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

Class: MKT1618Student ID: HS160292

Lecturer: Nguyễn Hoàng Phương LinhDate: 15/06/2022

TABLE OFCONTENTSI Introduction:

1.Overview of changing in digital world

2.Introduction of the company andits product(s)

II How digital tools are changingmarketing mix

1 Product 2 Promotion 3 Price 4 Place

III Discussion and conclusion IV References

OVERVIEW OF CHANGING IN DIGITAL WORLD I INTRODUCTION

Modern technology has revolutionizedour world and daily lives for years Ithas paved the way for not only fasterand more portable devices such assmartphones, but it also made people9s

enjoyable 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 technologies to create –or adapt existing business processes,culture and customer experiences tomeet changing business and marketrequirements This change in the digitalage is digital transformation.

connect, shorten the distance betweendepartments in the enterprise, promoteefficiency in corporate governance,optimize employee productivity, andincrease product quality.

According to Microsoft's researchfrom 2017, the impact of digitaltransformation 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% by2020; in the following three years, 85percent of occupations in the regionwill be transformed It is clear fromthis that digital transformation has asignificant 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 togame consoles | Recommendations

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

Through a successful startup and the rapid changes that technology hasintroduced over time, Netflix has transformed its business model They havegone from physical releases to allowing customers to stream their favoritecontent comfortably.

Today, the platform has evolved streaming technologies that have enhanced andimproved Netflix's overall revenue and business structure The platform givesviewers 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 internetcompany by revenue, including its presence on a global scale.

2 INTRODUCTION OF THE COMPANYAND ITS PRODUCTS

In 1997, Netflix began offering an onlinesubscription service over the Internet.Subscribers select movie and TV showtitles from Netflix's website; Theperformances are then shipped tocustomers as DVDs, along with prepaidenvelopes, from one of more than 100distribution centers Netflix has tens ofthousands of titles in its catalog.In 2007, Netflix began giving subscribersthe option to stream certain movies andTV shows directly to their homes over theInternet For most subscriptions, thestreaming service is unlimited Netflixlater partnered with manufacturers ofvarious consumer electronic products,including video game consoles and Blu-ray Disc players, to allow their videos tobe streamed online over an Internetconnection to those devices.

In 2010, Netflix introduced astreaming-only plan that offeredunlimited streaming but no DVDs Inthe second quarter of 2018, theoverseas TV streaming app giant'srevenue surpassed domestic numbersfor the first time This is a remarkableachievement for a company that onlyoperated in the US before 2010 and in50 countries as of 2015.

In 2020, the world's largest moviestreaming service attracted a recordhigh number of paid members,totaling 37 million paid members,bringing Netflix's total subscribers to203 million in 2020

1 PRODUCT

II How digital tools are

In 2007, Netflix made the wise decisionto introduce a streaming platform thatallowed viewers to watch shows andmovies on their computers instantly forfree Currently, it is a website where youcan sign up and pay to watch TV shows,movies, documentaries and more Thebest part of Netflix is that there are noads 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 amember of Netflix, namely the basic plan, the standard plan, and the premiumplan.

-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 onlinedistributor by purchasing the broadcasting rights In addition to all of this, it alsooffers DVD rentals The brand makes sure to keep its platform up to date with thelatest content.

1 PRODUCT

II How digital tools are

2 PROMOTION

II How digital tools are

Netflix's promotional strategy in its marketing mix includes continuing toadvertise across all possible channels in order to stay in the spotlight Thefollowing 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 onlineadvertising and maintaining a presence on social media platforms such asYouTube, Facebook, and Instagram, which have a large following, particularlyamong teenagers.

+ Celebrity endorsement:

Aside from pop-up and other static advertisements, the corporation largelyrelies on celebrity endorsements Marketing campaigns featuring topcelebrities constantly promoting the brand and its content are shown atregular intervals to maintain brand visibility.

2 PROMOTION

II How digital tools are

+ 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 showson Netflix, with a large audience.

2 PROMOTION

II How digital tools are

Using Artificial Intelligence:

With the data collected from users in the past, they used it to create programstailored to the insights of each user If you pay attention, you will see that themovie poster that Netflix introduces with each account may not be the same asthe original poster of the movie producer, nor what others see It's a posterdesigned specifically for each individual From the stock of available movieframes, Netflix's system will automatically select the best frames, from which thedesigner can design many different poster versions The same is the hit movieSquid Game, but the trailers in France and Thailand are different in languageand presentation:

NETFLIXII How digital tools are

changing marketing mix By Mai Anh

3 PRICE

Netflix is currently using a subscription-basedbusiness model Customers will subscribe to 1of 3 service packages (basic, standard,premium) provided by the platform and haveto pay monthly to maintain the service.

Netflix determines the region based ondatabase information, and then the price ofthe package varies by country, depending onaffordability and price sensitivity As a result,Netflix has created conditions for users all overthe world to continue to enjoy the highestquality movie service without having to pay ahigh price The basic plan, for example, costs$9 in the United States, $9.99 in Canada, andRs 499 in India.

Freemium pricing: Netflix only uses this pricingstrategy on the Android platform Users ofAndroid devices can access Netflix and watchmovies for free Of course, both the qualityand quantity of movies available will belimited Customers will be encouraged toupgrade to freemium packages in order to geta better experience.

Rather than paying at the store, customerscan now pay directly on Netflix's websiteusing a credit or debit card.

II How digital tools are

4 PLACE

Netflix's distribution mechanism will undoubtedlyalter when the product transitions from physicalDVD to online copyright (tangible product tointangible product) Netflix has moved away fromproviding DVD rental services through postalservice and instead offers its services entirelyonline Customers will create an account in orderto pay for goods and services using a credit cardor other online payment methods.

Netflix is a streaming service, thus it is accessiblefrom anywhere Netflix does almost all of itsbusiness online The brand's content is availablein over 190 countries Its services are available viainternet-connected Smart TVs, tablets, cellphones,and other devices Customers can use theseservices at any time and from any locationbecause they are available online.

Capturing the flow of technology, digital transformation, using AI, database, andpersonalizing users, have helped Netflix succeed in improving user experience andbecome 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 servicesaround the world Its competitors are constantly increasing every year Disney+, AppleTV+, HBO, Amazon, Hulu, and YouTube are in constant competition with Netflix bygiving subscribers multiple access to new and original content.

Piracy - Digital piracy is still at its peak as thousands of people around the world findways 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 inQ1 and Q2 2020 with a daily increase in users due to the lockdown If account hackingpersists in the future, frustrated Netflix users may turn to rival companies.

1 DISCUSSION

III Discussion andconclusion

In conclusion, the report discussed the topic of how digital tools arechanging the marketing mix (4Ps) of Netflix and how Netflix is respondingto digitization The article analyzed the success in converting the businessmodel from analog to digital and the threats of Netflix The world willalways change, so if we don't change we will fall behind But in changethere are always great challenges, so to be successful we need to knowhow to respond to change And Netflix is a prime example of how torespond to and capitalize on change to succeed.

https://www-businessmodelsinc-com.translate.goog/exponential-business-IV REFERENCES