Question

1. In addition to the four elements of the marketing mix, the representatives from Groupon suggest that word of mouth is the most powerful force in a successful promotion strategy. Why?

2. What is the value that Groupon provides to consumers?

3. Is Groupon a global company?

Answer 1

Apart from the marketing mix, the word of mouth can be regarded as one of the most powerful tool in promoting a good or a service. People generally tend to believe when they hear about a service or a good which gives them an incentive to try the product / service. Once they start using it, they would tell other people about it like their friends and relatives or the people they see frequently. And those people will tell their members and thus this cycle goes on and on. And since the words are coming from a mouth you trust or know, you are inclined to use the product/service. And hence, the word of mouth spreads like a wild fire and the objective of successfully promoting strategy is achieved.