marketing

Groupon is a company which provides platform for many other companies that are trying to sell their services or products online. Groupon has changed the online marketing by making it quite interconnected. Before the business spreading techniques of Groupon, online marketing was all about advertising the products and providing the relevant reviews so that customers might get attracted and buy those advertised products and services by visiting the respective stores.

But Groupon changes this trend of only advertising the products; it provided the facility to buy product or service right on the spot. This removes the possibility of customer forgetting about the advertisement, also a customer an get distracted from other products while visiting the store in order to buy the desired products. So Groupon introduced such system which can actually remove such possibilities. Advertisement also doesn’t have to be much strong in such business model as the threat of competitors is quite low and immediate buying helps in selling the products in much faster way.

There are many methods through which Groupon makes money, huge customer traffic adds to the account of company through par per click policy, and also large number of sales generates discounts for a whole sale seller. Also the other sites or companies which engage Groupon for their advertisement also pay it for the advertisement of their sites. So this is how company makes money.

Only specific business model on which Groupon is based is about increasing or spreading the business through discount offers. For example Groupon is famous for selling products worth 100$ in to less prices by almost half. This makes it quite attractive for the customers. This is the only reason due to which Groupon has managed to attract such a large number of customers in a short period of time comparatively to other competitors.

Groupon doesn’t give away the selling or purchasing rights. It keeps rights to itself and customers are only get their products purchases, once the policy is signed, Customer Company cannot change its pricing policy till the contract renewal. This is the only drawback of keeping Groupon as a retailer.

Benefits of using Groupon are huge, especially for those companies which are new in the market and they need recognition by the customers. Groupon provides platform for the advertisement and the selling of products, which gives market exposure to the businesses.

Groupon is a good marketing strategy for the business, because these days where competition among the competitors is very strong and competitors are also providing same kind of products. In such scenario, Groupon gives an ensure opportunity for business expansion in terms of making new customers. All other things like customer retention and future business growth depend on the quality of the products or provided services.

Just in time production helps in avoiding the delay in the services, which gives a very good impact on the end customers. It also helps in removing the expenses of warehouse; also it removes the possibility of delayed supply chain.