Marketing Management: TiVo Case

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Memo#1
TiVo Case

Marketing Management
Cheng Zhang

QUESTION ONE: Briefing the CEO
TiVo is adding subscribers at healthy pace, but faces some serious issues that need to be resolved if the company is to move forward or remain viable. I believe there are three crucial areas that we should address: revenue enhancement, marketing, and research.
The first issue is revenue enhancement - to generate positive cash flow. Due to competitive pressures and the general inertia potential customers have toward becoming subscribers, we cannot necessarily increase our subscription fees. We need to create additional revenue streams from what we already have and do. A quick analysis of our financials will suggest the urgency with which we
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QUESTION TWO: Identify current products and markets.
(2)(a)(i)
TiVo is positioned toward consumers “as a smart and friendly service that could improve their lifestyle” (page 1 of the case). The primary point of the product is to enhance the TV viewing experience by offering features that save time and allow customer to better manage the time they do spend watching television. Basically, it is TV on the subscriber’s schedule. Like any product which saves time (or helps us to better manage our time), the tangible benefit is an improved quality of life – time is freed up to do more, or better managed to do that which is more important. Also, given the fact that watching TV is family activity (or social activity), TiVo’s features lead to better relationships since the activity can be better managed.
In addition to better managing how one watches TV, there are some features that enhance the actual viewing experience. These are the features that make viewing television more fun. They also provide greater control over how and what one watches (the ability to fast forward through commercials)
(2)(a)(ii)
TiVo has several features which add value: 1. TiVolution Magazine/Network Showcases 2. Suggestions 3. Banners/Live Guide/Program Guide Data 4. Trick Play 5. Recording/Season Passes 6. Ability to monitor subscriber viewing patterns and behaviors 7. Ability to better segment markets for advertisers and content providers
(2)(a)(iii)

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