Groupon Inc: Using “Coupons” on Marketing Strategies
The title says it all. Groupon Inc have decided on cutting their marketing fees significantly as they felt that the investments made on their marketing strategies were not yielding satisfactory returns. The various sections that are at Groupon Inc must have weighted the cost and benefit of cutting marketing costs before coming to such a rational decision. This relationship and cooperation within the different sections of a company ties into one of the lessons that was covered in class. The idea of Departmental Connections.
For Groupon, the decision to cut marketing costs tremendously involves various departments. Accounting section, Marketing section and Finance section could all be related to such a move by Groupon. For one, Marketing costs are being budgeted and accessed by the Finance and Accounting department before it is being released to the Marketing section. The Marketing department also require the Finance and Accounting section to aid in their overall expenses allocation before they execute their plans. From this, it is clear that there are much interactions and connections between different sections of the company. This further illustrate the fact that all sections of the company are dependent and inter-related to one another.
Don’t you think that the smooth cooperation within the various departments would result in an efficient and successful company? Share your comments below.
Groupon’s Official Website for all coupon lover
YouTube video of Groupon’s commercial for those who are unsure of what they do.
Just for the fun of it, I have thrown in a commercial from Groupon that was played during the Super Bowl.
Article Source: Heiskanen, Ville, and Douglas MacMillan. “Groupon Says It Plans to ’Significantly’ Cut Marketing Spending.” Businessweek – Business News, Stock Market & Financial Advice. Bloomberg L.P., 7 Oct. 2011. Web. 08 Oct. 2011. <http://www.businessweek.com/news/2011-10-07/groupon-says-it-plans-to-significantly-cut-marketing-spending.html>.
Picture Source: Source of Groupon Picture