Francis Aguilar (1967) is the first known reference to the origin of the PESTEL analysis. In his study known as Scanning the Business Environment, he studied the environmental factors that affect business environment and come up with the first acronym ‘ETPS’ which meant the Economic, Technical, Political and social factors (Aguilar, 1967). Later Arnold Brown (1967) focused on the study and came up with a new perspective towards the study of social-technical, economic, political, and ecological (STEPE) factors. In 1980, Porter among other authors scanned the business environment and came up with the current acronym PESTEL meaning political, economic, social, technological, legal, and environmental factors (FME, 2013). According to Collins (1997), …show more content…
Economic factors include factors like inflation, economic growth, interest rates, and currency exchange rates (Kotler, 2009). When an economic crisis occurs, it may lead to an economic recession, which affects the advertising industry. Whenever an economic crisis occurs, the advertising industry is the first one to experience a financial cut-down. During economic recession companies view advertising as an extra expense which the can ignore to stabilize the financial status. Such a cut-down affects the industry and anyone related to this sector. On the other hand, inflation rates have a negative effect on the growth of the advertising industry. Inflation rates affect the prices of goods and services which also affects the purchasing power. If the purchasing power of the consumers decline, manufacturing industries will experience low returns. They will shift the burden to the advertising industry by reducing investment in the industry and therefore affecting growth. The other economic factors also affect growth in one way or another (FME, 2013). The interest rates also affects the investments in the advertising industries. If the interest rates increases, the investment in the advertising industry will be more attractive and more investors will be willing to invest. As more investors are willing to invest in the advertising, industry there will be more opportunities to explore and therefore …show more content…
Technological factors pertain to invention and innovation of new ways of performing activities. Technology changes very fast and it affects how the organization produces, transports and markets its product and services. In the advertising industry, technology affects the way of communicating to the target market. Technology presents many methods that the advertising industry can communicate to the consumers such as TV, phone, tablets, and digital billboards. The use of social networks such as Facebook, twitter, Instagram among others enables the advertising industry to customize adverts according to the user interest that prompts the consumer to view the adverts. However, choosing the appropriate technology is essential to the success of the advertising industry because different markets prefer different ways of conveying information. The use of applications in phones or e-commerce to order goods and services all over the world may be appropriate to a certain market, but media may be appropriate to an illiterate market (Porter, 1998). The development of smart phones is also an added advantage to the development of marketing activities in the advertising industries. For instance, in Singapore China the Taxi industry uses the application in the smart phones to access the consumers. Although the media are one of the appropriate medium to convey the adverts to the consumers,
Our everyday lives consist of advertisements, there is literally no escape, and for me advertisements that play heavy with emotions catch my attention more often than any other. The advertisement I choose for this analysis project is the BCSPCA (British Columbia Society for the prevention of curtly to animals) commercial featuring Sarah McLachlan and her atrociously sad song “Angel”. Now, a bit of background information on BCSPCA and McLachlan, BCSPCA is a non for profit organization for the advocacy of animal welfare, there are locations all over the United States (ASPCA) and Canada, like franchises if you will. These guys love animals and so it would be fitting that their motto is “we are their voice”, being that animals can’t speak and all.
Company's operations Getting their ice-cream freshly made in the factory later it would be sent to all the other outlets for sale. Ice-cream would be serve to their customer and employees would mix the ice-cream with "mix-ins" if the customer requested any of them. PESTLE analysis PESTLE stands for - Political, Economic, Sociological, Technological, Legal, Environmental. PESTLE analysis is a useful tool for understanding a 'big picture' of the environment in which an organization is operating.
(Safko and Brake, pg.671) This quote from The Social Media Bible demonstrates how powerful of a tool social media has become in the advertising world. Social media is the most innovative platform used by the marketing sector to date. With its savvy set of technologies and tools, that can be easily integrated into our existing marketing strategies. This is surely the most ground-breaking, effective tactic in connecting with potential customers and prospects.
Advertising, Dustbowls, and Automobiles While reading Lands of Consumption: Auto Tourism and visual culture in California, 1920-1940, I couldn’t help but make connections between advertising back then compared to today. Advertisements today are much more competitive and have different means of reaching the consumers, but the idea is still the same. Get the consumer to buy your product. Today consumers are influenced by more than just the advertisements put in front of them, but also the media. I learned in one of my other classes that the media basically controls what advertisements you are exposed to.
