Benefits and Process of Marketing Research for Netflix

This report discusses the benefits and process of marketing research for Netflix, including strengthening market position, strategic planning, minimizing risks, and understanding customer needs and demands. It also explores the marketing mix of Netflix and the targeting of customers through technology.

MARKETING FOR
BUSINESS

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Benefits and process of marketing research.............................................................................................3
Marketing mix of the Netflix...................................................................................................................6
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................9

INTRODUCTION
Marketing is basically the series of activity which the organization uses in order to
promote their products and services and attract large number of customers. Business marketing is
predominately the promotion of the organization products in order to achieve the organizational
goals and expands in wider geographies. Netflix is the provider of media services which is being
established in 1997 and placed in California, U.S. It mainly deals in providing streaming services
and a range of films library and DVDs to the customer.
This report addresses Benefits and process of marketing research and rationale behind
targeting customers through technology.
MAIN BODY
Benefits and process of marketing research
Marketing research is basically the process which helps the organization to have a
thorough analysis of the market trends and the needs and wants of the customers. It plays an
essential role for the organization and thus helps them marketing their products and services. The
key benefits of the marketing research which helps Netflix in effectively achieve their goals are
Strengthen the market position
Through the help of marketing research, organization gains a better understanding of
various factors like the strength of competitors, market trends, needs of the customers and
suppliers which eventually help them to stay ahead and capture the great market share (Andaleeb
and Hasan, 2016).
Strategic planning
Having the extensive marketing research helps the Netflix in developing strategies that
will help them in achieving their business goals. By the thorough understanding of the market,
they are able to spot the emerging trends and the future trends which assist them to develop the
vision and mission(Baker and Saren 2016).

Minimizes risks
With the help of market research, Netflix are able to decide on which specific subject to
take action. As marketing research gives all the information about the market and helps the
organization to assess the amount of risk, they in turn are able to decide whether to invest in a
particular product, location or not and how much risk is involved in launching the new product
(Baker, 2016).
Customer needs and demands
The main focus of Netflix is to understand the needs and demands of the customers
before launching any product or making modifications in the existing one. Thus, market research
helps the organization to reach wider audience through various ways like web communities,
online panels, and telephonic survey and have in depth knowledge of their changing demands
and wants.
Process of marketing research
Netflix uses a well defined process of marketing research which helps them to understand
their customers along with the competitors. Its process involves
Defining the problem
The first step of marketing research involves identifying the problem and defining it. The
organization first find out the issue on which the research is to be conducted. This step requires
the consideration of why the research is to be carried out and what should be included in the
research.
Marketing plan
The second step in the marketing research consists of developing the marketing plan.
This step is generally overwhelming as it involves conducting the actual market research and
gathering data relevant to the research (Jianu, Ţurlea and Guşatu, 2016.). The organization

generally undergoes market survey, telephonic interview with the customers, focus group and
many more. Once the relevant information has been gathered, marketing department of the
organization develops the marketing plan which includes the sampling unit, sample size etc.
Collecting the information
This is the most complicated step where the organization adopts numerous methods for
collecting the data and information. There are generally two types of data which are collected
that is qualitative and quantitative. Besides this, the method of collecting the information is
subcategorized into two primary and secondary which the organization uses according to their
strategic mission.
Analysis of information
Once the required information is gathered, the next step which the organization
undergoes is the analysis of the data. The researcher and the organization uses various statistical
techniques for the analysis like dispersion measure and thus draws the conclusion. In short, this
step involves organizing the data with the intention to obtain the analysis.
Decision making
The last step in the process of marketing research involves taking the decision
(Kleinaltenkamp and et.al.,2015). After analyzing the findings, the marketing department reports
the conclusion to the top management and thus on the basis of the finding, top management takes
the final decision that will help the organization to achieve their objectives.
Importance of findings of market research
Once the marketing research is completed, the finding which is being drawn from the
collection of data eventually helps the top management in taking the right decision and planning
for the various aspects. The findings of market research thus help Netflix to plan their activities
and advertise their products and services. Through the findings and the conclusion of the
marketing they are able to know the needs and demands of the consumer that ultimately helps
them to know what modifications to bring within the product or what product to produce having
the unique feature. Besides this, the findings make the company aware of the various strategies

and tactics used by the competitors for attracting the customers. This knowledge in the end assist
the company to decide which marketing and communication mix to adopt in order to attract the
customers and fulfill their demands. Hence, through the effective marketing research, company
is able to alter their marketing mix and thus plans their activities for reaching the wider
customers and suppliers.
Apart from this, the findings of the marketing research analyses the overall performance
of the company and thus tells them about the various selling activities which they have to use for
promoting their products. The conclusion which is drawn from the marketing research helps the
company to know which target market they have to serve and which types of customers they
have to target. There are various types of promotional tools which the company uses thus the
effective marketing research tells the company which promotional tools they have to use for
advertising their products on the large platform and thus helps them in their expansion.
Therefore, the market research findings eventually aid the company to plan various activities
ranging from production to the selling of products and services.
Marketing mix of the Netflix
Product
Although Netflix deals in various products, the most recent product which they have
released and has gained a high popularity is the DVDs. This constitutes the video library with
around 900 titles. This product since its release has been a buzz in the market and has marked a
growth in sale to a large extent. Although, DVDs is the first business with which Netflix entered
in the business, but through the recent innovations they have bought new DVD which dragged
the attention of audience and became the ruling factor in entertainment.
Price
Netflix generally uses value based pricing for its DVD product and thus sets the prices
according to the perception of consumers for their products. They usually have different prices
which depend on the types of customers.

Place
Netflix follows a well defined distribution strategy where they made their DVDs
available on the various outlets. These outlets are present across the different parts of world as
well as sell online.
Promotion
Netflix uses the extensive mix of offline as well as digital marketing for advertising their
DVDs. Besides this, they use media channels and direct selling for the effective selling of their
DVDs (Wilson and et.al., 2016).
People
The marketing as well as the social media team of Netflix forms the most important part
and are highly trained to approach the customers and providing them quality services.
Process
Netflix has a well structured process of delivering high quality services to their
customers. They have the easiest process through which the customer can easily contact the call
center as well as reach the outlets for any help.
Physical evidence
The largest physical evidence is Netflix app as it is tangible aspect and operates on the
online platform. Its DVD stores are mainly dominated with the red colour to increase the brand
awareness among customers.
Targeting of the customers
The main rationale behind targeting either the niche market of the large market is to
increase the brand equity and take the brand message to wider customers. The major objective of
the company is to increase the brand awareness among the consumers and thus become the
market leader. Besides this, another objective of targeting the customers is to fulfill their needs
and demands and deliver the best services.

Customers are mainly targeted on the basis of the demography, their geography their
lifestyle, attitudes, beliefs thus this divides the targeting into demographic, geographic,
behavioral and psychographic targeting. Through the marketing research, company analyses the
growing need o the product and thus select the strategy to target the specific group of customers.
Like while launching of the DVD, Netflix found its growing demand among the youngsters and
thus targeted the niche market of young people. Therefore, they adopted demographic
segmentation and thus used concentrate targeting for advertising their products among teens.
Tailoring the target market through technology
Once the company has identified their target market, next step involves tailoring their
marketing activity to attract the right kind of customers for which they uses online platform and
technology. Through the help of online media, company attracts the customers and thus applies
the appropriate communication mix (Zimmerman and Blythe, 2017). They send the personalized
message to their target audience which generally incorporates the features and characteristics of
the product. Besides this, through the E mail marketing they offer some unique discounts as well
as cashbacks which help them to attract the customers of niche market. Besides this, Netflix
through its optimized website targets the wide range of consumers and displays the features,
price, and characteristics on it which eventually makes the customers aware of the attributes of
product. Apart from this, the company also uses trial promotion where they offer the trial sample
of their product in various events, fairs and thus entice their target market. In this way, Netflix
tailors their strategy and promoted their products to the target market.

CONCLUSION
It has been summarized that Organization uses the extensive process of market research
through which they come to know the market trends and needs and demands of their customers.
The major benefit which the company receives by conducting marketing research is that they are
able to assess the strength and weakness of their competitors which eventually help them to
attain competitive advantage. Not only does marketing research helps in analyzing the customer
needs, but also helps the company to plan their various activities ranging form production to
selling of the product. Apart from this, with the help of correct marketing mix companies are
able to segment their customers accordingly and this helps them in targeting the specific group of
customers. This targeting is done through the use of advance technology where the organizations
utilizes online platform to advertise their products and attract the customers.

REFERENCES
Books & Journals
Andaleeb, S.S. and Hasan, K., 2016. Marketing research. In Strategic marketing management in
Asia: Case studies and lessons across industries (pp. 111-160). Emerald Group
Publishing Limited.
Baker, M.J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Baker, M.J., 2016. What is marketing?. In The Marketing Book (pp. 25-42). Routledge.
Jianu, I., Ţurlea, C. and Guşatu, I., 2016. The Reporting and Sustainable Business
Marketing. Sustainability.8(1). p.23.
Kleinaltenkamp, M and et.al.,2015. Fundamentals of Business-to-business Marketing. Springer.
Wilson, A and et.al., 2016. Services marketing: Integrating customer focus across the firm.
Zimmerman, A. and Blythe, J., 2017. Business to business marketing management: A global
perspective. Routledge.