Discuss ways in which the PEST analysis and the marketing research that a company conducts will impact the marketing mix of the organization. What challenges and opportunities do you think may become apparent at the completion of a PEST analysis?

 

ANSWER:- PEST analysis and the marketing research that a company conducts will impact the marketing mix of the organization in the following ways:-

i) The systematic design, collection analysis, and reporting of data relevant to a specific marketing situation faced by an organization will be impacted in an effective way. The PEST analysis and marketing research in a wide variety of situation associated to the marketing mix can help the company to understand customer satisfaction and purchase behavior. It can help them to assess market potential and market share or to measure the effectiveness of pricing, product, distribution, and promotion activities.

ii)By targeting the segment's members by positioning the product or services and also by analyzing the competitors positions in the market place, then developing a positioning strategy that include offering a good or services with a competitive advantages can be impacted to finalize the marketing mix by putting all the pieces into place in a better manner. Thus, the goods or services can deliver benefits that the segment values, such as convenience and status.

iii)With the help of environment scanning, the company can offer the satisfactory price to the customers, making the offering available at places consumers are likely to go, and can correctly communicate the offering benefits in locations where consumers are likely to purchase their required product.

iv)The PEST analysis and marketing research must help the company to evaluate the target market responses, so that they can modify the strategies related to the marketing mix whenever needed. The company can find the significance or need of change in different segments and corrective action can be taken accordingly with increased productivity and profitability in a desired manner.

v)The PEST factors including political, legal, socio- cultural, and technological helps in identifying the trends, development, and key success factors of the market which impacts the marketing mix of the organization and helpful to know the existing and potential demand in market, market growth rate, cost structure, price sensitivity, technological structure, and distribution system, etc.

The challenges and opportunities, I think may become apparent at the completion of a PEST analysis can be as:-

Challenges:-

i)The organization need to identify the factors which are relevant for determining success in the business market concern.

ii)The organization need to measure its performance in comparison to its competitors at the completion of a PEST analysis. Based on comparison, the organization can find out whether it has advantages or disadvantages in terms of various factors related to the PEST analysis.

iii)One of the significant challenge is to measure the sustainability of the organization because any advantage may turn into disadvantages due to change in environmental factors.

iv)The product differentiations, brand identification, and customer loyalty details collection with reliability and accuracy can be challenging for the organization.

Opportunities:-

i)At the completion of PEST analysis, the value chain can be analyzed which is a powerful tool for mangers of the organization to identify the key activities and have a potential of a sustainable advantage for a company in an effective way.

ii)One of the significant opportunity is to identify the capability factors, marketing capability factors, operations capability factors, personal capability factors, and general management capability factor after the completion of PEST analysis.

iii)Helpful in formulating strategy by deciding the resources to be obtained and allocated, product - markets, functional departments, activities within each business or product market in a more better.

iv)To meet the demands of the customers by analyzing customer behavior of different taste and preferences and also helpful to develop an in depth understanding of how consumers actually make their buying decisions within the market place.

Step-by-step explanation

Thus, by this ways, PEST analysis and marketing research that a company conduct will impact the marketing mix of the organization and required changes can be made accordingly in an effective way.