Marketing evaluation
Understanding consumer behavior is a big task that involves a broad research mix that requires detail and understanding of customers and motivation(Roig, 2019). It most concerns psychology .consumer behavior thus studies the behavior of customers on how they think about different alternatives of brands, the reason to select in between the other options, the action of the consumers while researching and shopping, and more. The behavior of the consumer is again influenced by considerations such as personal factors, psychological factors, and social factors. The paper involves the study of Netflix organization. From the survey of Netflix organization, it needs to observe the main problems that face this organization, the causes of the issues, and the best solution to these problems.
Netflix Company faces some challenges over the years, and thus its management is working on how to overcome them (Roig, 2019). As technology is changing to a rapid rate, and this occurs even in the popular media. These have made the movie industry to have more threats from the viewer’s. Netflix company was introduced in the era of the DVD and took advantage of the full available ideal of video rentals (Roig, 2019). The innovative approach to the movie rentals has made the company become a market fad causing the local too close for losing commerce. The company has been streaming videos to homes in the way of allowing exciting watching directly from home televisions .alongside this, the compact faces some challenges of the delivery system as they implement their innovation.
One of the significant challenges that Netflix company faces is the stiff competition from other screaming business as the Amazon.com as they allow their customers to stream movies at no charge(Maryanchyk, 2008). Amazon amplifies its stiff competition from the ability to stream its videos at no expense making the two companies strive to dominate the digital delivery of films in the television shows. Second, Netflix’s challenge is fostering the deployment of technology that the user-friendly and allows easy access to streaming services. The company experiences this challenge as it enters to dealing with the television manufacturers to include software that can provide the streaming services (Maryanchyk, 2008). Another problem involves the striking initiatives of the Netflix Company to get to the original programming. The company also charges a fee to the studio for Netflix to access the content.
The most challenging challenge that the company faces is addressing a paying increased fee to the studio to access the content. When a studio charges the company a high amount to access contents, it incurs some charges that can propagate customers. The company is thus forced to charge customers some amount that is slightly higher than the normal and thus could lead to loss of the customers with the competitive markets. To address this challenge, it needs to deploy some technology that can enable easy access to streaming these services in a friendly way. The problem may be easy more because Netflix makes deals with the manufacturers that would integrate this move. These give the company a better option to continue in the same direction.
Netflix management notes that price increase is a factor in the slow down. These lead to the company subscribers to decline. Investors that are most concerned with the growth of a high flying company start to look for a return to growth. The accessible original content would be imperative if the company would rise to price. These become challenging to make a strategic decision in the coming years. Netflix has been issuing debt to pay for costs making the cash-flow to be negative .another cause of the problem that Netflix faces are the technology that it requires for streaming its videos. The video streaming makes issues it earning, and this makes a slowdown to the net subscriber growth. Investors thus panic, thus creating a significant challenge to the company.
There are many alternative solutions Netflix can use as an organization to ensure social responsibility as are concerned and ensures that they have to be improved(Engel, 2014). These create a need to develop smooth streaming to ensure that Netflix achieves a tremendous growth in the way it operates. Apart from the high power of streaming, most customers’ complaints have to face the issues of poor streaming problems for many years. Besides, customers have had issues of lateness in receiving their movies on time (Engel, 2014). These show that there is a need for customers to get their films on time. A significant way to achieve this is to invest heavily in streaming technology to ensure that the company has received its orders on time. These would help promote the way they distribute their movies to individuals (Engel, 2014). Netflix has a problem with the advertisements and promotion of films and products to its customers. It then makes an efficient marketing strategy that would help Netflix to become one of the largest companies in the entertainment industry.
Netflix can also use other strategies such as focused differentiation that would ensure that it has achieved its objectives and goals(Engel, 2014). The company should ensure that most of its products are directed to specific customers to improve the willingness of the customers to increase the company offerings. Expanding content availability in the company may also be a better way of ensuring that the company’s performance has been enhanced over the content. (Engel, 2014)Accessibility is another challenge to the company as no contract agreement is there between them and studios. The studios are thus able to exert pricing power to the company that may be so high, unlike the content that is given on to them. Consequently, improving video quality through enhancement of streaming options might also act as a better way of ensuring that competitiveness.
Netflix announces a prize competition for creating an algorithm that would subsequently improve the accuracy of the prediction of how someone can enjoy a movie that is based on the preferences (Pittman & Sheehan, 2015). These evaluate some of the methods offline but with additional gains that would be measured and did not seem to justify the engineering environment of production. Netflix thus makes analytics and thinks of the house of cards to where it was felt that subscribers would like it. Netflix being a data-driven company needs licenses from the studios to where it would not just pick movies and television and show it at random. (Pittman & Sheehan, 2015)
The core job of the analytics is to help the company to gain insight into their customers. (Pittman & Sheehan, 2015) These make the company develop the need to optimize their marketing and deliver some better products. The analytics of this company thus gives the business the quantitative data that they need to make a better and more informed decision to improve their services. Having a large user base allows Netflix to gather some tremendous data, and with the data, it helps it make decisions and ultimately make the users happy to their service (Pittman & Sheehan, 2015). The information gets deeper that it even tracks Netflix events. For example, when to pause, rewind fast or forward, the date when you watch, time, and more.
Through the analytics gives the users the content that they need to watch to give them time to cancel. Through this analytics makes the company add this feature on mobile phones that make it develop a theory that would implement postpay and help them in making their decision. This creates more users to stream and regards this algorithm that they are more critical of viewing.
To conclude, Netflix remains to be an excellent entertainment compact despite the challenges that face the company, and it needs to adopt some competitive marketing strategy to which it will maintain its leadership. Netflix lacks a marketing strategy to help keep its marketing leadership despite being recognized as the best competitive market. Netflix again, it needs to adopt a perfect marketing strategy, an effective proportional programmed, and the best advertising methods that would help it to increase its competitiveness to the entertainment industry and the international platform. Through differentiating market approaches, Netflix will be best and would also help the company to maintain its competitiveness in the global markets. Netflix should promote the advertisement of its videos and movies that its customers would receive on time to reduce the lateness .technology streaming should be improved to the company that would reduce the stiff completion from other media of entertainment.
References
Engel, L. (2014). Netflix, une révolution ?. Esprit, Octobre(10), 133. https://doi.org/10.3917/espri.1410.0133
Maryanchyk, I. (2008). Are Ratings Informative Signals? The Analysis of the Netflix Data. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1286307
Pittman, M., & Sheehan, K. (2015). Sprinting a media marathon: Uses and gratifications of binge-watching television through Netflix. First Monday. https://doi.org/10.5210/fm.v20i10.6138
Roig, A. (2019). Jugando en Netflix: Black Mirror – Bandersnatch. Come in (84). https://doi.org/10.7238/c.n84.1903