Online Marketing's Effect on Sales and Profitability: Research

This research paper examines the impact of online marketing on sales and profitability within organizations, using Net-a-Porter as a case study. The introduction highlights the significance of online marketing, emphasizing its role in promoting products, influencing consumer behavior, and improving business performance in the digital age. The literature review explores the concept and significance of online marketing, including effective tools and techniques, and its effects on profits and sales. The methodology section outlines the research approach, philosophy, data collection methods, sampling, and data analysis techniques used. The data analysis chapter presents the findings through thematic analysis, aiming to answer the research questions and objectives. The study concludes with recommendations for enhancing sales and profits through effective online marketing strategies, emphasizing the importance of adapting to digital advancements and leveraging social media platforms. The paper covers various aspects of online marketing, from the use of social media to the impact of internet marketing on consumer behavior and brand image, providing a comprehensive overview of the topic and its implications for businesses.

Research Paper
To assess the impact of online marketing on sales
and profitability of organization

Table of Contents
CHAPTER 1- INTRODUCTION....................................................................................................1
CHAPTER 2- LITERATURE REVIEW.........................................................................................1
2.0 Introduction...........................................................................................................................1
2.1 Concept and significance of online marketing......................................................................1
2.2 Effective tools and techniques of online marketing..............................................................4
2.3 Effect of online marketing on profits and sales....................................................................6
CHAPTER 3 RESEARCH METHODOLOGY..............................................................................9
Introduction ................................................................................................................................9
Research approach .....................................................................................................................9
Research philosophy ................................................................................................................10
Data collection methods ...........................................................................................................10
Sampling ..................................................................................................................................11
Data analysis.............................................................................................................................12
CHAPTER 4 DATA ANALYSIS.................................................................................................15
4.1 Introduction.........................................................................................................................15
4.2 Thematic analysis................................................................................................................15
CONCLUSION AND RECOMMENDATION.............................................................................28
CONCLUSION.........................................................................................................................28
RECOMMENDATIONS..........................................................................................................29
REFERENCES..............................................................................................................................32
APPENDIXES...............................................................................................................................35

CHAPTER 1- INTRODUCTION
Online marketing is considered as the tool that which is used for promoting the products
or services using internet. It involves wide range of marketing elements as compared to
traditional marketing and thus because of such extra channels it helps firm to improve its
marketing activities over internet (Islam, 2016). Also, it is one of the growing method and thus
promote the products and influences customers to purchase the same. Now-a-days each and
every businesses are using online marketing as it helps in improving the sales and profitability of
firm. Marketing is one of the main factor that aids in attaining growth and success of business.
Main purpose of using such activity results into promoting the goods and enhancing the sales and
profitability. Also, it is the best way through which large number of customers could be attracted
and gaining best results (Mathur and Mathur, 2016). Companies aim to use internet marketing in
relation to market their products or services and using social media promotion such as mobile
messaging, Google, YouTube, Facebook and Twitter etc. All such method are considered as
effective and thus helps consumers to gain significant information about company and its
products or services so that sales and profitability could be improved.
Internet marketing is also stated as one the fastest growing form of communication within
firm. It also helps in developing communication channel to both volume and amount of users so t
hat they can be influenced towards firm. As more number of customers are using online sources
and investing their time in such activity therefore, it is essential for firm to use online sources for
promoting their products or services (Levin, 2016). Traditional marketing methods requires large
number of investment in the form of human, finance and other sources. While modern marketing
methods such as online marketing is one of the cost effective method that helps firm in saving
time and money. It can be assessed that more than 40% of population in the world is using online
sources in order to stay connected with each other. Hence, it is one of the best way for firm to
promote their products or services and thus enhance the brand image of firm in market (Hurwitz,
Montague and Wartella, 2016).
In the current era of digitalization, businesses aims to use internet marketing tool as the
major platform for marketing products or services and thus improve the business performance so
that success can be attained. However, it is also essential for organization to adopt effective
internet marketing techniques and thus results in performing desired actions so that best results
can be attained (Badiru and Afolabi, 2016). Also, it is crucial for enterprise to undertake
1

