Last week as I sat on my bed perusing the latest “News Feed” of my Facebook homepage, my friend sent me an instant message over Facebook chat. “Groupon has a travel deal to Whistler this weekend, let’s go!” she exclaimed as excitedly as one can over a virtual message. Although my answer unfortunately was “I can’t- I’m working on my Marketing homework all weekend!” it was at this very moment that I recognized how incredibly fantastic Groupon has become. Their advertisements appear on nearly every social media page, enticing mass populations into fantastic deals (how nice of them), while remaining very simple (even my parents understand where to click on their webpage), and providing great additional services (a full refund on a sale item?!… incredible!).  The ever money conscious consumers can now take part in “the talk of the town” restaurants, spas, activities and dining experiences, while hardly making a dent on their wallets.  Although in the past couponing was personified by grandmas sitting at their kitchen tables cutting out coupon after coupon from the daily local newspapers, it has become a rather trendy thing to do. As Chloe Kemp put it in her blog, couponing is no longer stigmatized, as people now are proud to “buy items for 50-90% less”.  Chloe also explains the three reasons why couponing has grown and will continue to grow in the future. First of all “consumers will always want more for less”. Secondly the “technology associated with couponing is innovative and will keep consumers intrigued”. And thirdly “deals are no longer [defined by] heavily discounted prices on the bottom [of the line] products, but consumers are able to get the best of the best for less”. The convenience of Groupon  aids in its popularity and success; Consumers can now access deals from anywhere they’d like instantly to their mobile device or e-mail (disclaimer: with available mobile data plan and/or internet coverage). Groupon has also innovated couponing as consumers can now share their saving experience with friends by buying one or more of the offered deal, purchasing gifts, or having an option to inform friends via email or social networking sites about their purchased deal. 

     Groupon benefits companies as well. As companies’ products and services reach their inevitable demise, or the “declining” stage of the product life cycle, they can easily remind consumers of their offers by providing great deals on the highly popular site.  By offering a limited sale on goods or services, it can increase store traffic, which inevitably can boost sales by establishing relationships with consumers, thus leading to word of mouth marketing.  New companies just entering the market can also boost their sales by introducing consumers to their new product, which can help them launch into their growth stage. Everyone likes a deal, especially in the tough economic times that we are experiencing today. Groupon has taken an overall intimidating and unpromising economy and turned it into an opportunity for success. So hopefully the next time my friend asks me to join her on a discounted trip to an incredible ski resort, I’ll be able to take full advantage of this new innovative service called Groupon …instead of reading my textbook and writing this (if only there were coupons for school work…).

If Usein Bolt Can Trust Puma, I Can Too

After reading Shayla Hardy’s blog post “ Using Celebrities in Ads is Not fulfilling Expected Return”, I have discovered that unlike Shayla, I believe that celebrity endorsement is sometimes still a successful mode of advertising and promoting products depending on the circumstances. Shayla states that, “[Celebrity endorsement] is a pricy option and is limited in terms of adding value to the product and ultimately winning over the consumer.” For certain products I agree with Shayla in that celebrities can not sway one’s opinion on whether something is for them or not. For instance, I do not believe that if Kanye West were holding a Microsoft computer, I would feel inclined to switch from my Mac to a Microsoft. Psychologically I do not relate Kanye West to computers and thus there is no meaningful connection. However, when the celebrity has a reputation of knowledge for the product he or she is endorsing, it helps legitimize their influence and the product itself. For instance, I believe that if a professional track star, such as Usain Bolt, were to endorse a pair of performance enhancing running shoes, I would believe that they are in fact a great product given the knowledge he has about running shoes, and thus legitimizing the product’s advertised capabilities.

In Shayla’s blog, she continues on to talk about the ineffectiveness of Venessa Hudgens endorsing Neutrogena facial cleansers. I agree with Shayla that Ms Hudgens does not influence my decision on which facial cleanser to use. However, if someone who is renowned for their flawless and glowing skin, such as Jennifer Lopez, were to support a skin product, I would be greatly influenced by the endorsement, as I would believe that if someone who cares as much for their skin as Lopez trusts the product, it must be a worthwhile purchase. In my experience working in retail at a children’s European clothing boutique, I have witnessed first hand the effect of celebrity endorsement from a sales perspective. My coworkers and myself posted photos of Surri Cruise (Tom Cruise and Katie Holmes’ daughter) throughout the store, wearing dresses and shoes we provided. Given Surri’s reputation for a classic, high end and fashionable sense of style, those articles of clothing were quickly purchased by our customers.

Overall I agree with Shayla that celebrity endorsements have become ineffective when marketers use pointless popular icons to boost sales. However, I also disagree with Shayla because I believe celebrity endorsement can lead to increased sales when the celebrity and the product have a meaningful and obvious correlation. I believe that celebrity endorsement can still have a major impact on today’s population, so long as the celebrity is backed by a reputation of knowledge and expertise.