Ass3 End Semester Case Study- ESCS [40 Marks]
Marketing and PR
The circle of satisfaction is linked to the mega-marketing concept. Satisfaction originates the time when customer starts searching for the estimated quality and value in selection of a product. In the second stage the customer experiences and assesses the product which leads to the third zone in which product is evaluated. In this stage the customer form specific attitudes about the product that also defines his future behavior of buying. The circle of satisfaction is used for determining the relationship between the customers and the firm. It is a bridge that connects process of buyers decision and total product. The results of this evaluation could be positive or negative. This process defines how customers enter the buying decision process based on their expectations, which also leads to development of behaviors accordingly. The circle of satisfaction focuses both on organization and customers. Mega-marketing was defined by Kotler as, “the strategically coordinated application of economic, psychological, political, and public relations skills to gain the cooperation of a number of parties in order to enter and/or operate in a given market” CITATION Phi86 \l 1033 (Kotler, 1986). This is an approach adopted by Netflix for taking an enlarged view of skills and resources for entering in the media and movie markets. Netflix has incorporated marketing principles for strategically focusing on creating value and maximizing customer reach.
The company's analysis of market depicts that youth is more inclined to use mega-marketing so Netflix adopted a strategy that aimed at advertising products across social platform. Netflix makes advertisements for the digital space where it received a wider audience. It is known for its digital competency because it allowed the company to stay ahead of competitors. The ideology of the company reflects that youth is more inclined to view online content. Social media, digital marketing and e-commerce remains prominent marketing platforms that established positive interaction and long-lasting relationships with the customers. Digital performance and social media are dominant elements that contributed to the success of Netflix. The findings also reveal that Netflix managed to attract youth and millennial through its social platform. Netflix’s strategy of mega-marketing has put the brand forward through social media and content marketing CITATION Ali13 \l 1033 (Filip, 2013). Mega-marketing strategy of Netflix reveals how company organize its power and public relations resources for attaining entry and success in the market against competitors.
The mega-marketing strategies that are crucial for increasing the customer base are integrated by Netflix. The orientations of marketing management are divided into five parts: First is the production concept which is basically an idea that implies that the products that would be favoured the most by the customers would be the ones that would be highly affordable and easily available. Second is the concept of products which implies that the products that would be favored the most by the customers would be the ones that have good feature, better performance and deliver the best quality. Thirdly, there is the selling concept which implies that the customers would only buy a product if the company would do promotional and selling efforts on a large scale. The fourth orientation is the concept of marketing which implies that the accomplishing of the goals of a company depend entirely on how well they fulfil the needs of their customers when compared with the competitors of the organization. Five last but not least, the concept of societal marketing implies that an organization must make marketing decisions that are good by considering what shoppers want, long term interests of their customers, the requirements of the company, and lastly the long term interest of the entire society (Kotler & Keller, 2012).
The primary principles of mega-marketing is to gain access to the market for satisfying customers demands or building customer demand. Power is used for building relationships with the public. Positive and negative inducements are uncovered in this process. Company takes greater responsibility of managing public relations and affairs. The steps of circle satisfaction are shown in the figure below.
The primary step of circle satisfaction is focused on offering value to the customers. The perceived value of a customer is a primary goal of mega-marketing. It is basically the disparity between the value of the shopper and the price that the shopper is paying for buying that value. Here, the total value implies the benefits that the customer expects from the usage of the product in exchange for the amount paid to get those benefits. The total cost implies the price paid to purchase the company’s product. The blog identifies the digital media strategy of Netflix that improved its growth and business CITATION Ali13 \l 1033 (Filip, 2013). The common platforms used by the Netflix for offering value include Instagram and Facebook. Through such platforms, the company attracted millions of customers. It is the degree of the perceived performance level of a product and its equivalency to the expectations of the buyer. On the other hand, the tools used to build a relationship with high margin customers include the development of customer retention and loyalty programs. Special marketing tools are used for such customers, such as membership cards, sale coupons, membership discounts and free views. Marketing strategy stresses on interacting with potential customers through technological means: Smartphones, social media networks, websites, and company's database. Partners outside the organization are the way advertisers interface with their channel accomplices, suppliers and contenders through creating associations CITATION Phi86 \l 1033 (Kotler, 1986). Marketing strategies can be explained in a contemporary manner. Contemporary ways to deal with marketing frequently fall into two general however not fundamentally unrelated classes which are competitor-oriented marketing strategies and customer-oriented marketing strategies.
