topic how digital tools are changing marketing mix 4ps

The introduction of thoseamazing digital tools and resources hasput our world into a very new termcalled 8digital world9.Digital transformation are the processof using digital technologi

INDIVIDUAL ASSIGNMENT

Topic: How digital tools are changing

marketing mix (4Ps)

Full name: Hoàng Thị Mai Anh

Class: MKT1618

Student ID: HS160292

Lecturer: Nguyễn Hoàng Phương Linh

Date: 15/06/2022

TABLE OF CONTENTS

I Introduction:

1.Overview of changing in digital world

2.Introduction of the company and its product(s)

II How digital tools are changing marketing mix

1 Product

2 Promotion

3 Price

4 Place

III Discussion and conclusion

IV References

OVERVIEW OF CHANGING IN DIGITAL WORLD

I INTRODUCTION

1.

Modern technology has revolutionized

our world and daily lives for years It

has paved the way for not only faster

and more portable devices such as

smartphones, but it also made people9s

enjoyable The introduction of those

amazing digital tools and resources has

put our world into a very new term

called 8digital world9

Digital transformation are the process

of using digital technologies to create –

or adapt existing business processes,

culture and customer experiences to

meet changing business and market

requirements This change in the digital

age is digital transformation

connect, shorten the distance between

departments in the enterprise, promote

efficiency in corporate governance,

optimize employee productivity, and

increase product quality

According to Microsoft's research from 2017, the impact of digital transformation on GDP in the Asia-Pacific area was roughly 6% in 2017, 25% in 2019, and 60% in 2021 In

increased worker productivity by 15%, with a projected growth of 21% by 2020; in the following three years, 85 percent of occupations in the region will be transformed It is clear from this that digital transformation has a significant impact on GDP growth

By Mai Anh

Company: Netflix

CEO: Reed Hastings

Year founded: 1997

Headquarter: Los Gatos, USA

Number of Employees (2021): 9,400

Public or Private: Public

Ticker Symbol: NFLX

Market Cap (Jan, 2022): $173.14 Billion

Annual Revenue (2021): $29.69 Billion

Profit |Net income (2021): $5.11 Billion

Products & Services: Video on demand | Streaming to game consoles | Recommendations

Competitors: Hulu | Amazon prime video | HBO Now | HBO Go | Vevo | Sony Crackle | Sling TV | Playstation Vue

| YouTube | Disney+| AppleTV+

ABOUT

COMPANY

2 INTRODUCTION OF THE COMPANY AND ITS PRODUCTS

By Mai Anh

Established history:

Netflix, Inc originally began in 1998 by providing services to customers through

the delivery of physical copies of movies, shows, video games, and other forms of

media through a standard mailing system standard

Through a successful startup and the rapid changes that technology has

introduced over time, Netflix has transformed its business model They have

gone from physical releases to allowing customers to stream their favorite

content comfortably

Today, the platform has evolved streaming technologies that have enhanced and

improved Netflix's overall revenue and business structure The platform gives

viewers the ability to stream and watch a variety of TV shows, movies,

documentaries and more, through the medium using a software application

Since Netflix's transition to streaming, it is the world's seventh-largest internet

company by revenue, including its presence on a global scale

2 INTRODUCTION OF THE COMPANY

AND ITS PRODUCTS

ABOUT

PRODUCTS

In 1997, Netflix began offering an online

subscription service over the Internet

Subscribers select movie and TV show

titles from Netflix's website; The

performances are then shipped to

customers as DVDs, along with prepaid

envelopes, from one of more than 100

distribution centers Netflix has tens of

thousands of titles in its catalog

In 2007, Netflix began giving subscribers

the option to stream certain movies and

TV shows directly to their homes over the

Internet For most subscriptions, the

streaming service is unlimited Netflix

later partnered with manufacturers of

various consumer electronic products,

including video game consoles and

Blu-ray Disc players, to allow their videos to

be streamed online over an Internet

connection to those devices

In 2010, Netflix introduced a streaming-only plan that offered unlimited streaming but no DVDs In the second quarter of 2018, the overseas TV streaming app giant's revenue surpassed domestic numbers for the first time This is a remarkable achievement for a company that only operated in the US before 2010 and in

50 countries as of 2015

In 2020, the world's largest movie streaming service attracted a record high number of paid members, totaling 37 million paid members, bringing Netflix's total subscribers to

