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Milestone-1.docx
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MARKETING STRATEGIES
Marketing Plan Milestone-1
Marketing Strategies
About Netflix
Since 1997, Netflix has been at the top for the digital content. The company provides internet or online on-demand entertainment service to the people through TV series, featured films and documentaries across a wide range of genres and languages (Bennett, & Lanning, 2007). Netflix is a video-rental and media-streaming company. It has more than 148 million subscribed members in more than 190 nations. It began by offering online movie rentals followed by DVD rental and sales site. Recently, in 2018, Netflix won 23 accolades for different series. At 2018 Primetime and Creative Arts Emmy Awards, it was the most nominated service (Wayne, 2018). Its services are accessible through online subscription through the internet. From Netflix’s Web site, the subscribers can choose television and movie titles. The subscribers can stream some of those television shows and movies directly through the internet at the comfort of their home. In 2018, the rental division has remained profitable as it's streaming service became the largest revenue generator with subscribers hitting above 130 million (Wayne, 2018). However, there is great for the Netflix company to expand its markets more at the same time maintaining the customers they already have to ensure continuity of the business. The report focuses on Netflix company, its situational analysis, market plan and strategies. Better or new marketing strategies will be proposed to solve the various challenges in marketing as evident in the company.
Situational Analysis
Netflix has to refocus on its marketing strategies for they appear to be limited to some sectors or areas. Its marketing strategies fall in between marketing in established markets and growing its markets globally to reach new markets (Wayne, 2018). Striking a balance between the two brings great conflict and inefficiency. Netflix marketing spends highly on establishing its markets globally than locally. It focused more on new established global markets than the older markets. The company lacks commercials in its programming thus it does not have an opportunity to promote it internally. Netflix has been focusing more on new markets internationally than its older markets, a case that has seen its profits not growing. There is a great difference in marketing strategies for Netflix in its more established markets as compared to its newer markets (Hoffman, & Bateson, 2010). In the established markets, Netflix begins its marketing by highlighting its original content while internationally they begin by explaining who they are and why consumers need them. It is good for the company to start promoting its originals so as to help its products reach the market more though it calls for much efficiency for finding new subscribers in these markets is a bit tough.
Netflix Marketing Planning and Strategies
Netflix faced competition from the market like any other newly introduced or upcoming company. Moreover, it had to come up with marketing strategies to become the home TV go word and win a good tie title by its consumers. Through its well laid down strategies, it hit 130 million subscribers in 2018 (Wayne, 2018). The first marketing strategy was to anchor itself in pop culture using the term Netflix and chill which meant to invite someone back to your place. The terms spread very fast like a wildfire attracting attention for many who gave a trial and ended up being all time customers. Netflix also carried out data research to get to know what consumers wanted to watch and how they wanted to watch it. Through this, they build a good reputation with their customers by giving the consumers what they really wanted which saw such customers engage their friends an aspect in consumer behavior referred to as social influence (DONNELLY, & Peter, 2012). The data collected through the research helped in decision making concerning what to show or to be produced for some unique and strange categories were grouped together (Xu, Frankwick, & Ramirez, 2016). Later on, Netflix came up with Data Driven Programming that helped them give their customers what they wanted or talked about (Jenner, 2016). This kind of strategy made it possible for them to predict consumer behavior of a customer thus recommending some movies or TV shows to them related to their previous content. Netflix did not hold to the old products and ideas though they were necessary, instead, they moved with the changing consumer tastes. The company had to stay relevant to avoid their business sinking. A key strategy was to continually listen and address the customer’s demands and requests as they arose leading to customer satisfaction. It led to building customers trust over the company.
Recommended Marketing Strategies
Netflix company will have to focus more on digital marketing strategies for everything is going online. It can begin by utilizing the data they collect using data mining technology to become a self-marketing machine. By use of this technology, the company can save more than $1 billion in expenditure on the previous marketing (Wayne, 2018). They will have to saturate new markets with this marketing strategy to make the advertising look like it is in the United States and Canada which are her established market. At $10 monthly, they will be able to add around 30 million subscribers (Ryan, 2016). The above strategy will be combined with the use of ads on in different social sites and even websites to win more subscribers by highlighting the most watched or the new arrivals movies and TV shows. This is a digital marketing strategy for its products (Ryan, 2016). While marketing, they should consider efficient cutting costs on content development. The content should be personalized through the use of user interfaces available across all devices.
Generally, the Netflix company has come from far seeing its rise to be the top leading online entertainment program. The great success attained in the market can be attributed to its well-established markets. The markets were realized through intensive marketing strategies which focused on customer satisfaction and appealing responses. Looking into offering what the customers want has been the stronghold. However, the company has to do more, come up with new marketing strategies to hit new markets and manage the established ones.
References
Bennett, J., & Lanning, S. (2007, August). The Netflix Prize. In Proceedings of KDD cup and workshop (Vol. 2007, p. 35).
DONNELLY, J. J. H., & Peter, J. P. (2012). Preface to marketing management. McGraw hill higher education.
Hoffman, K. D., & Bateson, J. E. (2010). Services marketing: concepts, strategies, & cases. Cengage learning.
Jenner, M. (2016). Is this TVIV? On Netflix, TVIII and binge-watching. New media & society, 18(2), 257-273.
Ryan, D. (2016). Understanding digital marketing: marketing strategies for engaging the digital generation. Kogan Page Publishers.
Xu, Z., Frankwick, G. L., & Ramirez, E. (2016). Effects of big data analytics and traditional marketing analytics on new product success: A knowledge fusion perspective. Journal of Business Research, 69(5), 1562-1566.
