As product managers, we need to understand the different worlds that our customers operate in. A PEST analysis is a strategic business tool used to capture, organise and analyse the external macro-economic factors impacting our customers that in turn impact the success of our product now and in the future. It is a valuable tool for market research and helps understand and forecast market growth or decline; it highlights opportunities, helps mitigate risk and steers our decision making.
Market segmentation is one of the key accountabilities of a product manager. As product managers, we need to be able to make sense of our markets in order the build the right thing at the right time and the right price.