The second step is creating episodic satisfaction for the potential customers of Netflix. Episodic satisfaction aims at providing initial satisfaction to the customers that further impact their long-term relationships with the company. The purpose is to enhance connectivity through digital platforms because it provides the opportunity of persuading a broader customer base. The role of digital media technologies is effective in the case of luxury brands compared to other industries. Due to positive outcomes such as increased customers and profitability, all leading luxury brands have adopted social media marketing. The strategy adopted by Ntetflix is to establish a social media presence at popular platforms like Facebook and Instagram. The firms then emphasize on building strong interaction with the users. The evidence suggests that marketing strategy primarily focus on the customers and has many elements such as brand, segment, price, competitive advantage, promotion, and communication with customers. Most of the successful organizations of today have customer satisfaction as a common success factor. These companies share the understanding of customer needs and want satisfying best their target market at a profit. The objective of every organization is to help to build long term customer relationship based on creating value. Costumer's satisfaction and value are very important today CITATION Nab18 \l 1033 (Daidji & Egert, 2018). Due to the economy recovering from the worst downturn since a long time, people started to spend their money more carefully re-evaluating their relationship with brands. Although it's very important to build customer relationship based on honesty and value. Marketing is used as a complete framework or organizational activities that are specifically designed for the distribution, promotion, pricing and the entire planning of selling of product to the target market for the accomplishing the objectives of a company.
Cumulative satisfaction depicts that the customer’s future behaviors of purchasing a product depends on their past experience. Cumulative evaluations are based on thee past experiences of the customers. Netflix pays special attention to provide high-quality content for retaining customers. Marketing strategies play significant role in attaining cumulative satisfaction of the customers CITATION Ant181 \l 1033 (Serra-Cantallops, Ramon-Cardona, & Salvi, 2018). The reason for adopting mega-marketing by Netflix is to survive in a competitive environment. The company has been involved in aggressive marketing across social media platforms that improve engagement of customers. Media business is high value ended and offer high-profit margins if the company adopts an effective marketing strategy. Facebook and Twitter are used by luxury brands because they offer interaction, customization, word of mouth and tend. These characteristics are useful for building a long-lasting relationship with the customers. The evidence also suggests that social media sites provide direct interaction with the companies that allow Netflix to build long-term interactions with the audience. Digital platforms are effective tools for marketing because they provide entertainment content, customized services and immediate interaction with the customers. There is significant correlation between social media marketing and customer relationships CITATION Ant181 \l 1033 (Serra-Cantallops, Ramon-Cardona, & Salvi, 2018). By focusing on such features, Netflix improve the purchase incentives. The customers are willing to pay for such brands due to elements of trust and high customer-centered approach. Customer trust is a prominent factor that is also enhanced through social media marketing. Direct and continuous communications contribute to the profits of luxury brands. Social media platforms allow managing customers as valuable assets that increase the possibilities of generating revenue and profits.
Digital marketing of Netflix refers to the set of marketing elements used by a company for implementation of its strategies of mega-marketing. These elements are a place, price, promotion and the product of the company. On the other hand, integrated marketing program refers to a plan which is comprehensive and is made to deliver and communicate, to the chosen target market, the value of the company’s products. The initial and the most basic step for the development of the social media marketing strategy is first to understand the marketplace and the needs and wants of the customers within that market CITATION Ali13 \l 1033 (Filip, 2013). Without the proper insight into the marketplace and what the customers within that market expect from a company, it is not possible for that company to construct their marketing plan or their marketing strategies. Social media marketing of company emphasizes selecting a value proposition for the products of the company. The value proposition is a promise made by the company to its customers with respect to the value and benefits that their products would deliver to the customers.
The electronic word of mouth uses different social media platforms such as Facebook, Twitter, and Instagram. The most prominent advantage of the viral marketing is that it directs relationship with the audience. The social media is a useful tool that develops a powerful bond between the organization and the audience. Effective viral marketing also controls the purchase behaviors of the audience. The viral marketing helps organizations to transmit information to the broader audience. The adoption of effective viral marketing strategy helps the company to reach the audience more efficiently and leaves a long-lasting impact. Through the use of efficient systems, the organizations manage to send the message on time that saves them from the waste of time. With time the organizations’ needs to improve their systems to meet the increased demands of the clients. Also, they need to survive in the competitive environment by adopting adequate social media networks. The social media also improves the public relations of companies CITATION Joh172 \l 1033 (Liu, Ho, & Lu, 2017).
The management of social networks efficiently improves the scope of business expansion. The social network information systems build metaphors that represent and builds networks. The social network information systems predict continued growth and change. The growth of the digital technology will motivate the companies to enhance their information systems. The organizations also adopt the advanced social network systems for knowledge management. The systems also generate influence of social media over the users. The existence of social networks and social sites increased the clientele and improved organization’s visibility. The social networking sites help the companies to connect with the audience and attain the organizational goal. The visibility of the companies influence the purchase decisions and also generates revenues. The studies reveal that social media marketing remains one of the significant tools for marketing and grabbing people’s attention. The use of the social media networking shows that the organizations attained colossal success. The maintenance of the systems and keeping them up-to-date improves the overall clientele and leaves a long-lasting impact on the audience.
