ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

The STEEP Analysis – What to analyse in the marketing environment

Updated on January 25, 2016

The STEEP Analysis is used in marketing, it is a method to analyse the macro-economy of the firm to determine which factors can influence its success. This model is the updated, ‘modern’ version of the ‘PEST ’ model and plays a very important role in the companies’ marketing strategy.

STEEP analysis in progress
STEEP analysis in progress | Source

What about the micro-economy?

  • The analysis which can analyse the micro-economy of the company is the SWOT.

The word itself, STEEP is an acronym for the following words:

  • Social
  • Technological
  • Economic
  • Ecological
  • Political (and legislative)

Basically anything can fit into these ‘categories’, so once this analysis is done, the firm can have a detailed overview on what factors determine the present trends and what can be predicted for the future.

In the following points you can find most of the important factors that can determine the above mentioned macro-economy. Companies usually have no influence on these factors, so they have to accept them and somehow try to adapt them and also try to take great advantage of them.

The economics machine
The economics machine | Source
Consumers are always very important!
Consumers are always very important! | Source

Social factors

  • population of the consumers
  • age of the consumers
  • sex of the consumers
  • marital status of the consumers
  • educational level of the consumers
  • profession, residence of the consumers
  • ethnicity of the consumers
  • habits of consumers
  • the extent of local migration/mobility
  • social values
  • religions
  • traditions
  • approach of consumers
  • number of births

Technological factors

  • expenditures
  • innovation
  • expansion
  • changes in technology
  • patent regulations
  • life-cycle of products

The Circular flow of income
The Circular flow of income | Source

Economical factors

  • extent of economical growth
  • inflation
  • income of the consumers
  • taxes
  • subsidies
  • exchange rates
  • savings
  • loans and the conditions to get a loan
  • rate of unemployment
  • rate of investments
  • price of energy

Environment has to be important for everyone
Environment has to be important for everyone | Source

Ecological factors

  • natural resources
  • the price to exploit these resources
  • pollution
  • protecting the environment
  • environmental regulations

Political and legislative factors

  • political stability
  • the political system
  • competition laws
  • regulation of monopolies
  • tax policies
  • price regulations
  • financial regulations
  • regulation of export
  • regulation of import
  • consumer protection
  • protection of markets
  • other special regulations of products
  • jurisdiction
  • trade unions

What can the firm use and do to determine the impact of these factors?

  • using predictions (for example for technology or economy /like weather forecasts/)
  • group analysis (of the consumers)
  • press analysis (to strain off some important social trends)
  • analysing trends (like how will the number of consumers change)
  • analysing the lifestyle of consumers (like what they prefer or how they react to something)
  • analysing the resources of the company itself (what will and can the company do)
  • determining the capabilities of the firm (how can the company achieve further success)
  • using the results of the SWOT analysis (micro-economical impacts)
  • analysing the competitors (what will they do)
  • create scenarios to predict the possible impact of these factors (how can the company react to something)
  • analysing the economical regulations (of the country where the firm is located)
  • creating surveys and analyse the answers given to them (asking the consumers themselves)

Share your ideas!

Please feel free to comment on this hub, your feedback is very much appreciated!

Or, if you feel that you can write fresh, new ideas about this or a similar topic, just join our community and start writing!

© Copyright 2012-2014, Zsofia Koszegi-Nagy (zsobig)

© 2012 Sophie

Comments on the topic

    0 of 8192 characters used
    Post Comment

    • profile image

      Farhan ahmadf 

      4 years ago

      Its nic i learn a lot of things here

    • profile image

      Afzaal Hussain 

      4 years ago

      good sir i absolutely like it

    • FSlovenec profile image

      Frank Slovenec 

      5 years ago from San Francisco, CA

      Well done this is a Bookmark article for reference. When I consult in the sales organizations of my customers this will come in very handy as a reminder of the market forces and internal forces that may impact the success of the company. thanks

    • profile image

      Vasudevan 

      5 years ago

      Really good material - easy to capture the essence of it. Please do add some comments on the advantage and disadvantage of doing STEEP.

    • Mama Kim 8 profile image

      Sasha Kim 

      6 years ago

      This sort of thing is usually way over my head but you've done a wonderful job making it easy to understand! Thank you! Voted up and interesting!!

    • zsobig profile imageAUTHOR

      Sophie 

      6 years ago from United Kingdom

      Thank you for your nice comment Karine!

      thanks for the tip, you were right, it is much better already this way! :)

      Best wishes and thanks again a lot!

    • Karine Gordineer profile image

      Karine Gordineer 

      6 years ago from Upstate New York

      Hi Zsofi...Great Hub! I'm glad you included the Ecological Factors as more and more companies ARE factoring this in. One thing to note is companies are also beginning to ask themselves, "If we had to pay to replace this resource what would the cost be?". I loved seeing that in your model. I thought the Hub was a great overview and the drawing was great. One thing, if you can make the STEEP Analysis Flowchart larger I think that would help readability but other than that it was great!

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)