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Published bySophie Bryant Modified over 9 years ago
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Sales Promotion: Groupon Robert Sander, Maria Juarez
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Daily deals Consumer -Oriented Coupons Premiums Price-off deals Event marketing http://www.groupon.com/salem-or http://www.groupon.com/salem-or Groupon
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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. Reasons for and Goals of Sales Promotion
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How many people have heard of Groupon? Use it? Does facilitating sales promotions sound like a good idea for a business model? Questions
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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 Disadvantages of Sales Promotion
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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” Disadvantages
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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? Questions
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