effective methods in terms of improving the business profitability so that market share of firm
can be improved. Businesses focus upon adopting internet marketing techniques and thus
promotes the company's products or services so that desired results can be attained. Online
marketing is also termed as internet marketing and thus firm uses such method in regard to
influence large number of customers towards business (Hale, 2016). However, there are different
brands which are using internet marketing tool in regard to attract potential customer base and
thus promote their products on internet so that best results can be attained. Through promoting
the products online, it creates tough competition so that large number of customers could be
attracted towards firm. Internet medium is one of the best way through which communication
could be developed and thus luxury brands could be promoted to attract potential customers and
thus enhance the sales and profitability of firm in market (Chen, Yueh and Liang, 2016).
Now-a-days businesses are using internet marketing and thus investing large amount in
such sources in order to promote the same so that best results can be attained. In the 21 st century,
businesses focuses upon using internet sources for promotion of products or services to attract
target market customers (Nayyar, 2017). Companies operating in worldwide area, aims to use
online marketing method as it is considered as one of the best and thus influence consumers
around the globe. It helps in informing clients regarding the products or services and thus
provide them the best information and knowledge so that large number of buyers could be
attracted towards firm. Main advantage of online marketing is that helps in influencing
consumers towards business and thus carry out effective marketing strategies so that set results
can be attained. However, businesses uses such type of marketing technique in regard to promote
the goods or services towards target market and thus raise the performance in order to attain
desired aims and objectives (Roy, Datta and Basu, 2016). Each and every consumer uses online
method to promote its products or services and thus build competitive advantage towards rivals.
It is the modern way of promoting products or services and thus company uses such
method in order to influence customers towards firm and therefore uses effective digital method
of promotion so that sales and profit margin can be enhanced. It also helps in driving customer
satisfaction level and therefore, raises the performance and market share of firm. Further, it also
influences the buying behaviour of customers and therefore, promoting products through online
channels raises the profit and sales margin (Tripathi, 2016).
2

Further, advancement in technology helps in raising the growth aspects of firm and thus
bring change within business in terms of selling consumer related products. Such type of change
was effectively driven through using the social media network channels and thus use different
promotion channel such as Facebook, Twitter and YouTube etc. With the help of using such
promotional tool it is considered as the best way in terms of raising the performance and thus
enhance more number of consumers within firm. Social network is one of the best technique that
helps in promoting the products or services upon internet and thus influence consumers towards
business so that sales can be raised (Islam, 2016). However, using such marketing strategies
results in performing the best operations of firm and therefore, influences firm towards target
market.
However, within fashion industry using modern marketing tool is effective and thus it is
essential for them to improve performance and sales in market. Therefore, it is considered as
effective in terms of creating impact upon internet and saves lot of time and cost in regard to
influence large number of buyers (Mathur and Mathur, 2016). Internet marketing also aims to
maintain effective relationship within consumers and sellers and thus it helps firm to identify the
needs and wants of customers and then sell the products accordingly. However, firm before
selling goods online need to conduct proper ethical code of conduct so that they can improve the
performance of firm and thus raise the marketing activities so that desired results can be attained.
Online marketing uses several channels for promotion such as Facebook, Twitter and YouTube
which influences buyers towards firm and thus attain desired results in the form of high sales and
profitability (Levin, 2016).
Also, it is essential for firm to maintain effective relationship with consumers and thus
build effective strategy so that best results can be attained. However, using marketing strategy
aims to improve relationship with buyers and thus results into improving firm's performance and
thus results into creating effective promotional tools therefore, attracting large number of buyers
towards firm (Hurwitz, Montague and Wartella, 2016). Marketers aims to use online marketing
strategy and thus results into promoting the products or services so that satisfaction can be
attained. Social media promotion is considered as the best and thus results in carrying out
effective services so that best results can be attained. Further, carrying out effective marketing
activities results in promoting the firm towards consumers and assess the impact of online
marketing is that it helps firm to raise the sales and profitability in market. Moreover, it is also
3

essential for business to enhance its marketing activities and thus raise the performance of firm
in market in terms of raising the market share and profitability (Badiru and Afolabi, 2016).
Online marketing is one of the main factor that results into raising the business performance in
an effective way and thus raise the performance so that desired results can be attained. Carrying
out effective marketing strategy results into performing the desired actions and thus aims to
perform the business operations efficiently so that success can be attained within firm (Hale,
2016).
Aim:
“To assess the impact of online marketing on sales and profitability of organization”- A
study on Net-a-Porter.
Objectives
 To examine the concept and significance of online marketing in present scenario
 To identify effective tools and technique of online marketing used by Net-a-Porter UK
 To determine the effect of online marketing on profits and sales of Net-a-Porter UK
 To recommended ways through which Net-a-Porter UK enhance its sales and profits by
effective online marketing
4

