Wednesday, March 6, 2019
Marketing Strategy of Groupon: Case Study
Marketing exercise Study about Groupon. com Groupon Finding Strength in Numbers incase Study 14. 1 talks about the new earnings coupon sensation Groupon. Groupon was recently disc all overed in Chicago to gain moving picture to new tunees through discounted membership get alongs and has been on the rise ever since. This particular case study attempts to elaborate on the success of Groupon and how it works. The e-coupon was designed to friend business proprietors appeal to new prospective consumers by advertising congregation discounts on products and services. So far, the website advertises business in 45 major U.S Cities and has over 2 million subscribers. There argon a range of businesses that are advertised on the website. You can find discounts on spa packages, concert tickets, dinner and dessert specials, and more. The way it works is, the business owner makes a deal with the website by offering a discount on a product or service and tells how much they are willing to don for it and the amount theyre willing to give away. Then, Groupon advertises the offer for a restrict time and receives a finders fee once consumers leveraging the deals.The business has full control over the minimum and maximum image of deals theyre willing to offer. If the deal doesnt appeal to consumers then there is no financial loss to the business owner. The intention of the business owner is non to gain a lot of profit from the deals made sooner the intent is to drive traffic to the business once the deal is over. Moreover, the get of Groupon to the producer comes after the deal is over and the benefit of Groupon for the consumer comes while the deal is still going on.Questions for Critical Thinking 1. Coupons are a tried-and-true forward motion method, and the Internet includes other couponing sites. How does Groupon differentiate itself? Groupon differs from other couponing sites in the sense of the show up taken to advertise the businesses featured on its site. The creators of this e-coupon site suck up taken into consideration that people are enjoying many products and services in a group setting. Events such as concerts, plays, and dinners usually arent partaken in alone Its very beneficial to the onsumer to find and purchase discounts for these products for not and themselves, but for friends and family as well. Many other coupon sites only allow access to one coupon per person, but Groupon makes it easy and expedient for one person to obtain multiple coupons for multiple people. 2. Groupons business strategy harnesses what it calls collective buying power. What facets of the marketing environment have enabled a business like Groupon to emerge and become uccessful? The new age technology and ability to advertise via the web definitely plays a major percentage in the success of Groupon. Many businesses do their marketing on the internet and consumers are doing a lot of buying on the internet as well. This opens the door for many w ebsites like Groupon to act as the middleman for sellers and buyers. Also, with a large number of businesses advertising online, it makes it easier for Groupon to compare prices and negotiate unbeatable deals.