Groupon, a phenomenon on how powerful the internet can influence marketing and business in modern society. Groupon started with humble beginnings in Chicago in 2008 and expanded into a billion dollar valued company in 2010 (Steiner, 2010). It was able to skyrocket itself into the billion dollars zone in just two years, because it took advantage of technological changes and the moving trend to a more social media based world. Groupon utilized a strong marketing mix with a very beneficial price factor to its goods, which are gift certificates and deals for stores near the customers. It provided cheaper prices than normal to customers by making deals with the local stores, which sells to the consumers that are looking for cheaper alternatives to products around them. Consumers go to the Groupon website to look for better valued deals and the discounts Groupon indicates are definitely attractive to the deal-seeking individuals with Vancouver having 50-90% discount rates (Groupon, 2014). Its use of online distribution is very convenient for the growing tech-savvy market. It utilizes location excellence and price excellence to attract its customers. It may be glorious to have a company that is one of the quickest to a billion dollars value, but there is quite a bit of questioning of the company’s advertisements on the website. In 2011, Groupon breached ASA code for promoting deals that were not fully truthful (Sweney, 2011). One of the deals that violated the ASA code was about breast enhancing sessions advertising to bring results in five to eight weeks, which was found to be unrealistic and misleading since the claim was based on 6 subjects. Groupon’s lack of discipline in verifying claims and prioritizing customer confidence is hurting the company. Groupon’s growth has been amazing, but hopefully it doesn’t burst like an oversized balloon.

Groupon Deals Example:

http://www.groupon.ca/

http://www.forbes.com/forbes/2010/0830/entrepreneurs-groupon-facebook-twitter-next-web-phenom.html

http://www.theguardian.com/technology/2011/dec/07/groupon-breaches-asa-code