Impact of Internet Marketing on Profitability and Productivity: A Study on Marks and Spencer

This study examines the impact of internet marketing as a promotional tool on the profitability and productivity of Marks and Spencer, a leading UK fashion firm. It explores the concept of internet marketing, its relationship with profitability, challenges faced by the company, and recommendations for using internet marketing effectively.

Business research project

Table of Contents
INTRODUCTION...........................................................................................................................1
Background.................................................................................................................................1
Aim and objectives......................................................................................................................1
Rationale.....................................................................................................................................1
Structure of the report.................................................................................................................2
LITERATURE REVIEW................................................................................................................2
RESEARCH METHODOLOGY.....................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Background
In the era of digitalization, every company uses different types of marketing tools in
order to increase the brand image of the firm. The internet marketing tool is a kind of
promotional technique in which different methods are used through internet in order to promote
the existing products within market (Dilham, Sofiyah and Muda, 2018). Similarly, the present
study is also shed a light upon how internet market creates an impact upon organizational
performance in the terms of profit or productivity.
The report is based upon the Marks and Spencer (M&S) which is one of the top firm in
UK who provides range of clothes to their customers from new born child to old age people. The
quoted firm is also dealt at international level by offering high quality products at affordable
price and that is why, it is concern for it promotional tools as well.
Aim and objectives
Aim: To assess the impact of internet marketing tool as a promotional tool upon profitability
and productivity in the context of UK fashion industry: A study on Marks and Spencer
Objectives:
 To understand the concept of Internet marketing and its types.
 To critically evaluate the relationship between internet marketing and M&S profitability.
 To identify different challenges faced by M&S due to fluctuating nature of internet
marketing.
 To recommend different opportunities gained by company while using Internet
marketing.
Research questions
 What do you understand by the term internet marketing?
 What is the relationship between internet marketing and M&S profitability?
 What are the different challenges faced by M&S due to fluctuating nature of internet
marketing?
Rationale
The reason for conducting research on this topic is such that internet marketing is
considered as an important aspect in digitalization era. This in turn recognized n issue because
people comment on both side (positive and negative). Thus, it also affects the profitability of a
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company. That is why, through thematic data analysis, scholar is able to identify the impact of
internet marketing upon the profitability of M&S. Another rationale for conducting study on this
topic is such that it helps to enhance the knowledge pertaining to this topic so that scholar will
use the same in their future.
Structure of the report
Introduction:This section defines aim and objectives of the study, along with this also
identify the reason for choosing this topic over others.
Literature review: Next section of the study which is completely based upon the
secondary research in which different author's point of views will be used as per the defined
research objectives. In this, different sources are considered which includes books, scholarly
articles which published after 2017.
Research Methodology: In this, researcher collect information through different research
methodological tools that helps to conduct the study in an effective manner. In this, scholar
discussed research type, approach, data collection methods and ethical approach.
Data analysis: One of the most important section in which scholar research in the
context of chosen company that helps to determine the impact of internet marketing upon the
profitability of M&S. Further, different themes and images are used in order make research more
effective.
Conclusion and recommendations: Last chapter in which scholar summarizes the entire
report and provide recommendations that helps M&S to run effectually.
LITERATURE REVIEW
Theme 1: concept of Internet marketing and its significance
According to Ghai and Rahman (2018) internet marketing is refers to the techniques
employ by companies that occurs online. There are many methods used by the company in order
to increase the traffic that provoke customers to purchase the products. Akhmetova,
Turginbayeva and Shurenov (2018) argued that digital marketing is similar to internet but it also
includes some non- internet electronic marketing. Thus, it can be stated that online shopping is
booming in the market and that is why, majority of the companies are replaced their traditional
marketing through online.
Nadanyiova and et.al., (2020) explained that Search Engine Optimization is the best
internet marketing tool that helps to enhance the traffic over a website. Thus, with the help of
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successful SEO strategy, company's website ranking with search engine will also improve.
However, Al-Halili and Hongxin (2019) argued that with the use of email marketing, company
communicate with their regular customers which in turn assists them to aware with new offers
and products. Through such tool, company is able to maintain long term relationship with
customers and reflects its visibility as well.
Abass and Ahmad (2018) also shared their views that social media is another one of the
most effective tool that helps to grab attention of many customers towards which direct cause
positive impact upon profitability. In this, there are many websites that helps to aware customers
about new offers and this includes Facebook, Twitter, YouTube etc. As most of the youngsters
engaged within these social sites that assists company to know about discounts, coupons etc.
This shows that it is one of the vast marketing tool that helps to meet the customer demand and
increase brand image of a firm as well.
Theme 2: Relationship between internet marketing and M&S profitability
