Ch. 11 - Developing and Managing Products

When we talk about new products, we are talking about something new to the market world, to the customers, to the sellers and producers; a product can be defined new in more than one circumstance, and in this case, Netflix reflects the new product line definition, with their introduction of movie streaming added to the rental of DVDs. It also reflects the lower priced definition, because being the broadest streaming program of the competition, its prices are really low compared to other streaming programs.

Netflix's new products are with no doubt the new releases and new movies that we find in the service. New products are really important and need to be chosen very carefully for a wide customer satisfaction. The ideas that Netflix generates come mostly from customers' ratings and comments about movies already available in the library, but ideas are also generated from employees, distributors, competitors and researches. Once Netflix has its own ideas, since the choice is very wide, it screens and filters all the products it found, remaining with a fair amount of new entries that can be added to the contents of its library. Once the products are chosen, Netflix conducts a business analysis calculating costs, demands and profitability. Finally, comes the test marketing, where Netflix can determine whether the new movies and Tv Shows are being successful or not, evaluating this from customers' reactions and feedback. 

Thanks to the global opinion of watching Television, Netflix presents no problem in broadcasting all around the world. Movies and Tv Shows are something that almost nobody can live without, even if once in a while. Netflix had a great success in the U.S. and now people around the world are eager to receive the same services that offers. 

Ch. 12 - Services and Nonprofit Organization Marketing

Being the result of applying mechanical efforts to people, Netflix can be defined as a service that is intangible, inseparable, heterogeneous, and perishable. Netflix cannot be touched

or felt like goods, but customers can evaluate its service through an experience quality. Being inseparable, Netflix sells a service that involves customers in the production of what they are buying: when you subscribe, you won't go anywhere else to watch movies or to rent DVDs; once you buy it, you can see it right away, and anywhere.

Service quality is not the same as good quality, but it still can be defined. Customers evaluate service quality by reliability, responsiveness, assurance, empathy, and tangibles. Netflix is definitely reliable because it has the proficiency to perform the service with accuracy and consistence from the beginning, and almost no one complains about its service. It also has responsiveness, with its fast and satisfying customer service. Netflix has also assurance, with very polite and helpful employees that can answer your questions with promptness. For empathy, Netflix is always surveying customers and analyzing their answers, so to make sure that what they are looking for or not looking for can be accomplished. Finally, Netflix is tangible, because of its building, the equipment, and employees that contains. 

The marketing mix's elements, need to be adjusted to meet the needs created by the service characteristics. In product strategy, Netflix takes place in a mental stimulus processing because it addresses customers' minds. Talking about place strategy, being an online service Netflix can distribute its service all over the world with very little effort. No need to schedule appointments for its services, no need to go somewhere else to consume it. In the promotion strategy, Netflix creates a strong organizational image due to its now very popular brand. And then for price strategy, Netflix decided not to make customers pay for every movie they watch, but opted for a monthly subscription that allows them to watch anything they want with no additional price. 

The relationship that Netflix has with its customers is real. Customers are loyal to its service and prefer it to other competitors it may have. This is due to the company's ability to gain their trust, give them what they want, solve possible problems, and treat them very well. But Netflix doesn't just treat customers very respectful; indeed its employees are all treated fairly as they are customers themselves. Very positive feedbacks are in fact,

given from all its employees about the way they cooperate, they find themselves very useful and keep the service one of the best. 

Ch. 10 - Product Concepts

The Netflix streaming program can be considered a favorable product that a person receives in exchange of a paid subscription. Unlike other products like shoes, cell phones and clothes, the streaming program is not tangible, but can be defined as a service; at the same time the DVD rental option that Netflix offers, can be considered as a tangible product. In the classification of products, Netflix is classified as a consumer product, which in its case, is the option to be sold to individuals for personal wants and needs. 

Due to its low cost subscription, Netflix sells a convenience product, that requires not efforts from customers and satisfies them by being affordable; this makes Netflix a very valuable service even between competition. Netflix started as a small DVDs rental service, but grew stronger and requested over time; in its product line it now presents not only DVDs, but an online streaming program. 

Finally, Netflix, like all the businesses, presents its own brand, which is very important as it identifies the product, it helps and promotes sales. Netflix's brand has value, and customers are loyal to it, they make it valuable; moreover, Netflix's brand is going to be a global brand pretty soon, due as the expansion of the service outside its home country; soon the service will obtain its earnings from all around the world.  

Ch. 17 - Personal Selling and Sales Management

In personal selling, Netflix can be positioned in the relationship selling because of its connections to customers and the desire to maintain a long-term satisfaction with them; but Netflix does't only make connections with customers, indeed it spends time analyzing their needs and developing suggestions and ideas to meet those needs. Sales promotion is important for Netflix because the product they offer has a low value being accessible for everyone, there are many customers due to the advantages it offers, has a product easy to understand and its customers are spread all around the country and soon around the world. 

In sales management, companies need to define sales goals and process; Netflix's goal at the beginning was a wide subscription of DVD rentals, that it was soon accomplished; when its goal was achieved, Netflix set up new goals, kept achieving them and made improvements for its current and new customers. 

In recruiting and training the sales force, sales managers look for some characteristics in applicants such as ego strength, risk takers, creativity, capable of understanding concepts and ideas. Researching what Netflix looks for in an applicant I found nine skills and behaviors that it requires: Judgement, Communication, Impact, Curiosity, Innovation, Courage, Passion, Honesty and Selflessness. Netflix seeks excellence, high performance and cooperation, because like it says : "A great workplace is stunning colleagues".

Finally, the idea of technology taking over sales person arise, but experts say that sales people are necessary to make a link with customers and maintain a relationship; the technology, however, can help sales people to sell and look for information, improving themselves.