203 million in 2020

1 PRODUCT

II How digital tools are

Netflix is the leading streaming media and entertainment business in the world Initially, Netflix's business model was a pay-per-rent user, whereby users searched for the movie they wanted on the site, ordered it, and received and mailed it back This is a new idea because in the past consumers used to have to go to a store to rent DVDs The price was about $4 per rental plus postage, but as the company grew, the business model switched to a monthly, yearly subscription model

In 2007, Netflix made the wise decision

to introduce a streaming platform that allowed viewers to watch shows and movies on their computers instantly for free Currently, it is a website where you can sign up and pay to watch TV shows, movies, documentaries and more The best part of Netflix is that there are no ads while you are enjoying the content

It has three main categories of content i.e licensed non windows first content,

licensed original first windows content and first window owned original content

(Netflix, 2021) There are three plans available to anyone who wants to become a

member of Netflix, namely the basic plan, the standard plan, and the premium

plan

-Netflix decided to produce movies and TV shows and created some like Narcos,

Orange is the New Black, Thirteen Reasons Why, etc It also acts as an online

distributor by purchasing the broadcasting rights In addition to all of this, it also

offers DVD rentals The brand makes sure to keep its platform up to date with the

latest content

1 PRODUCT

II How digital tools are

One of Netflix's breakthroughs is using Artificial Intelligence (AI) to uncover new

aspects of user behavior and make strategic marketing decisions With the data

collected from users in the past, they used it to create programs tailored to the

insights of each user For example, if users often watch or are interested in

movies of the survival game genre like Squid Game, Netflix will recommend

similar movies to keep users engaged with the platform like Alice In Borderland,

The Hunger Game, Battle Royale… In addition, Netflix also carefully considers the

user's daily habits The platform will suggest shorter shows when you're watching

Netflix late at night, instead of recommending longer shows Showing the right

content at the right time not only increases customer engagement on the

platform, but also greatly enhances the user experience

2 PROMOTION

II How digital tools are

Netflix's marketing strategy includes a lot of advertising to reach the target

audience Smart suggestions from the past viewing pattern of the user, a

highly-efficient social media team, and the Netflix marketing management

team have helped the company in providing the best customer experience

so that more and more people are turning to the user-friendly channel

Netflix's promotional strategy in its marketing mix includes continuing to

advertise across all possible channels in order to stay in the spotlight The

following are some of the brand's communication channels:

+ Social media websites and online promotion:

One of the most effective ways for Netflix to promote itself is through online

advertising and maintaining a presence on social media platforms such as

YouTube, Facebook, and Instagram, which have a large following, particularly

among teenagers

+ Celebrity endorsement:

Aside from pop-up and other static advertisements, the corporation largely

relies on celebrity endorsements Marketing campaigns featuring top

celebrities constantly promoting the brand and its content are shown at

regular intervals to maintain brand visibility

2 PROMOTION

II How digital tools are

+ Incentives:

Netflix’s growth and Netflix’s success are both dependent upon its users To grow

its customer base, the corporation strives to attract new customers The offer of a

one-month free trial policy proved to be a wise strategic move, as it helped to

attract a huge number of new clients

+ Seasonal advertisements:

Netflix has created advertisements for each season or special event to promote

its product and service offerings

+ Personal Marketing:

Netflix's marketing strategy supports individualized marketing videos and allows

for a variety of content on its platform

+ Netflix original shows:

Netflix is well-known for its original series such as Stranger Things, The Witcher,

and House of Cards Stranger Things is currently one of the most popular shows

on Netflix, with a large audience

2 PROMOTION

II How digital tools are

Direct marketing:

Email Marketing: Netflix used email marketing strategies as part of their digital

marketing strategy, as well as for client onboarding and nurturing Netflix sends

new customers a series of emails with content recommendations and an

invitation to explore the platform Netflix marketers spend a lot of time creating

creative email marketing campaigns that engage and delight their subscribers

With the aid of the best email marketing services, they continue to improve the

customer experience Netflix, by personalizing, linking, and interacting with

customers, has proven to be a huge success in the digital transformation of

promotion Netflix has creatively used it to pique the interest of its audience and

pique their curiosity

Using Artificial Intelligence:

