Digital Marketing Analysis: Netflix's Strategies and Performance

This report provides an in-depth analysis of Netflix's digital marketing strategies, comparing traditional and digital marketing approaches through the lens of the 4Ps of the marketing mix. It examines the customer touchpoints and the omni-channel customer journey that Netflix employs, highlighting how the company transitioned from DVD rentals to online streaming. The report details Netflix's use of data generated through digital marketing, emphasizing personalized experiences and the development of a recommendation system. Furthermore, it maps the customer journey from the company's inception to its current international presence, including the launch of original content, and explains how data analysis has improved performance and customer satisfaction. The report concludes by emphasizing the importance of digital media marketing for businesses to meet consumer needs and retain customers.

DIGITAL MARKETING
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Traditional Vs Digital Marketing ...............................................................................................3
Customer Touchpoints and the Omni channel Customer Journey..............................................4
Uses of data generated through digital marketing by Netflix.....................................................5
Analysis of data to map the journey and improve performance of company.............................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Digital marketing refers to marketing of products and services in a way which involves
different electronic devices. It is effectively making use of internet, online technologies and
different digital media tools (Melović and et. al., 2020). The following report concentrates on
digital media tools used by Netflix which is an American technology and media service provider
with its headquarter situated in Los Gatos, California. It was founded in 1997 by Reed Hastings
and Marc Randolph in California. There are a number of benefits provided by digital media
marketing that includes reaching large number of audience at once in the most cost-effective
manner. They are also helping businesses to improve their brand recognition and brand value.
Along with all this it also drives online sales for businesses. The following report includes a
study of digital marketing used by Netflix to enhance their performance and increase customer
satisfaction level.
MAIN BODY
Traditional Vs Digital Marketing
Traditional Marketing refers to involvement of various traditional channels to market the
product such as printed media, billboards, TV commercials, magazines and so on.
Digital media marketing however refers to various digital channels which include
advertising through the use of internet such as social media tools, various websites and so on.
A comparison of both of these marketing techniques can be done taking into account the
4P's of marketing mix. It will include the products, price, prom,promotion and place. Below
mentioned is an effective comparison of both of these:
Basis Traditional Marketing Digital Marketing
Product A number of products are
effectively using traditional
media such as newspapers and
magazines. Examples of
perfumes can be taken which
provide free samples through
magazines for their consumers.
It is often seen that some of the
products and services are now
becoming digital and it is preferred
by organisations to use digital
marketing to effectively make these
products available to consumers.
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Price Traditional marketing requires
huge costs. There are different
tools such as billboards,
television etc. that required huge
investments by companies using
these tools.
It is considered that digital media
marketing is a cost effective way of
marketing. The amount required for
digital media marketing is relatively
less than that of traditional
marketing.
Place The freedom of mobility is not
present with traditional marketing
(Mogaji, Soetan and Kieu, 2020).
As the owner will need to go to
printing press in order to get their
advertisement printed in
magazines or the newspapers.
Digital marketing tools are easy to
manage. It is an effective way as
social media accounts and websites
can be handled through anywhere in
the world.
Promotion The commercials that are shown
on television are reaching a
number of consumers but there
are now less consumers using
these traditional tools.
A number of consumers can see
online advertisements as the number
of users using Twitter, You Tube,
Facebook etc. is increasing
enormously.
Customer Touchpoints and the Omni channel Customer Journey
The company Netflix focuses on various touchpoints of consumers in order to make sure
that they are successfully moved from retailing their DVDs to now streaming videos online for
their consumers. Netflix has kept the major touchpoint as the content that is streamed on their
channel. It is suitably meeting the requirements and needs of their consumers. One of the other
focus of customer touchpoint done by Netflix was to focus on the technological development and
changes that are affecting the external environment of the company (Deiss and Henneberry,
2020). While promoting their content they keep in mind the consumer perspective which will
help them to effectively choose between various promotional tools available to them. They are
developing emotional connect with their consumers which is allowing them to retain consumers
for a longer period of time. Company have also successfully used the Big Data that is available
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to them about their users. This data is successfully helping them to enhance the customer
satisfaction as they are personalising the customer's experience with them. All these are various
consumer touch points and the Omni channel customer journey that are used by Netflix in order
to bring maximum profitability and satisfaction for their consumers.
Uses of data generated through digital marketing by Netflix
One of the major aim of Netflix is to make sure that they are making proper use of the
data that they are attaining through digital media marketing which will help in accomplishment
of tasks of the company (Rossi, 2020). They are providing personalised experience to their
customers as they are effectively making use of the information collected from digital media
marketing. It helps them to provide their customers with various genres and sub-genres as they
are browsing through Netflix. Company have successfully generated a Recommendation system
with the help of this data.
Analysis of data to map the journey and improve performance of company
The customer journey in Netflix started from as the company was launched in 1997. after
this company started to provide online streaming from 2007. There were a number of changes
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brought in company as they started generating income and meeting customer demands. Company
went on to expand internationally. In order to meet all the requirements and choices of customers
Netflix also started launching their original content which was an essential touchpoint in
customer Journey for Netflix. Netflix have used the data available to them in in order to come
up with their recommendation system which is helping in improving performance for company
and enhancing customer satisfaction as well.\
CONCLUSION
With the help of above report importance of digital media marketing for an organisation
can be justified. It is the major role of every business to successfully meet all the needs and
requirements of their consumers. Digital media is now allowing businesses with a chance to meet
all these requirements. Netflix is a huge organisation which is also taking help of digital media
and the company uses the data available to provide better experience to their consumers through
personalising their offerings according to consumer needs. Customer journey mapping is also
done by organisations to understand and retain consumers for a longer period of time achieving
all the objectives of business.
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REFERENCES
Books and Journals
Deiss, R. and Henneberry, R., 2020. Digital marketing for dummies. John Wiley & Sons.
Melović, B. and et. al., 2020. The impact of digital transformation and digital marketing on the
brand promotion, positioning and electronic business in Montenegro. Technology in
Society, p.101425.
Mogaji, E., Soetan, T.O. and Kieu, T.A., 2020. The implications of artificial intelligence on the
digital marketing of financial services to vulnerable customers. Australasian Marketing
Journal (AMJ).
Rossi, N., 2020. Book Review: Netflix Nations: The Geography of Digital Distribution.
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