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Groupon Marketing Case

Essay by   •  January 19, 2013  •  Case Study  •  3,587 Words (15 Pages)  •  1,040 Views

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Introduction see appendix 1

Task 1

Groupon needs repeat customer strategy need customers to be satisfied enough so they can return again on groupon website to search for more deals, and also for business customers to retain their service through Groupon. The repetitive customer is one, who became a brand loyal and comes again whenever he/she needs to find a better deal. In order to make a customer a repetitive customer, Groupon needs to make the customer brand loyal. Therefore, keeping in view this strategy the same techniques and methods which required they are as follows:

Find a sense of belonging

This sense of belongingness ensures that customers feel part of Groupon; this will be to provide the finest quality and service to the customers, friendly staff, personalised treatment, etc. Business customers can use Groupon as platform to market their products and retain repeated customers through Groupon.

Use incentives

An effective way to retain customers is by making use of incentives or promotions that target the customer repeat purchase or return visit.

Provide a quality service product

Groupon can retain customers, through offering of a product or service of high quality in comparison to their competitors such as living social, which will allow to gain repetitive customer. A repetitive customer is more likely to make recommendations to other consumers through word of mouth which is highly effective and powerful marketing tool as is attached with trust.

Techniques for Customer loyalty

Tips to maintain satisfactory loyal customer base:

A. Identify and meet customers' needs.

B. Interact with customers through various platforms such as internet.

C. Differentiating products offering

D. Adapt to customer needs.

E. Loyalty Card or Card Customers

Loyalty card benefits and complementary discounts; it is a technique Groupon can use to engage the customer with the brand and is a physicist and support programs for clients where they offer benefits when consuming products of the company issuing the Customer loyalty and personalised cards. On the other hand, Groupon needs to design their brand activation program in such a manner that it utilises the power of online marketing and advertising. Groupon need to use brand activation program with an added advantage of technology (CRM) customer relation management software's can email their new discount and complimentary vouchers with the name of customer to give it personalised feel.

Groupon can use communication mix and other marketing tools as the solution to boost up the business image of the brand such as Facebook and MySpace and other web platforms. Significance of Target Market & Role of Repetitive Customers

Identifying a target market is a crucial task it helps in maximizing the scope of the market and business to the company, the process of identifying market segments of the market takes place at several stages and changes according to the business activities.

Groupon should also review the potential of the different segments due to a number of conditions. Research is due to five factors:

A. The threat posed by competitors,

B. The threat of substitute products,

C. The threat of new products,

D. The threat of the bargaining power of buyers

E. The threat of increasing the bargaining power of suppliers

Customer will bring another customer

Groupon use of the word of mouth is perhaps the oldest domain of marketing, thanks to the irrepressible thrust of social media have picked up steam again to assume the central role it deserves in the world of marketing, advertising and public relations. The five pillars on which the word of mouth marketing depends on:

A. Relationships

Groupon to use effective word of mouth marketing by building personal relationships based on respect and building the brand equity.

B. The results

With the word of mouth marketing are essential "Vitalisation" of the results, the benefits provided by the different consumers involved in the action.

C. Choices

Choices gain by customers can convert into testimonies which create most powerful tools of generating marketing buzz. In this discipline, success breeds success.

D. The recommendations

The recommendations are an invaluable aid to the word of mouth marketing. If someone recommends something, it is because he has confidence in it and the people who have previously talked about it.

E. Customer retention

To travel in time and not "die" within a few hours, is the ultimate goal of the shares of mouth marketing is to retain the customer.

(See appendix 2.1 Marketing Mix and 2.2 Groupon SWOT analysis)

Task: 2 Building a Brand for Groupon

Keeping in view with the benefit of branding (see appendix 3) Groupon need to build separate brand for business customers and individual customers but with similar outcomes. Currently Groupon is marketing the potential of others buyers and sellers:



Buyers Large number of Buyers

Sellers Large number of Sellers

Global Market A huge and renowned Global market

The origin of a branding based on two key factors, either the product or service is truly innovative: In this case, Groupon is supposed to bring a concept to meet new consumer needs and enhance their target markets. Either Groupon needs to extend the market or to evolve new strategies to market their product and service in order to achieve the desired goals. The product or service is evolution in which case the brand will be a differentiating concept and a marketing tool, especially to differentiate them from competition offering.

Importance of



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