Marketing

1. Discuss the product or service in terms of its current target market demographics using U.S. Census Data.

The product or service I chose is in store movie rentals and purchase. Blockbuster videos. “While DVD sales declined for a third straight year in 2009, consumer appetite for viewing movies at home remains very healthy as a very new physical and digital services for buying and renting movies gain in popularity. The movie rental kiosk machines over the last year were probably the most visible sign of consumer interest in viewing movies at home.” (U.S. Census)

The impact of kiosks and other movie services on household disc purchasing, “a survey was fielded to panelists who were identified as disc buyers and asked them to report their movie transactions from channels not tracked by scanning.” (www.Nielsen.com)

I have seen a lot of different surveys on households renting movies from a kiosk. “In addition, households renting from a kiosk are increasingly turning to kiosk to rent movies with 63% reporting that they had rented more movies from a kiosk in the past 12 months compared to the prior 12 months.” (www.Nielsen.com)

“Demographically, disc buying households who also rented from a kiosk were more likely to have children under the age of 18 and skewed towards a suburban lifestyle when compared to the average disc buying household. Despite the value proposition of renting a movie from a kiosk for a dollar a day, these households are more likely to be on the upper end of household incomes.” (www.Nielsen.com)

2. Determine why you believe the product or service is declining in popularity. Be sure to include information on social, demographic, and ethnic markets; economic and technological factors; political and legal factors; and competitive factors.

In my opinion Blockbuster was a very successful business at one time, they tried to change different things to do better but no matter what they did they failed. Their sales kept declining because of...