A PEST analysis will looks at the Political, Economic, Social & Technological effects on your Business. You should also run a PEST analysis on your marketing plans. Looking at a PEST analysis in conjunction with your eBusiness you may have to take on board these effects on a global scale. As the internet is a global market place and it is very hard to control where it is seen.
You can get around this, to some degree, by stating that only sell, or this subject matter, is legal in the country you operate in. It is far better though that you are prepared by doing a PEST analysis in the first place.
Political: For UK sales and marketing the political effect on the business should be minimal as long as you stay within the law. Although you will need to make sure you are covered as regards any age restrictions. Or products (such as alcohol) that might not be legal in the country that the website is viewed. If you decide to start selling abroad then you will be required to look at the laws in the areas you are wishing to market so that consumer rights are taken into account.
Economic: Although in the middle of a “recession” online B2C & B2B sales appear to be steady, if not rising, as consumers are looking to get the higher value product at a lower cost. The only economic issue's you may need to be concerned with is the resourcing of the project and plans. Baring in mind we are in a “credit crunch” you may wish to rethink your pricing to be more competitive. If you are after a very effective pricing tool for online sales that aids you in competing on price whilst still being very competitive email: info@cbslgroup.com. CBSL have developed a pricing tool that is still in its BETA stage that is unique and very effective in aiding online companies to cost their products correctly to be competitive and gain a sustainable return on investment. www.cbslgroup.com
Social: This one is harder to predict. Who would have thought facebook or myspace would be as big as they are (its reported that in the USA myspace has overtaken Google as the nations favourite web resource)? Or SMS messaging would take off? If though your web business has a social impact you may need to build in damage control should that impact turn negative. Noticing shifts in the online market may benefit you if you are looking to develop new areas or advertise your site in these areas. One way of predicting change is to add a search box to your website. By monitoring searches, even for products you don’t currently stock, you can find new areas of business or see changes in product requirements.
Technological: Because of the rise in eCommerce service providers and the drop in price for these areas it is easier to sell online and take orders online. You can benefit from this in a large way when developing your eBusiness. Staying ahead of technology that actually benefits your customer is important as it will mean you stay ahead of the crowd. Be careful about technology, though, for technologies sake as that is dangerous as some technologies do not take off and can end up costing you money and not helping your business, will mean you stay ahead of the crowd.
For a eMarketing strategy plan that includes you PEST analysis get in touch today. sam@insomnia-technologies.co.uk or 07515 655 080.
