Netflix"S Approach To Marketing Essay

1280 words - 5 pages

After receiving a ridiculously high fee for returning a movie late, Reed Hastings said that there had to be a better way to rent and watch movies and TV shows from the comfort of their own homes. Hence, in 1997 Reed Hastings and Marc Randolph, a software executive, co-found what is known today as Netflix, “the world’s leading internet subscription service for enjoying movies and TV shows,” (Netflix, Facts). The purpose of this paper is to the process of exchange between Netflix and their customers, as well as Netflix’s approach to relationship marketing and how this marketing technique has helped Netflix leave their competitors in the dust when it comes to customer satisfaction.
From its inception, Netflix has become a business based on superior customer service and has subscribed its business to the market marketing management philosophy. The main purpose behind Hasting’s idea of a better way to rent and enjoy movies was how to provide that service to their clients and not have any late fees. In other words, their customers could enjoy their rentals from Netflix for as long as they wanted, and they would never have to worry about late fees again, so long big movie rental chains! This aspect alone of Netflix’s marketing plan indicates that Netflix has based their marketing plan on market orientation, “a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product,” (Lamb, 2009, p.7). Many companies that take on this philosophy are said to implementing the market concept. The marketing concept states: “The idea that social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives,” (Lamb, 2009, p. 7). With the marketing concept and philosophy at the back bone of Netflix’s business, it is easy to see why customers are flocking to Netflix’s website to take advantage of the service they are providing to their customers.
The exchange process between Netflix and their customers centers on absolute customer satisfaction. Potential customers see an ad on TV and decide to take a look at what Netflix has to offer on their website. Once online customers are offered to try Netflix free for one month, after said month, if they are satisfied with the service, they can continue to receive Netflix service for as little as $7.99 per month. So, in terms of the exchange process, there are at least two parties, Netflix and the potential subscribe. Netflix is offering unlimited movies and TV shows steamed instantly through your computer or other devise, and the customer is offering a monthly subscription to Netflix, both of equal value to each party. Communication and delivery take place when the customer, who has the freedom to accept or reject, decides to try Netflix for one month free. The final condition for exchange is the “Each party believes it is appropriate or desirable to deal...

Find Another Essay On Netflix"s Approach to Marketing

Marketing Mix Essay

1002 words - 4 pages , price prevailing on entry, shipment or invoice date, combination of multiple orders or lines, and many others"(2006). Netflix is an online movie rental company. Since Netfix's enception several years ago the video rental service has changed the way america is renting movies. Netflix marketing approach was one-of-a-kind when it was introduced back in the late 90's. Netflix popularity is primarily due to convienience for the consumer

Netflix Marketing Plan Essay

4707 words - 19 pages for Netflix is to determine their marketing research approach. Their marketing research approach must have a customer analysis that identifies what demographics, psychographics, behaviors, and geographical considerations influence the implementation of the new service. In addition, an industrial analysis of competitors must be done as well. This information will help smooth the implementation of Netflix’s new service. SegmentationWhen developing

The Marketing Mix

911 words - 4 pages orders or lines, and many others?(2006).Netflix is an online movie rental company. Since Netfix?s enception several years ago the video rental service has changed the way america is renting movies. Netflix marketing approach was one-of-a-kind when it was introduced back in the late 90?s. Netflix popularity is primarily due to convienience for the consumer because all orders are conducted through the convienience of your home computer. Another

Marketing Mix

909 words - 4 pages orders or lines, and many others"(2006).Netflix is an online movie rental company. Since Netfix's enception several years ago the video rental service has changed the way america is renting movies. Netflix marketing approach was one-of-a-kind when it was introduced back in the late 90's. Netflix popularity is primarily due to convienience for the consumer because all orders are conducted through the convienience of your home computer. Another

Netflix Market Structure

1686 words - 7 pages analysis explores the market environments such as numbers of competitors, product differentiation, and pricing strategy. a. Competitions Netflix success story intrigues other competitors to join the market developing the similar platforms but different marketing approach. In the current market, Netflix faces numerous competitions from Comcast, Hulu Plus, Amazon Prime, Direct TV, and HBO on demand, and Redbox. Despite of the tight competition, Netflix

netflix strategy

2622 words - 11 pages ’ preferences. Marketing The key success to Netflix’s marketing is to provide better customer service and user friendly website with effective advertising. In order to be successful, Netflix must provide easily accessible movie and TV show selections through the use of interface categories to help the user search for any movie faster. The American household spends nearly five hours per day watching video content and it is a very effective medium for

