Case Study: Groupon

Case Study: Groupon

The value that Groupon provides to people is to gather people as groups who have same purchasing purpose in order to acquire lower price of products or service with some discounts through the Internet and the force of social media. Groupon devote to provide a proper price to consumers and help people save money, which way has saved consumers more than 2 billion dollars during 2-year period. Moreover, Groupon believes using Internet to get a discount from their websites is pretty convenient. Thus, Those ways is also more effective and easier for millions of costumers to compare or know about the cost performance of products and then choose high-value deals in anywhere. I think this’s a very good model that frugal people plus Internet can gratify people’s purchasing desire and stimulate different small business.

The promotion mix is composed of four element, which is advertising, personal selling, public relation, and sales promotion, to be used as tools by marketers so as to promote their products and services they’re selling. First, advertising is one of promotional path to encourage and pursued human purchasing product and service, which forms include retail, trade, B2B, institutional, product, advocacy, comparison and interactive, etc. And the types of advertising have newspaper, TV, magazine, outdoor, direct mail, Internet and mobile, etc. Second, personal selling is a way of face-to face selling goods and services, and is also a close way to sell your products to your client and then help people solve the problems about their purchases. Third, public relations is the department of a company that listens to the public and evaluates their ideas like forming a “focus group”, changes the polices and procedures that earn the public’s trust and loyalty, and also informs the public about initiatives in response to customers’ concerns and opinions. The goal of this activity is to improve internal management and product quality. Four, sales promotion is for stimulating consumers purchasing during short-time campaign, such as displays, trade shows and event sponsorships, etc. In my opinions, those ways are not only important and also very powerful for a product sold.

Groupon think this four factor are all very crucial for their marketing and promotion so they combined the four things into a unified promotional strategy as a integrated marketing communications, which is considered no independent tactic works for customers. In addition, the main effectiveness of Groupon promotion is people can be more independent and extensive to choose any products that they want and buy what they want by creative online shopping.

Groupon applies the four element of the promotion mix to different ways and places. First of all, Groupon advertises on main area is Internet and social media, such as Facebook, Twitter, and Google plus, etc. Second, Groupon unites some local company to give customers the best deals and advice because they want to attain trust and then attract people to purchase products again on their website. Third, people also can research some online reviews to know about which product or service is good or bad via Groupon website. It means Groupon provides the communication platform to let people discuss and value about their promotional products. Fourth, to customize consumers’ experience by e-mail or other ways is a compact method so that letting people get an amazing deal easily in any place and at any time. no matter you are in public or at home, day or night. Therefore, All of promotions propel Groupon stronger and succeed.