pest is not_a_pest

PEST IS NOT A PESTJohanna Heinonen

POLITICAL FACTORS

How politics influence on the businesses, competition, money value and customers?

This can be studied with following questions: How stable is the political environment? Will government policy influence laws that regulate or

tax your business? What is the government's position on marketing ethics? What is the government's policy on the economy? Does the government have a view on culture and

religion? Is the government involved in trading agreements such

as EU, NAFTA, ASEAN, or others?

SOCIAL AKA SOCIOCULTURAL FACTORS

What is the dominant religion / culture / trend? What are attitudes to foreign/domestic products and

services? (in tourism: tourists/foreigners) How much time do consumers have for leisure? What are the roles of men and women within society? How long are the population living? Are the older

generations wealthy? What is the social and educational status in general? Do the population have a strong/weak opinion on green

issues? In foreign trade: how important are the language skills?

TECHNOLOGICAL FACTORS

Does technology allow for products and services to be made more cheaply and to a better standard of quality?

Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc?

How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc?

Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Management (CRM), etc?

How important is technology in creating images, reputation or marketing (e.g. Tripadvisor, FB)?

ECONOMICS?… and tourism?

GLOBAL TOURISM

Tourism demand depends above all strongly on the economic conditions in major generating markets. When economies grow, levels of disposable income

will usually also rise. A relatively large part of discretionary income will typically be spent on tourism

A tightening of the economic situation on the other hand, will often result in a decrease or trading down of tourism spending.

GLOBAL TOURISM2003World Exports of mechandise and commercial services(Balance of Payments,Goods and Services Credit)

USD billion Share (%) Share (%)Total 9 089 100

Merchandise exports 7294 80Agricultural products 674 7Mining products 960 11Manufactures 5437 60Other 223 2

Commercial services 1795 20 100Transportation 405 4 23Travel 525 6 29Other 865 10 48

TOURISM IN FINLAND

• Finland was visited by 7,3 million foreigntourists 2011

• 5,5 million overnight stays were registred(24,6 mill. Unregistred)

• Income from tourism balance was 2,7 billioneuros

• Top countires were : Russia 23%Sweden 10%Germany 10%Great Britain 7%

TOURISM IN FINLAND

Vuosi GNP mill. € Export product and services mill. €

Income fromtourism balance

mill. €

The share of incomebalance from the export

of p & s

1990 89 316 20 123 752 3,7 %1995 96 064 35 037 1 200 3,4 %2000 132 195 57 606 1 529 2,7 %2005 157 429 65 744 1 757 2,7 %2010* 179 721 72 099 2 189 3,0 %2011* 191 571 74 870 2 768 3,7 %

GNP: Gross National Product is the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country. GNP is one measure of the economic condition of a country, under the assumption that a higher GNP leads to a higher quality of living, all other things being equal.

TOURISM BALANCE: As an item in the Balance of Payments, Travel (Tourism balance) accounts indicate the ratio between the receipts and expenditure of international tourism of a given country. The balance is positive when receipts from non-resident tourists (credit) are bigger than the expenditure of resident tourists abroad (debit). The balance is negative when debit exceeds credit.

RELATIONSHIP BETWEEN HOUSEHOLDS AND COMPANIES

HOUSEHOLDSCOMPANIES

Sales proceeds

Commodities

Production factors(LABOUR)

Income fromproduction factors

RELATIONSHIP BETWEEN HOUSEHOLDS, COMPANIES AND BANKS

HOUSEHOLDSCOMPANIES

Sales proceeds

Income fromproduction factors

BANKS

Savings FinancingInvestments/Loans

Consumer paysfor products

HOUSEHOLDPRODUCERCOMPANY

FACTOR MARKETExchange of services

PRODUCT MARKETExchange of commodities

Consumer buysproducts

Company gives loans and pays salaries

Consumer gets salary and loan

Consumersown

products

Companies get workers

Companiesproduce products

Consumerswork

The color green describes the movement of moneyThe color blue describes movemet of products and labour

RELATIONSHIPS BETWEEN HOUSEHOLDS, COMPANIES, BANKS AND THE PUBLIC SECTOR

HOUSEHOLDSCOMPANIES

Sales proceeds

Income from the production factors

BANKS

Savings FinancingInvestments/Loans

The public sector

Taxes

Taxes

Subventions, supports, transfers

Subventions, supports, transfers

RELATIONSHIP BETWEEN HOUSEHOLDS, COMPANIES, BANKS, THE PUBLIC SECTOR AND FOREIGN COUNTRIES

HOUSEHOLDSCOMPANIES

Sales proceeds

Incomes fromproduction factors

BANKS

Savings FinancingInvestments/Loans

The publicsector

Taxes Subventionsand support

TaxesSubventionsand support

Foreigncountries

Foreign debt

Export costs

Export costs EU

Membershipcosts

Aid

INTEREST THE EUROPEAN CENTRALBANK

FINLAND’SBANK

THE NORMAL BANKS

CUSTOMERS

Increases the referenceinterest

Increseas intreston the bank

loans

Increses the usual interests

on loans

ECONOMIC FACTORS

Here marketer studies a trading economy in the short and long-terms on domestic and/or international markets and tries to foresee its affects to business and demand Interest rates Economic fluctuations Employment level and its development Taxes and their developmentRaw material and its price