What is PESTLE Analysis in Marketing?
The letters of PESTLE represent the broad categories of a macro-environmental scan for marketing purposes. The letters stand for:
- P = Political factors
- E = Economic factors
- S = Social factors
- T = Technology factors
- L = Legal factors
- E= Environment factors
List of Possible Technology Factors to Use in PESTLE Analysis
Here is a list of ideas and thought-starters to help you build out a list of suitable technology factors for your PESTLE analysis. Scan through the list and choose the ones that are more relevant for your firm or industry.
- Rapid technology change
- New generation technology advancements
- Shortening technology lifetime
- Escalating technology costs
- Broadening social media platform options
- Data security concerns
- Greater access to big data
- Access to analytical tools
- Advancing AI tools
- More sophisticated machine learning
- Improved process automation tools
- Break-through technology available
- Growing R&D investment requirements
- Advancing customer self-serve technology
- New/improved raw materials and inputs
- Faster rate of software updates required
- More sophisticated software available
- Greater choice of technology providers
- Changing manufacturing processes
- Improved business process automation tools
- Expanding online channel options
- Technology costs are increasing
- Technology costs are enabling economies of scale
- Older technology not supported
- Growing risk of hackers
- Growing risk of online fraud
- Major shopping platforms expanding
- Latest tech demanded by consumers
- Increasing level of new-to-the-world products
- Harder to gain advantage with product innovators
- Increasing impact of start-up disrupters
- Shortening product lifecycles
- Shorter payback period on tech investment
- Shorter payback period on new product investment
- Increase in direct channel usage by firms
- Reduced need for channel partners
- Increased need for channel partners
- Disintermediation of many channels
- Amazon (and similar) driving sales to online channels
- Greater smart phone capabilities
- More powerful smart phone apps
- Enhanced computing power and memory
- Ability to access third-party data
- Greater data storage capability
- Greater data analysis capability
- Too much data to effectively analyze
- Purchase ‘experience’ becoming a key differentiator
- Can track the customer journey online
- Richer customer information
- Ability to develop 100s of segments with data
- Some start-up techs firms are seeking acquisition
- Improving logistics systems
- Shift to just-it-time inventory
- Greater cross-docking facilities
- Improved marketing modelling software
- Improved CRM software capabilities
- Access to automated marketing tools
- Faster market take-up of new products
- Slowing market take-up of new products
- Harder to obtain patents
- Media fragmentation
- New products are quickly copied
- Product piracy in increasing
- Increased risk of IP being stolen
- Harder to protect new tech and IP
- Greater access to strategic alliances
- More challenging strategic alliances
- Greater use of outsourcing
- Shift to open innovation
- Shift to closed/in-house innovation
FAQs for PESTLE Technology Factors and their Impact on Marketing Strategy
How do “broadening social media platform options” affect brands and consumer behavior?
The increasing number of social media platforms provides more channels for brands to engage with consumers. However, it also means consumers have more choices, potentially leading to a more fragmented audience and requiring a more tailored marketing approach for each platform.
How does “greater access to big data” affect marketing strategy?
Big data allows marketers to better understand customer behaviors, preferences, and trends, enabling more personalized and targeted marketing campaigns. This can lead to increased customer engagement and conversion rates.
How do “advancing AI tools” impact marketing?
Advanced AI tools can automate and optimize various aspects of marketing, from customer segmentation to content creation. They can improve efficiency and accuracy in marketing efforts, enabling marketers to focus more on strategy and creativity.
What effect does “increasing impact of start-up disrupters” have on marketing strategy?
Start-up disruptors can rapidly change market dynamics, forcing established brands to innovate and adapt their marketing strategies. They also stimulate consumer interest in new, disruptive products or services.
How does “shortening product lifecycles” impact brands and consumer behavior?
Shorter product lifecycles require faster marketing strategies, from product launch to promotion. For consumers, this might mean a constant influx of new products to consider, potentially changing their buying behavior.
How do “improved CRM software capabilities” affect marketing strategies and brands?
Enhanced CRM software can improve customer relationships, facilitate personalized marketing, and provide valuable insights. This could lead to increased customer loyalty and a stronger brand reputation.