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Marketing Environment Exercise - Answers - Click to read about PEST/STEP Analysis

 

The personal computer market is very competitive and is influenced by many internal and external factors. Some of the uncontrollabe factors that influence the personal computer market include, political , economical, social and technological factors that can have an impact on the organisations strategy. We just have to look at Microsoft and the ant-competitive lawsuit which was brought against the company in the USA which has had an impact on how the company sells and develops its operating system.

 

Exercise:

List and discuss below the PEST factors that could influence LM Ltd marketing strategy.

 

Political.

1 Legislation that may impact the business

2 Government taxation policy corporate and individual.

 

Economical

1 Current interest rates

2 Levels of employment and unemployment impacting consumer spend

3 State of the economy with reference to thebusiness cycle. Is the economy booming or fast approaching a recession?

 

Social

1 Levels of education - knowledge of consumers about computer products.

2 Use of computers - Are computer being sold for personal or business use? or both?

 

Technological

1 Rates of technological change. - How fast is technology changing?

2 Rates of technological obsolescence. - How long is it before new computers become old?

As listed above LM Ltd will need to take into account the above factors as they may well impact the marketing strategy of the company. Legistation may influence product design, whether the economy is in a boom or recession may influence demand. What computers are being used for may influence the package on offer, and the rate of how fast technology changes again may influence pricing decisions.