After being charged a ridiculously high fee for returning a movie late, Reed Hastings said there had to be a better way to rent and watch movies and TV shows from the comfort of home Thus, in 1997 Reed Hastings and Marc Randolph, a software executive, co-founded what is now known as Netflix, "the world's leading Internet subscription service for movies and TV shows" (Netflix, Facts). this article discusses the exchange process between Netflix and its customers, as well as Netflix's approach to relationship marketing and how this marketing technique has helped Netflix leave its competition in the dust when it comes to customer satisfaction. Since its inception, Netflix has become a company based on superior customer service and has adhered to the market marketing management philosophy. The main purpose behind Hasting's idea for a better way to rent and enjoy movies was how to provide that service to its customers without paying late fees. In other words, their customers could enjoy rentals from Netflix for as long as they want, and never have to worry about late fees again, except for the big movie rental chains! This aspect of Netflix's marketing plan alone indicates that Netflix has based its marketing plan on market orientation, "a philosophy that assumes that a sale is not dependent on an aggressive sales force but rather on the customer's decision to purchase a product" (Lamb, 2009, p.7). Many companies that adopt this philosophy are said to implement the market concept. The marketing concept states: “The idea that the social and economic justification for an organization's existence is the satisfaction of customers' wants and needs while satisfying the organization... middle of paper.. . rental plan and resist the elements trying to understand which film we want to rent, let's talk about a great deal! Works Cited Lamb, C. W., Hair, J. F., McDaniel, C. D., & Wardlow, D. L. (2009). Marketing Essentials (6th ed.). Cincinnati, Ohio: South-Western College Pub..Netflix - Watch TV Shows Online, Watch Movies Online. (n.d.). Netflix. Retrieved March 13, 2012, from https://signup.netflix.com/MediaCenter/TimelineNetflix - Watch TV Shows Online, Watch Movies Online. (n.d.). Netflix. Retrieved March 13, 2012, from https://signup.netflix.com/MediaCenter/FactsNetflix - Watch TV Shows Online, Watch Movies Online. (n.d.). Netflix. Retrieved March 13, 2012, from https://signup.netflix.com/MediaCenter/HowNetflixWorksNetflix - Watch TV Shows Online, Watch Movies Online. (n.d.). Netflix. Retrieved March 13, 2012, from https://signup.netflix.com/MediaCenter