Essential Marketing Concepts: PESTEL, Branding, and Pricing

Posted on Nov 3, 2025 in Business Administration and Management (BAM)

Essential Marketing Concepts and Definitions

1. PESTEL Analysis

PESTEL is a framework used to analyze the external macro-environmental factors (Political, Economic, Social, Technological, Environmental, and Legal) in the country where the business activity is taking place that may affect the company.

PESTEL Components:

  • Political: Current government policies, possible changes, political stability. This can be closely linked with legal aspects.
  • Economic: Factors related to consumer spending and income:
    • Changes in consumer spending (variation in societal consumption/expenditure).
    • Changes in income (variation of minimum wage, general income variation).
  • Social (Demographic and Cultural): Study of the demographic environment, including:
    • Changing age structure in populations.
    • Increased education levels, greater diversity, and migratory movements.
    • (See more examples on power 1.2.)
  • Technological: Advances such as the internet, new medicines, and surgery, but also potential negative impacts.
  • Environmental: Factors related to sustainability and resources:
    • Environmental friendliness and sustainability concerns.
    • Shortage of raw materials.
    • Increased pollution.
    • Increased government interventions regarding climate and resources.
  • Legal: Marketing and market regulations, compliance requirements.

2. Positioning Map Definition

A positioning map is a marketing analysis tool used to graphically represent the situation of your company or product in relation to the competition according to several criteria (e.g., price vs. quality). This helps you determine your current market position in order to adopt the necessary marketing strategies to achieve business goals.

3. Market Definition and Segmentation

A Market is defined as the set of all actual and potential buyers who have sufficient interest in, income for, and access to a product.

Market Segmentation

Market segmentation divides the total market into distinct groups of homogeneous consumers who have similar needs and behavior. Consequently, these groups require similar marketing mixes.

The more finely the market is segmented, the better the brand will understand the needs of the consumer, and the more effectively the brand can implement its marketing programs.

4. Brandbook Essentials

A Brandbook (or Brand Style Guide) provides the essential information and guidelines necessary to maintain a unified, homogeneous, and identifiable presence for your brand.

Key Components of a Brandbook:

  • The main information about internal aspects (brief general brand description, positioning, corporate identity).
  • The guidelines detailing how all aspects of a brand will be handled.
  • Rules for creating a consistent brand presence across all platforms.

Typical Contents:

  • Overview of the brand and its values.
  • Logo usage rules.
  • Corporate typography (fonts).
  • Corporate colors (color palettes).
  • Minimum size requirements for visual elements.
  • Correct and incorrect usage examples.
  • Applications across different media.
  • Tone of voice guidelines.

5. Price Strategies

Common pricing strategies include:

  • Even/Odd pricing (e.g., $9.99 vs. $10.00).
  • Pricing according to perceived value.
  • Reference pricing (comparing to competitors or previous prices).
  • High price/Prestige pricing (setting a high price to signal quality or luxury).

6. Packaging Requirements and Functions

Packaging serves multiple functions in marketing and consumer perception:

  • Perception
  • Differentiation
  • Association
  • Mirror function
  • Argumentation (justification)
  • Information
  • Seduction

Mandatory Information Points (Food Labeling):

Specific regulations govern the display of mandatory information, especially for food products:

  • Letter height requirements:
    • Letter height (‘x’ height) should be equal to or higher than 1.2 mm.
    • For packs or containers whose surface is less than 80 square cm, the letter size (‘x’ height) shall be equal to or higher than 0.9 mm.
  • Mandatory food information must be provided in the official language and the language of the countries where the product operates.
  • The degree of alcohol must be indicated when it exceeds 1.2%.
  • Nutritional information and ingredients lists are mandatory for most foods.
  • Special care must be taken to highlight ingredients that are allergens or can cause intolerance.
  • Note: Not all food products are obligated to display mandatory nutrition information (e.g., unprocessed products).

7. Pillars of Corporate Reputation

Corporate reputation is built upon several key dimensions:

  • Social Responsibility: Support for good causes and ethical operations.
  • Emotional Appeal: Generating positive feelings, admiration, and respect among stakeholders.
  • Goods and Services: Delivering high-quality products and services.
  • Workplace Environment: Providing a positive and supportive environment for employees.
  • Financial Performance: Demonstrating strong performance and low-risk investment potential.
  • Vision and Leadership: Ability to identify market opportunities and provide strategic direction.