Saturday, November 29, 2014

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. 


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