Differences between traditional and digital marketing with examples from Netflix

This report discusses the differences between traditional and digital marketing, using examples from Netflix. It also explores how Netflix uses data analysis to enhance consumer experience and maximize company growth and consumer satisfaction.

The Digital Landscapes-
Netflix

Table of Contents
INTRODUCTION...........................................................................................................................1
Differences between traditional and digital marketing with examples from Netflix..................1
Customers touch points and omni channel nature of customer journey of Netflix subscribers..2
Explain how Netflix use the analysis of data generated through digital marketing activities....3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Digital marketing landscape is defined as a ecosystem which acts as a valuable tool
through which an entity can consider the overall area of digital marketing. It aid them to
prioritise the segment in which they can spend their resource for higher growth and success
(Golubov, 2020). Present report has been conducted on Netflix, a technology and media service
provider and production company. Netflix is using data processing software and traditional
business intelligence tools like Teradata, Hadoop and its own open-source solutions like Genie
and Lipstick in order to effectively evaluate, store and process large base of information. In this
report discussion has been conducted on difference between traditional and digital marketing,
use of data to enhance consumer experience and the manner in which data analysis help
marketers to maximise company growth and consumer satisfaction.
Differences between traditional and digital marketing with examples from Netflix
Traditional marketing includes different types of traditional channels such as printed
media, billboards, direct mail, referral, broadcast and more. While on the other hand, digital
marketing mainly involves use of digital channels such as social media, websites, email
marketing, content marketing, search engine optimization, pay per click advertising and more.
Medium is the major difference among traditional and digital marketing through which
which consumer encounters a marketing message. As in term of traditional media sources like
newspaper, magazines and more are included. While digital media involves social media or
website (Kopalle, Kumar and Subramaniam, 2020). Further it has been evaluated that, traditional
marketing is a close system while if is seen in context with digital marketing is a open system. In
addition to this it has been determined that traditional marketing is more expensive
comparatively to digital media
It has been evaluated that Netflix is taking advantage of both traditional marketing and
digital marketing in order to effectively impress mass audience towards their offerings (How to
win the digital race by coming in second, and other (often surprising) ways to reinvent for the
digital world. 2017). This is being determined hat Netflix undertakes advantage of TV
commercials in order to promote their line-up, full-page ad for its Marco Polo series , sponsored
programs for their Orange Is the New Black (4 Ways Netflix Is Using Non-Traditional
Approaches To Marketing. 2016). While on the other hand, in terms with digital marketing
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Netflix undertakes use of social media marketing, websites, develop of app for example Rateme
to promote their show Black Mirror,. Facebook, Instagram and more.
The differences underlying between the traditional and digital approach to marketing can
also be tracked on the basis of marketing mix elements. In this relation, particularly taking the
example of element named promotion, it can be highlighted that traditional approach focussed
upon the usage of media such as TV, radio, newspaper, magazines etc. Opposed to this, the
digital approach is keen on doing online promotion by virtue of social media platforms or other
digital tools.
Customers touch points and omni channel nature of customer journey of Netflix subscribers
Customer touch points can be referred to as the ways that are leveraged by the companies
to come into contact with the customers and thereby provide them with the information about the
company and its services. In this relation, it has been evaluated that there is aggressive
competition prevailing in tech & environment and mass media industry. Thus, in order to serve
customers while assuring maximum competitive advancements it is essential for entities
involved in this segment of effectively emphasise upon consumer experience for long term
success and engagement of business (Thomas, 2020). It has been evaluated that modern
consumers are mainly bounce between various channels in order to make their purchase. Thus, to
serve their needs and demands in effective manner Netflix undertake advantage of consumer-
centric omni channel marketing strategy.
This is being determined that Netflix offer entirely seamless viewing experience no
matter which device consumer is using (Wayne, 2020). Along with this company also allocate
and analyse customer data for offering suggestion of new content according to taste and feels
that effectively trigger perception of consumers. Netflix also provide email notifications to users
related to new releases. All of this account as the omni channel experience that is created by the
respective company for its users across the globe.
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Explain how Netflix use the analysis of data generated through digital marketing activities
Netflix use social media data to dominate the online streaming industry (Williamson,
2020). Netflix take use of opulence of technological algorithms to maximise consumer
experience. Every action that a user undertakes in recorded such the shows they watches, time
when they are viewed, what was watched by use before and after that show and when and where
user stops watching. Each click is being recorded. Netflix use detailed tagging system through
which they recommend their users the content according to their taste or preferences (Using Data
Handling and Digital Marketing to maximise customer experience : A Netflix Case Study. 2020).
The company use two recommended system that are content-based recommended systems and
collaborative filtering recommendation systems. Netflix also undertake optimized streaming
quality through which they use past viewed data to predict bandwidth usage to aid the service
decide when it should cache regional servers to ensure prompt load times during high demand
(Guadiana, 2020). Thus the service predicts which show is to be streamed in a certain location
and caches the content in the nearby server when the internet traffic is minimal. Netflix spent
around 100 million on 26 episodes of House of Cards by analysing the data of its viewers.
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CONCLUSION
According to the discussion done in the above report, it has been concluded that, there are
different types of traditional as well as non traditional marketing tools such as websites, social
media networks, TV commercials and more through which entity can serve their offerings to
consumer. In addition to this, it has been analysed that customer experience is most important
aspect for growth and success of any organisation. Further it has been evaluated that data
analysis is an effective measure that facilitate entity to increase business performance and growth
while assuring maximum satisfaction from customers.
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REFERENCES
Books and Journals
Golubov, N., 2020. Netflix Nations: The Geography of Digital Distribution by Ramon Lobato.
Kostovska, I., Raats, T. and Donders, K., 2020. The rise of the ‘Netflix tax’and what it means for
sustaining European audiovisual markets. Innovation: The European Journal of Social
Science Research, pp.1-19.
Guadiana, G., 2020. A Netflix experience: reimagining the direct-to-consumer
platform (Doctoral dissertation, Massachusetts Institute of Technology).
Wayne, M.L., 2020. Global streaming platforms and national pay-television markets: a case
study of Netflix and multi-channel providers in Israel. The Communication
Review. 23(1). pp.29-45.
Kopalle, P.K., Kumar, V. and Subramaniam, M., 2020. How legacy firms can embrace the
digital ecosystem via digital customer orientation. Journal of the Academy of Marketing
Science. 48(1). pp.114-131.
Williamson, B., 2020. Making markets through digital platforms: Pearson, edu-business, and the
(e) valuation of higher education. Critical Studies in Education, pp.1-17.
Thomas, M.M., 2020. The changing landscape of the audio industry with the advent of new
digital media. Exploring Digital Humanities in India: Pedagogies, Practices, and
Institutional Possibilities, p.183.
Online
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>
4 Ways Netflix Is Using Non-Traditional Approaches To Marketing. 2016. [Online]. Available
through<https://www.alistdaily.com/media/netflixs-non-traditional-approach-
marketing/>
How to win the digital race by coming in second, and other (often surprising) ways to reinvent
for the digital world. 2017. [Online]. Available
through<https://www.mckinsey.com/business-functions/strategy-and-corporate-
finance/our-insights/the-strategy-and-corporate-finance-blog/how-to-win-the-digital-
race-by-coming-in-second>
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