political, economic, social, technological, legal, and environmental. The essay's focus will be a pestel analysis of the company, including the product, an electric pen with a screen, and a speaker. The product highlights any phrase in passage text and translates it into different languages using the screen and sound.

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Political Factors

For a company as C-PEN political factors have a huge role to play in the decision of investing. Some factors to look out for are the governance system, tax policies, and law & order in the market. For the governance system, the government transition from one to another, consistently changing policies. It is, therefore, of importance for a product as C-PEN to thrive, then the company should adhere to treaties by the previous governments. The same applies to taxes; in every change of government, the tax codes change, C-PEN should learn to plan for instances of either high or low taxes to keep to succeeding (Gentry, & Hubbard, 2000).

Economic Factors

For a given market, economic factors directly impact the potential attractiveness. Some of the economic factors C-PEN needs to evaluate in the market or those that ought to enter in the market are; inflation rate, rate of employment, and fluctuations of prices in local and international markets. The employment rate being high impacts C-PEN; they get adequate customers to purchase the C-PEN products. On the contrary, it will be expensive for C-PEN to hire skillful and talented workers. Alternatively, in comparing the prices of C-PEN in the last decade, it has remained sticky; the company should consider the emerging of the economy that can result in uncontrolled inflation and grave risks of depreciation in the currency.

Social Factors

The factors like birth rate, attitudes towards leisure, and education level in the society immensely would impact business as C-PEN. The birth rate indicates a good future demand directly on the C-PEN product. The other significant factor to look out for is the attitude towards leisure; C-PEN can conduct an ethnographic study to assess attitudes towards leisure. It is an experience economy for C-PEN to have a picture of several customers they can expect. For education levels in a society, if there are higher levels of education, it means quality jobs and higher income. From high income, it indicates higher spending from customers on such products as C-PEN boosting the company sales.

Technological Factors

Technology trends from C-PEN have proven to impact the macro environment like its software developments that capture and process printed text instantly (Kanev, 2008). However, there are factors like level of technology acceptance from the society and cost of trends/production that impact the company and the product. C-PEN, before the launching of new products, has to figure out the level of technology acceptance of its customers to avoid instances where they lack the requisite infrastructure to bolster up the technology. The other factor to look out for is assessing the cost of production trends to hinder cases where the production of these products by the company fails due to financial hitches to partake the technological innovation.

Legal Factors

C-PEN needs before entering the market to assess statutory factors like the Health & Safety laws to know the laws they are required to comply with them. The company needs to know its employment laws, business laws, and laws regarding monopoly. A robust legal system for C-PEN means the company can deal with any challenges their way.

Environmental Factors

Ultimately, in coming up with numerous decisions like product development of C-PEN, the company can look out on the consideration of having environmental standards and regulations to govern them. It helps them make effective decisions both at the local and national level. C-PEN should also look for another factor as to how much focus is spent on renewable technologies. The company can use such a factor as an investment for being competitive in the market.

References

Gentry, W. M., & Hubbard, R. G. (2000). Tax policy and entry into entrepreneurship. American Economic Review, 90(2), 283-287.

Kanev, K. (2008). Tangible interfaces for interactive multimedia presentations. Mobile Information Systems, 4(3), 183-193.

Perera, R. (2017). The PESTLE analysis. Nerdynaut.