The marketing envoirment

Company - HERO CYCLES

Hero Cycles is a product of four Munjal brothers, hailing from a small town called Kamalia, now in Pakistan, are the men who are behind the mission In the year 1944, they decided to start a business of bicycle spare parts in Amritsar. Its is modest beginning and the next 3 years saw the business grow rapidly From a modest beginning of mere 639 bicycles in the year 1956, Hero Cycles products over 18500 cycles a day today, the highest in global reckoninThe Hero Group, today, is a vast conglomerate of companies, either in the form of collaborations, joint ventures or fully owned subsidiaries, with more than Rs. 10000 Crore turnover annually. Hero Group, besides being the world’s largest manufacturers of bicycles, motorcycles and chains to this date, has diversified into newer segments like Information Technology, IT Enabled Services and Financial Services.

What is marketing environment ?
The marketing environment surrounds and impacts upon the organization. There are three key perspectives on the marketing environment, namely the 'macro-environment,' the 'micro-environment

The micro environment
This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders like organization structure,culture and resources
In other words, these are elements that can be manipulated, or used to glean information, in order to provide fuller satisfaction to the company’s customers. The objective of marketing philosophy is to make profits through satisfying customers. This is accomplished through the manipulation of the variables over which a company has control in such a way as to optimise this objective. The variables are what Neil Borden has termed ‘the marketing mix’

Company case hero cycles

Customers

Organisations survive on the basis of meeting the needs, wants and providing benefits for their customers

hero cycles has a customers of all the classes and age group some buy them for exercise purpose and some for some another purpose because they can afford the bicycles only .Parents of kids form a long part of customers of hero cycles

employes

Employing the correct staff and keeping these staff motivated is an essential part of the strategic planning process of an organisation.

suppliers

Increase in raw material prices will have a knock on affect on the marketing mix strategy of an organisation Closer supplier relationships is one way of ensuring competitive and quality products for an organisation.

in case of hero cycles hero cycles has a very close relation with their supliers situated in germany italy and uk .the company take spare parts from them

Competitors

Competitor analysis in markting and strategic manegement is an assessment of the strengths and weaknesses of current and potential competiors

the basic competitors of hero company are

atlas , hercules , phillips , B.S.A.

The macro environment

This includes all factors that can influence and organization, but that are out of their direct control. some of them are

1) political factors
To many companies, domestic political considerations are likely to be of prime concern Many of the legal, economic and social developments, in our own society and in others, are the direct result of political decisions put into practice, for example the privatization of state industries or the control of inflation.

2) economic factors
Economic factors are of concern to marketing firms because they are likely to influence, among other things, demand, costs, prices and profits. These economic factors are largely outside the control of the individual firm

3) socio culture factors
this is the the most difficult element of the macro-environment to evaluate, manifesting itself in changing tastes, purchasing behaviour and changing priorities

4) technological factors
Technology is a major macro-environmental variable which has influenced the development of many of the products