Marketing Analysis : Groupon, The New Trend Of Mobile Commerce

One of the most important concepts of marketing is the marketing mix. The marketing mix must be delivered in the right way to the right people at the right time, it is important that all elements are given equal and balanced importance and managed. The marketing mix is considered as the blend and batter of the ingredients which determines the appreciation by the consumers.

Groupon is an internet website company focused on generating revenue by utilizing relationships with merchants to provide consumers with discounts on select items. The goal of the discounted vouchers is to drive additional consumer store traffic and generate revenue for merchants which are shared with Groupon via a predetermined contractual percentage. Groupon generates visibility and exposure with email and social networking to increase consumer spending at specific merchants. Groupon has many features from personalization of product offerings to specific demographics and target segments. In addition, a more defined value proposition allowing merchants an opportunity to showcase their own product offerings on

Groupon offers consumers a unique way into purchasing products they may have never sought out before. From adventurous buys like rock climbing or sky diving to the everyday dining out at a local restaurant, it has grown to encompass just about everything. Groupon’s business model is very creative on how it works with merchants to promote deals on a daily basis. A merchant will create a discounted package but it is predicated on how many people will buy into the deal before it goes live. This method guarantees a minimum amount of revenue that will be generated and comes at virtually no cost to the merchant. Once the threshold is met, the deals have been unlocked and the consumer can enjoy their purchase while Groupon and the store owner

Groupon described itself as “a local commerce marketplace that connects merchants to consumers by offering goods and services at a discount.” It is through cooperation with all businesses, companies, hotels, products, and finally to provide discount services to consumers, and to lower the amount of profit to gain tremendous customer. The company used e-mail to disseminate deals. And these deals were based on individual customer preferences which collected through the company’s technology and scale.

Groupon, a company that focus on marketing services, provided customer deeply discounted vouchers of products and services from local businesses all over the world. It is one of the fastest growing companies with a strong emphasis on leisure, entertainment and recreation services. This feature makes the demographic of customers concentrated on young, well-educated unmarried female who have fairly high annual income. Compared with the traditional advertising, Groupon act as the intermediate link between both customers and merchants. It provides cheaper and convenient services to help customers save money while enjoying various services. At the same time, it gives local business who are facing challenges of adopting new technologies and media

Groupon has effectively used personal selling, advertising, and public relations to market their products. Groupon conducts its business electronically which joins consumers with businesses throughout the country. Groupon offers daily deals with a variety of businesses in specific cities through social media and email. The deals are offered to subscribers of Groupon in that city and if a certain number of people buy that deal become available to everyone. (Ferrell, O. C., Hirt, G. A., & Ferrell, L., 2014). This approach reduces the risks which are present for the businesses that can treat the coupons as discounts and a device for sales promotion. Groupon also has a large number of employees who compose descriptions of the deals which are featured

Groupon is an internet/app-based business. They provide goods, vouchers, and even vacations at a discounted rate. Groupon was launched in 2008 and the site was dedicated to advertising local businesses by offering deals for a limited time (Edelman, Jaffe, & Kominers. 2014). As a consumer you are able to discover businesses and merchandise in your local area, as well in other locations. They are still working on expanding their business, but currently you can find deals on things to eat, see, do, and buy in 47 countries (Groupon, Inc. (GRPN). 2016). The past five years they have steadily increased their sales/revenue with 3.19B in sales/revenue in 2014 (Groupon Inc. 2016).

Groupon’s business model is much different than that of WalMart. WalMart is the largest retailer in the world consisting of physical store entities such as WalMart U.S., WalMart International, and Sam’s Club in addition to it e-commerce sites. Their business model has everything you can think of (shown in Exhibit A), from relations with their supplies to relations with their trade partners. WalMart maintains its mottos of “Always low prices” and “Save money, live better” by focusing a great deal on its suppliers. Because of the size of the company and its continuing needs, WalMart is able to negotiate immensely well with its suppliers to fulfill such a slogan. On the other hand, Groupon is not so much a physical entity as it focuses in the e-commerce industry. To put it in simple terms, Groupon is an online middleman offering discounts for local shops and restaurants. The business model entails Groupon offering discounts at such locations to its customers/subscribers on a

Groupon Inc. established in November, 2008 by Andrew Mason is an American e-trade firm with its central station in Chicago Illinois with more than 11,000 representatives and has its vicinity set up in near 50 nations (Yahoo Finance,2013). Groupon Inc. oversees Groupon organizations everywhere the world and is worth of multibillion dollars in income, offers also, stocks (Yahoo Finance, 2013).).The customary methods for leading little organizations are being rethought by Groupon; for dealers through procurement of sets of items or administrations including customized arrangements, and brand publicizing, installment preparing abilities, and POS answers for inspire more clients and do their business for them adequately, and for clients, offer of

The core of Groupon is 50% off deals from retailers of all kinds, sold via email directly to consumers in a "one day only" sale offer. For example, a $40 hair styling is for $20. The consumer pays $20 to Groupon and gets a certificate to redeem at the hair salon. The certificate may expire in one year or less. Groupon keeps 50% of the revenue, $10 in this case, and remits --$10 to the hair salon. Therefore, the customer gets a $40 hair styling for $20. Groupon keeps $10 and the hair salon gets $10.The way the Groupon model works the retailer is effectively discounting their product or service by 75%, the

With the internet technology, everyone can stay at home for online shopping. What’s more, if you can enjoy daily discounts with all the information, home delivery and 24-hours daily operation, that’s all can be found by buying Groupon. Groupon, the company has successfully captured millions of online consumers throughout the world. The marketing strategy of Groupon captures the consumer behavior. Consumer buying behavior, defined as... “The buying behavior of final consumers, individual and households who buy goods and services for personal”.Groupon consumers mainly responses to:

Companies today try their best to continue to keep up with the changes of services, products and technology. Companies rely on their abilities in marketing to keep consumers interested in their products and services. The success of a company may rely on the company’s marketing performance. Marketing planning starts by thinking of the targeted audience needs, strategies, and the development of the products and or service needed. Developing a marketing strategy will consist of the marketing mix.

Groupon offers a unique value proposition that caters to its consumers. Firstly, it taps on their “collective

Groupon is a deal-of-the-day electronic business that offers discounted voucher and coupon to consumer in certain country almost the whole world, including United Sates, Europe, Indian, Malaysia, Singapore, Hong Kong and so on.

Marketing mix refers to the enterprise for their target market needs, control various marketing factors (product, price, place and promotion) to optimize the combination and comprehensive utilization, in order to accomplish better economic and social benefits (Chai, 2009, p.4). Place and product will be attached more importance in this section.