Groupon has offered good deals to many people, encouraging them to be more involved in purchasing activities and participate in the market ever before. Basically, Groupon is a website that features great and unbeatable deals on any purchases such as restaurants, salons, theatre, food, clothes, groceries, etc. in the city you live in. I believe this website is a great idea because it not only benefits consumers, allowing them to find attractive knock down prices on products that they can’t possibly find anywhere else, but also companies benefit from Groupon since it guarantees businesses.
How Groupon works is individuals sign up for free membership, and Groupon will send emails to all its subscribers on a daily basis, updating them with the best deals that are currently going on. Groupon has a high exposure to the public, thus, companies that feature their promotions on Groupon websites can definitely increase their annual sales since Groupon can generate numerous sales within a short period of time.
This is just basically a marvellous marketing tool for many reasons:
1. Motivates consumers to buy: It increases consumers’ purchasing power. In other words, consumers can buy products that they seek valuable at a relatively cheaper price, and therefore they could use the portion of the money that they saved on other purchases. This way, Groupon encourages and motivates consumers to spend-which all companies exactly need and want.
2. It publicizes the company: Emails about exceptional deals that are happening in the store will be exclusively sent to thousands of subscribers. Thus, members can notice about companies, appealing values, and entertaining write ups, which can maintain consumers’ involvement in the market.
3. Online Advocate: Groupon gives appealing deals to consumers. In return, members spread the words and share information either in reality or virtually (Facebook, MSN, Twitter, etc.) about unbeatable and valuable offers that are currently being promoted in stores with their friends and families. As a result, it can increase number of potential buyers for the companies, exposing companies’ brand and reputation to the public.
4. Risk- Free promotion: Companies who work with Groupon will not lose anything. Groupon is unlike other advertising tools, such as commercials, TV, newspapers, etc. where it doesn’t ensure companies that they will earn a profit or increase their sales. Instead, Groupon promises companies that they will market the brand to public and increase buisnesses. Companies do not need to pay any fees to appear on the website. However, a certain number of people need to sign up for the stores’ promotion in order to get the Groupon deal, if a minimum number of people didn’t join the offer, then sales would be cancel. The company only pays Groupon when the sales happen.
5. Meet company’s needs: Groupon spends time with their working partners to find ways to structure the companys’ offers that best maximize companys’ values and profit, yet simultaneously attracting and meeting consumers’ needs. They assist companies in investing in committed buyers.
