Global Environmental Scan PEST Analysis

What You Will Learn…

� PEST Analysis � Political, economic, socio-cultural, and

technological factors that affect international business (PEST)

Review

� What are the 3 types of market segmentation? 1.  Demographic (age, gender, income,

occupation, etc.) 2.  Geographic (local, state, regional, national,

global) 3.  Psychographic (attitudes, interests, opinions,

& lifestyles)

Identifying & Analyzing Markets

�  Surest way for businesses to connect with customers?

�  Know the people well! ◦ Where they live ◦  Income Level ◦ Age ◦  Ethnic Background ◦ Values ◦  Interests

Build a Global Perspective � Geographic segmentation is important for

multi-national and global businesses and brands

�  Regional and national marketing programs to alter: ◦  Products ◦  Advertising ◦  Promotion

� Meet the individual needs of geographic segments

Global Environmental Scan-PEST � Political Factors ◦ Government Stability ◦ Trade regulations and agreements ◦  Laws that impact company operations

Global Environmental Scan-PEST � Economic Factors ◦  Infrastructure ◦ Quality and cost of labor ◦ Taxes ◦  Standard of living ◦  Foreign exchange rates

Global Environmental Scan-PEST

�  Socio-Cultural Factors ◦  Language and Symbols ◦ Holidays and Religious Observances ◦  Social and Business Etiquette

Global Environmental Scan-PEST � Technological Factors ◦ Measurement systems ◦  Electricity voltage standards ◦ Use of computers, faxes, voice mail, cell

phones and Internet

PEST In-Class Activity � You have bee asked to perform a global

environmental scan (PEST) whether or not it would be profitable to sell an electric razor a company produces in a foreign market

� Choose a foreign country and present your findings informally to the class today (2-3 minutes)

� Use the World Fact Book as a resource (search on Google)