What Is the 'Pest + D + N' Framework?

Topics: Marketing, Marketing research, Business Pages: 7 (2026 words) Published: August 23, 2008
What is the 'PEST + D + N' framework? How can this framework be used to improve marketing planning?

The PEST + D + N framework is a foundation on which marketing can begin with as the parts will have an affect upon any outcomes. Political, economic, social, technological, demographic and natural environments are the influences that, singularly or together, will need to be taken into consideration when marketing a product. This is show aptly by Applbaum (1998, pp.324) when he states ‘The implicitly held theory of needs and wants underlying and informing market activities’. Here he is saying that the information necessary to market a product comes from the consumer’s needs and wants.

Political influences come directly from the government. This can be local, state or federal government or the controlling power. The rules and regulations of how business deal with consumers, the expectations and rights of both business and consumers, are delivered by government. In Australia we have what is called the Trade Practices Act 1974, this is a creation of parliament to implement fair trade practices to protect both consumers and businesses, below is an extract from the Trade Practices Act relating to business and how it may not influence the market by monopolizing the market.

Misuse of market power—a corporation with a substantial degree of market power is prohibited from taking advantage of this power for the purpose of eliminating or damaging an actual or potential competitor, preventing the entry of a person into any market, or deterring or preventing a person from engaging in competitive conduct in any market.

(Australian Government, trade practices act 1974, section 3A)

Economic factors come from both sides of the fence. On one side is business with there concerns about profit margins and cost effectiveness. How much will a product cost to manufacture and will it be easily accessible to many consumers? Palmer (1992) says it is the governments’ responsibility to maintain the macroeconomic environment so as to manipulate the economy. On the other side of the fence are the consumers who have a disposable income and a need to spend it which help maintain the economy. Social and demographic environments do seem to be synchronous with each other, as the social needs reflect the demographics of an area and vice versa. For example an outback mining town will not have the need for 200 dress shops because the population will be, mainly, male. Where as in, the social setting of, any large city those shops will be a necessary part of the community. Hawkins (1995) aptly describes this, ‘the study of demographics is concerned with understanding trends to include forecast of future demographic size, structure and distribution.’

Natural and technological environments are a large issue for mankind right now. Consumer’s technological knowledge influences people’s desires for goods and services and these help and hinder the natural environment around us. We all use mobile phones but in order to do so we must place towers in the natural environment. Kotler (1994) suggests we use all of these to create the micro and macro environments which will help to comprise the marketing environment.

What are the major differences between business markets and consumer markets?

In order to see the differences between these two markets we first have to identify what they are and what they do. Lewis (1997. pp12) states ‘business-to-business marketing refers to the marketing of products and services to organizations rather than to the households or ultimate consumers.’ this is saying that there are certain businesses that are created that cater only to the needs of business. Take for instance any university which sells education, through learning, to students. The university needs to supply desks for lecture rooms, and so there will be a company that supplies educational facilities with said desks.

There is also the need for the...
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