http://www.rohitbhargava.com/2011/12/4-easy-ways-to-lose-money-partnering-with-groupon.html

I decided to write something about this article right on the first sight that I saw the title. I could not understand why companies would suffer a loss when more and more people buy things on Groupon. It was my opinion that companies might sell more products with online discounts, so they should make profits. However, after reading the article, I got a better understanding of marketing, that the target of marketing is not simply to boost sales in a single period.

First thing first, companies should clarify who their target customers are. Those people who bought their products once only for reason that they are on a discount will rarely buy the same products again at their regular price. The main purpose should be to attract more customers getting to know their brand instead of buying the product itself. Customers may become loyal only if they remember the brand.

Companies should sell those productions with a  large number of inventory with discount but never their core products. For me, as a customer, if I always see discount ads on the products I usually buy, I will feel that the product may not worth as much as its regular price. I will regret to buy the products with regular price and may decrease my brand loyalty. It is likely that a certain number of customers with brand loyalty turn to another brand instead.

All in all, the most important thing I have learned is that before making a marketing decision, analysis should be done as careful as possible. A small mistake may result in a big loss of the whole company.

Hi, everyone. My name is Yifang Liu, and I am an international student from China. I am now a second year student in Sauder School of Business. I am intended to major in Finance, with a combined major of T-log or minor in economics. My hobbies include Chinese dancing, shopping and watching movies. I am taking Comm 296 because it is in my STT. But I am interested in marketing as well, since I know little about marketing, it would be fun for me to explore the unknown parts of marketing. My favorite ad is about funeral home. It is right on the wall beside the train track and says, “ Come a little closer” It is really impressive that it combined the ad with death and funeral. Also, it warns people be careful and take care. Regard of something personal about me, I have a twin sister who is now studying in Nanyang Technological University in Singapore. Due to the one child policy in China, in most families, there is only one child. I really want to thank god to give me a sister, and my friends admire me a lot.

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