September 27, 2012
Assignment – Week 1
Describe the elements of the exchange process as they occur between Netflix and its customers. This question took me a bit to answer until I thought about the one word, “exchange.” Exchange means to give up something in order to get something that is wanted. In the case of Netflix and its customers that means that the customers pay a fee (amount varied by plans) in order to receive DVDs by mail. The customers also do another round of exchanging when they send back the viewed DVDs and receive the next movies on their list. Which marketing management philosophy does Netflix subscribe to? I believe that Netflix subscribes to the marketing orientation philosophy. I feel this way because Netflix does not depend on aggressive sales forces, rather, it depends on the customer’s decision to purchase a product. A market oriented firm defines its business in terms of the benefits that its customers seek. Netflix aims at a specific group of people which are those that want to enjoy movies in the comfort of their own homes versus inside a stuffy movie theater. How does Netflix’s approach to relationship marketing increase customer satisfaction? Relationship marketing is a strategy that focuses on keeping and improving relationships with current customers. Netflix provides a variety of plan options so that customers can pick one that fits their needs. Netflix provides a return envelope for the DVD to be sent back in so there is no hassle in getting the movie returned. Netflix offers multiple “wish” lists so that a single family with differences in taste can all get what they want; this makes for very satisfied customers. Also, the fact that Netflix has 34 distribution centers ensures that the customers don’t have to wait long after returning a DVD for the next one on the list to be sent to them. Have you been exposed to Netflix advertising? If so, did it have a positive or negative effect on you? I...