Netflix"S Approach To Marketing Essay

1280 words - 5 pages

After receiving a ridiculously high fee for returning a movie late, Reed Hastings said that there had to be a better way to rent and watch movies and TV shows from the comfort of their own homes. Hence, in 1997 Reed Hastings and Marc Randolph, a software executive, co-found what is known today as Netflix, “the world’s leading internet subscription service for enjoying movies and TV shows,” (Netflix, Facts). The purpose of this paper is to the process of exchange between Netflix and their customers, as well as Netflix’s approach to relationship marketing and how this marketing technique has helped Netflix leave their competitors in the dust when it comes to customer satisfaction.
From its inception, Netflix has become a business based on superior customer service and has subscribed its business to the market marketing management philosophy. The main purpose behind Hasting’s idea of a better way to rent and enjoy movies was how to provide that service to their clients and not have any late fees. In other words, their customers could enjoy their rentals from Netflix for as long as they wanted, and they would never have to worry about late fees again, so long big movie rental chains! This aspect alone of Netflix’s marketing plan indicates that Netflix has based their marketing plan on market orientation, “a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product,” (Lamb, 2009, p.7). Many companies that take on this philosophy are said to implementing the market concept. The marketing concept states: “The idea that social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives,” (Lamb, 2009, p. 7). With the marketing concept and philosophy at the back bone of Netflix’s business, it is easy to see why customers are flocking to Netflix’s website to take advantage of the service they are providing to their customers.
The exchange process between Netflix and their customers centers on absolute customer satisfaction. Potential customers see an ad on TV and decide to take a look at what Netflix has to offer on their website. Once online customers are offered to try Netflix free for one month, after said month, if they are satisfied with the service, they can continue to receive Netflix service for as little as $7.99 per month. So, in terms of the exchange process, there are at least two parties, Netflix and the potential subscribe. Netflix is offering unlimited movies and TV shows steamed instantly through your computer or other devise, and the customer is offering a monthly subscription to Netflix, both of equal value to each party. Communication and delivery take place when the customer, who has the freedom to accept or reject, decides to try Netflix for one month free. The final condition for exchange is the “Each party believes it is appropriate or desirable to deal...

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