Ch. 6 - Consumer Decision Making

A very important matter that any marketing manager should understand is the consumer behavior, which is understanding what and how a customer wants in order to buy. Thanks to the rating characteristic available in every single content on Netflix, Netflix knows what customers think and what they like. By being aware of this important factor, Netflix is able to introduce more movies related to the ones that have been rated higher, and limit movies that have lower rates or that customers never finish watching. 

Netflix recently added a new feature on the website; it's called Play Max, and it's a tool that helps you find movies that you will like in less than two minutes. Play Max asks you some questions, asks you to rate some movies that you might have seen, and then shows you a list of movies based on your preferences and grades. Being sometimes difficult to find what we want in an enormous library full of contents, Play Max is the easiest way to find more movies that you would like to watch, so that customers won't get bored by an infinite search.

Like every other market, Netflix has competence, and like in every other market, Netflix has to beat the competence. One of the characteristics Netflix owns, is the low price; customers always like low prices, but for a customer satisfaction, the low price needs to be accompanied by a good product and a good impression. Not only Netflix offers a low price membership, but costumers are satisfied with the product and are now loyal to the company. Something customers were looking for and found on Netflix, is the formidable commercial free streaming program; you cannot find a single commercial while watching a movie or even in their webpage; this is something customers were tired of seeing: commercials everywhere, from YouTube to Google, from Facebook to Yahoo. Being a commercial free website, means being visited more frequently and more happily. Another characteristic that the business owns, is the Netflix app, available in many dispositive; indeed customers can watch movies on IPads, IPods, IPhones, Play Station4, AppleTv, Computers and so on. It is so easy to just click and start watching, and this is something customers love.

Netflix is also improving its subscription by asking the already members to suggest movies and shows to other people through Facebook; once you click on the movie you want to suggest, and the friend you want to send it to, Netflix sends a request to that friend, with a tempting 30-day-free trial option that has low chances to be turned down. 

Ch. 5 - Developing a Global Vision

Being an on demand streaming company, Netflix doesn't have the option to literally export its products to other countries, but this doesn't mean it can't show and sell its subscriptions all over the world; indeed, being an online company makes it easier to spread the products it has to offer. 

Netflix knows to have a unique product. Nowadays many people spend their time watching TV instead of doing something else. Even more kids are watching TV not only because there are several educational shows, but also because TV keep them calm somehow, and the situation is the same almost in every nation. 

From the outside world, Netflix is now seen as something unique with a price accessible for everyone. After the great success Netflix did in the United States, Netflix expanded its services in Canada, Latin America, UK and Ireland. It has recently expanded in France and plans to expand in Germany, Austria, Switzerland and Belgium at the end of the current year.

Netflix is trying to become the best distribution service of global entertainment, also promoting movies and shows all around the world, giving more audience to the movie makers.

Obviously, this expansion will take some time, but for now the company seems to be at maximum speed and with no intentions to stop. People are eager to subscribe, and to see all the movies available for all generations; this is Netflix's objective and goal, and I can see how soon they will be expanding throughout the whole world.

Ch. 4 - The Marketing Environment

Netflix's target market is oriented for almost everyone, from boys to girls, from toddlers to elderly people, but most concentrated on tweens and young adults; on streaming, you can find educational cartoons to show to your little kids or old movies to remember your youth. Netflix is literally designed for everyone with its high content of movie choice, and the customers seem really satisfied.

To do so, Netflix studied carefully the customers' preferences and the demography; the company wasn't trying to win over an audit of only adult people or an audit of only kids; Netflix was trying to attract as many people possible to what now became an addiction of the website: there is a section for kids, new Disney cartoons, old-fashioned movies, and even foreign movies in different languages. Netflix knows that the United States is not only populated by American, but also French, Hispanic, Italian and Asian people, and even if it doesn't provide several of the foreign movies, people are interested in this new release. Netflix is trying to attract as many people as it can, and we can actually see that is being successful.






Netflix improved very much during its existence and all the improvement is due to the fact that the company analyzed the external environment, understanding customers' needs, decisions, and competition. You don't need to have a certain age, or live in certain places, or have a different culture; on Netflix you have plenty of choice.

Ch. 3 - Ethics & Social Responsibility

"Ethics are the moral principles or values that generally govern

 the conduct of an individual or a group."

Like many other businesses, Netflix adopted a Code of Ethics, which is a guideline of written principles that needs to be respected from directors, managers and employees. With their Code of Ethics, Netflix helps its employees to make the right decisions, to understand what is wrong or what is right, and to help them understand what the firm really needs from them. Netflix promotes honest and ethical conduct, the respect of rules and respect of the law, with the full and accurate disclosure in the company's documents. 

Because Netflix started in California, now the schools and Universities of California have the advantage to watch movies or documentaries for free. This is not only because that is where Netflix was created, but even because some school needed help and some had financial problems.

In addition, Netflix is now recycling old DVDs from its library and collection and instead of getting rid of them, it is now donating them to libraries and even to services that provide DVDs for troop overseas. Doing this Netflix is not only making a very good decision and improving its reputation, but it is also improving and safeguarding the environment.

Ch. 2 - Strategic Planning for Competitive Advantage

Every month, Netflix comes out with new Tv Show episodes, new movies and even more cartoons for kids. It is true that maybe Amazon or Hulu can have the newest movies in less time than Netflix, but Netflix offers more and more besides latest movies. It doesn't only give entertainment to little kids, or young teenagers, or adults, but it gives the possibility to oldest people to watch old movies that were probably there when they were young. Who wouldn't want that?

With Netflix, we are talking about Cost Competitive Advantage, because being a low-cost competitor, it keeps maintaining satisfactory profit margin. Netflix is expanding its limits, now with the recent introduction of Disney movies, who does need cassettes and piles of DVDs anymore? Everything is in our devices, to watch while traveling, to watch while having a dinner with friends, to watch while taking a bath. 

What is Netflix planning to do? Netflix is planning to start adding more recent movies, increasing his team of customer service and simplifying even more the access through apps and website. Netflix is even trying to go worldwide, reaching the European customers, who already are waiting to explore this new easy on-demand website. 

Ch. 1 - Overview of Marketing (Brief History and Mission Statement).

Thursday, September 4, 2014

If you are television or movies addicted, then you know for sure about Netflix, an American company that provides on-demand movies and DVDs rental by mail.
Netflix was born in 1997 from an idea of Reed Hanstings, and it started with 30 employees and a $2.5 million budget in a small town situated in Los Angeles, then moved to the current location in Los Gatos, where after seventeen years gives job to 2045 employees.
At the beginning Netflix offered the option to rent DVDs, reaching the billionth DVD rented after mere seven years. Then in 2007, Netflix promoted a huge service of on-demand movies and is right now leading the market with thousands movies and more than 20,000 Tv Shows episodes.
Netflix members can have the comfort to watch movies and Tv Show episodes not only from the computer, but from mobile devices, Ipads, Apple TV and even from the new Playstation. With an Internet connection they are able to watch wherever they want, whenever they want without troubling so much about the usual commercials they find anywhere. They have the ability to watch a movie and pause it, resume it, rate it, subtitle it at any time.
Their mission statement is based on growing their memberships not only in the United States, but trough the entire world, listening to what customers want and improving where they need to.
The company has now more than 50 million subscriptions, offering a free trial month with a possibility of subscription for only $8.99 monthly afterward and with the intention to expand more and more, embracing new genres and reproduction ways. 

"At Netflix, we think you have to build a sense of responsibility where people care about the enterprise. Hard work, like long hours at the office, doesn't matter as much to us. We care about great work." 

 Reed Hastings