CopyofMMGPcontribution2 - Busi 520 D10 Dr Wilson Marketing...

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Busi 520 D10 Dr. Wilson July 17, 2016 Marketing Management Netflix Project (MMGP) – Background Information Instructions Liberty University
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Running Head: MMGP Background Information Netflix 1 For Netflix, “One of the most influential macro environmental trends: having to do with revealing the future and providing strategic planning” (Keller & Kotler, 2015, p. 94), are various trends that can directly affect the company, such as demographic trends and current economic trends. However, both current economic and demographic trends can be considered to be “broad-environmental forces,” and these macro environmental forces for Netflix focus on consumer’s tastes and preferences (Kotler and Keller, 2015, p. 94). According to the Nielsen Global Consumer Confidence Survey of 2012, regarding statistical demographics trends, 40% of all Netflix users are between the ages of 18-34, and 17% are over the age of 50. Not surprisingly, 57% of Netflix users are females, not only is the majority of Netflix viewer’s women, but they also spend the most amount of time watching and overindulging on Netflix. Regardless of gender, more than 75% of Netflix users are white. However, Netflix seems to have a higher percentage of Hispanic watchers, 16% than that of Hulu with 11%. The latter, One of Netflix keen competitors, concentrates on Blu-Ray technology. While another of Netflix competitors, Amazon focuses on HBO as it’s technological competitive advantage (“Detailing the Digital Revolution Social, Streaming, and More,” 2012). Through time Netflix has learned that statistical data provides little value in today’s new marketing realities. Companies like Netflix, are shifting their interest from selling their DVD’s and subscription services to understanding what the customer needs. Customer focus is what Netflix has been practicing for the past few years, and executives view these statistical data as
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Running Head: MMGP Background Information Netflix 2 just information used to understand what kind of customer’s are most attracted to the cinema or to compare it to the company's competitors (Kotler and Keller, p. 39). According to Netflix Vice President of Product Innovation, Mr. Yellin, Todd: emphasis added, “Netflix, the online streaming service, has moved significantly beyond using demographics to understand its users” (“Netflix Goes Beyond Demographics,” 2015). What this means is that Netflix focuses on consumer’s taste. For example, when you sign up onto the Netflix website, you are asked to choose at least three options from 78 films, series or shows.
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  • Spring '12
  • n/a
  • Management, Revenue, MMGP Background Information, Background Information Netflix

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