Digital Marketing: Traditional vs. Digital Marketing

This report evaluates the effectiveness of digital marketing compared to traditional marketing and analyzes the data analysis strategy used by Netflix. Learn more about the benefits of digital marketing and how it can help organizations reach a wider range of customers.

Digital Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Traditional and Digital Marketing...............................................................................................3
Customer touch points.................................................................................................................4
Implementation of data generation through digital marketing....................................................4
Effectiveness of data analysis......................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................1

INTRODUCTION
Digital Marketing is the organizational activity through which it advertises itself for
reaching wide range of customers through the means of internet. Netflix is an online
entertainment video provider which also develops its own shows, for attracting customers.
Evaluation of digital marketing with traditional marketing is done in this report. Evaluation of
data analysis strategy used by Netflix is also done in this report.
MAIN BODY
Traditional and Digital Marketing
Marketing is the organizational activity for reaching wide range of customer and with
improvement in technology use of internet and social media is increasing day by day among
customer. This technological development has motivated organizations like Netflix to use
internet as an marketing tool for reaching wide range of customers (Herhausen and et.al, 2020).
Following is the comparison of traditional and digital marketing.
Traditional Marketing Digital Marketing
High Cost-
High cost has to be paid by organization
because advertisement has to done through
newspaper, TV and radio.
Less Cost-
Comparatively less expensive because
promotional is only through the means of
internet.
Ineffective tracking-
Company can track the effectiveness of its
advertisement because it is only limited to
variations in organizational sales.
Effective tracking-
Company can track the effectiveness to its
advertisement by analysing the inside witch
will showcase brand awareness by ads.
Limitations-
Company is able to effectively showcase its
objectives through the means of TV and radio.
In which it is not limited to internet users.
Limited to internet users-
Advertisement has to be done through the
means of internet, which is limited to educated
segment of the society.
Not specific-
This marketing is not limited to specific
targeted audience, therefore its goal is to attract
Specific-
In this advertisement is done to only the
targeted audience due to which it is customer

as many customers as possible. centric.
No creative marketing-
Marketing is limited to newspaper and radio
advertisement in which creativity is limited and
is less interactive.
Creative Marketing-
High creativity can be achieved in this through
email and social media marketing. With that it
is also interactive because customer can share
the ads with each others.
Better demographic reach-
Through traditional marketing company would
be able to attract senior citizens as well as
younger generation. Therefore traditional
marketing is more efficiently reachable.
Limited reach-
Limited within a segment of society because
marketing is done through internet therefore it
is limited to literate and internet users only.
Customer touch points
Customer touch points are the segments of Netflix at which customer comes in contact with the
organization. Since Netflix uses digital marketing strategy for showcasing itself to a wide range
of customers, therefore there are many touch points through which customers can make direct
contact with the organization (Chaffey and Smith, 2017). Netflix can improve customer
experience which will lead to increment in subscriber count. Omni channel is a bidirectional
communicational means which company uses for improvising customer experience. This will
increase customer’s engagement with organization resulting high loyalty towards Netflix. This
high communication improvises customer experience with Netflix providing the ability to
modify their experience with the organization. Therefore through this creative communication
Netflix is able to maintain the loyalty of existing customers and at the same time is attracting
new customers, which is increasing the profit margin of organization.
Implementation of data generation through digital marketing
Netflix is an online service provider, which provides digital entertainment facilities such as
movies, web series, etc to its customers. Since, Netflix itself develops its own web series as per
customer requirements, therefore it requires marketing data for analysing customer requirement
by which it gives customised user experience to its customers which motivates the user for

getting involved with the organisational activities. Netflix uses Omni channel for effective
communication with organizational customers in which a bidirectional communication is
established between company and its customers, this increases customer’s engagement resulting
high loyalty. With that Netflix has created customer accounts through which each customer is
treated as a separate customer, due to which specific video or service suggestions are givens to
clients on the basis of their interest (Kannan, 2017). This personalised experience motivate
customer to increase their engagement and maintain their loyalty towards organization because
company is able to fulfil their requirements.
Effectiveness of data analysis
Netflix uses personalize accounts for individual customer through which it is able to
monitor each customer separately. This has enabled organization to modify user experience
through specifying their account as per their interest. Analysing the customer’s data helps the
organization to customise users experience as per their choice. To maintain the loyalty of
existing customers Netflix treat individual user separately as compared to other organizations
due to which it has managed to achieve a large customer count. It is important for Netflix to
provide new content to its customer such that it is able to reduce the chances of brand switching.
Therefore to achieve this company is upgrading its working process with time. For example,
Netflix used to provide new movies to its customer but with changing market trend company is
now developing its own web series as per customer requirement. This has allowed organization
to enter in new market with has resulted in increment in profit margin.
CONCLUSION
From the above analysis it can be concluded that for achieving high effectiveness at low pricing
Netflix had to use digital marketing strategy for reaching wide range of customers at minimum
expenditures. Netflix has to use several distribution channels for reaching new customers and
maintaining loyalty of existing customers.

REFERENCES
Books and journals
Chaffey, D. and Smith, P.R., 2017. Digital marketing excellence: planning, optimizing and
integrating online marketing. Taylor & Francis.
Herhausen, D. and et.al, 2020. The digital marketing capabilities gap. Industrial Marketing
Management. 90. pp.276-290.
Kannan, P.K., 2017. Digital marketing: A framework, review and research agenda. International
Journal of Research in Marketing. 34(1). pp.22-45.
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