The PEST framework is a valuable analysis of the political, economic, social and technological factors that may affect a modern business in the external environment and the impact each factor can have on a business’s relationship with stakeholders such as suppliers and consumers (Wetherley and Otter, 2014). This assignment will focus on how modern businesses and the UK are impacted by various political, economic, social and technological factors that make up the PEST framework and how certain factors will impact the UK and the Business world in the future suggesting the need to adapt in order to reach their target demographics and how certain factors can create a ripple effect for a business.
Political
When looking at political factors there
…show more content…
Celebrity endorsements help to create more brand awareness for a business and the higher profile and well known the celebrity is then the brand will be seen as a high quality product. Coca Cola use high profile celebrities such as Taylor Swift to endorse their products. This helps boost sales as people believe that the product is good enough for them at a low price if a celebrity is seen endorsing it. Although if the celebrity is being presented in the media in a negative way then it can affect a customer’s opinion of the product and influence people not to buy the …show more content…
Social media can be used to target specific demographics through posts but it can also be used to communicate with customers as many businesses have began using Twitter and Facebook to interact with customer’s queries, complaints and feedback creating a close relationship with customers. Social Networking use has rapidly increase in recent years and has becoming a successful marketing tool for many businesses due to social media being incorporated into the daily life of millions. Social media can be used to target specific demographics through posts but it can also be used to communicate with customers as many businesses have began using Twitter and Facebook to interact with customer’s queries, complaints and feedback creating a close relationship with
Celebrity endorsements can make or break a product and even a company. Especially in today’s world many teens will buy a product just predominantly based on who endorses it. For example, Beyoncé promotes both Pepsi and H&M. She is a great representative for both because she is a really big celebrity and she is very well known. She also has a lot of influence. Young girls would love to dress like her and with H&M endorsing her they get that demographic. Pepsi made a good choice because she, like the previous celebrities they endorsement deals with, is a very public figure with a very big name. Many teens and young ...
Celebrities are accessible to the whole world just due to their ability to use media at their own convenience. Due to the presence of cinema and satellite television all over the world, celebrities are able to cross the barriers of culture and religion, reaching out to millions across the world. The celebrity is only there to promote the produc; nobody is forcing anyone to buy anything! When these celebrities then go onto endorse these products, it makes the whole world accessible to these brands, enabling the company to become a local, credible and recognized brand across the globe. Products which are endorsed by celebrities certainly have an advantage over their competitors, since the public tends to follow and replicate the lifestyles of the celebrities which they admire, leading them to buy the products, with a belief that the celebrity uses that product as well. Businesses that have the funds and privilege to have a famous representative are not trying to insult anyone’s intelligence, but merely help their companies
EFFECTIVENESS OF ENDORSEMENT ADVERTISING Credibility of Celebrity Credibility of the endorser can be deduced from his or her expertness and reliability. Facts provided by a credible celebrity can impact the behavior and trust of consumers. This is called internalization which involves integrating an external stimulus into one's personal beliefs. So, if the consumers think of celebrity endorsers to be worth their trust and knowledgeable in a particular field, there's a high probability that the possible customers turn out to be the actual customers. Trust of consumers can be earned through TV or sports stars related to the product, but my times the celebrities who have no link with the brand also endorse them which is called a credibility gap.
Marketing through Social Media (Exploratory Essay) Throughout the ages there have been many intriguing ways that businesses have portrayed their product or services for accessibility. Recently, businesses have been researching how to market the businesses product through the World Wide Web. With websites such as Facebook, Twitter, Instagram, it started becoming popular within the past 20 Years. People have started to rely heavily on the internet over the past decade, whether it be for searching for information on products or people.
Among the billions of social media users, there is a percentage dedicated to businesses who use social media as part of their marketing strategy. The sheer number of people who use services like Facebook and Instagram on a daily
The most important matter in celebrity endorsement is to pick the right endorser and the right match for the product or service. There are two different types for choosing celebrity endorsers who match with these different target audiences. The first option is to pick an endorser who matches both demographics groups at the same time. The second option is to choose two endorsers and use them in separate branding campaigns, either simultaneously or at different seasons. Other than that, organization needs to really study and do research about the celebrity based on their reputation, overall image, experiences and see whether they have any controversies that will risk their organization reputation and image. Besides that, they need to have a good confidence and communication skills in order to sell the product and to convince the consumers.