The Great Depression changed advertising in the way that it was done. The Great Depression effected the United States in a huge economically way. People did not have the extra money to food sometimes; therefore buying leisure things was not option. In an industry that relies on a selling of products, advertising took a major hit. Advertising continued to attempt to get people spend money, despite the fact that nobody had any.
We will now be doing a more detailed analysis on these six PESTEL factors. PESTEL refers to the Political, Economic, Social, Technological, Environmental and Legal forces,
These will impact on widely to different part of economy. Changes in the quantity of houses being built have influences on the demand of building materials, household goods and employment in real estate industry. On business level, changes of interest rate have a direct impact on business activity. When the finance cost is high, it will cause a firm to postpone building a new plant that would provide more returns if it were on lower rate. In other words, it will be more profitable for a firm if the cost of borrowing is lower and more investment project will be
Advertising has played a significant role in the marketing industry which has allow individuals, businesses and organization to spread their message on their brand, product, service and idea to the public. Many advertising companies would heavily use television, radio, billboards to showcase their clients businesses and brand the past, however with technological advancement increasing, the use of advertisement have expanded to different platforms of media such as social media with the use of Facebook, Twitter, YouTube, and etc. It is clear that many advertising agency are using online platforms to deliver their clients’ messages as online presence is being used heavily. With advertisers using online presence to spread the message, it is clear
Companies all over the world universally accepted this fact. The expenses on advertising are considered to be a profitable investment that reaps profits both in the long and short run. Businesses that keep on advertising regardless of rise or fall in the economic times get a competitive advantage over those that cut their ad
Targeted Advertising: Helpful or Hurtful? Technology has challenged the rules of privacy, and people are questioning if privacy is a necessity anymore. Technology, specifically apple products such as iPhones, is a need in many people’s lives, and they cannot imagine not being able to check their phones for the weather or to ask Siri to find the closest restaurant. Unfortunately, people do not realize companies use technology for targeted advertising, which is an invasion of privacy. An invasion of privacy is when people’s private information is used to influence them and is given to other people or companies unknowingly.
PESTLE is an acronym for political, economic, social, technological, legal and environmental factors. Looking at these factors can help a club judge many different things such as ticket pricing and being promoted, or relegated, into a different division. Ticket pricing goes under the economic factors as the price will be based on how well the country’s’ economy is doing. If the company is in a recession then it will be a poor choice for the club to decide to raise its ticket prices as people will have less disposable income. However if the country’s’ economy is doing well then more people will have more money leading to an increase in spending.
Apple marketers must always be aware of the present and future economic developments. This is to ensure that the marketing plan can be done. Economic environment factors that affect consumer buying and spending and affect the wealth of an area include income distribution inflation, recession and spending patterns. The amount of individual or household income is refers by consumer income.
Jay Walker-Smith, the president of Yankelovich Marketing Firm has recently stated that the average person is exposed “to as many as 5,000” ads every single day (Johnson). This gigantic number shows the prevalence of advertising in today’s capitalistic, controlled world. Most people are not shocked to learn that advertisements are everywhere; however, they are often shocked to learn the amount of propaganda used in said advertisements. You, as a consumer, cannot always trust the information shown in advertisements. Many commercials often use an abundance of propaganda techniques that slip right under the radar of the views.
PESTLE analysis is include of political, economic, social, technological, legal and environmental factors. PESTLE is a business tool that used by companies to track and analyse the macro environment in which the company operate. This tool is very useful which help in overall growth and development of organization after learning from the past mistake and working for future. The first factor is political factor which include such as law of land, taxation policies, rules and regulation, trade restriction and so on.
2.0 PESTEL ANALYSIS A PESTEL Analysis is a marketing framework to analyse how an organisation is being impacted by a wide range of external imperatives. 2.1 Political Local political factor has a less significant impact on Starbucks Singapore due to strong political stability in Singapore. Singapore is consistently ranked as the lowest political risk country in Asia since 2002 (Corrupt Practices Investigation Bureau, 2015). However, the political stability in the global market is highly important as Starbucks coffee is certified as an ethically traded coffee.