2. Groupon is a marketing tool which is an
American based e- commerce marketplace.
It was founded in 15th January 2008.
Its founders are Eric Lefkofsky, Andrew
Mason, Brad Keywell.
Its headquarters are in Chicago, Illinois,
United States
3. According to survey of 2016, it has 55 million
customers/subscribers.
Groupon is working with the service of deal-
of-the-day.
Every day, an electronic coupon is announced
by it.
This coupon allows discount on purchase
from 40% to 60%.
4. Slow Season Boost
Sale of Complementary Product
Move Stale Merchandise
Advertising
Builds relationships
Helps to move inventory
5. Get advantage over its competitors
Increased revenue or sales
Huge number of customers
Build a better image about the user’s
business
6. Groupon attracts large customers by
providing them coupons of discount offers
Increased customers increases revenue of the
business.
With effective advertisement it builds a better
image of the business of the users.
7. It is a commission-based service.
Groupon makes money by charging
commission fee.
This commission is some %age of the total
revenue earned under the offer provided by
Groupon.
It is working on the basis of transparency.
8. Customers, revenue and sales of the users
are increasing with Groupon.
Merchant's satisfaction level is 79%.
With online marketing strategy, Groupon is
promoting products of its users remarkably.
Credit card sales offer also increase the sales
by providing purchase opportunities to
customers.
9. Increased Traffic
High-volume Sales
Best Foot Forward Strategy
Personal Follow-up
Up-selling
Promotion of products by advertising
11. Among these three provided industries:
Merchant industry is getting benefit from
Groupon at most
Retail industry is getting befetit at least from
Groupon
12. Discount coupons creates price
discrimination
If multiple vouchers are bought by same
customer then benefit of it reduced for
merchant.
This practice is effective for new and
unknown business.
Discounts offers may reduce the value of
regular customers.
14. Discount vouchers are not effective always
and for all.
It should be preferred by new and unknown
business for promotion.
Before becoming a user of Groupon, it is
better to review own marketing strategies.
Discount offers may reduce the value of the
products so they must be offerd in a limited
volume.
15. Every business is different from other on the
basis of:
Nature
Area
Industry
Products
Services
Due to these differences every services fro
promotion or marketing must be selected by
considering these differences.
16. Byers, J. W., Mitzenmacher, M., & Zervas, G. (2012, June). The
groupon effect on yelp ratings: a root cause analysis.
In Proceedings of the 13th ACM conference on electronic
commerce (pp. 248-265). ACM.
Gilman, R. (2011). Groupon: Marketing model. American
Agent & Broker, 83(2), 20-22.
Sabourin, V. (2016). Multi Sided Platforms (MSPs) Value
Captation and Monetization Strategies: A Strategic
Management Perspective. Business Management and
Strategy, 7(1), 189-205.
Dholakia, U. M. (2010). How effective are Groupon
promotions for businesses?.
