Rent-A-Car Marketing: Contemporary Issues, Analysis and Strategy

This report analyzes the contemporary issues in marketing within the context of Rent-A-Car, a UK-based car rental company. It begins by introducing the organization and its services, followed by an examination of marketing theories in relation to the external and internal business environments, utilizing PESTLE and SWOT analyses. The report then evaluates the marketing mix (7Ps) and the STP model as applied by Rent-A-Car, highlighting their importance in creating value and targeting potential buyers. The analysis covers aspects such as product development, pricing strategies, promotional activities, and the significance of people and processes within the organization. The report concludes by summarizing the key findings and their implications for Rent-A-Car's marketing strategies.

Contemporary Issues
In Marketing

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Introduction to organization .......................................................................................................3
Marketing theory in relation to external and internal business environment .............................3
Marketing Mix ...........................................................................................................................6
STP Model..................................................................................................................................7
EVALUATION .........................................................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Contemporary issues is described as issues that is affecting the people or places on the
basis of current scenario. It terms of the marketing there are issues that are related to the global
economies that make impact in the business. These issues affects the working of business
organisation and make changes in accordance to the competitors and the way other business
are conducting their business(AlMarwani, 2020). There are multiple issues that affects the
operations of the business such as stock market, growth and declines in the economics, financial
influence, role of the government, recession and many more. This report is being made in the
context of a car company in the UK which is Rent A Car which provides a wide range of car
collection in UK with its rental facilities. The aim of this report is to highlight the knowledge
and understanding of the marketing process in the context of company and evaluation of the
concept of the marketing mix with the company product and services.
TASK
Introduction to organization
The organisation of Rent-A-Car is an enterprise that provides the facilities of car with its
wide range of collection and rental facilities. It has its headquarter in Clayton which holds a
brand value in auto mobile industry. This enterprise has made the service of car rental very
flexible and convenient for its users, who can have easy access to the service of cars. It operates
all over the world with its qualitative rental service for the facility of transportation. The
widespread network of such cars has expanded its business on global platform with easy facility
of rental cars with its wide range of collection.
Marketing theory in relation to external and internal business environment
Marketing is the process of making plans for making public aware about the company
product and services and in order to sell them effectively with appropriate profit generation. The
whole process of marketing is start with making plans in the execution of the products in the
market with the effective pricing and promotion strategies that not only satisfy consumer needs
but also attract more and more customers through their effective techniques (Arislanovna and
Bakhtiyorvich, 2021) . The aim of marketing process is to inform customers about the company

goods and services. Through this process consumer get to know about the value and the use of
the products. It also helps in brand awareness.
External Business Environment: There are various aspects that helps in determining the
the environment for development of business(Beynon-Davies, 2021). The tool of PESTLE
analysis serves as a helpful tool for growth and development of auto mobile business in the
market. The PESTLE analysis of Rent-A-Car is mentioned below:
 P- Political elements – The political factor play significant role for stability of car
enterprise that helps in establishing political elements of the country of UK. The political
stability of a country helps in impacting the growth and development of an organization.
It also aims to expand its enterprise with growth in car sector with availability of more
cars for rental services of Rent-A-Car. The change in tax policies has changed the game
of marketing by reducing its sale in the market. The limitations with its restrictions in the
tax policies has forced the enterprise to face many challenges for establishing its place in
the market.
 E- Economic elements – The goals and objectives that are set for achieving the
economic standards for enterprise derives the economic elements of car enterprise. Rent-
A-Car has infused the economic elements of transportation of cars with its financial
capacity and unavailability of employment in the car enterprise. There must be a balance
between the import and export of cars in order to maintain the economic structure of an
enterprise. The fluctuation in the market of UK has created various opportunities for
generation of revenue in the car enterprise.
 S- Social elements – Rent-A-Car should focus on fulfilling the changing needs and
demands of customers in order to maintain a cordial relationship with its people. There
must be manufacturing of quality cars according to the requirements of customers in car
enterprise (Kolev, 2021). The sales of enterprise can go on a hike by customising the
demands of its customers in manufacturing of cars.
 T- Technological elements – Technology plays an important role in manufacturing and
automation of cars. Electric and advanced cars are taking place of manual cars in today's
generation which is fulfilling the advanced need and demand of customers. The
modernisation of cars helps the customers to get cars according to their requirement in

order to be competent and face to face with present technology. Rent-A-Car should
increase its technological standards with modernisation and upgradation of its cars.
 L- Legal elements – Rent-A-Car should maintain its place in market by following the
legal policies with its rules and regulations. The enterprise should follow the vehicle laws
with contract law of employment in order to maintain stability in the market of cars. The
goals and objectives of the organisation can be achieved by following the legal measures
and guidelines.
 E- Environmental Elements – The enterprise of Rent-A-Car should manufacture cars
that are environment friendly. These cars should emit less pollution by following
environmental measures with less usage of technical equipments that emit more pollution
in the air. The usage of carbon footprints must be controlled by manufacturing of more
electric cars instead of manual cars.
Internal Business Environment: The internal working of na business organization can
be determined by evaluation of SWOT analysis that helps in productive growth of a business
which are as follows:
 Strengths – The enterprise of Rent-A-Car posses the facility of GPS tracking system
which helps in tracking of cars from anywhere through the service of GPS system
(Kumar, Shankar and Aljohani, 2020). It has helped in making the rental service of cars
very effective and easy with productive functioning of different and varied facilities. The
usage of GPS system has also helped in strengthening the economic condition of the
enterprise.
 Weakness – Rent-A-Car lacks in the facility of customer service which is not that
effective in relation to satisfaction of its customers. When the needs and demands of
customers are nit fulfilled with their doubts and queries then it creates a dis balance in the
area of enterprise. The brand value of the enterprise is also not that strong that creates a
problem for its growth in the market.
 Threats – The challenge of financial stability is faced by the car enterprise which creates
a very tough competition in the market. The threat of financial stability with growth in
revenue of the enterprise creates a major challenge for its position in the market. The
strong economic situation of other big enterprises creates a major threat for its
positioning in the market.

