Marketing is process of developing interest of potential buyers and customers into products and services of organization in creative and innovative manners. The process of marketing in involves the elements like research, promotion and selling as well effective distribution of products and services (Krush & et al., 2015). The organizations are using and developing different strategies for promoting and advertising the business functions more attractive manners that could help to increase the sales and support to increase the revenue. Moreover, the marketing is necessary element of organizational functions that involve retaining and growing base of satisfied customers (Armstrong & et al., 2015). The consideration of marketing strategy and use of advance tools to promote the products and services has significant impact on business of organization and help them to maintain the growth in the particular sector. The effective utilization of promotional activities is beneficial for leading organizations to communicate the information to potential and existing customers that support to manage the sales.
1.2 Problem statement
In this regards, it needs to be stated that the marketing and sales and revenue are two different topics in it. The research will analyze importance of marketing to encourage the sales and revenue of organization. The interdependence of the two is of considerable importance in the context of business or organizational performance. The research is based on current marketing objectives and initiatives of organization to manage the sales and improve the level of revenue in the areas of sales. Under preliminary investigation, it has been that an effective marketing strategy has helped in increasing the sales and revenue for the company (Brown, & Peterson, 2011). This has also helped in bettering the overall organizational performances.
1.3 Background of organization
Woolworth’s group is one of the major retail organizations from Australia that operating business since 22 September, 1924. The organization is offering wide range of products and services according to needs of customers. The revenue and sales of organization is declining as organization is not taking the initiatives for effective marketing. The organization is servicing global areas like Australia, New Zealand and India. The management is looking for effective promotion and marketing of products and services to meet the business objectives and maintaining the higher position in the market. Headquarter of organization is located at Bella vista, New South Wales, Australia.
1.4 Research rationale
The marketing and promotion of products and services plays critical role in sales of organization. The researcher will analyze issues and factors that affect the marketing services of organization and offer recommendations for developing the strategy to achieve the goals. Moreover, the research will analyze relationship between marketing and financial performance of organization. There are various marketing and promotional strategies are used by organization to gain the competitive advantage (Jaworski, 2018). The study will analyze effectiveness of marketing methods and their impact on the business performance of organization like Woolworth. Additionally, research will identify popular methods of marketing to increase the sales and revenue. The current research will help to analyze needs and effectiveness of marketing for maintaining the market position and gaining the competitive advantage.
1.5 Aim and objectives
Aim:
The aim of research is to evaluate the effectiveness of marketing and advertising on sales and revenue of organization.
Objectives:
1.6 Research questions
2. Literature review
2.1 Concept of marketing
The concept of marketing is broad and having significant impact on the business operations of organization to achieve the desired goals and objectives. By using the concept of marketing the top management of organization analyze the needs of target customers and make the decisions to satisfy their needs in better than the competitors. The marketing concept involves production, sales, marketing, production and societal marketing. According to Kirti?, & Karahan, (2011), the organizations that believe in product concept are focusing on quality of goods and services. The consideration of customer needs and development of products and services accordingly is helping to promote the products by including the needs of customer.
The organizations try to attract the customers by offering the information about product quality. The promotion of product and services by considering the needs of customer has positive impact on buying decisions of customers. The production concept in marketing refers to improvement in the availability of products and services in the market by increasing the production. The management tries to reduce the cost of production and focus on marketing functions. This kind of approach helps to increase the demand of the products and services (Le Meunier-FitzHugh, & Le Meunier-FitzHugh, 2017).
Selling concept of marketing function helps to attract the customers by using the concentrate marketing efforts for increase the knowledge level of customers. The selling concept used by organization of marketing used for retaining the customers for long time by meeting their needs and objective. Additionally, the marketing concept of organization is based on satisfaction level of customers by considering that the goods and services that offered to customers are helping to meet the needs. The top management of organizations is analyzing current trends and approaches of marketing to promote the goods and services (Pride & Ferrell, 2016). Promoting is pegged to four primary Ps; promotion, pricing, place, and product. It is also known as the “product mix”.
