Customers are the central focus for every organization. So, the basic objective of every organization is to meet its customer’s needs and requirements by proper planning of its marketing strategies. These marketing strategies are greatly influenced by various external factors and internal factors.

Internal factors are also called controlled factors while external factors are called uncontrolled factors. Therefore, it’s essential to monitor, both of these factors very carefully in order to understand and manipulate them.This helps the organizations to adopt and implement a successful marketing strategy.

The internal factors or controlled factors are the ones on which the organizations have a direct control.  So,its easier for organizations to take a control over them  and build their strategies.However, the forces influencing uncontrolled factors are the ones on which the organizations do not have a direct control. They are termed as PEST factors where each letter represents a type of factor like political, economical ,social, and technological.

Political: Knowledge about political factors influence organizations in many ways .It helps the management  to understand the situations in a better way.So,its up to the organizations to analyze  the situation and use the advantages and opportunities .The marketing strategies for its products or services as well as various other organizations rules and regulations are based on-

• Type of  ruling government like whether it is a communist ,democratic etc
• Taxation rules, tax levies and tax slabs
• Legislation
• Market regulations
• Trading rules and regulations, tariffs

Economical : All organizations are affected by  existing economic factor- both  national as well as global.Economy shapes the behavioral pattern of consumers, buyers, suppliers, creditors etc. Like an economy undergoing recession will have consumers with low purchasing power, more lower number of stake holders, higher unemployment and decreasing number of risk taking people and creditors.

Whereas a growing economy will have lower rate of unemployment, higher number of stake holders and, more increasing purchasing power. Therefore for organizations to be successful, its important for them to study and update itself with the changing economic conditions within  the country as well as globally.

Social: In order to promote business, it’s equally important to understand our society. Society comprises of family, friends, neighbors etc.All these different groups of people have different needs, likes and dislikes which is again governed by their life styles, age, purchasing power, and demography etc. At the same time it’s also important for organizations to understand their changing behavior, in order to cater to their changing needs.

Technological: Is an essential element of PEST factor which contributes towards the success and growth of the organizations .Therefore, its essential for organizations to regularly update itself side by side, with changing technologies and move along with time. It helps the organizations to cater to its customer’s needs and requirements more efficiently and effectively. It also helps the organizations to take correct timely decisions, solve customer query instantly etc.