What is a PESTEL analysis and why it is important in the digital marketing world?

Digital marketers are responsible for helping people and businesses to position their brands in a good place in the market so they can appropriately promote their campaigns and products.

As a learner on the Agent Academy programme, I’ve discovered a series of principles that can help you understand the challenges that a client is facing. One of these techniques is the popular PESTEL analysis.

What is it?

A PESTEL analysis is a framework/tool used by marketers to identify any macro-environmental factors that can have an impact on an organisation or business they’re working with.

What does it mean?

PESTEL is an acronym, which when expanded, means P for Political, E for Economic, S for Social, T for Technological, L for Legal, and E for Environmental.

Why is it important for a business strategy?

A PESTEL analysis plays an important role because it gives you a view of your environment from all the important angles that could affect your work. More than just understanding the market, a PESTEL analysis is the backbone that not only defines what a company should or shouldn’t do but also holds an organisation accountable to its goals and values. In fact, many studies have proven that organisations that are quick to identify and respond to changes in their environment are also those who take advantage of the market and who differentiate from their competition.

Of course, every industry is different from another and so, the importance of each factor of the analysis may vary. Meaning that no two analyses will ever be the same. This proves how crucial it is for any marketers looking to create a strategy to understand what a PESTEL analysis is so they can conduct one before they start planning.

Having not previously known about the PESTEL framework before I started my Agent Academy journey, I can now say that I have a much better understanding of how businesses use macro-environmental factors to get maximum impact out of their work. I have thoroughly enjoyed exploring different research techniques like PESTEL and will continue to consider these factors in future market research that I carry out.

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