The Segments And Elements Of Netflix Marketing

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The segments and elements of Netflix marketing

Netflix is an American company that mainly offers a video service on demand available in more than 190 countries. Its income model is based on the subscription with monthly flat rate through which you have access to audiovisual content (films, series and documentaries) in an unlimited way.

Subscribers can instantly see an audiovisual title from any screen with a screen that is connected to the Internet. The multimedia digital content reaches users through streaming, that is, the video and audio file is not downloaded or stored, it is displayed as it is transmitted.

The company has 3 segments: National streaming, international streaming and, available only in the United States, the rental of DVD films by ordinary mail. This work focuses on streaming service. In 2002 the company had 1 million subscribers, at the end of 2015 it had almost 75 million subscribers. Netflix began its journey in Spain on October 20, 2015

Netflix was founded in 1997 in Delaware for Reed Hastings, Mitch Lowe and Marc Randolph in 1998 began the business activity of Netflix in the case of the first online store in renting DVD movies.

Between 1999 and 2002, Netflix was on the edge of the abyss for the competition (mainly from Blockbuster, Hollywood Video and Walmart) but in 2002 what Hastings happened was waiting for a long time: the price 4 of the DVD players went down and Netflix took offDespite the price war in which he was involved because Blockbuster and Walmart opened online stores. In 2002 it was the year in which Netflix began to quote on the bag under NFLX (Netflix, 2016).

The company began broadcasting in streaming in 2007 and is currently its central business, since DVD rental is only available in the USA. UU. (Bloomberg, 2015, Thrichest, 2015). Despite its hesitant Netflix starts, it has seen its subscribers increased vertiginously especially in recent years.

The rivalry among competitors is high. A study in the US. UU. For Nielsen, he pointed out that 36% of US households have hired Netflix while only 13% are with Amazon Prime and 6’5% are signed to Hulu will soon be released Disney + who will be a direct competitor of Netflix with all his films.

Describe the elements of the marketing mixture (4 p) for that product or service.

  • Product.

Netflix has evolved since its inception as online rental and sale of DVD to our day where it offers a streaming service. The change process is also reflected in its brand positioning that in its beginnings was reflected with the functional phrase".

  • Promotion.

The Reed Hastings company, with the aim of attracting new customers, offers a month of trial to show their service to possible subscribers and get them to commit to the company. This decision serves to convey a message of trust, by the company, to consumers of the high value of the service it offers and therefore invites them to join the experience of being a spectator for free. Another aspect of the promotion is the one that refers to advertising actions to increase subscriptions and increase the identification of brand customers and their service

  • Price.

When we carry out the competition analysis, we observe that all competitors offer their services at a similar price, that means that, if any of them changes price, Netflix should also do so in the same direction (normally downwards) as their direct competitorNot to lose subscribers. However, as the long -term objective of the company is to achieve a competitive advantage based on differentiation, in the last year and against that logic, Netflix has increased prices about $ 2 in its national market with the objective of injecting liquidity forfinance international expansion

  • Square

Netflix adapts to the different navigation speeds so that its customers can see the content of their service from anywhere where the user is and has an Internet connection. The company’s R&D team is dedicated to the creation of software that facilitates the subscriber to use their service either to reduce the consumption of their data rates or even to press Internet service providers with a rankingof operators in which, through a tool for its own measurement, it evaluates the speed of the operators

Describe the current strategies used by the company for each of the elements of the promotional product (or product line) chosen:

There are a number of alternatives to carry out this growth strategy that Netflix has applied:

  1. Improvement of existing products with the incorporation of new functions that can be seen in the different evolutions of the user interface
  2. Software development both to improve streaming service, and for example the adaptation of the service HD and Ultra HD quality introduction to its offer, such as software development to help subscribers in navigation as the aforementioned case of helping the subscriberto reduce the consumption of your mobile data rates.

Market development is a strategy that implies introducing current products in new markets. In the case of Netflix, its application can be observed in: Expansion to new segments: through commercial offers such as the section dedicated to children (Just for Kids);or through new distribution channels such as expanding the service to all devices with screen and internet connection. As for the distribution channels, the main one should not be forgotten and that in 2007 it was a revolution for Netflix that carried out one of its largest commercial operations betting on streaming.

Expansion to new geographical areas, which as already seen is currently the main strategy adopted by Netflix whose objective is that its service is available worldwide and that involves entry into one of the main world markets,

For a product development strategy to be successful, a great effort and special emphasis on marketing actions are required. Proof of the importance of Netflix granting advertising campaigns is observing the launch of some of its original contents such as the “Narcos” and “Orange is the new black” series that were subject to two native advertising campaigns in TheWall Street Journal with the Publii-Report of “Cocainenomics” (Green, 2015) and in The New York Times with “Women Inmat.

Make a comprehensive communication plan for the product.

The main objective would be that Netflix grows as the number one business of subscription streaming worldwide. To achieve this objective, we would take the following benefits as a business strategy to its customers:

  • Improve the streaming experience of its members, that is, it is about expanding series and films content, via greater licenses or productions.
  • Netflix continuously improves the service it provides. Testing of several aspects of the service such as the web, interfaces, plans, promotions, among others are carried out, among others.
  • Extend streaming services to as many devices as possible
  • Allow the user to use Netflix service outside the country of origin
  • Release the restrictions of subscribers
  • Offer your customers the possibility of having more than one subscriber per user
  • Grant 1 month for new subscribers or ancient subscribers
  • Provide a help center for its users, via web or remote access
  • Campaigns of great advertising impact
  • Create experiences
  • Launch short -lived campaigns with a very high impact


When studying and researching this company I think the best marketing lessons that we can learn from Netflix to succeed with our business or company. The most top experts of the moment have reviewed Netflix strategies and have collected the best marketing lessons that we can all learn from this company. One of the best teachings that I let this work that we can extract from Netflix is the importance of caring for timing to the maximum. The Netflix team has perfectly controlled when each action must be done to get more impact and this is really important to better position any company and reach many more people every day every day.


  • Merca 2.0. (2020, September 7). MERCIO MERCIA 2.0. https: //
  • Netflix. (2020, January 1). Netflix Mexico. https: //

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