Presentation Transcript

1. Sales Promotion: Groupon

   Robert Sander, Maria Juarez
2. Groupon Daily deals Consumer -Oriented Coupons Premiums Price-off deals Event marketing http://www.groupon.com/salem-or
3. Reasons for and Goals of Sales Promotion Declining brand loyalty in consumers Price, value, convenience Increased promotional sensitivity Consumers want to save money Short-term focus Sales promotion accelerates the purchase decision process and generates and immediate increase in sales.
4. Questions How many people have heard of Groupon? Use it? Does facilitating sales promotions sound like a good idea for a business model?
5. Disadvantages of Sales Promotion Encourages consumers to purchase on the basis of price This detracts from the value of the brand Consumers to not identify unique features of a brand Short term promotions do not contribute to the identity of the brand
6. Disadvantages It’s hard to tell how many consumers will use promotions i.e. coupons or premiums *Refunds Groupon users often buy products they are loyal to and would purchase anyway Continual sales promotion battles lead to a promotion trap or “spiral”
7. Questions Do you think Groupon is a fad? Is there a way they can get their stock value back up to their first day market close of $26? Should Groupon be less flexible with accepting refunds?