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The PEST Analysis It is important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. The organization’s marketing environment is made up of: 1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc. 2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc. 3. The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural forces, and Technological forces. These are known as PEST factors. PEST Political Factors The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. You must consider issues such as: * How stable is the political environment? * Will government policy influence laws that regulate or tax your business? * What is the government’s position on marketing ethics? * What is the government’s policy on the economy? * Does the government have a view on culture and religion? * Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others? * Political stability * Risk of military invasion * Legal framework for contract enforcement * Intellectual property protection * Trade regulations & tariffs * Favored trading partners * Anti-trust laws * Pricing regulations * Taxation - tax rates and incentives * Wage legislation - minimum wage and overtime * Work week * Mandatory employee benefits * Industrial safety regulations * Product labeling requirements Economic Factors Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true when planning for international marketing. You need to look at: *...

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