Correct understanding of business model essence Marketing is the truth of group buying mode

Intermediary transaction SEO diagnosis Taobao guest Cloud host technology Hall

The New York Times reports that Groupon, the US group-buying site, is probably the craziest Internet company in history. It took three years for Twitter to reach $1 billion trillion in valuations, and it took two years for Facebook to reach $1 billion trillion, and Groupon used only 1.5. Groupon's web page looks surprisingly simple, and building such a website does not seem to cost much money. Groupon's model, as if it is surprisingly simple, "group purchase" is easy to understand, because more buyers, groups, so you can get better business discounts, and then use more businesses, better discounts, attract more buyers, so the circulation, Tuan into a global group buying giant.

The whole world seems to be a night of "group buying" and crazy, difficult to complete and distinguish the group buying site quickly flooded every corner of the Internet. By the end of June 2010, the number of Groupon-like group purchase sites in China has broken through 400, and the figure is still growing at an average rate of 10 a day, and these sites are strikingly similar, almost imitating Groupon's simple, convenient interface, and the site is almost "thousand people." ", China's" Hundred Regiment War "smoke four.

Is it really so easy and simple? We have been emphasizing that a truly good business model is "to be able to reproduce themselves, others can not copy you", China's "hundred-group War" is not an exception.

In fact, group buying mode, in the United States is not a new model, the United States Group purchase site is also very much, why so many experience than Groupon more group buying sites are unknown, but the callow Groupon become an Up-and-comer? Group buying mode, in China is not unfamiliar, as early as the rise in E-commerce , a variety of group buying sites on the endless, building materials group purchase, furniture group purchase and so on, but now also mostly disappeared. What is Groupon doing in such a traditional field and becoming a shining star? Only through the phenomenon to see the essence of the real understanding of the core nature of its business model, in order to counter the Chinese enterprises in the Hundred-group war imitation whether there is a chance of success.

In China's current group buying sites, in addition to the site page to copy the imitation of Groupon, but also noted that some Groupon and traditional group purchase site is not the same phenomenon, such as high discount rate, Groupon discount generally 40 percent-50 percent, or even to 10 percent, which has a strong appeal to consumers; Every day in each region only one commodity service, limit the number of "seconds kill", the number of restrictions and deadlines-only to reach the predetermined number of people will be able to enjoy the discount price, if there is no number of participants, even if only one, this transaction can not be carried out. This seems to make people who participate in group buying more fun and more willing to participate.

The recent emergence of some of the group buying sites have basically seen Groupon these "phenomenon", and have imitated. Why do I particularly stress that this is a "phenomenon", because if you do not understand the principles of business models and thinking mode, do not understand the nature of business model, many entrepreneurs and entrepreneurs often fall into the trap of "phenomenon", doomed to failure at the outset. McDonald's "restaurant chain" is just the phenomenon you see, and McDonald's business model is the nature of real estate companies.

This is where business models are interesting, and often you see companies that appear to be the same maybe the business model is different, but you see a lot of seemingly different companies, the nature of the business model may be the same, like the media, do elevator advertising, but McDonald has a similar place, that is, "class of real estate chain mode." "Avatar" in a classic line: "The original here, Neville's planet is real, and the earth is just a dream." "When you see the nature through the phenomena and see the truth through appearances, you will see that the nature of the Groupon business model is not the" buy "image that is widely sought today.

Groupon is being used as a group buying site, who is its core customer? I see a lot of domestic group buying sites to the customer's focus on the "buyer", admittedly, if you think of yourself as a group buying site, such an understanding of course understandable, but, Groupon can in the traditional "buy" The Red Sea stands out, is its essence is not a group purchase site, but to "buy" for the name of "precision advertising marketing platform." So its real core customer is not "buyer", but "seller" (merchant). A large number of buyers is only it to improve the "seller" the means of attraction, as if the TV program to have ratings, is to improve the principle of advertising revenue is the same.

With such a basic understanding, it is interesting to understand its phenomenon again.