The third step of the circle satisfaction is building relationship of trust with the customers. Netflix has this adopted the mega-marketing model for building positive relationship with the customer. It relies on the concept of ‘customer is always right’. Company’s strategy is focused on determining customers views and opinions regarding the shows and online streaming. Social media empowers individuals to express their thoughts and ideas without the need of developing an audience. The main reason for the popularity of social media is the freedom that other platforms do not offer. Social media networking influences internal operations and marketing. The rapid growth in the demand for social networks depicts need for research related to the information systems. The effectiveness of social media depends on the network systems managing social interaction between the company and the audience. Enhanced social networks improved the communication of organizations with the clients. The social network approaches reveal the enhancement of IS depends on the network awareness at individual and organizational levels, using social network analysis related to IS and change in technologies with the time needed to manage social networks efficient CITATION Nab18 \l 1033 (Daidji & Egert, 2018).
Loyalty is the next step of circle satisfaction, which is focused on retaining customers. Mega-marketing is focused on sending a message to the audience about company, brand or the product. The common issues faced by the organizations in viral marketing is circulation of rights message in the right environment to the right audience. The enhancement of the social networks and information systems leads to improved interactions between the company and the audience. This allows Netflix to build long-lasting loyalty CITATION Ant181 \l 1033 (Serra-Cantallops, Ramon-Cardona, & Salvi, 2018).
The next step of circle satisfaction is achieving competitive edge against rivals. By interacting mega-marketing concepts Netflix has managed to improve its presence in the media market. It has wider audience base and potential customers who are inclined to continue watching its shows and movies. Based on its marketing, the company has increased limits customer base by offering free views. The company is also offering discounts that provided Netflix competitive advantage CITATION Mah191 \l 1033 (Siddiqi, 2019). Increased profitability is the final step of circle satisfaction. Marketing mega-concept explains Netflix’s strategy of targeting millennial through social media platforms remains one of the biggest strength of the company. in 2018 the sales of Netflix increased massively due to the increase in the number of young customers. The sales reported for 2018 were $15.79 billion. Netflix’s marketing needs a different approach for business-to-business efforts. Millennial remains a prominent reason that allowed the company to enhance its customer base CITATION Mah191 \l 1033 (Siddiqi, 2019). Netflix has redefined its goal by using social and digital platforms. The brand realized that young customers don't buy across traditional selling points. For millennial Netflix redefined movies by making it as a lower-cost competitor. It used teasers and videos of popular shows for sharing products at social websites. The marketing mega-concept of Netflix focused on targeting youth by promoting repurposed fashion. It managed to capture the millennial market by engaging them across social media websites. The brand used Facebook, Twitter and Instagram for establishing a relationship with the customers. By capturing potential customers Netflix has managed to earn high profits, which leads to the completion of the circle satisfaction.
The concept of circle satisfaction is used for attaining organizational goals of maximizing revenues by aligning with the mega-marketing. The use of mega-marketing is one of the dominant techniques for attaining circle satisfaction. The buyers process us included for determining customers behaviors and their future expectations associated with the company. The advertisement of the business products through electronic platforms allow the organizations’ to target the broader audience. However, the demand for the updated systems increases with time. The advancements in the digital technologies indicate the need for effective social networking systems. The effective and fast networking systems maintain a continuous and efficient interaction with the audience that promotes the visibility and sales of the business organization. Without the enhancement, in the systems the viral marketing leads to adverse outcomes such as the slow interaction between the group and the audience.
BIBLIOGRAPHY Filip, A. (2013). Complaint Management: A Customer Satisfaction Learning Process. Procedia - Social and Behavioral Sciences, 93 (21), 271-275.
Daidji, N., & Egert, C. (2018). Towards new coopetition-based business models? The case of Netflix on the French market. Journal of Research in Marketing and Entrepreneurship .
Kotler, P. (1986). Megamarketing . Harvard Business Review.
Liu, J. S., Ho, M. H.-C., & Lu, L. Y. (2017). Recent Themes in Social Networking Service Research. PLOS.
Serra-Cantallops, A., Ramon-Cardona, J., & Salvi, F. (2018). The impact of positive emotional experiences on eWOM generation and loyalty. Spanish Journal of Marketing - ESIC.
Siddiqi, M. (2019). The Complete Guide to Netflix’s Marketing Strategies. Retrieved 10 31, 2019, from https://medium.com/better-marketing/netflix-marketing-strategies-8c6623fb1741
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