2.2 Importance of market research
Market research is an essential activity of collecting data and information related to the needs and preferences of the customers which contributes in the enhancement of the business enterprises extensively. According to Leonidou & Hultman, (2018) there is a huge importance of market research for the growth and survival of the business organization and helps in sustaining the same for longer periods of time. It mainly allows in recognizing the opportunities and threats for the business in market place and helps in acquiring the information for making effective decisions out of it.
It has been identified that market research helps in identifying the key problems and opportunities prevailing in the market related to new and existing products and services. It studies the consumer behaviors towards the business and assists them in developing effective business strategies and plans for the betterment (Papadopoulos & Heslop, 2014). Market research even helps in forecasting the sales aspects and managing the same effectively. It plays an important role in introducing new products among the potential customer base and the market area based on the collected data and information (Youn & Vogel, 2017). The information also contributes in diminishing the risk involved in decision making process of business and proves to be effective for new initiatives and strategies for the same.
2.3 Effect of marketing on sales and performance
As per Park and et al, (2018), marketing is the concept of identifying new and better manners of providing enhanced satisfaction to needs and wants of consumers specifically. Marketing activities lays a remarkable impact over the sales parameters and the business performances of the organization. It helps in studying the market prospectus and creates higher probabilities of sales coverage for the business. It has been found that marketing helps in approaching the right target customer segment and provide them with the best satisfactions by meeting their needs and wants effectively (Zhang, 2015). Marketing strategies proves to be beneficial for the organizations in making appropriate plans for new products and services and targeting the market accordingly.
Hill & Alexander (2017) had stated that the marketing strategies are highly and significantly associated with the sales performances and lays both the positive and negative impacts over the businesses. The activities help in carrying out effective promotions which helps in attracting the potential customers and meet their needs and wants for sustainable performances in the market. Achieving desirable market position and maintaining the business performances requires handling various issues and risks of the market conditions.
The marketing initiatives help the business in enhancing the communication, market approach, brand value, promotional mix and grabbing the opportunities to the higher extents. These aspects largely help in improving the sales through customer satisfactions and lead towards the business growth in terms of financial and sales performances (Sharma & et al., 2014). The strategies allows the authorities to develop plans for offering right product to the right customer within the right market which eventually contributes in the sales enhancements and performance improvements of the business (Le Meunier-FitzHugh and et al, 2017).
2.4 Popular choices
There are different types of approaches and marketing activities are used for creating awareness, attracting customer and increasing the sales of organization. According to Varnali & Toker, (2010), in the current time social media is playing critical role in promotion and marketing of product and services. The consideration of electronic media tools like SMS, email and social media content are having positive impact on the sales performance of organization that influencing the buying decisions of target customers. In addition to this, the large organizations are using the print media and sponsorship for marketing of goods and services according to events and target customer groups.
These kinds of efforts are having positive influence on the profitability of organization and increasing the numbers of customers in particular region (Rodriguez & et al., 2015). However, the cost of marketing by using the electronic media tools are increasing financial burden on organization but it has vital contribution in improvement of revenue. The traditional marketing efforts like print and TV are also used for low cost marketing tactics that supporting to increase the profitability for organization.
As per the views of Homburg & Jensen, (2007), the online networking has taken significant place for setting the positive appeal for promoting the sales and generating more revenue for organization. The electronic media is supporting the management to lower down the cost of commercial ads of products and services as well supporting to expand the areas of communicating the message. Moreover, the people are also giving preference to social media information for making the buying decisions that encouraging organizations to use these kinds of commercial ads. The expansion of services and customer relations through social media the productivity of organization is increasing that has positive impact on sales and revenue of organization (Rogers & Davidson, 2015).
Research gap:
The gap in research is identified for relationship between sales and marketing initiatives of organization. The organization is not using current trends for marketing and engaging the customers that have significant impact on the business performance of Woolworth. The research will analyze impact of marketing on the sales and revenue of organization. Moreover, the current research will help to analyze needs and effectiveness of marketing for maintaining the market position and gaining the competitive advantage.
Based on the marketing importance and effects following hypothesis have been developed:
The research hypotheses for current research are as follows:
H0: There is no impact of marketing on sales and performance of organization
H2: The marketing is having huge impact on sales and performance of organization
H0: The marketing is not having any impact on the sales and financial performance of organization.
