Groupon as a Marketing tool

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

10.  Small Business
 Merchants
 Retailers

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.

13.  International expansion fail
 Brand Failures
 Worst Marketing For Your Local Business

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?.