Rent-A-Center Case
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Introduction
According to University of Phoenix Basic Marketing. A Marketing Strategy Planning Approach, 18 Edition (2011), “Marketing is the performance of activities that seek to accomplish an organizations objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client.” In the rent to own world of top name brand furniture, home appliances, and electronics Rent-a-Center is the largest of its kind. Rent-a-Center was originally incorporated in 1986 and as of 2011 operates more than 3,000 stores within the United States, Canada, Puerto Rico, and Mexico. Rent to own is great for the working class Americans who want name brand product, at prices that work according to their payday without a long term commitment. Rent-a-Center has managed over the past 30 plus years to reinvent themselves through their marketing strategies to implore more people towards the rent to own industry.
Product and/or Service
Product is the first item in the marketing mix, because without the product, there is nothing to sell. When determining a product, the item or items must satisfy what a consumer needs or wants. Rent-a-Center carries name brand furniture, home appliances, and electronics. Brand recognition is essential for a product long term sales. I have found that when dealing with brand name products, the quality of the product is higher as well. This can all be illuminated through the marketing tactics such as fliers, commercial advertising, and word of mouth. When walking into a Rent-a-Center store, a person is able to see on the sales floor almost every type of product that is sold. They offer an appealing variety of name brand products such as Ashley Furniture, Whirlpool Appliances, and Sony Electronics. They have been able to determine with these products not only the brand name, but the quality, design, and features that would be most appealing for their customers. Rent-a-Center also provides quality service on all their products during the rental process provided their highly trained staff. When choosing the product to be sold, other variables must be taken into consideration such as price, promotion and placing of the product and Rent-a-Center branch.
Price
The price is the amount a customer pays for the product. When determining the price of the product the list price, discounts, payment periods and credit terms must be taken into consideration. This is where value is put on the product or service that you are selling. When determining the price of a product, other decisions such as retail price, seasonal pricing, and volume and wholesale pricing must be taken into consideration. The retail price, the cost of manufacturing and materials used is what is going to determine the overall price of a product. Rent-a-Center sets their prices according to a weekly, bi-weekly, and monthly payment schedule. They must figure out a price that is going to work within the means, not only of the overall product, but for the consumer to be able to make payments on and after a 24 to 36 month period, be able to own the product. However if it is a service, as Rent-a-Center does offer service, manpower and equipment are a couple of things that will need to be taken into consideration. Seasonal pricing is something that holds a great deal of value in Ohio. We see all four seasons, sometimes all in one day. When we are shopping for a product or service it clearly depends on what season we are in and how useful that item is going to be at that time. Rent-a-Center becomes very busy during the Superbowl with customers needing big screen televisions and/or large sectional couches; this is a “season” the branches have become familiar with. Finally volume and wholesale pricing is something to take into consideration