Groupon discounts, typically at 40 percent-50 percent, or even to 10 percent, when Groupon buys a fee or a fee for a business that still needs to be sold, Groupon collects the 30%~50% from the merchant, with such low discounts and high returns. If you understand it as a group purchase, businesses are losing money anyway, businesses are hard to agree to, but if you understand it as a precision advertising marketing, this approach is a revolutionary reduction of the traditional advertising threshold: if the effect is not good, buy does not set up, businesses do not have to pay, equivalent to pay the effect of advertising, advertising risk is low; If the effect is good, buy set up, merchants take 50%~70%; Groupon takes 30%~50%. Compared to the traditional marketing department, the marketing department of this kind of enterprise is no longer the expense center, but becomes the profit center, why not? But why many domestic group buying websites, because the discount is low, can not get the high return point, is because it really as a group buying, not "Advertising marketing fees."

Because it's an advertising marketing platform, not a real "buy" platform, we can understand that "Groupon in each area only a commodity service, limited number of ' seconds kill ', the number of restrictions and deadlines," the reason for this service design, it can not be like Wal-Mart for everyone's passion for the commodity "daily parity", Because this will disrupt the merchant's price system, at the same time, "limited area" way is actually staged "experiential" marketing promotion behavior, just relative to the traditional free experience it is also "charge", the user more cherish, the merchant advertisement investment risk is lower. Group purchase must reach a certain number of participants, this way to stimulate and encourage consumers to "introduce new members", in fact, in order to measure the effectiveness of the business of a target, as the TV ratings, Internet clicks the principle is the same.

With the basic understanding of "precision advertising marketing Platform", we can see that the business model of Groupon is very high, because the company's core competencies are "precision advertising marketing services" rather than the real "group buying customer" as the core of the "product agent", so how to obtain a large customer, while continuing to conduct customer analysis , provide marketing solutions, become a true "precision advertising marketing Platform" is the life of Groupon sustainable development. So we can see Groupon relatively concise online interface present, but has a huge offline sales staff for business advertising marketing, in the enthusiasm of customers to participate in group buying activities behind, but constantly in the tracking customer's various information for customer behavior analysis to better provide marketing planning case; At the same time, rapid regional expansion, even through acquisitions to speed up the expansion, because the more customer behavior data analysis, the finer, the more able to provide accurate marketing programs, the more you can get the favor of businesses. As many as 95% of businesses are willing to collaborate with Groupon, according to the survey.

Based on the "precision advertising marketing Platform", your competitor is not a group buying network, discount network and even other products to sell E-commerce sites, but professional advertising marketing companies, if you can do than CCTV, than Sina, Baidu, scores of the media more unique competitiveness, you can cut a piece of cake from their market; If you can create new customer needs, you can expand the original advertising market share. Groupon offers lower, lower-risk advertising marketing to companies that do not need to be promoted nationwide, and not only carve out the original advertising market share with a special precision marketing platform, but also effectively create and expand the advertising market share.

Based on the positioning of the precision advertising platform, we can understand Groupon's early positioning service category "intangible goods" simply because it is easier to use a low discount, but as the advertising effect is recognized, in fact, more and more recently Groupon began to increase physical goods, such as food, clothing and so on, So while many people think that only "intangible products can have a lower discount", it is only from the perspective of group buying, but from the "Precision advertising platform" perspective, Groupon has begun to attract more and more physical products companies market costs to Groupon, So it still reflects the high discounts and the high share of the user's great attraction.

The question of whether or not the "hundred regiments" will be successful is to see who ultimately understands the nature of the business model. Although the performance of business model is changeable, but the design of an excellent business model has the rule to follow. China is at the best stage of entrepreneurial environment, China's entrepreneurial boom has also made global investors concerned, but in the face of increasingly fierce competition, entrepreneurship is no longer the release of the passion of karaoke, but more and more professional "international opera", "professional" entrepreneurs, entrepreneurs should first learn to see through the phenomenon of nature, understand the business model, Innovation business model, direction than efforts more important.