CHAPTER 2- LITERATURE REVIEW
2.0 Introduction
In the present chapter it discusses that carrying out literature review helps in assessing the
different theories and concepts so that knowledge regarding particular topic could be enhanced.
Therefore, it is also useful for scholar to review different literature and studies done by authors
upon particular subject matter (Staton, 2016). Thus, it helps in building specific knowledge and
implement different theories and concepts so that study can be carried out effectively.
2.1 Concept and significance of online marketing
In the current era of globalization, internet marketing is considered as one of the effective
technique that helps in marketing the products or services and attract consumers towards firm. It
also helps in satisfying their needs and thus assists in targeting large number of customers at one
time. It is essential for business to market its products or services and attain high success and
growth. According to the view of Nuseir (2016), it involves several factors that results into
growing popularity of internet marketing and thus attracts large number of target market towards
firm. However, online marketing technique has been adopted by both small and big business
houses in order to promote their products or services in market. Thus, online marketing aims to
get faster results and thus move companies forward from using traditional marketing methods.
Through carrying out effective online marketing tools it assists in developing effective
advertisements and promotions that could be accomplished through internet. However, Verma,
Sharma and Sheth (2016), argued that now-a-days internet or online marketing proves to be
beneficial for firm in order to influence buyers towards firm and sell products or services to
satisfy the needs of customers. Further, online marketing proves to be very effective in terms of
making effective decision making so that success can be attained (Kingsnorth, 2016).
Buchanan, Kelly and Yeatman (2017), stated that online marketing is considered as the
effective concept that helps in providing suitable options in regard to carry out effective
marketing activities so that need and want of customers could be fulfilled. Further, modern
marketing methods are considered as crucial as compared to traditional marketing and thus it is
significant for firm to improve business performance. Using internet marketing tools assists in
promoting the products and influence target consumers to purchase the goods. Such means of
marketing is crucial and prove to be beneficial for firm in order to raise sales and profitability in

market. Also, online marketing is done 24 hours and 365 days. However, Juščius, Labanauskaitė
and Baranskaitė (2016), argued that businesses aims to use digital methods of promotion which
helps them to provide detailed information about products or services and thus satisfy the needs
of customers. There are varied number of customers who are using internet or social media tools
in regard to connect with each other and thus, businesses promote their products or services upon
such channel in order to influence customers towards firm. Hence, it assists in enhancing the
sales and profitability of firm in market.
2

As per the view of Srinivasan, Rutz and Pauwels (2016), digital marketing is considered
as one of the most popular method that helps in providing option to firms in regard to market
their products or services and fulfil the demands. Also, marketing the products through internet is
very convenient and helps in raising profitability of firm in market. However, there are certain
issues within online marketing such as some customers believe that it is not good as products are
not available physically. Therefore, they could not rely upon the validity of the product or
service. Therefore, businesses promoting their goods or services over internet aims to undertake
effective validity and reliability aspect so that they can provide crucial information as well as
feasibility of goods so that satisfaction among customers can be attained. It is easy process as
customers are able to easily access to the information regarding products or services whenever
they required (Leventhal and et. al., 2016). Further, it is also beneficial for firm to support
companies and enhance their performance so that issues could be overcome. Management of
firm faces certain issues related to distance factor and therefore, it is significant for firm to
improve its availability in wide area so that satisfaction among customers could be attained.
In the current era, online marketing helps in providing a suitable platform for companies
in regard to promote their products or services and thus reach target population. However,
businesses are also able to sell products and services within different countries without having
any physical presence in particular country. Thus, it is considered as one of the main aspect of
business and helps in enhancing the sales and profitability in market. Strauss (2016), explained
that digital marketing is considered as the platform that integrates consumers experience with the
help of digital channel. Also, it helps in offering the prospect of enhancing and improving the
interactions and relationship with both current and prospective buyers. For instance, using social
networking websites, instant messaging and mobile applications helps businesses to market their
products or services in regard to attain satisfaction. Main benefit of online marketing is to assist
businesses in regard to develop a wide range of customer base and does not rely upon physical
presence of products or services. It also motivates customers in regard to directly interact with
businesses. Online marketing is done 24*7 and thus helps in providing convenience in terms of
both time and place (Hamill, 2016).
According to the view of DEVI (2016), online marketing helps in encouraging customers to use
new channels of communication and thus develop a transparent relationship among consumer and
business. Therefore, it is essential for firm to provide good quality products or services to consumers in
3

