Digital Marketing - The landscapes of Netflix

This document discusses the difference between traditional and digital marketing, the customer touch points and omni channel nature of Netflix subscribers, and the analysis of data from digital marketing activities. It also highlights the importance of digital marketing in the global expansion of businesses and the use of data to enhance customer experiences.

Digital Marketing - The
digital landscapes of
Netflix
1

TABLE OF CONTENTS
1.0 INTRODUCTION.....................................................................................................................3
2.0 Difference between traditional and digital marketing...........................................................3
3.0 Customers touch Points and Omni channel nature of customer’s journey of Netflix
subscribers...................................................................................................................................5
4.0 Analysis of data from digital marketing activities.................................................................5
5.0 CONCLUSION..........................................................................................................................6
REFERENCES................................................................................................................................7
2

1.0 INTRODUCTION
Digital marketing is termed that means use of internet connection, electronic devices
such as computer or mobile devices, different search engines and social media platform to reach
end users of products. Netflix is largest entertainment company that was initially started by Reed
Hasting in 1997 which has seen potential of streaming technology. It decided to started offering
online rental service such as television series and films so that need of wide ranges of customers
can be fulfilled. Thus, use of digital marketing strategy has contributed in quick global expansion
of business by reaching more and more customers in limited time frame. Digital marketing is
also important as it is more personalised and innovative method to approach range of customers
so that they are motivated to be part of organisation.
2.0 Difference between traditional and digital marketing
With development in technology, economic growth or increase in per capita income of
individuals have lead to change in demand or trends the way products or services need to be
marketed to end individuals. In traditional marketing, lot of time, efforts and cost has to be
incurred by company to generate awareness among number of customers. While in digital
marketing, simply by using social media platform such as Facebook, Instragram or You tube,
content or email marketing can be used to pursue people that are living across world. So, it can
be stated that digital marketing is more effective and efficient as compared to traditional as
maximum number of people are attracted to firm within limited time and cost (Vial, 2019). In
order to Compare between traditional and digital marketing mix approach will be used as
follows:
BASIS Digital marketing Traditional marketing
Product In digital marketing,
customers can easily select,
refund or cancel particular
products and services. Such as
Netflix is an website where
customers can easily register
themselves and watch TV
shows, documentary and
movies etc. It also offers
On the other hand in
traditional marketing,
customers have to physically
visit the stores to have
knowledge of quality and
quality of products and
services offered by company.
3

streamline software where
people can easily watch videos
for better experienced. It also
provide DVD on rental basis
thus by gaining broadcast right
it have become online
distributors and attract huge
customers within firm (Netflix
Marketing Mix (4Ps) Strategy,
2020).
Price Cost of products or services
are much less due to low
expenses incurred in
marketing. For examples:
Netflix have offered free trial
services for one month then
charged prices as per plan
selected by individuals.
While in traditional marketing,
price products or services are
higher.
Place Firm that uses digital
marketing has its presence in
online sites or have official
websites where customers can
visit and have a look. Thus,
people can easily access
Netflix services by having
strong internet connection and
mobile phone.
In traditional marketing, most
of the firms have their
physical presences in location
that are near to target
customers.
Promotion Different digital channel are
used to promote business and
enhance brand image. Thus,
Netflix have make use of
Billboard, Tv advertisement
promotional offers and
personal selling are some of
the method that are used by
4

social media, office website to
attract maximum number of
individuals.
traditional marketing business
to promote their growth and
development (Booth, 2019).
3.0 Customers touch Points and Omni channel nature of customer’s journey of Netflix
subscribers
Customers touch points describe point from starting to finish where customers are
connected or contact to particular brand in terms of visiting official website, purchase products
and review rating. Omni channel are different channels that are used by company to influences
customers and offer the seamless experiences so that they are retained within firm for longer
time frame. Netflix have used multi- channels i.e., online and offline both to connect with
customers, created memorable email, personalised content, focused on more better services by
taking feedback (McDonald and Smith-Rowsey, 2016). So, the way Omni channel nature of
customer’s journey of Netflix subscribers start from several advertisement or videos on social
sites i.e, Facebook and Instragram. Official website of firm is another touch point where people
can quickly, easily access to crucial information about organisation and type of products and
services in which it deals. Company have retained and make customers happy and satisfied
through subscription and making changes in services as per customer taste. Therefore managing
leverage personalisation has contributed Netflix to create unique experienced for all 81.5 million
subscribers (How Netflix Uses Analytics To Select Movies, Create Content, and Make
Multimillion Dollar Decisions, 2020).
4.0 Analysis of data from digital marketing activities
Internet is a useful source of gathering large amount of information related to customers
so that marketing manager can formulate effective plan that could be used to influence and retain
them within organisation. Marketer of Netflix has use data sciences and algorithms in order to
understand customer’s journey like in 2000, company have organised competition to predict
rating related to number of users love films, videos etc. Thus, it have become turning point for
firm as on basis of gathered data company have enhance customers experiences and quickly
5

expand its business operation (How to Master Modern Marketing Strategy Like Netflix, 2020).
Some of the approached that are used by marketer of Netflix to increase customers range are
recommendation system, personalised thumbnail, optimising streaming quality and finding the
next hit series. In recommendation system, marketing manager of Netflix have recorded each and
every activity of customers such as time they watch, type of films or series they are interest,
things from which they get bored and stock watching so on. Thus, on the basis of data collected,
customers is offered similar type of services for examples if someone like to watch “ Thriller”
genre that similar films were suggested for more satisfaction (NETFLIX, 2020). Thus, in this
way it have make use of analysis data and information to improve customers experiences and
performance of organisation.
5.0 CONCLUSION
Form the above report it can be concluded that digital marketing is modern and most
effective method that helps in pursuing large number of individuals to select specific
organisation than other competitors in market. Netflix by making use of innovative idea, method
to deliver products and services that is online channel is able to gain competitive advantages and
build strong brand image. At last, it can be analysed that Netflix marketing manager have make
maximum and optimum utilisation of data that resulted in enhancing customers satisfaction level.
6

REFERENCES
Book and journals
Booth, D., 2019. Marketing analytics in the age of machine learning. Applied Marketing
Analytics, 4(3). pp.214-221.
McDonald, K. and Smith-Rowsey, D. eds., 2016. The Netflix effect: Technology and
entertainment in the 21st century. Bloomsbury Publishing USA.
Vial, G., 2019. Understanding digital transformation: A review and a research agenda. The
Journal of Strategic Information Systems, 28(2). pp.118-144.
Online
How Netflix Uses Analytics To Select Movies, Create Content, and Make Multimillion Dollar
Decisions, 2020, [Online]. Available Through: < https://neilpatel.com/blog/how-netflix-
uses-analytics/ >.
How to Master Modern Marketing Strategy Like Netflix, 2020, [Online]. Available Through:
< https://www.engagebay.com/blog/modern-marketing-tips-netflix/ >.
Netflix Marketing Mix (4Ps) Strategy, 2020, [Online]. Available Through:
<https://www.mbaskool.com/marketing-mix/services/17729-netflix.html >.
NETFLIX, 2020. [Online]. Available Through: < https://nectarom.com/tag/netflix/ >.
Using Data Handling and Digital Marketing to maximise customer experience : A Netflix Case
Study, 2020, [Online]. Available Through: <
https://www.analyticssteps.com/blogs/using-data-handling-and-digital-marketing-
maximise-customer-experience-netflix-case-study >.
7

8

9

10