The final stage of market analysis process is of the broader market factors, including political, economic, social and technological (PEST) considerations.

The Benefits of PEST Analysis

PEST analysis is a strategic tool to help businesses understand and evaluate the external macro-environmental factors that can impact operations and decision-making. It helps identify and analyse the key political, economic, social, and technological factors that may influence your company’s performance and prospects.

Enhanced Strategic Planning

By conducting a PEST analysis, you gain a deeper understanding of the external factors that impact your digital marketing efforts, enabling you to formulate more effective and adaptive strategies to navigate the ever-changing online landscape.

Identification of Emerging Trends

PEST analysis helps you spot new technological advancements and societal shifts, allowing you to capitalise on emerging trends in the digital space, such as adopting innovative digital marketing tools and reaching out to new demographics.

Mitigation of Risks

Understanding political and economic factors enables you to anticipate potential risks, such as changes in regulations or economic downturns, empowering you to develop contingency plans to safeguard your digital marketing campaigns and investments.

Targeted Audience Engagement

Social analysis through PEST helps you comprehend changing consumer behaviours and preferences, allowing you to tailor your digital marketing content and messaging to resonate better with your target audience.


Competitive Advantage

By staying attuned to technological developments (e.g., AI, data analytics), you can gain a competitive edge in the digital marketing arena, optimising your strategies and enhancing customer experiences to outperform your rivals.

Key Considerations for PEST Analysis

Whilst it is your business, audience and competitor analysis that may shape your short term prospects, it’s the broader market factors that are likely to shape the long term. These include:


What is the political climate and how could this affect your business in three years from now? Brexit is a classic example of this, but there will likely be a variety of political factors that could impact your particular business/industry in the long term.


What are the main economic trends and how will they affect your business in the future? In times of recession some brands will benefit and others will suffer.


What are the social considerations we should be aware of, whether it’s changes in fashion, health and fitness, music or the environment? How are they likely to impact demand for your products and services?


Like it or not, every market is being disrupted by technology. We need to be aware of developments on the horizon and ensure we are well placed to turn them into an advantage.


Frequently Asked Questions about PEST Analysis

It’s recommended to perform a PEST analysis periodically, at least once a year, or whenever significant changes occur in the business landscape or digital marketing ecosystem.

Yes, a PEST analysis helps you identify potential threats arising from political instability, economic downturns, or shifts in consumer behaviour, enabling you to devise risk mitigation strategies.

PEST analysis complements your market research and competitor analysis by providing a broader perspective on the external factors that may impact your digital marketing performance, helping you understand the bigger picture.

By understanding the political, economic, social, and technological factors, you can align your digital marketing strategies with the external environment, enabling you to make more informed decisions and optimise your ROI.

Absolutely! Social factors analysed in PEST shed light on evolving consumer preferences and behaviours, allowing you to tailor your digital marketing content and campaigns for better engagement with your target audience.

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The fundamentals of great Marketing

No matter what sector you’re in, we believe that the fundamentals of great marketing never change


From your website user experience to the user imagery within your social media, brand is every moment of every interaction with your business. Defining who you are.


Get your content right, and the channels will all but take care of themselves. It is not enough for content to be superficially on-brand, but rather it must drive the brand’s vision, no matter how ambitious.


It’s no coincidence that the best B2B marketers are endlessly curious individuals who understand the value of research. I’s where every great strategy begins.


There is no better way of capturing incredible B2B or professional service content whilst simultaneously raising awareness and growing credibility, than by engaging with the top 1% of your target market; the influencers.


From SEO to email marketing and webinars to social media, your content needs to be distributed across all the relevant channels as you develop brand into a serious digital asset. Meanwhile, a paid lead generation strategy that limits cost per acquisition (CPA) may also be required, depending on short term targets.


In order to avoid “analysis paralysis”, a small number of headline metrics at both brand and commercial levels should be agreed upon, along with the frequency of updates. We typically find that weekly mini-reports ensure constant momentum without disrupting day to day activity.

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