order to build strong brand image in market. There are several platforms for promoting products online
such as Google Adwords, Facebook, Twitter and Youtube etc, which offers an effective platform for firm
to promote products or services and thus enhance business performance so that best results can be attained.
It also helps in increasing organization's ranking and thus promote the business upon search engine.
Through evaluating the online marketing platforms it helps in assessing that it helps firm in the form of
saving time and resources so that the available resources could be used effectively (Kingsnorth, 2016).
2.2 Effective tools and techniques of online marketing
In the current era of digitalization, it involves different techniques and tools of online
marketing that needs to be adopted by firm in regard to market their products or services.
However, one of the most crucial tool is social media marketing and thus involves Facebook,
Twitter and Youtube etc, to influence customers towards firm and thus raise the performance of
firm in market. All such tools are considered as effective and thus raises the brand image of
business. As per the view of Staton (2016), online platform is considered as the opportunity to
improve the market and promote their services and products so that large number of clients could
be attracted towards firm. However, there are several firms who have developed their official
Facebook page and Twitter account from where they handle customer responses as well as
promote the products in market. It is the best way through which information related to products
or services could be provided to customers and thus increase their customer base. Also, social
media marketing is considered as the best platform for companies who are aiming to launch any
new products or services. Thus, through such platform they can enhance their sales and
profitability of firm in market (Nuseir, 2016).
Moreover, Verma, Sharma and Sheth (2016), argued that google search is another crucial
tool of internet marketing and thus it helps firm to carry out marketing over internet. Each and
every businesses now focuses upon developing their official website and promote company's
products upon them so that it helps in raising the firm's performance. It is the best place to
display and market the products or services. Also, using search engine optimization tool is
considered as the phenomenon within firm. All such tools and techniques are considered as
effective and thus it helps in improving the financial performance of firm in market. Further, it
can be stated that effective use of search engine optimization results in attracting more traffic
towards particular website (Juščius, Labanauskaitė and Baranskaitė, 2016). Thus, it influences
businesses to use SEO and thus enhance the customer base in regard to offer the best quality
4

products or services to clients. Online store is much more convenient as compared to physical
store and thus raises the performance of firm in market. Hence, it results in enhancing the sales
and profitability of business who are focused upon using internet marketing tools. E-mail
marketing is considered as another crucial tool that helps in promoting the products or services
through e-mail. Thus, sending mails to customers and informing them about new as well as
existing products of firm.
As per the view of Srinivasan, Rutz and Pauwels (2016), retail fashion houses are
flourishing in the country and due to heavy competition in market it is essential for firm to use
effective social media marketing tools in order to influence potential customers towards firm.
Companies aim to use e-mail marketing and consider that it is effective in terms to attract
customers and inform them regarding available offers, discounts and new product launch so that
wide number of customers could be influenced towards firm. It also helps in creating awareness
among individuals and thus results in influencing customers to purchase particular product or
service. Leventhal and et. al., (2016), stated that all the identified tools and techniques results in
influencing large number of customers towards firm and thus raise the performance of firm in
market. It is also significant for enterprise to undertake effective tools and methods in regard to
provide information to consumers and raise their market share. Social media tools are one of the
best advertising media and thus raises the performance of firm in market in regard to promote the
goods so that business performance could be enhanced. It is also essential for consumers to
improve market share and thus improve brand image of firm in market.
Strauss (2016), explained that online marketing is considered as the best method of
promotion and market the products or services through internet. Therefore, it improves the sales
and profitability of firm in market. Hence, using effective online channels assists in improving
the company's productivity and improve the brand image of company. However, digital channels
assists in enhancing the brand image and promote the products within market which is significant
for firm to improve business performance. Also, there are wide variety of products available with
company and therefore, it is crucial for firm to undertake effective promotion of goods through
online medium and thus sales could be increased (Leventhal and et. al., 2016). Hence, it is
crucial for firm to improve the market share and thus satisfaction of customers could be
achieved. It is the best way through which could be launch its new as well as existing products
5