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Introduction
Marketing Management seeks to provide solutions and do research in order to develop
the right solution for a business’s success. Marketing management is important as it provides
companies with a way to focus their marketing efforts through brand awareness and helping
track and boost revenue. Marketing management is crucial in how it uses different tools and
strategies in order to develop a business’s marketing iniatives (Staff, 2024).
Marketing Research
The forms of marketing research that would fit Netflix is surveys so they can ask
questions specific to their demographic and be able to form an analysis on what is working and
what is not working. Forming a cohesive data analysis by asking the questions and gathering data
can help them come to a conclusion on where they need to go next and how they can improve
their marketing efforts moving forward. Going into the data analysis, another form of marketing
research that would be beneficial for Netflix would be a competitive analysis. Netflix could then
look into other companies such as Hulu and Disney+ in order to see what they can change in
order to stick out from their competition and improve the quality of Netflix as a whole in order to
become the most popular streaming service across the world. Netflix does this by research
applications to look at recommendations, streaming optimization, and user insights based on
people’s previously watched selections (Netflix Research, n.d.). This is an example for Netflix as
they can compare and contrast themselves to other companies like Hulu and Disney+ to see
what they have that works better and what they can improve upon that will set themselves
apart from their competition.
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External Market Sources
External factors that affect Netflix in conjunction to Porter’s five forces talks about how
Netflix’s lead to moderate forces of competition to low differentiation of streaming services, high
differentiation of content producers and subscribers’ moderate switching costs. Factors that affect
Nettflix’s buying power depend as well on the bargaining power of Netflix’s customers.
Customers have huge influence on how competitive a business is able to be and compete with
other streaming service for buying power. When you think about all the subscribers that Netflix
has now, that is a reason why they are able to keep their costs down. Now if they were losing
customers, they would probably end up having to increase their pricing moving forward to keep
up with the economy and still get a return on their investment. The threat od Porter’s research
into Netflix’s analysis shows the likelihood of new competitors and how that can change and
affect their business moving forward (Brown, 2023).
Customer Relationship Management
Customer Relationship Management systems are crutial in businesses like Netflix as
they enable the growth of their company. Netflix uses Zoho CRM as their customer relationship
management system. Zoho offers a variety of opportunities and room for growth as it is used
for sales and marketing, powerful integrations and secure icloud storage. Zoho is also used by
other major companies such as Spotify. CRM’s are key components and competitive advances
in our world today as they are used to really increase sales and manage many aspects of a
company’s marketing (Netflix and Zoho CRM: Analyzing Customer Relationship Management
Systems in Entertainment - Subscribed.FYI, 2024).
Consumer Characteristics
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Netflix’s consumers are divided into different sections as it does attract a few various
different types of audiences such as young adults, teens, and low to middle class families. With
a diverse selection of films and tv shows, Netflix is able to be able to target any demographic
they see fit as the companies always looks to diversify themselves in order to grow their
audience and attract more consumers from all different backgrounds. Netflix uses Machine
Learning in order to learn about their subscribers and their behaviors as they really strive to
improve their algorithm in order to attract many different consumers and types of audiences.
This information is then stored and taken into account with Netflix in order to see ways they
can make improvements to their service to create a more tailored experience. (Netflix
Segmentation, Targeting, and Positioning, n.d.).
Product Positioning
There are many different streaming services in the market today and so many companies
like Netflix are looking for different ways they can position the benefits of their streaming
service and why one is superior over one another. Netflix has positioned their brand as a “a focus
passion” brand in which it seeks to entertain its uisers wherever and whenever in order to do this
by their core values such as content people love and focus passion brand. Measuring the
effectiveness of a product can help you know how to position the product to a future client
(Belch & George 2018). When Netflix calls themselves as “passion focused” brand, they want to
offer their consumers freedom, flexibility, and the ability to sream shows and movies wherever
they want for a fixed rate. Netflix as a company presents their message and positioning as,
“Netflix has strategically branded itself to offer ‘your own personal Netflix’. By emphasising the
personalised nature of its service, Netflix's positioning reinforces its commitment to offer an
individualised viewing experience tailored to each viewer's preferences” (Netflix Segmentation,
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Targeting, and Positioning, n.d.). The company also seeks to position their brand as entertainment
in the form of television and movies in order to differentiate themselves from other streaming
services that nay have music, news, and others. In 2021, they actually came out with a new
proposition for presenting games on its platform in order to attract a new audience of consumers
(2024).
Conclusion
In conclusion, Netflix has been leading in the market of streaming services and is always
looking to how they can improve their services in order to attract more demographics as well as
still being “a focus passion” brand in order to still care for their consumers and keep them as well
as improving upon needs when given feedback. Netflix is a household name in our world today
because of the efforts and improvements the company has made in order to attract its consumers
and create a positive and welcoming streaming service with the consumer in mind. Netflix looks
ro continuous improvement across the globe in order to become the most popular streaming
service and keep consumers consistently staying with the business for the future.
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Works Cited
Belch, George E., Belch, Michael A.. (2018). Advertising and Promotion: An Integrated
Marketing Communications Perspective (11th ed).
Brown, L. (2023, December 6).ANetflix Five Forces Analysis & Recommendations (Porter’s
Model). Panmore Institute. https://panmore.com/netflix-five-forces-analysis-recommendations-
portercase-study#:~:text=The%20following%20external%20factors
%20lead,Subscribers’%20moderate%20switching%20costs
Netflix Research. (n.d.). https://research.netflix.com/
E. (2024, March 14). Positioning of Netflix: market leader in a fast, tumultuous market. erkelijkheid.
https://merkelijkheid.nl/en/positioning/positioning-netflix
Netflix and Zoho CRM: Analyzing Customer Relationship Management Systems in Entertainment -
Subscribed.FYI. (2024, January 17). Subscribed.FYI. https://subscribed.fyi/blog/netflix-and-
zoho-crm-analyzing-customer-relationship-management-systems-in-entertainment/
Netflix Segmentation, Targeting, and Positioning. (n.d.). Edrawsoft. https://www.edrawmind.com/article/netflix-
segmentation-targeting-and-positioning.html#:~:text=Netflix’s%20target%20clients%20are%20young,a
%20variety%20of%20cultural%20backgrounds.
