StudentShare solutions
Triangle menu

Discussion of a current marketing problem - Essay Example

Nobody downloaded yet

Extract of sample
Discussion of a current marketing problem

This gives them instant access to tangible video copies (not streaming video) that even Netflix could not provide without a day or two wait for the mail system to deliver videos. As such, subscribership began to drop as Netflix was not providing cost incentives to avoid brand defection by once loyal consumers. This led to media coverage that was very negative in which investor confidence began to fall, along with outlook for continuing subscribership and revenue growth, which plummeted the stock from $236 in September 2011 to only $66 in December 2011. Media coverage showing many negative factors about a business model has very substantial impact on consumer perceptions about a brand.
While all of this negative publicity was occurring, Netflix was also realizing that its operational costs were steadily increasing, therefore the business would have to raise prices in order to offset these concerns. The operational cost increase factors included royalty fees paid to many different film production companies that hold intellectual property rights on many of the products offered by Netflix. With growth in streaming video online, the costs of operations increased from $180 million annually in 2010 to $1.98 billion in 2012 (Pepitone & Smith, 2011). The only way that Netflix could stay in business and regain investor confidence was to raise prices, taking the Netflix service subscription from a previous 2009 total of $5 per month, to over $10 per month in certain markets. Raising prices on this business model created significant consumer backlash and immediate defection to other brands offering similar services. To now be able to get hard copy discs delivered as well as streaming video capabilities under the service, it would now cost consumers $15.98 (Sanger, 2011). Netflix was essentially stating that the high costs of licensing the videos offered (hundreds of millions of dollars annually) and the costs of handling video returns and deliveries were justifying these sudden and significant price hikes. The major problem in this situation is that not only did the company anger its loyal customers with massive price increases, but the business did not realize the consumer loyalty ...Show more
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Discussion of a current marketing problem Essay”, n.d.)
Retrieved from https://studentshare.net/marketing/95782-discussion-of-a-current-marketing-problem
(Discussion of a Current Marketing Problem Essay)
https://studentshare.net/marketing/95782-discussion-of-a-current-marketing-problem.
“Discussion of a Current Marketing Problem Essay”, n.d. https://studentshare.net/marketing/95782-discussion-of-a-current-marketing-problem.
  • Cited: 0 times

Summary

Netflix cannot simply tell consumers that they need to change their habits or pay a price when the foundation of the service was home video delivery with tangible optical discs. A better customer relationship management focus is clearly called for in this case study…
Discussion of a current marketing problem
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Discussion of a current marketing problem"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Marketing
7 2.2 Explanation of 3 benefits to the brand from using segmentation 8 3.0 Target Market Identification 8 3.1 Geographic Segmentation 8 3.2 Demographic Segmentation 9 3.3 Psychographic Segmentation 9 3.4 Behavioural Segmentation 10 4.0 Target Market Collage 11 5.0 Completion of Discussion/Rationale of the Target Market Collage Images Chosen Table 12 6.0 Reference List 14 1.0 Marketing Mix Schwarzkopf Extra care straight and glossy shampoo is one of the hair care products of Schwarzkopf.
9 pages (2250 words) Essay
Current Job Problem in US
Twenty two million American citizens who would love to work permanently cannot get employment. Nearly half of those who are jobless have been without a job on long term basis. Earnings are declining the real earnings of a usual American citizen is now lower than the level it was back in 1997.
7 pages (1750 words) Essay
Current Event Paper- Marketing
Today, online marketing experiences rapid growth proving its efficiency and high response potential. The article Word of Mouth Helps Them Fly Off the Shelves proves the idea that modern business cannot survive without effective
4 pages (1000 words) Essay
Marketing
The paper also identifies tools and techniques in carrying out a marketing plan, as well as an outline of a strategic marketing plan. In enhancing the marketing strategy
15 pages (3750 words) Essay
Marketing Case Problem Solving
Whilst there have been growth in sales, it is argued that this growth is a result of inflationary factors where there is no evidence of real growth. In fact
3 pages (750 words) Essay
Nursing shortage and current Problem
As senior nursing students, we are concerned with the issues confronting nursing field at the global level. We are grateful to our teachers for assigning us this project and appreciate the opportunity given to
4 pages (1000 words) Essay
Discussion and problem solving questions
CD-R or DVD-RW would be preferred over a hard disk for storage because of their large capacity and ability to be used multiple times. It is excellent solutions for
3 pages (750 words) Essay
Marketing
explored through the marketing mix model, which involves in the examination of the product, pricing, distribution and promotion, as elements of the marketing strategy used for the promotion of the product in the above market. When referring to product as an element of the
9 pages (2250 words) Essay
Discussion Board Post Response
7) cites that "We must also better manage chronic disease and spend limited resources on care, not bureaucratic red tape and paperwork". In other words, there is a current need to better manage chronic diseases and utilize available resources effectively. This
1 pages (250 words) Essay
Critical Evaluation of Current Integrated Marketing Communications Practice(BKK)
32) The ranking also saw the company placed fifth worldwide in the sale of automobiles. Ford Motors Company deals in the sales and distribution of automobiles and commercial vehicles under two brands, Lincoln brand besides Ford brand. (Egan, 2007, p. 89) The
13 pages (3250 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic Discussion of a current marketing problem for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us