Marketing Mix Netflix Essay

Marketing is a very complex innovation that involves a detailed process. The types of strategies for securities industrying focus on a rear audience and ar directly re newd to what is known as the 4 Ps of the Marketing mix.The Marketing mix has been defined by many as the controllable variables a conjunction mystifys together to foregather its come in market If any parts of a Marketing Mix get reveal of balance, the target market leave be insufficiently served. This model of the Marketing Mix was first introduced by Neil Borden when he make his 1964 article, The Concept of the Marketing Mix. Borden had first started using the phrase in 1949 and claimed that it came to him duration reading a book by James Culliton on the activities of a business executive (netmba.com, 2009). The 4 Ps that the Marketing Mix consists of are convergence, place, promotion, and harm.The term harvest-time refers to tangible, physical outputs, as well as to go. A lot of thought and prel iminary research goes into the type of product a high society willing manufacture, including product specifications, design, and production of the unit. The biggest concern for a business is that they are able to introduce their product at the remove time, when the consumers commands are greatest. A product will more(prenominal) often than not go through a life cycle, much like a human life cycle, consisting of four polar stages introduction, growth, maturity, and pedigree. After the developmental period, a product is introduced or launched into the market. At this stage, the need for immediate profit is not a pressure the product is promoted to create awareness. In the growth stage, competitors are attracted into the market with very similar offerings.Products become more profitable and companies may form alliances, joint ventures, or take each other over. The currency spent on advertising is high and its focus is on create brand recognition. In the maturity stage, sales will grow at a decreasing rate and then stabilize. Producers will try to secernate products and brands, while bell wars and enthusiastic challenger will occur. At the decline stage, on that point is a downturn in the market where there is intense terms-cutting and many more products are withdrawn from the market. Profits offer be improved by reducing the amount spent on marketing and product promotion. However, very few products follow much(prenominal) a normative cycle. The length of each stagevaries enormously and not all products will go through all stages (Lamb, Hair, & McDaniel, 2005).Place represends the location where a product faeces be purchased. It is often referred to as the distri preciselyion channel. It can entangle any physical store as well as realistic stores on the Internet. Place is excessively an authorised part of marketing. The product or answer needs to be accessible to customers, especially its target market. a lot times there are no need f or an actual store location, as many very prospered companies offer just online services or products. In these instances, products or services are much more convenient and cheaper to the customer because of the lower overhead costs.Promotion represents all of the communications that a marketer may insert into the marketplace. This can include TV, radio, and fool advertising, as well as coupons, direct mail, billboards, and online advertising. Often times we conjecture of marketing as just the promotion or sales part, only when the other 3 factors are often times just as important, if not more important. Promotion is the advertising of the actual product or service. One must consider who the audience is and what the best right smart is to target them. This could include television advertisements, radio advertisements, mailing and so on. There is no one best way to advertise, it really depends on the product and its audience. This is a very important aspect of marketing, and ofte n times a trustworthy or bad promotional campaign can make or break a product or service (Perreault, Jr. & McCarthy,2005).The last-place P in the marketing mix is Pricing, which is the most difficult constituent to determine. A Companys requirement for net income and its objectives for long-term market control mostly influence a price strategy. In appendix to the primary goal of making money, a company can restrain many different pricing objectives and strategies. Larger companies may utilize product pricing in a predatory or defensive fashion, to blow or defend against a competitor. If a product is of premium flavor and has unique features and benefits, a premium price may be obligatory to reinforce the premium brand image.High prices confirm perceptions of high set in consumer minds. A good pricing strategy will too indicate guidelines foraction in the case of price increases or decreases (managementhelp.com, 2009). A company may want to consider temporarily delaying nec essary price increases driven by supplier and ingredient price increases, and instead, take affordable, littler profit margins. If competitors are increasing prices and one company decided not to, this could be a temporary advantage for that company since sales record may increase.To set the best price for a product, a company will need to review the essentials of their business with an eye as to how they will affect price. A company must know their customer base, because the separate a company understands the wants, needs, beliefs, and values of its customers, the easier it will be to accurately price their product. A company will then need to assess their competition and see how their product relates to those similar offerings. Next, a company will need to determine their production costs and develop a marketing plan, both for short and long-term. Distribution costs must be factored into the final price of the product, as well. Once these elements are considered, a pricing strat egy can be more easily determined.One very successful company that utilizes the 4 Ps of marketing extremely well is Netflix. The company virtually singlehandedly brought its competitors to their knees. These companies, including Blockbuster have since recovered and began offering a similar service, but Netflix had the marketing plan in place and rolled it out so efficiently that it really caught its competitors by surprise.Netflix is a little tricky when it comes to the product. It offers the service of photographic film rentals, but in a more convenient way than the traditional movie rental stores such as Blockbuster or Hollywood Video. In 1999, Netflix came up with an online movie subscription with no late fees. This gave pack the convenience of receiving the movies they wanted to see right in their mailbox. No overnight did you have to search through the isle for a movie that was already rented out.Netflix does not offer a place where a customer can come pickup his or herorde r, instead everything gets conveniently shipped to each customer via United States Postal Service. This makes it convenient for just about anyone to use because there does not have to be a local store or shipping location around. Customers are able to place orders right online, which is a convenient and private way to pick the DVDs that they desire to view.The promotion of Netflix was generally done through television advertisements. They targeted television watchers, who for the most part also watch movies. Their catchy marketing claimed No Due Dates and No late Fees, which was very appealing to consumers who were tired of paying late fees with their current movie rental stores (Netflix, 2009). It also offered the convenience of No shipping or use charges, which made it just as competitive as the other places.The prices that Netflix charges its customers are very competitive to the current market of DVD rentals. They have different options to suit different needs. According to th eir website, they have a plan beginning as low as only $4.99 per month. This plan allows viewing of up to 5 movies. For customers who want to watch more movies per month, they offer other plans also, such as the $17.99 a month plan that allows 3 movies to be out at a time. Once one movie is returned, another is sent out in its place. These different plans offer a wide variety of choices to fit different budgets.Marketing is an important element for any business. By analyzing the four Ps of product, price, place, and promotion, an validation can achieve a successful marketing campaign. Whether the business is a small mom and pop organization or a major corporation, marketing can play an important role in its success. Understanding the marketing mix will put an organization on the road toward success and profitability.Referenceshttp//www.netmba.com/marketing/mix/. Retrieved June 8, 2009.http//www.managementhelp.org/mrktng/pricing/pricing.htm. Retrieved June 5, 2009.Lamb, Charles W., Hair, Joseph F., & McDaniel, Carl. (2005). Essentials of Marketing (4th ed.). Mason, Ohio South-Western.Perreault, Jr., William D., & McCarthy, E. Jerome. (2005). Basic Marketing (15th ed.). New York McGraw-Hill, Irwin.http//ir.netflix.com/. Retrieved June 6, 2009.