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Neural networks are algorithms trained to recognize patterns in non-linear data. The logic of neural networks is based on patterns identified by observing biological activities in the human brain. Brains have networks of neurons (connections) that transfer information. A similar process occurs within a neural network. Relationships (networks) between data and the learned patterns are applied to solve complex problems.

Marketers use neural network technology to identify patterns and make accurate predictions. Neural networks can aid marketers in predicting customer behavior, understanding buyer segmentation, developing brand strategies, optimizing inventory, forecasting sales, improving marketing automation, developing digital content, and much more. Companies employ neural networks to classify new customers by their potential profitability when planning direct marketing strategies. Such networks are used to generate customized digital content, predict lead scoring, personalize customer experiences, entice customers to visit a brick-and-mortar store, determine customer lifetime value, define customer segments, increase new customers that request online product quotes, create products or make product/service recommendations, and to analyze audience sentiment to alter film stories.

Netflix uses neural networks effectively to recommend shows and movies to Netflix users and even uses data to make decisions in the production and acquisition of content. Watch the following video to learn more about what Netflix is doing: https://youtu.be/X9ZES-fsxgU

Include within your research, the following questions:

  • Define neural network. How do the use of neural networks and big data help Netflix?
  • Describe how marketers use neural networks. Provide an example of how Netflix uses neural networks in recommending shows and movies i.e. marketing those shows and movies to users.
  • Explain the functions of a neural network and how a neural network learns.

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