In the opinion of Kaur, Mishra and Mallik (2021) there is a direct impact of internet
marketing over profitability such that marketing tools enable to reach wide area of network that
helps to enhance the overall profitability of a company. For example, M&S deal at different
countries and that is why, it uses range of marketing tools and encourage people to shop online
that cause positive impact upon the productivity of a company. Garg, Popli and Sarao (2021)
argued that many organization use internet in order to monitor their competitors activities any
time in order to improve their business efficiency. This is possible by using effective tools and
application that keep track upon different rivals. Thus, it helps to stiff the competition and raise
the business efficiency that helps to sustain the brand image at global level.
Benmammar (2021) shared their views in own study that using social media as an
internet marketing tool will help the company maintain the relationship between company and
customers. Such that on Facebook, when M&S post about new offers then majority of the
customers share their reviews and this helps other people to make decision accordingly.
Therefore, it is clearly reflected that using effective tools will aid company in positive manner in
the terms of profitability and productivity. Wibowo and et.al., (2021) also explained their views
that it does not only help in profitability but it assists to maintain long term relationship with
their customers. This is possible through email-marketing in which regular emails are dropped
that helps to let people know about the offers.
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Theme 3: different challenges faced by M&S due to fluctuating nature of internet
marketing
Ghai and Rahman (2018) emphasized that budget is considered one of the biggest
challenge faced by the companies during fluctuation within internet marketing. In this,
organizations are faces many issues such that there are thousands of online application that is
available in market and that is why, it is not possible for the firm to implement such due to
financial constraints. Dilham, Sofiyah and Muda (2018) argued that due to lack of expertise
company faces issue to manage own website and this in turn creates direct impact upon the
profitability. Further, company does not have efficient resources and that is why, they do not
provide effective training to their employees which in turn cause opposite impact upon the
overall performance of a company.
As per the view of Mohan and Ali (2019) generating traffic and leads is also considered
another challenges in the changing internet marketing because most of the companies are
invested upon such digital marketing platform, but they did not know how to enhanced the sales
by providing effective content. As a result, they are unable to target content for an international
audience that might affect the overall performance of a company (Six benefits of internet
marketing, 2020). Thus, it can be stated that there are both positive and negative impact upon the
company's performance while using the internet marketing.
RESEARCH METHODOLOGY
Research type:
It can be distinguished in two forms such that qualitative and quantitative. In order to
identify the impact of internet marketing (IM) upon profitability of M&S, qualitative research
type has been used because it deals with the theoretical concept of IM to derive the best
outcomes.
Research Approach:
There are two types of research approach mainly which includes deductive and inductive
(Nayak and Singh, 2021). For the present research, scholar adopted inductive research approach
because it helps to deal with qualitative data effectually. Similarly, by using the chosen
approach, scholar determine collect information with regard to internet marketing.
Research philosophy:
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It is deal with the notion that helps to identify the way through which information about a
phenomenon should be gathered, analyzed and used. There are two types of philosophy which
can be used by the scholar i.e. Positivism and Interpretivism. As per the chosen topic.
Interpretivism philosophy has been used by the scholar in order to determine the impact of
internet marketing upon the M&S profitability.
Data collection:
Data analysis:
Ethical consideration:
Reliability and validity:
Research limitation:
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REFERENCES
Books and Journals
Dilham, A., Sofiyah, F. R. and Muda, I., 2018. The internet marketing effect on the customer
loyalty level with brand awareness as intervening variables. International Journal of Civil
Engineering and Technology. 9(9). pp.681-695.
Ghai, S. and Rahman, O., 2018. Measuring effectiveness of campaigns using digital marketing
& its impact on youth. International Journal on Global Business Management &
Research. 7(3). pp.19-30.
Akhmetova, Z. B., Turginbayeva, A. N. and Shurenov, N. B., 2018. Development of internet
marketing in the EAEU countries. RUDN Journal of Economics. 26(2). pp.175-185.
Nadanyiova, M. and et.al., 2020, June. Influencer marketing and its impact on consumer
lifestyles. In Forum Scientiae Oeconomia (Vol. 8, No. 2, pp. 109-120).
Al-Halili, A. and Hongxin, L., 2019. E-Commerce and Internet Marketing in Yemen:
Opportunities and Challenges'. European Journal of Business and Management. 11(21).
pp.27-28.
Abass, S. and Ahmad, A., 2018. Impact Of Internet Marketing On Photography In Lagos State,
Nigeria. CONTEMPORARY ISSUES IN BUSINESS & ECONOMICS (ICCIBE), p.418.
Kaur, K., Mishra, A. and Mallik, V., 2021. Impact of E-marketing on Consumer Purchase
Behaviour: An empirical study. IJRAR-International Journal of Research and Analytical
Reviews (IJRAR), E-ISSN, pp.2348-1269.
Garg, A., Popli, R. and Sarao, B. S., 2021. Growth of digitization and its impact on big data
analytics. In IOP Conference Series: Materials Science and Engineering (Vol. 1022, No.
1, p. 012083). IOP Publishing.
Benmammar, B., 2021. Internet of Things and Cognitive Radio: Motivations and
Challenges. International Journal of Organizational and Collective Intelligence
(IJOCI). 11(1). pp.39-52.
Wibowo, A. and et.al., 2021. Customer Behavior as an Outcome of Social Media Marketing:
The Role of Social Media Marketing Activity and Customer
Experience. Sustainability. 13(1). p.189.
Mohan, V. and Ali, S., 2019. Challenges faced by Indian MSMEs in adoption of internet
marketing and e-commerce. Academy of Marketing Studies Journal. 23(1). pp.1-9.
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Nayak, J. K. and Singh, P., 2021. Fundamentals of Research Methodology Problems and
Prospects. SSDN Publishers & Distributors.
Online
Six benefits of internet marketing. 2020. [Online]. Available through:
<https://smallbusiness.chron.com/role-internet-play-marketing-sale-products-
43737.html>.
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