3. Research design and methodology
3.1 Type of investigation
For the current research, the researcher has chosen the positivism research philosophy to deal with the fact and figures. The positivism philosophy is based on objectives of research to analyze the impact of marketing on sales and revenue of organization. The approach of research was deductive as researcher will study the marketing activities of organization for encouraging their sales and revenue in the particular region for that analyzed through secondary data. Moreover, the design of research was descriptive that has helped to gain the sustainable knowledge to meet the aim and objectives of research (Kumar & Phrommathed, 2015). The researcher has selected this design for evaluating secondary data to analyze the impact of marketing efforts of Woolworth management.
3.2 Data type, sources and data collection method
The type of research has been quantitative as the study is based on secondary data collected from the sources like books, journals and online articles. For the current research the dependent and independent variables involve marketing approach and sales and revenue of organization. The data collection method that has used for this research was secondary. The investigator has collected the data from past reports and researches that are relevant for the chosen topic of research. The secondary data about the organizational marketing and sales performance are collected from the annual report of company and website. The data will involve information about sales, revenue and marketing budget of organization in last five years. This kind of data collection has helped to encourage the reliability and validity of outcome.
3.3 Data analysis
For the analysis of data has done by using the SPSS tool for analyzing the sales and marketing data of organization to understand the impact of advertising and promotion on the financial performance of Woolworth. SPSS is widely used software for data analysis. According to this tool, the collected data encoded in a excel sheet and import to SPSS. The imported data is processed using quantitative techniques to produce graphs (Kothari, 2014). The researcher has also used the graphs and tables for representing the data to understand the finding and offer the appropriate recommendations to meet the objectives.
3.4 Ethical consideration
For the current research, the researcher has followed the rules and regulations to maintain the confidentiality of the collected data using the secondary sources. The consideration of ethical issues and regulation is essential for keeping the research on right track. The data that has used for study was not copied from any resources and not been used for further operations. The researcher has followed the ethical parameters for data analysis and interpretation.
4. Data analysis
4.1 Statistical analysis:
Descriptive analysis:
|
Descriptive Statistics |
|||||
|
N |
Minimum |
Maximum |
Mean |
Std. Deviation |
|
|
Profit or Net Income (AUS) $ billion |
5 |
28 |
54 |
43.20 |
12.598 |
|
Revenue (AUS) $ in billion |
5 |
31 |
62 |
49.00 |
15.572 |
|
Marketing budget (AUS) $ million |
5 |
50 |
75 |
61.40 |
11.824 |
|
Valid N (list wise) |
5 |
Descriptive analysis refers to description of data used in the study. It provides summary of sample and measures. It is done for quantitative data using the graphical method. For the current analysis, the profitability of organization depends on marketing budget of organization. The mean value of profitability is 43.20 that shows high rebalance on marketing budget which is 61.40. The five years data have been used for analyzing marketing and profitability of Woolworth.
4.2 Bavarian Correlation coefficient:
|
Correlations |
||||
|
Profit or Net Income (AUS) $ billion |
Revenue (AUS) $ in billion |
Marketing budget (AUS) $ million |
||
|
Profit or Net Income (AUS) $ billion |
Pearson Correlation |
1 |
.988** |
.839 |
|
Sig. (2-tailed) |
.002 |
.076 |
||
|
N |
5 |
5 |
5 |
|
|
Revenue (AUS) $ in billion |
Pearson Correlation |
.988** |
1 |
.897* |
|
Sig. (2-tailed) |
.002 |
.039 |
||
|
N |
5 |
5 |
5 |
|
|
Marketing budget (AUS) $ million |
Pearson Correlation |
.839 |
.897* |
1 |
|
Sig. (2-tailed) |
.076 |
.039 |
||
|
N |
5 |
5 |
5 |
|
|
**. Correlation is significant at the 0.01 level (2-tailed). |
||||
|
*. Correlation is significant at the 0.05 level (2-tailed). |
Strong relationship between marketing budget and profit as well as sales also as the correlation value of marketing and profitability is more than 6 which shows the strong relation between marketing and profitability. Correlation analysis is used for identifying the relation between dependent and independent variables. The marketing functions have strong impact on profitability of organization. The values of these are .897 and .839. The analysis of data shows that sales of organization have been increased as management increased the budget of marketing. The revenue of organization was increased as marketing efforts were effectively done. The analysis shows that sales and revenue of organization is positive as investment on marketing helping management to increase the numbers of customers and supporting to retain the existing customers.
