Imagine this. You are tasked with exploring new approaches to appeal to a target audience which has been identified as containing a high probability of matching your ideal client profile (ICP). The approaches may include reviewing your go-to-market strategy, producisation of solutions, commercialisation of said solutions, and the antipacted pipeline and funnel activities once you gain traction. The trap many fall into time and again is to review the task as an isolated case, focus on micro factors, and deliver a 'text book' proposition often found in many pitch decks which contain the same structure and approach as many others in the technology industry. Why then, is this approach often a harder sell and more difficult to close?
How do you feel? The argument which presents the very real possibility that technology, automation, and ai will one day make many roles obsolete is not just down to the process efficacy and efficiencies of the said solutions, but to the very simple fact that we are, always have been and always will be an emotional-driven species. Even the most stoic of individuals will never be able to compete with the direct, pragmatic, and solution-driven programming that technology is capable of completing in mere milliseconds. Humans require time to ingest, process, assess, challenge, and then find probable solutions based on outcomes which are restricted by their experience or the experiences of the teams around them. So, what happens, is we tend to fall into making the same or similar mistakes without considering a wider, global perspective which has an impact on us all whether or not we choose to consider it. Global Marco-Environment The way to start understanding individual behaviours and what may result in a successful negotiation or engagement or not, is through studying and connecting how global macro-environmental impacts filter down and impact each link to the meso and micro-enviromental environment.
To start this process, one of the greatest strategic frameworks is the PESTLE analysis. The PESTLE analysis, is a strategic tool used to identify and analyse the key drivers of change in the macro-environment. Originally theorised in 1967 by Francis J. Aguilar through what was then the ETPS (Economic, Technical, Political, and Social) framework, the intention was to "scan the business enviornment". The frameworks original intention is not dissimilar to what we use it for today, where organistions systematically survey and interpret the external environment, ensuring they remain responsive to changes that could impact their operations and strategy.
Over time, the ETPS framework evolved to include additional elements, becoming known as PEST (Political, Economic, Social, and Technological). The framework was further expanded to incorporate Environmental and Legal factors, resulting in the PESTLE (or sometimes PESTEL) acronym. Each element of the PESTLE analysis provides a lens through which organisations can assess external influences:
Political: Government policies, stability, and regulations.
Economic: Economic growth, exchange rates, inflation rates.
Social: Cultural trends, demographics, and population analytics.
Technological: Technological advancements and innovation.
Legal: Laws, regulations, and legal constraints.
Environmental: Environmental and ecological aspects.
The PESTLE analysis is a crucial tool in strategic planning, helping organisations to anticipate market trends and adapt to changes in the external environment.
How does this affect me? This matters. Setting a structure to how each 'finding' from the macro-environment can impact each cascading category will begin to present 'links' in what will result in the probable route a strategist should take to reach their desired outcome. The problems arise when you begin to notice that many of the ways media is consumed is through a varierty of different mediums, form factors, channels, creators, sources, and so on. This is already challenging traditional ways we segment audiences and archetypes. How individuals consume media not only impact their decision making process, but even their behavioural and personal manners of communication. The increased exposure to media in the United States has resulted in the adoption of trends, habits, politics, and linguistics to create a blend of how each country now operate under the prominence of the English language. This is increasing with the rapid rise of short-format video social content which is now the most consumed media.
So, the question is, "How far reaching is the PESTLE analysis?", and "How much consideration do we need to give to S (Social)?". What themes, discussions, or topical events are happening which will alter how an individuals decision making process is affected? Couple this with the fact that dynamic and algorithmic targeting is presenting specific niche audience segments with tailored user-journeys, targeted content, and prioritised comments; then the study into what really impacts a decision can quickly get very deep and extremely complicated.
What does this mean?
When an individual is in the midst of a economic down-turn, with pressures to meet targets and deadlines, with uncertainties in securities in different industry verticals, inflation reaching turbulent levels, and bipartisan political ideals begin to overlap in to everyday social life, the strain can be overwhelming. Navigating through an economic downturn requires resilience and adaptability. Meeting targets and deadlines becomes increasingly challenging as market conditions deteriorate, consumer confidence wanes, and spending declines. In such times, individuals often face job insecurity, especially as companies may undergo restructuring or cutbacks across various industry verticals.
Inflation, at turbulent levels, erodes purchasing power, making everyday expenses more burdensome and saving increasingly difficult. The cost of living rises, impacting everything from groceries to housing. This financial strain can exacerbate stress levels, affecting both personal and professional life.
Additionally, when bipartisan political ideals begin to overlap into everyday social interactions, it can create an environment of heightened tension and division. Social discourse becomes polarised, with individuals often feeling pressured to align with one side or the other. This can lead to strained relationships and a sense of instability in the community.
So, what does one do when feeling stressed and overwhelmed? They seek momentary distraction through escapism and procrastination - which further exacerbates the issue, further fueling the heightened sense of insecurity which adds to the pressure to not only succeed but to stay safe. Thus altering the psychology behind what it means to make a business decision. The solution, is to not try and find an answer to this ever-growing cyclical issue we have in this moment in time; but instead to stand out by being compassionate, understanding, and most importantly human.
Conclusion
In today's fast-paced, technology-driven world, the complexity of appealing to a target audience goes far beyond traditional approaches. The challenge lies in not only understanding the micro factors but also in integrating insights from the broader macro-environment. The PESTLE analysis serves as a valuable framework for navigating this complexity, offering a comprehensive view of external influences that shape market dynamics. However, amidst economic downturns, political polarisation, and rapid technological advancements, the human element often gets overshadowed.
The solution isn't simply about refining strategies or leveraging the latest technologies. Instead, it requires a shift towards empathy, compassion, and genuine human connection. By understanding and addressing the emotional and psychological needs of your audience, you can create more meaningful engagements and build lasting value-driven relationships.
Ultimately, in a world where automation and AI continue to rise, it is our ability to remain empathetic and human that will set us apart. By embracing this approach, you can not only navigate the complexities of the market but also foster a loyal and engaged client base, ensuring long-term success in an ever-evolving landscape.
Disclaimer: The thoughts and opinions expressed in this post are solely my own and may not reflect the views of my professional connections.
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