Marketing Questions Related to the Group-on Product

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Student’s Name:…………………………………………………….

Professor’s Name:………………………………………………….

Class: Marketing

14 February 2016
Marketing Questions
Describe the effectiveness of Group-on’s marketing product (i.e. Product, Price, Place, Promotion) and how certain environmental forces (i.e. economic, social, technological,etc) may impact the business as a whole.
To make sure you achieve the marketing mix which is referred as the ‘4Ps’, that is, promotion, place, price, and product you need to identify every customer group you are targeting. This the strategy which Groupon has used to be effective. They have known the kind of product they want. They have made sure that your target groups get these products at the place which is convenient to them. They have made the products affordable to them by selling them at a price appropriate for them. Lastly, they have used the right kinds of promotion methods to promote your products(McKinsey 34).
Economic changes make the economy to experience fluctuations of booms and slumps. The Gropon business benefits from booms while it loses to during slumps. Social factors relate to the lifestyles, tastes, and behavior. Understanding of these changes may make a business to have a future market situation’s better feel. For instance, during a change in fashions and styles and a change of population age structure. Lastly a Groupon business needs to be updated with latest technologies. This will facilitate information sharing and efficient production while reducing costs(McKinsey 58).
How has an understanding of consumer behavior helped Group-on grow from 400 subscribers in Chicago in 2008 to 60 million subscribers in 40 countries today?
The reason which Groupon has quickly grown is because of understanding consumer behavior. Groupon consumers, generally, follow the purchase decision process which is common to numerous consumer purchases. Groupon’s strategies in the future will need continued attention for understanding of consumer’s globally(McKinsey 72). Groupon has been rated as the company which is growing fastest, the reason being, it has solved the unsolvable problem of engaging with local customers.
What is the Group-on Promise? How does the Group-on Promise affect a consumer’s perceived risk and cognitive dissonance?
Any client may return a Groupon without questions being asked despite having used it, when they feel like that Groupon has failed them. This is Groupon’ Promise. Groupon Promise helps in reducing perceived risk, to be specific; the negative financial consequences out of a poor decision, and unwelcome outcomes’ uncertainity. Groupon Promise also affects dissonance through reduction of post purchase tension or anxiety by giving “no questions asked” type of return policy despite usage of the Groupon(McKinsey 60).
Describe possible psychological and socialogical influences on the Group-on consumer purchase decision process?
Recession has contributed to increase in personal values importance, like thriftiness, therefore deal-prone individuals who got attracted to websites like Woot in consumer electronics and Gilt in fashion, also get attracted to Groupon.This social madia affinity enables Groupon usage that depends on smartphone apps and e-mail to reach clients. Groupon has started personalizing every deal they see as it learns more concerning its subscribers(McKinsey 113). It uses buying history, office or residence location and gender variables to match customers deals.
Name the challenges that Groupon may face in the future and how can Group-on deal with such challenges?
Groupon faces a rapid growth rate worldwide. It may solve this through developing comprehensive understanding of international buying behaviors differences. They also face competition as their deal technology get copied. this challenge can be solved by Groupon themselves since it is much difficult to replicate(McKinsey 120).

Work Cited:
McKinsey, Michael Chui. The Social Economy: Unlocking Value and Productivity Through Social Technologies. New York, NY: McKinsey, 2012. Print.