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Sales Promotion: Groupon Robert Sander, Maria Juarez.

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Presentation on theme: "Sales Promotion: Groupon Robert Sander, Maria Juarez."— Presentation transcript:

1 Sales Promotion: Groupon Robert Sander, Maria Juarez

2  Daily deals  Consumer -Oriented  Coupons  Premiums  Price-off deals  Event marketing  http://www.groupon.com/salem-or http://www.groupon.com/salem-or Groupon

3  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

4  How many people have heard of Groupon?  Use it?  Does facilitating sales promotions sound like a good idea for a business model? Questions

5  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

6  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

7  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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