Netflix Marketing
Marketing Goals and Objectives Entering and transforming the video rental industry was a large undertaking for the start-up company. The first marketing objective the company undertook was the process of building a brand. Netflix’s identity was crucial to future growth and success. Without a strong brand, competitors with deep pockets could have easily duplicated the company’s business model. Secondly, leveraging technology was critical to establishing the business and infrastructure growth. The consumer base was the final objective Netflix sought to achieve. Retaining and growing subscribers were fundamental to revenue and marketing goals.
Marketing Strategy To meet marketing goals and objectives the company implemented Michael Porter’s approach to strategy and relied heavily on strategic alliances. Porter’s notion of differentiation and focusing on specific markets were used to set Netflix apart from competitors and build a customer base. Employing strategic partnerships was the second critical factor to achieving marketing objectives. Netflix’s strategy utilized product, service, promotion, logistic, distribution, and pricing alliances to develop and grow business. Partnerships were possible and mutually beneficial through the new e-business landscape. The Internet platform facilitated segmentation, targeting, positioning and allowed the company to create a successful marketing mix.21
Marketing Tactics The Netflix corporate strategy was born to meet the changing needs of movie renters in a dated industry. The company’s goal was to offer an alternative to segments that were frustrated by high late fees, accessibility inconveniences, inventory availability, and selection processes. The target market included people who loved movies, used the Internet, possessed DVD players, and felt that the current rental system could be improved. This offered a wide range of demographics that could be targeted and was growing with technology advancements.
Marketing Strategy To meet marketing goals and objectives the company implemented Michael Porter’s approach to strategy and relied heavily on strategic alliances. Porter’s notion of differentiation and focusing on specific markets were used to set Netflix apart from competitors and build a customer base. Employing strategic partnerships was the second critical factor to achieving marketing objectives. Netflix’s strategy utilized product, service, promotion, logistic, distribution, and pricing alliances to develop and grow business. Partnerships were possible and mutually beneficial through the new e-business landscape. The Internet platform facilitated segmentation, targeting, positioning and allowed the company to create a successful marketing mix.21
Marketing Tactics The Netflix corporate strategy was born to meet the changing needs of movie renters in a dated industry. The company’s goal was to offer an alternative to segments that were frustrated by high late fees, accessibility inconveniences, inventory availability, and selection processes. The target market included people who loved movies, used the Internet, possessed DVD players, and felt that the current rental system could be improved. This offered a wide range of demographics that could be targeted and was growing with technology advancements.
Cited: Nicholas Thompson, Netflix 's Patent May Reshape DVD-Rental Market, The New York Times, June 26, 2003, at Section C, pg 4. Blockbuster and Netflix settle online DVD rental patent suit, The Toronto Star, June 28, 2007, at B07. “Wal-Mart Follows The Netflix Model.” Newsbytes. June 15, 2003. <www.netflix.com> Kris Oser; Netflix; Leslie Kilgore; Advertising Age; November 1, 2004. “NetFlix.com Unveils a Trio of Promotions to Meet Expected Holiday Surge in Online Shopping.” Business Wire. November 11, 1998.