Differences between traditional and digital marketing

This report explores the differences between traditional and digital marketing and their impact on organizations. It discusses the importance of data analysis in digital marketing and how it helps improve company performance and customer experience. The report also focuses on Netflix as a case study to illustrate these concepts.

DIGITAL
MARKETING
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Differences between traditional and digital marketing...............................................................3
Customers touch points and customer journey of Netflix subscribers.......................................4
Analysis of data generated through digital marketing activities.................................................5
Analysis of data by Netflix to improve company performance and customer experience.........5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Digital marketing is the process of advertising and promotions of products and services
on online channels like websites, search engines, social media, m-commerce, etc. It helps the
traditional marketing and targets customers whom they want to interact with. Netflix is an online
streaming application founded in 1997 by Reed Hastings and it is an American technology and
service provider. It provides shows, movies, etc. in different languages and satisfy the needs of
customers (Chaffey, 2019). They started with providing DVD services and moved to online
streaming. The report includes difference between traditional and digital marketing, customer
touch points, analysis of data and improve in performance.
MAIN BODY
Differences between traditional and digital marketing
Marketing Mix is used in making strategies to promote the products and services of the
organisation.
Marketing Mix Traditional Marketing Digital Marketing
Product It includes tangible products and
services provided by the
organisation. Netflix provides
rental services by selling DVD.
They are selling the products and
services by making the features
attractive for customers (Thaichon
and Ratten, 2020).
The products in digital marketing
can be tangible or intangible but
they are served as intangible
products. The products are
promoted online to customers for
Netflix and use differentiation as
a strategy.
Price The pricing strategy is to sell the
products and it is costly to reach
to many customers so they make
strategies to achieve it.
The pricing strategy of Netflix
includes the First time user
discounts, free trials, etc. which
are used to attract customers.
Place The traditional marketing includes
distribution, logistics, etc. by
Netflix.
The digital marketing is through
internet and it provides a place for
the companies to distribute the
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products. Netflix products and
services are virtually distributed
to customers on their phones,
televisions, etc.
Promotions It includes promotions on
television, radio, magazines,
celebrity promotions, etc. Netflix
uses celebrity promotions.
It includes promotions on social
media, websites, etc. Netflix
promotes their shows on Youtube.
Customers touch points and customer journey of Netflix subscribers
The Netflix has different customer touch points as it has evolved from subscription of
DVDs to online streams of series which is based on the needs of customers (Carbino, 2015).
Touch points of customers of Netflix
The experience of the customers matters the most in digital marketing as they are
focussed on satisfying the needs of customers.
 Netflix originals- Netflix provides the shows the shows which are released on their
application. They have a series of show and movies which are categorised as Netflix
originals and focussed on satisfying customers needs.
 Customer experience- Netflix track the search of customers and provide them options
which are related to the shows they have watched.
 Review of the feedback- They make use of the customer feedback to improve their
services and helps them in getting their favourite shows.
Customer journey
Netflix has different channels to provide services to customers and they have the journey
with Netflix which explains their experience (Zahoor and Qureshi, 2017).
 Pre-purchase- It is touchpoint for customers where they come in contact with Netflix
and they will have to either sign in with gmail, manually or through different social
media to provide service to customers.
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 Purchase- They will have the experience of the services provided by Netflix where they
will make a decision of which subscription to purchase like 3 months, 6 months, etc. and
they will have to select the screen.
 Post-purchase- Netflix provides the experience to customers by providing them
recommendations on which shows to select and what they would want to see.
Analysis of data generated through digital marketing activities
Data is the most important factor for the success of Netflix and is the fuel to its high
quality products and services. It is providing the personalised services to customers because they
have strong market and research team which is generating data and help customers to binge
watch shows, movies, etc. to all the age groups and in many languages.
They give content based recommendations and improves the technologies to provide
innovative services to customers. For examples, Netflix offered 1million to the people who will
provide them algorithms to rate the movies. They use different marketing strategies to promote
the products and services like they use Snapchat to attract customers. They generate data through
their different channels like customers who use television and are 35 years of age, Netflix will
recommend them shows according to their needs (Fuentes and Fuentes, 2017).
Analysis of data by Netflix to improve company performance and customer experience
Netflix is a customer centric organisation which focuses on improving the experience of
customers by providing them services which will satisfy their needs. They build the relationship
with customers by providing them services which are connecting the customers emotionally.
Their marketing strategies is for the multichannel services and promotes their products by
making it interesting for customers like subscription fees discounts, email marketing, etc.
The customers will get the good experience from Netflix as they are focussing on
providing high quality customer service. For example, to provide them series and movies and to
promote them they will do email marketing like they used the logo of the show “The Punisher”
to promote it. Netflix will provide the customer experience and improve the performance by
understanding the needs of customers and making it attractive for them. The are n blue ocean
where they have the competitive advantage and they provide they services which are helping
them to grow and become the best organisation. The use of data is important for them as it is
helping them to be successful.
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CONCLUSION
From the above report it is concluded that digital marketing is the growing the
organisations are making strategies to achieve success in the online business. They are using
digital marketing to promote their products and services across the globe and data is helping
them in understanding the behaviour of customers and providing them services to satisfy their
needs. The customer experience is becoming important for the organisation to promote the
products online and they can use the data of customers to make the products attractive for them
and achieve success.
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REFERENCES
Books and Journals
Chaffey, D., 2019. Digital marketing. Pearson UK.
Thaichon, P. and Ratten, V. eds., 2020. Transforming Relationship Marketing: Strategies and
Business Models in the Digital Age. Routledge.
Carbino, J., 2015. Digital‐Mobile Consumption and Marketing. The Wiley Blackwell
Encyclopedia of Consumption and Consumer Studies, pp.1-3.
Zahoor, S.Z. and Qureshi, I.H., 2017. Social media marketing and brand equity: A literature
review. IUP Journal of Marketing Management. 16(1). p.47.
Fuentes, C. and Fuentes, M., 2017. Making a market for alternatives: marketing devices and the
qualification of a vegan milk substitute. Journal of Marketing Management. 33(7-8).
pp.529-555.
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