The Broadway Cafe Part II - Case Study Example

These coupons are sent through SMS, MMS, Bluetooth and other mobile media. The consumer can redeem coupon at store or through internet. The mobile coupons are better than the traditional paper coupon in such a way because the coupons are reliable means of encouraging bulk purchases. Whether the product or service is traditional or not the coupon promotes experiment among new target customers. It can promote sales. Once the product is sold through proper distribution channel, the coupon ensures that they sell through to the end user.

Through mobile coupon, companies can make a database of customers, because to ‘receive their check’ the customers must provide their number and address. These databases help the company to track purchasers (Mobile Market Association, 2007). There are other benefits of using mobile coupon which include: Customers always keep mobile with them, so they can never leave mobile coupon at home Customer can use mobile coupon system whenever they prefer to buy or eat anything from shop. All they have to do is to send the coupons before lunch time Customer can forward these coupons to their friends and relatives and they will not have to pay any extra charges for forwarding coupons Young people and teenagers prefer mobile coupon system to traditional printed coupon system Uses of mobile coupon can save trees because it doesn’t need any paper unlike the tradition coupon system (Advanced Mobile Solutions, 2010).

Question 2 What Are The Risks Involved With Mobile Marketing And M-Coupons? Many customers are disturbed by receiving any type of marketing messages into mobile because mobile is a personal thing (Marketing Minefield, 2007). Mobile is good for marketing, but there are many mobiles which support only 160 characters per SMS and that is not enough to display all information about any special offer (Marketing Minefield, 2007). Privacy is a big issue in mobile phone. At times, customers provide instruction to mobile subscriber to opt out any unnecessary messages.

Because of troubles related with opt-in SMS lists, this marketing technique has its own restrictions towards the customers (Marketing Minefield, 2007). Standardization is also a drawback of mobile coupon system, because each phone has their operating system, different screen size and different browsers. Marketers have to optimize their phone to the customers’ phone for delivering any kind of advertisements or WebPages (Business Link, n.d.). Customers are cautious nowadays to respond to SMS messages because of increase in fraudulent and spam SMSs.

They respond negatively to unwanted messages (Business Link, n.d.). Question 3 What Are The Privacy Issues Involved With Mobile Marketing And M-Coupons? In mobile marketing system, securing privacy is a ‘commercially valuable benefit’ which protect customer’s privacy in online environment. Customers always value their privacy. They are always cautious whether a wireless site is tracking and receiving any private information about them. It is common that every company needs demographic and behavioral information about their customers for business purposes, but customer feel that no company has the right to sell their information to other organization.

The ultimate solution to this conflict is to make a partnership with customers where company can control the ownership of customer’