What Is Groupon's Success?

Every day, companies present the people with advertisements everywhere they go. Advertisements have become very prevalent in today’s society nowadays focusing in on a negative connotation. Advertisement has become an effective way for producers to display their new products. In present day, they come in forms of billboards, flyers, e-mails, and even text messages. It is widely known that companies create advertisements to persuade people to buy specific products or goods; however, it is not widely known that advertisements can make a negative impact on today’s society. The companies manipulate people’s mind and emotions, swaying people by new promotions and therefore generating a strong desire to fit into the society, that causes them to make inessential expenditures. Advertisements pose a critical impact on the American culture.

How would you describe the leadership skills of Andrew Mason? How would you rate his leadership style? In what ways does he fit the profile of the typical business founder? In what ways is he different?

The project Groupon was launched in the year 2008. The idea was launched for dealing with the already existing business The Point that was a platform for starting and pledging a campaign. Andrew Mason, the CEO of the company, started a group for making it more profitable as well as easier to manage a business in comparison with The Point.

I hosted the Super Bowl party this year and most my friends thought it was the lamest ad they have seen in years. This ad was the least effective because it wasn’t entertaining, I personally don’t like seeing women with bulked muscles (gross) even though it was the famous racecar driver Danica Patrick, and more importantly it wasn’t noteworthy. It was too depressing, even with the celebrity filled commercial it couldn't do it. I think for the amount ($$) paid, GoDaddy, could

Groupon’s value proposition consists of helping local businesses introduce people to their businesses which will allow companies to obtain future potential clients. In addition, Groupon

The premise is simple -- companies get free coupon advertising without paying any upfront costs. Merchants sign up and agree to certain promotional limits, and Groupon does the rest.

Of course! Take this (https://www.youtube.com/watch?v=o9GS8xhUq5M) Puma shoe advertisement for example. It’s nothing out of the ordinary but, like propaganda does, sends a message and tries to persuade the viewer to take action.

Since cognitive dissonance is the state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioral decisions and attitude change. This meaning even after purchase the consumer may change their mind and not go through with whatever experience they purchased and may show dissatisfaction with Groupon even if they fail to show up for an event Groupon does offer a 100% money back guarantee if the consumer is not satisfied with the experience. This entices purchasers as there is no real risk if you purchase the product and do not use it. My recommendation would be to not change guarantee, this no risk purchase will make customers feel less anxious about their purchase should they decide not to use it.

In 2011 there was a major scandal, the United States Congress invested money in NASCAR army racing and cut the budget set aside for homeless veterans. Corporations have become some of the world’s biggest economies consuming everything but they fall short in advertising. Advertising cannot deceive anyone anymore, the trust and belief has been lost because of social media and the ease of access and information from consumer experiences.

Groupon was founded on November 2008 in Delaware. It took the framework of “The Point”, which was launched a year earlier as a Do-good Doer enterprise by Andrew Mason, CEO, and first funded by Eric Lefkofsky, an entrepreneur. The core idea of Groupon is “ It’s One deal a day, that the deal doesn’t go into effect until enough people buy the voucher, and that the vouchers should be for local businesses.” Andrew Mason decided the daily emails should have funny copy. It focused on group buying power and helping people find interesting things to do in their city. Groupon’s concept immediately took off and became an overnight successful company.

As Groupon is established in many countries of the world, a global strategy has to be pursued

This is where Groupon comes in with having the ability to save the consumer money anywhere from 50% to 90% through different services and products. Saving people money is only going to mean better things for Groupon in these economic times. We can only think that Groupon is going to fair well despite the economic situation the country is currently suffering.

Making the offers timesensitive triggers a feeling in consumers that they might miss out on a chance that will not repeat itself if they don´t act now. Many even bought vouchers that they never redeemed, just not to miss out on an opportunity. In this sense Groupon is speaking to the risk-aversion of the majority of people. The thrill of seeing how much time is left on a coupon and how many others are acting as well, appeals to a person´s addictive behavior. We want to repeat the thrill of the bargain hunt. Groupon then made many moves to foster and expand its initial success. It expanded rapidly into more cities and later on even more countries. It fostered its connection with social media and the online world by setting up an affiliate marketing program that allowed bloggers and websites to earn commissions. This online referral was also expanded by giving consumers a direct incentive to refer Groupon by offering them a 10$ reward towards a future purchase. Groupon also heavily invested in paid search engine advertising and even created an ad that was shown during half time of the super bowl. So, to sum up, Groupon made sure that its existence spread as fast and as much as possible.

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:

TWOS is a planning tool used by managers to strategize and position their business in the order that assures sustained positive performance. TOWS is simply an inverted SWOT common used on analyzing performance and position of businesses. while SWOT begins with strength, weakness, opportunity and then threats faced by a business, TOWS matrix of business analysis begins with threats, opportunities, weaknesses then strengths faced by a business in that order. Under TOWS matrix of business analysis, threats and opportunities categorize as external environment factors that affect the business in particular ways (Koontz and Weihrich 112). Strengths and weaknesses usually categorize under internal environment that impact a business in particular ways.