Netflix

4714 words - 19 pages Management SystemsIn order to acquire new subscribers and to retain its present customers, Netflix implemented a Customer Relationship Management (CRM) approach to build, manage and improve its customer relationships. Netflix’s purpose of using CRM was to positively enhance its relationship with customers. Netflix offered its remarkable no late fees and no shipping fees. Since Netflix was an online rental service, this eliminated the problem of

Netflix

2080 words - 8 pages , which has helped it to build online sales for DVD rentals. Play – Key CapabilitiesNetflix was born as a result of a spontaneous reaction to the traditional movie rental model which included costly and annoying late fees. Hastings tapped into a new, emerging market venture which enabled customers to rent DVD’s online for a monthly fee. By subsequently copying a very simple ‘subscription’ based model, Netflix would grow into an entirely new market

Netflix

3800 words - 15 pages , and threats.Strengths. Netflix will invest a total $3 billion (US) by year's end in program content to provide content and meet the diverse tastes of its more than 36 million U.S. and 14 million international online subscribers. In addition, Netflix will spend $600 million (US) on marketing and $400 million (US) on technology upgrades. (Netflix ups ante, 2014). Moreover, Netflix possesses brand recognition and the word Netflix even becoming a verb

Netflix´s Competitive Advantage and Strategies

1803 words - 7 pages choices and opportunities for the company to be ongoing health in long-term. However, it should also be noted that Netflix must be committed to take action in the greatest way appropriate to international expansion approach, meeting the challenges forward and finally come out on the top of the ladder once more. 

Finance analysis for Netflix.Inc

5080 words - 20 pages , which indicates Netflix effectively manages its assets. Increase in profit margin shows that cost declines relative to revenue. Some of operating costs do not need to grow as revenue increase. Marketing costs will even decrease in near future when the company will have had broad brand recognition. As a result, Basic earning power ratio, ROA, and ROE all increase each year. The company may have a trouble because of decrease in current ratio due to

Similar Essays

Marketing Strtegies Of Mercedes To Market The S 500

522 words - 2 pages About the company:Mercedes S 500: Mercedes is a leader in the automobile industry and the reason for its success is its cars. One of the leading models is the Mercedes S 500 which made its debut in autumn 1998.Marketing MixProductFeaturesIncludes high-tech innovations like Pre-Safe, pre-crash occupant protection system. It can detect an impeding collision in advance and puts the vehicle and the occupants on standby. It tightens the seatbelts and

Clt Approach 's Superiority To Al Approach

2105 words - 9 pages 1. Compare and contrast the key features of AL and CLT approach Audio-lingual approach Communicative teaching language approach Approach Nature of language - Structural view - Language: a system of structural phonological, grammatical and lexical patterns to express the functional meanings - Functional view - Language: a medium for social interaction and communication Nature of language learning Behaviorism – Habit formation via over

How Useful Is Porter's Five Forces Approach To Understanding The New Entrants Into The Router Market In The Late 1990's?

938 words - 4 pages router market in the late 1990's, and concludes that the approach is useful as a base for further exploration of why the new entries took place.Porter's Five ForcesWe apply Porter's model to the router industry in the mid 1990's to gain an understanding of the industry structure:Threat of new entrantsNew entrants faced large capital requirements for product development as router technology was complex and took time to develop. However, this capital

Applying The 4 P´S Of Marketing Mix To Go Pro

1061 words - 4 pages When creating a marketing mix for a product, the company needs to look at the 4Ps: product, place, price and promotion (Eugene McCarthy, 1960). “When considering the 4 P’s of the GoPro, it is clear that the company’s success has been due in large to such great marketing.” (Suki Chan, 2013)[1]. · Product- GoPro primarily creates cameras, but it also offers mounting accessories and other additional accessories such as camera cases and spare