Marketing, Motherhood, and Mayhem

Such a deal

December 13th, 2010 by Deb McLean

I’ve never been a “coupon clipper”.  I mean, I know they save money and if I was smarter and more organized I would.  I’ve tried to save them, but then I forget about them and they end up in the black hole that I call my purse. 

That’s what fascinates me about the Groupon business model.  Daily deals show up on your email and you can choose to purchase or pass.  It’s immediate gratification and it works for me.  I just purchased a gift for my nephew for Christmas and saved $150.   Groupon’s footprint is spreading at a dizzying pace — it has grown from one country to 35 this year alone.

The primary reason Groupon is so successful is because they have taken advantage of an untapped market need. Who doesn’t love a great deal? Coupons have always worked but they hadn’t really expanded that much beyond being cut out of a newspaper or direct mail. Groupon have taken advantage of a simple idea such as a coupon and found a way to make it cool, by making it social. This is the challenge for so many new businesses now, when you face stiff competition in an overloaded market. You have to find a way of making your product or service relevant to the market and make it exciting and viral with the use of social media.

Groupon is an excellent example of how social media is giving rise to completely new business models and concepts.  By the way, they just passed on a $6 BILLION acquisition bid from Google, so they must feel really good about their future.

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