 Opportunities: It is an available opportunity for companies to promote their products on
various online platform to attracts their clients. The Rent A Car group conduct meetings
with their client via web platform to promote their car agency in the market. It aims to
build trust and brand loyalty in the market (Lahtinen, Dietrich and Rundle-Thiele,
2020). They assess feedback from the clients and use the advertising and promotion
strategy to increase sale.
Marketing Mix
Marketing mix is termed as marketing tactics and strategy that are used to promote
brand and product in the market. It is very common tool that are used by the company to create
large consumer base and reputation in the market (Solimun and Fernandes, 2018). The
commercial enterprises aims to establish brand loyalty in market by using advertising strategy.
They are mainly focus on needs and demand of the potential consumers. The Rent -A Car
disseminate the relevant information in order to understand expectation of their clients,
promotional activities , geographical area and various forms of advertising through which
marketing can easily be done.
There are 7Ps of marketing that are used by the Rent-A-Car are discussed below:
 Product: This is an important element of marketing mix that defines about the quality,
design, shape, usage and effects of the product. The Rent-A Car conduct the research and
development of their product in order to analyse the needs and demand of consumer. The
product is designed to meet the expectation of the potential consumer. The consumer is a
ultimate king of the market. The Rent A car always target their consumer and provide
them best car services to gain competitive advantage. They are providing rental facilities
and wide range of cars collection to many clients.
 Price: Rent -A car is known for its affordable pricing services which helps them to
survive in the competitive market. Pricing plays significant role for the growth of an
enterprise. It gives positive impact on the survival and maximising of profit for company.
It is determined by the Rent A car according to their production cost, location,
competitor's price , labour cost etc. Pricing strategy is used to attract the consumer to use
their car services and hiring facilities.
 Place: Place refers to location and geographical area where the demand of such services
are high. The Rent A car enterprises provides their services through multiple channels to

launch their car facilities in many areas. The distribution channel is used to make easy
accessible of services and product.
 Promotion: It is very common marketing strategy that are used by many companies to
promote their product through multiple sources. The Rent A car promotes their car
services and car hiring opportunities through hoarding and online website to aware the
public about their outstanding services. It grabs the attention of consumer and influence
them to use their services. It helps to connect with various consumer situated in multiple
locations and geographical areas.
 People: Rent A car has many employees , trainers, service provider , managers and
designers that contributes in the growth of their enterprises (Rosetti, 2018). They have
highly skilled workforce that redress the problems of their clients. Human resource is the
key to success of an enterprise. They monitor all the activities of enterprise and
addresses the queries of their consumers.
 Process: Rent A car uses various business process to structured their activities and work
in proper manner. It helps them to avoid mistakes and minimize the cost of expenditure.
This marketing strategy helps the company to preserve their resources in order to avoid
its wastage.
 Physical Evidence: Rent A car provides their services through online platform to
achieve the large consumer base. They provide the car hiring facility at reasonable prices
to easily afforded by the consumers. They operates their business activities through
various distribution channels all over the UK.
STP Model
The STP model is a strategic model that are used to create value in the market. In
this various business activities are divided into multiple parts to ease the mode of doing business.
The Rent A car used the STP model to make effective communication with their consumer in
order to target the potential buyer . It aims to satisfy the need and expectation of their buyers. It
is the most effective tool to promote their products and services in the competitive market. It
examines the quality of the product and communicate its speciality with the buyers. The Rent A
car divided their consumers into smaller group and influence them with their hiring and car
facilities.

 Segmentation: The first phase is dealing with the segmentation and diversification of
consumers to idealise the agency product (Raharjo and Digdowiseiso, 2022). This is also
known as audience segmentation that are done on the basis of country, gender , human
behaviour , taste , hobbies. However, they produce and process their product and services
keeping in mind all the relevant factors that may affect the productivity and profitability
of such enterprises.
 Targeting: After segmentation, the Rent A car examine their future growth and invest
money in product manufacturing to provide multiple facilities to its consumers. They are
targeted the needs and preference of the consumers to increase sale and production
capacity of their enterprises.
 Positioning: It is the last step of STP model, that deals with efforts and technique that
are used by the company to hold reputation and brand loyalty in the market. It involves
unique position of product and services in market to achieve a competitive advantage.
EVALUATION
It is evaluated that growth factor is important to determine the opportunities that helps in
expansion of business. There are various internal and external factor that influence the
performance of organisation in the competitive market. It is important to analyse the available
factor to avoid the future uncertainties and adverse market condition. There are various
marketing tool through which company can overcome the barriers and can promote their product
in market. Rent A car can provide their car services at reasonable price so that potential
consumer get attracted towards their services and product. The strategic model is used to set the
target and objectives to achieve organisational goal. However, they are required to examine
SWOT analysis of company to identify the available opportunities and threat that may affect the
crucial functioning of an car enterprises. So, evaluation is necessary to consider the forces that
helps an organisation to attain desired goal.
CONCLUSION
From this report, it has been concluded that contemporary issues of business is based on
various marketing mix and business strategy that allows them to grow their business at large

scale. The internal and external factor plays significant to role in diversification of business. The
strategic model helps the enterprise to frame long term and short term plans to achieve higher
growth in the competitive market. It ensure better understanding of business environment to deal
with adverse situation of the market.

REFERENCES
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