MAR 5849: Service Marketing
Service Strategy Audit Overview
An environmental analysis is conducted using the PESTEL framework.
PESTEL stands for:
P – Political
E – Economic
S – Social
T – Technological
E – Environmental
L – Legal
Political: These are all about how (and to what degree) a government intervenes in the economy. This can include – government policy, political stability or instability in overseas markets, foreign trade policy
Economic: Economic factors include economic growth, interest rates, exchange rates, inflation, disposable income of consumers etc.
Social: Also known as socio-cultural factors – they have a direct effect on how marketers understand customers and what drives them.
Environmental Analysis 1
Technological: Technological factors affect businesses in three distinct ways:
New ways of producing goods and services
New ways of distributing goods and services
New ways of communicating with target markets
Environmental: They have become important due to the increasing scarcity of raw materials, pollution, and the importance of doing business as an ethical and sustainable company
Legal: legal regulations related to health and safety, equal opportunities, advertising standards, consumer rights and laws, product labelling and product safety
Environmental Analysis 2
Each section (PESTEL) will not have the same amount of information
Some sections do overlap, so it is important to distinguish the differences
Political and economic are particularly problematic
This section is only for reporting information about the external environment. Be careful not to discuss how the firm responds to these factors in this section of the paper.
Environmental Analysis 3