Wednesday, November 19, 2014

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. 

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