With the data collected from users in the past, they used it to create programs

tailored to the insights of each user If you pay attention, you will see that the

movie poster that Netflix introduces with each account may not be the same as

the original poster of the movie producer, nor what others see It's a poster

designed specifically for each individual From the stock of available movie

frames, Netflix's system will automatically select the best frames, from which the

designer can design many different poster versions The same is the hit movie

Squid Game, but the trailers in France and Thailand are different in language

and presentation:

II How digital tools are

changing marketing mix By Mai Anh

3 PRICE

Netflix is currently using a subscription-based

business model Customers will subscribe to 1

of 3 service packages (basic, standard,

premium) provided by the platform and have

to pay monthly to maintain the service

Netflix determines the region based on

database information, and then the price of

the package varies by country, depending on

affordability and price sensitivity As a result,

Netflix has created conditions for users all over

the world to continue to enjoy the highest

quality movie service without having to pay a

high price The basic plan, for example, costs

$9 in the United States, $9.99 in Canada, and

Rs 499 in India

Freemium pricing: Netflix only uses this pricing

strategy on the Android platform Users of

Android devices can access Netflix and watch

movies for free Of course, both the quality

and quantity of movies available will be

limited Customers will be encouraged to

upgrade to freemium packages in order to get

a better experience

Rather than paying at the store, customers can now pay directly on Netflix's website using a credit or debit card

II How digital tools are

4 PLACE

Netflix's distribution mechanism will undoubtedly

alter when the product transitions from physical

DVD to online copyright (tangible product to

intangible product) Netflix has moved away from

providing DVD rental services through postal

service and instead offers its services entirely

online Customers will create an account in order

to pay for goods and services using a credit card

or other online payment methods

Netflix is a streaming service, thus it is accessible from anywhere Netflix does almost all of its business online The brand's content is available

in over 190 countries Its services are available via internet-connected Smart TVs, tablets, cellphones, and other devices Customers can use these services at any time and from any location because they are available online

Netflix is an inspiring example of a company that has successfully transformed its

business model multiple times and grown exponentially because of it Netflix was right

in deciding to change the sales model from Analog to Digital

Capturing the flow of technology, digital transformation, using AI, database, and

personalizing users, have helped Netflix succeed in improving user experience and

become a leading company in the entertainment industry

It can be said that technology has completely changed the company, from products,

distribution methods, using pricing strategies and trade promotion

However, besides the benefits that technology brings, Netflix also has threats:

Competitive pressure - Netflix isn't the only one offering digital streaming services

around the world Its competitors are constantly increasing every year Disney+, Apple

TV+, HBO, Amazon, Hulu, and YouTube are in constant competition with Netflix by

giving subscribers multiple access to new and original content

Piracy - Digital piracy is still at its peak as thousands of people around the world find

ways to download media content because of the high monthly costs they cannot afford

That's another big threat Netflix faces

Account Hacks - The number of hacked Netflix user accounts increased significantly in

Q1 and Q2 2020 with a daily increase in users due to the lockdown If account hacking

persists in the future, frustrated Netflix users may turn to rival companies

1 DISCUSSION

III Discussion and

conclusion

2 CONCLUSION

III Discussion and

conclusion

In conclusion, the report discussed the topic of how digital tools are

changing the marketing mix (4Ps) of Netflix and how Netflix is responding

to digitization The article analyzed the success in converting the business

model from analog to digital and the threats of Netflix The world will

always change, so if we don't change we will fall behind But in change

there are always great challenges, so to be successful we need to know

how to respond to change And Netflix is a prime example of how to

respond to and capitalize on change to succeed

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https://www.brandsvietnam.com/congdong/topic/15612-Netflix-la-gi-Phan-tich-mo-hinh-kinh-doanh-cua-Netflix

https://digiaide-com.translate.goog/netflix-marketing-mix/?

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https://lamgiautukinhdoanh.live/du-lieu-hoa-va-ca-nhan-hoa-thanh-cong-nhu-netflix/

https://www-businessmodelsinc-com.translate.goog/exponential-business-model/netflix/?_x_tr_sl=en&_x_tr_tl=vi&_x_tr_hl=vi&_x_tr_pto=wapp

https://bstrategyhub.com/swot-analysis-of-netflix-2019-netflix-swot-analysis/

IV REFERENCES