Social media avenues are a new, upcoming, and popular way to advertise for businesses and for people to connect to each other. Alexis Ohanian once said that "Being effective at social media, whether for business or personal use, means capturing people who have short attention spans. They 're only a click away from a picture of a funny cat, so you have to make your thing more compelling than that cat. And that can be a high bar." (Ohanian) Powerful usage of social media can have a big impact.
Who do you see mostly in your daily life? The first thing that usually comes to our minds is our families or friends, but in fact we mostly see the faces of celebrities on the screen as many of us watch TV for hours.Because of that,mostly the media benefits from celebrities to reach their goals.Companies try to have an impact on people’s buying process through celebrities. In fact there is an advertisement way which is called celebrity advertising. It literally means using a famous person's image to sell products or services by focusing on the person's popularity to promote the products or services. Why do companies use celebrities? Celebrities have the ability to transfer their personal qualities onto a product.People who saw the advertisements of the product subconsciously believe that buying that product would make them more popular,more handsome or beautiful or more celebrity-like,than they really are. Because the implication is that the famous person uses the product or service that he or she endorses;such as an athlete with big muscles might be contracted to promote a certain brand of a protein powder giving the impression that his big muscles results from using protein powder.However,the person might not even use the product or service he endorses;in which case,he uses his features for the promotion of the product.Therefore, celebrity role models which are used for the companies goals have both positive and negative consequences on the people.
The PEST Analysis for PC market in UK. Changes in interest rates, exchange rates, technology and the law are all external factors, which can affect a firm. These factors can affect the firms’ costs, or the market as a whole. Changes that take place in the external environment can be evaluated and analysed using a PEST analysis. To analyse the firms’ external environment, the following headings are used.
Celebrity endorsement is an exceptionally powerful tool to pick up consumer interests and faithfulness to a particular brand in a cluttered marketplace (Hung 2014, 3). The use of famous celebrities as endorsers is predominant in promoting a brand and leading companies invested a large sum of money to endorse their brand (Kim 2012, 1). Celebrities have been one of the preferred endorsers as they have the capability of capturing the customers’ attention due to the fame and status they project (Shimp, 2000; Till & Ship, 1998 quoted in Kim 2012, 1). Celebrity endorsement is defined as ‘an individual or organisation of repute is used to endorse the products, services or activities of another organisation’ (Canning and West 2006, 2). Celebrities
Since social media users grow larger and larger, many companies take the opportunities of using social media marketing to reach more customers. Companies use social media marketing in order to achieve marketing communication and branding goals. Social media allows companies to see what prospects are saying about their brands and competitors. It also allows companies to build deeper relationships with existing customers that drives them to purchase again and again. Not only it can help them generate new leads, but it allows them to build deeper relationships with existing clients that drives them to purchase again and again. It has become common for businesses to branch out and experiment with multiple networks with the aim of reaching the maximum amount of costumers.
Social media is a form of online communication channels devoted to society input, intercommunication, and cooperation. In social media, people can talk and interact without restriction, exchange and debate information with each other about their lives by using many different combinations of the words, personal multimedia, photos, and videos. Also, in social media, individulsa and groups can create, edit, comment on, and engage in personal conversations. There are numerous types of social media, for example, wikis, blogs, social network site, micro blogging services, and sites sharing media. At the beginning, social media was limited to a few networks sites, for instance, Bulletin Board System that allows people to communicate with each other and post a comment. Today, social media has transformed from ineffective sites to more useful and effective websites, for example, Facebook, and MySpace. Some companies are using social media to achieve their goals which is attracting more customers to company website. Three advantages of using social media in business are: raising brand consciousness, building customer relationships, and increasing performance measurements.
Macro-environment analysis: Opportunities and Threats PESTLE Analysis Market Analysis The overall industry saw a strong boom rate from 2010-2014. The global hotels & motels industry had total revenues of $677.1bn in 2014, representing a compound annual growth rate (CAGR) of 4.6% between 2010 and 2014. In comparison, the Asia-Pacific and US industries grew at CAGRs of 6.6% and 5% respectively, over the same period, to reach respective values of $163.7bn and $166.2bn in 2014 (Global Hotels & Motels 7). The reason for this growth is due to the Asia-Pacific Region and the Americas.
Endorsement is a form of advertising of a certain product or service where famous personalities or celebrities who gain a high recognition among the people are being used to promote the product or service. The images of these endorsers are the influence that will make the customers to buy.
A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. For this reason, some say that "pest" is an appropriate term for these factors. Let us look at the PEST analysis of the Indian aviation sector: