Digital Marketing Services & Online Marketing Solutions

Running head: - MARKETING SERVICES
MARKETING SERVICES
Name of the Student
Name of the University
Author Note

1MARKETING SERVICES
Table of Contents
1. Introduction:...........................................................................................................................2
2. Traditional methods and Artificial Intelligence:....................................................................3
3. Success factors using AI:.......................................................................................................6
4. Issue faced by Netflix:...........................................................................................................7
5. Marketing Communication Mix Tools:.................................................................................8
6. Conclusion:............................................................................................................................9
7. References:...........................................................................................................................10

2MARKETING SERVICES
1. Introduction:
Netflix refers to an American provider for media services as well as Production
Company that has its headquarters located at Los Gatos, in California. The company had been
founded in the year of 1997 by Reed Hastings along with Marc Randolph in the Scotts
Valley, again in California (Verganti, Vendraminelli and Iansiti 2020). The primary business
activity of the company is to provision with streaming services that has a complete
dependency upon subscription from the end of the customers. Netflix offers streaming service
in the field of library films, in-house productions as well as television programs. Until April,
in the year of 2019, the company was in possession of over 148 million subscribers that had
the primary inclusion of 60 million from United States along with 154 million subscriptions
that are related to free trials. The company provisions with services to all the customers on a
global level except China in regards to the local restrictions, North Korea as well as Syria due
to the sanctions in US (Deb, Jain and Deb 2018). In this discussion, the company has been
visibly identified to be using artificial intelligence in its services replacing the traditional ones
along with the success factors that led to a potential growth of the company. In addition to
this, two marketing communication mix tools have been suggested for Netflix through the
discussion that has been carried out.
Figure-1: Netflix Logo
(Source- Lu et al. 2018)

3MARKETING SERVICES
2. Traditional methods and Artificial Intelligence:
Netflix is an American based company that provisions all the members in the form of
customers with services such as the watching multiple TV shows, documentaries and movies
as well as other services with the help of devices connected to internet. In addition to this,
with the help of Netflix, the customer have the provision to watch all the contents that are
advertisement free (Lu et al. 2018). The primary advantage of having a subscription in
Netflix is that every month newer movies as well as series are added to the collection in the
form of entertainment for retaining the customers to stay as paid subscribers.
Traditionally, Netflix makes use of payment from the customer’s end and utilizes that
to provision the respective customers with ad free content on their individual platform as a
part of entertainment (Patchunka 2018). The resources are often locked to the users who do
not have a subscription and offer them with a premium membership to unlock the locked
content and to have a look through it.
Figure-2: Netflix old platform
(Source- Patchunka 2018)

4MARKETING SERVICES
Previously, Netflix used to only highlight the newly released TV shows as well as
movies on their home page. The responsibility of the user was to search up the topic that the
respective user is looking for and Netflix used to provide the user with the result of the
search. However, this was considered to be a tedious job on the user’s end and compelled the
users to look for an alternative provisioning them with similar kind of services (Wolverton
2019). This made the owners of Netflix to sit and think methods to specifically retain
customers and keep their base of customers intact. Hence, the company decided to
specifically implement artificial intelligence into its services and improve the areas on their
platform that was in dire need of an improvement in regards to the feedback from the users.
As a reason, Netflix had applied AI solutions to its existing business model that will
carry out a direct interaction with the consumers of the current world. When such AI related
solutions had been added to the services of Netflix, the outcomes had been unique in regards
to the scale as well as the customer satisfaction that had been improving over time (Mehr,
Ash and Fellow 2017). The services that Netflix implemented Ai relation solutions with are,
i) Movie recommendations- specific users who particularly watch A is considered to
watch B. This is the most common known features that is utilized by Netflix
recently. The Company makes use of the watching history that belongs to a
specific user having the inclusion of similar tastes for recommending that
individual user with something else that might be possible for the person to watch
as well.
ii) Auto-generation as well as personalization of thumbnails- the company makes use
of captures from the video frames of a particular movie or a TV show and
annotates the same along with ranking them for the identification of thumbnails
that shall carry the highest degree of likelihood to be clicked by users (Wilson
2019). Such calculations have a direct dependency upon the similar click by that

5MARKETING SERVICES
respective user. This is another form of attracting individual users to same genre
of shows or particularly movies.
iii) Editing of movies- usage of historical data when failures have been the outcomes
to control checks in past is specifically predict a particularly manual check that
shall be beneficial or it can turn out to be time consuming and at the same time a
laborious procedure.
iv) Quality of streaming- utilizing view data belonging to past for the prediction of
bandwidth usage provisions Netflix with a helping hand during the time of ache
when the regional servers provide with a faster rate of load time during the time
when the demand is specifically high.
In addition to the above areas where Netflix has been visibly identified to have made
use of artificial intelligence, the company has also accessed big data to improve the services
that it provisions to millions of users on a global level (Hansen et al. 2017). This is done by
the company with the help of analysis as well as detection of particular patterns from all the
data that has a direct relation to the viewing habits of individual users in the form of
consumers. In regards to this, Netflix utilizes sophisticated algorithms for recommending the
right content in a tailored form for each user that result in an optimal experience from the
brand.
This is mainly done by the brand with the help of two primary forms of data, implicit
as well as explicit. Explicit data is when all the users are directly asked for a feedback
regarding the service that is provided to them (Barnes, 2016). On the other hand, implicit data
consists of all the data that shares a direct relation with the behaviour of the consumers. Such
data is set to an algorithm by the company and the data is arranged in that format on the home
screen of individual users that vary from user to user.

6MARKETING SERVICES
Figure-3: Netflix data arrangement
(Source- Camerer 2018)
3. Success factors using AI:
There is the shared existence of multiple success factors that the company has visibly
identified in regards to the integration of Artificial Intelligence into its services and business
procedures (Camerer 2018). These are,
i) Getting informed- the primary success factor in regards to the business of the
company for integration of AI is the potential ability to get hold of the demands
that individual users want from them. This has the primary inclusion of suggesting
them with content that individual users might have interest in.
ii) AI encoding- this has been implemented by the company to improve the quality of
video that is provisioned to the consumers of the video streaming service (Wall
2018). This particular feature has allowed the company to specifically reduce the
visualized complexity within the videos as well as to reduce the unnecessary

7MARKETING SERVICES
bandwidth that is consumed while streaming videos through their platform. This
implementation of AI encoding also improves the speed requirement of the video
that is being streamed.
iii) Recommendations- the AI that has ben integrated by the company allows to
specifically surface the videos, shows or movies to be lowered down that would
not find a spectators in regards to the people and the ones who prefer what kind of
a genre (André et al. 2018). This provisions the company to save money that is
particularly spent upon the content that is kept on their platform and is fed to the
consumers on a regular basis.
iv) Sentimental analysis- Netflix makes use of AI also for sentimental analysis. This
can be stated with the fact that individual users of the company search up multiple
things on the internet throughout the entire day. This is analysed as well as
extracted out by the company as data and then placed within the algorithm that
controls the suggestions on the home page of the application. With the use of the
data that has been gathered is used by Netflix to make suggestions as well as
notify users only with the content that is searched by them respectively on a daily
basis.
v) Informative content- with the rise of various social causes that are visible on a
daily basis on the news or other social platforms, the company also suggests
videos or shows or might as well be movies that have a similarity to such social
causes (Mills and Uebergang 2017). This specifically acts as a helping hand
towards provisioning such users with informative content and allow them to
increase their respective knowledge on that particular topic.

8MARKETING SERVICES
4. Issue faced by Netflix:
Netflix with the help of artificial intelligence has been successful within the global
market to attract a larger amount of audience to use their platform for streaming videos as
well as make payments to get access to premium content. However, there has been an issue
that the company has faced lately due to the recommendations made towards the users on a
daily basis. Industry has observed that flooding with content on their platform have been
burning out majority of the spectators (Neubert and Montañez 2020). Most of the crowd in
regards to the current situation of the global world look for documentaries upon some causes
that might be needed to increase the particular knowledge upon that explicit content.
Due to the algorithm that slides down such documentaries as a reason of AI presence
might be at times frustrating and dissatisfying on the end of the consumers. This has been
leading to a weakening of the wide customer base that belongs to Netflix.
5. Marketing Communication Mix Tools:
Two of the marketing communication mix tools that can be utilized by Netflix to
overcome the problem that the company has lately faced due to the implementation of
Artificial Intelligence has been described below. These are,
i) Sales Promotion- this refers to an effective means of communication tool for the
purpose of marketing. Sales promotion has the primary inclusion of product
demonstrations, various forms of contests as well as other displaying of content
that companies provisions to the customers (Shrestha, Ben-Menahem and Von
Krogh 2019). In regards to this, Netflix can make use of this tool for promoting
such documentaries in the same level apart from common shows or movies to
keep that part of the audience retained to their video streaming platform.

9MARKETING SERVICES
ii) Public relations- this is another tool for marketing communication that provisions
the companies with a helping hand towards ensuring with a public image of the
brand that is particularly positive. The primary objective that this tool carries is to
carry out a direct interaction with the customers, take feedback and implement
their needs on the products that is to be introduced by the company. This tool can
be utilized by Netflix to get a feedback as to what kind of content that part of the
audience wants and then necessary implement the same into their platform for a
better reaction from the customer’s end.
6. Conclusion:
Netflix has been a primary video streaming service provider on a global level that is
originated at America. With so many years of service, this report identifies that the company
has been lately facing issues to satisfy the customers without knowing what they want. As a
reason, the report states that the company took the decision of implementing AI into their
services to meet the demands of the customers. However, an issue has also been highlighted
by the report due to which two marketing communication mix tools have been suggested
towards the company for a better retention of the consumers.

10MARKETING SERVICES
7. References:
André, Q., Carmon, Z., Wertenbroch, K., Crum, A., Frank, D., Goldstein, W., Huber, J., Van
Boven, L., Weber, B. and Yang, H., 2018. Consumer choice and autonomy in the age of
artificial intelligence and big data. Customer Needs and Solutions, 5(1-2), pp.28-37.
Barnes, E., 2016. Advanced Artificial Intelligence: Policy and Strategy.
Camerer, C.F., 2018. Artificial intelligence and behavioral economics. The economics of
artificial intelligence: an agenda. University of Chicago Press, Chicago.
Chan-Olmsted, S.M., 2019. A Review of Artificial Intelligence Adoptions in the Media
Industry. International Journal on Media Management, 21(3-4), pp.193-215.
Deb, S.K., Jain, R. and Deb, V., 2018, January. Artificial Intelligence―Creating Automated
Insights for Customer Relationship Management. In 2018 8th International Conference on
Cloud Computing, Data Science & Engineering (Confluence) (pp. 758-764). IEEE.
Hansen, M., Roca-Sales, M., Keegan, J.M. and King, G., 2017. Artificial intelligence:
Practice and implications for journalism.
Lu, H., Li, Y., Chen, M., Kim, H. and Serikawa, S., 2018. Brain intelligence: go beyond
artificial intelligence. Mobile Networks and Applications, 23(2), pp.368-375.
Mehr, H., Ash, H. and Fellow, D., 2017. Artificial intelligence for citizen services and
government. Ash Cent. Democr. Gov. Innov. Harvard Kennedy Sch., no. August, pp.1-12.
Mills, M. and Uebergang, J., 2017. Artificial intelligence in law: An overview. Precedent
(Sydney, NSW), (139), p.35.
Neubert, M.J. and Montañez, G.D., 2020. Virtue as a framework for the design and use of
artificial intelligence. Business Horizons, 63(2), pp.195-204.

11MARKETING SERVICES
Patchunka, C., 2018. Netflix Killed the Cable TV Star: Cable TV Is Definitionally
Disadvantaged for Use of Artificial Intelligence. Fed. Comm. LJ, 71, p.275.
Shrestha, Y.R., Ben-Menahem, S.M. and Von Krogh, G., 2019. Organizational Decision-
Making Structures in the Age of Artificial Intelligence. California Management Review,
61(4), pp.66-83.
Verganti, R., Vendraminelli, L. and Iansiti, M., 2020. Design in the Age of Artificial
Intelligence.
Wall, L.D., 2018. Some financial regulatory implications of artificial intelligence. Journal of
Economics and Business, 100, pp.55-63.
Wilson, J., 2019. Artificial Intelligence: From concept to reality. IQ: The RIM Quarterly,
35(1), p.34.
Wolverton, C., 2019, March. Using artificial intelligence to discover new materials. In
ABSTRACTS OF PAPERS OF THE AMERICAN CHEMICAL SOCIETY (Vol. 257). 1155
16TH ST, NW, WASHINGTON, DC 20036 USA: AMER CHEMICAL SOC.