Entrepreneurship Netflix
Entrepreneurship Case Netflix
Sandra Watkins
June 22, 2013
MAN105-O15-003-ON-Marketing
Instructor: Matthew Hufnagel
As I read over the case study of the relationship between Netflix and customers I gathered the following information and learned the following things about how they market themselves. I believe that the Elements of Exchange happen in the following ways between Netflix and its customers. Firstly, there are at least two parties present and involved. The parties are Netflix itself and the customer. Next, each party has something of value to offer the other (Lamb, 2006). Netflix offers a wide variety of movies and television shows and the customer offers the money to pay for the subscriptions. Netflix offers free pre-stamped return envelopes and several other options to customers like recommended movies lists, friends list, speedy send out of next movie on your list, and fewer customer service reps for better one on one assistance. Consumers are able to cancel subscriptions at any time and have different levels to choose from for best value to them. This allows them to be free to accept or reject the offer. Finally, each party believes it is appropriate or desirable to deal with the other party. Netflix continued business is based on ever-increasing customer basis. Netflix has less and less cancelations and they listen to the wants and needs of the consumers to better their value for customers.
I feel that Netflix is more of a market-based orientation. Market Orientation is the management philosophy based on consumers and listening to the desires of the consumers to increase value of the company. Netflix focuses on customer wants by offering multiple levels of subscriptions. Consumers also desired a “friends list” option allowing consumers to share their movies with other Netflix users. This allows consumers to use word of mouth to increase sales for Netflix. Netflix also uses Cinematch to build recommended titles for consumers. This shows that
Sandra Watkins
June 22, 2013
MAN105-O15-003-ON-Marketing
Instructor: Matthew Hufnagel
As I read over the case study of the relationship between Netflix and customers I gathered the following information and learned the following things about how they market themselves. I believe that the Elements of Exchange happen in the following ways between Netflix and its customers. Firstly, there are at least two parties present and involved. The parties are Netflix itself and the customer. Next, each party has something of value to offer the other (Lamb, 2006). Netflix offers a wide variety of movies and television shows and the customer offers the money to pay for the subscriptions. Netflix offers free pre-stamped return envelopes and several other options to customers like recommended movies lists, friends list, speedy send out of next movie on your list, and fewer customer service reps for better one on one assistance. Consumers are able to cancel subscriptions at any time and have different levels to choose from for best value to them. This allows them to be free to accept or reject the offer. Finally, each party believes it is appropriate or desirable to deal with the other party. Netflix continued business is based on ever-increasing customer basis. Netflix has less and less cancelations and they listen to the wants and needs of the consumers to better their value for customers.
I feel that Netflix is more of a market-based orientation. Market Orientation is the management philosophy based on consumers and listening to the desires of the consumers to increase value of the company. Netflix focuses on customer wants by offering multiple levels of subscriptions. Consumers also desired a “friends list” option allowing consumers to share their movies with other Netflix users. This allows consumers to use word of mouth to increase sales for Netflix. Netflix also uses Cinematch to build recommended titles for consumers. This shows that
References: Lamb, C. (2006). Essentials of marketing. (6 ed.). Mason, Ohio: South-Western Cengage Learning. Retrieved from http://www.cengage.com/custom/static_content/OLC/1111400385/data/lamb56203_0324656203_02.01_chapter01.pdf