4.3 Regression analysis:
Regression analysis between Profit and Marketing budget of the company:
|
Model Summary |
||||
|
Model |
R |
R Square |
Adjusted R Square |
Std. Error of the Estimate |
|
1 |
.839a |
.703 |
.604 |
7.926 |
|
a. Predictors: (Constant), Marketing budget (AUS) $ million |
||||
|
b. Dependent Variable: Profit or Net Income (AUS) $ billion |
The regression analysis value of marketing and profitability of organization is .703 that indicates the strong impact on the marketing on the sales and profitability of organization. The profit of organization was increased as management has focused on marketing activities and current trends. The organization has earned more profit through concentrated marketing efforts and improved the brand loyalty in market by using the current trends.
Regression analysis between Sales or Revenue and Marketing budget of the company:
|
Model Summary |
||||
|
Model |
R |
R Square |
Adjusted R Square |
Std. Error of the Estimate |
|
1 |
.897a |
.805 |
.741 |
7.930 |
|
a. Predictors: (Constant), Marketing budget (AUS) $ million |
||||
|
b. Dependent Variable: Revenue (AUS) $ in billion |
The analysis of sale and marketing budget of company also has strong relation as the improvement in the budget of marketing increases the sale. The current analysis value for Woolworth is .805 that indicates strong connection. The marketing functions have positive impact on the sales improvement process of Mark and Spencer.
5. Discussion
The finding of secondary data analysis involve that marketing budget has positive and direct impact on profitability of organization. The analysis suggests that if organization offer high amount for marketing than it helps to increase the sales. Apart from that, the literature review suggests that improvement in cost of marketing affect the internal financial conditions of organization. Now, the proper consideration of customer needs and activities of competitor helps to frame a sustainable strategy for marketing to gain the competitive advantage and increase the profitability.
5.1 H0: There is no impact of marketing on sales and performance of organization
The finding of marketing and sales performance of organization involves consideration of five years data of marketing budget and sales of organization. The correlation and regression analysis suggest that there is strong relation between organizational marketing activities and sales of company. However, the literature review suggest that marketing activities increases the financial burden on organization but the analysis indicate that marketing has positive impact on performance of organization.
5.2 H2: The marketing is having huge impact on sales and performance of organization H0: The marketing is not having any impact on the sales and financial performance of organization
The findings of analysis confirm that, marketing budget and activities have direct impact on the sales and market performance of organization. Improvement in the marketing operation and consideration of current trends are having influence of buying decisions of customers. The analysis of marketing and sales of organization is having strong relationship as the findings provides sufficient evident to confirm the association of marketing and financial performance. There is contrast in the findings of literature but the analysis of data confirms the positive relations between marketing initiatives and improvement of sales.
6. Conclusion, recommendations and limitation
6.1.1 Addressing aim and research questions
The aim of research is to analyze the effectiveness of marketing on sales and revenue on organization. Three questions are analyzed through the research:
The organization is using marketing and advertising functions for creating awareness and influencing the decisions of customers but lack of monitoring and consideration of current trends has affecting the approach of organization. Moreover, marketing concept of organization is based on satisfaction level of customers by considering that the goods and services that offered to customers are helping to meet the needs.
The study has analyzed that market research and implementation of changes in the marketing tactics according to trends is essential. The organization is not giving preference to digital marketing tools and techniques which has negative impact on sales and engagement of customer for longer period of time. The market research is helping organization to identify the initiatives of competitors and expectations of target customer to develop the strategy or selection of marketing too by increasing the budget.
Moreover, the approach and message that communicated to target audience also have significant impact on the setting the appeal for marketing. The strategy for developing marketing campaign has impact of market research approach of organization. The current choices of organization for marketing are electronic media that involve text messages, email, social and digital media and sponsorship.
6.2 Limitation of research
There are few limitations that affected the study. The most affecting issues were time management as I have spent lot of time in collection and analysis of secondary data. I have considered lot of material to find the most appropriate and relevant information. I also lacked in research knowledge and use of research techniques.
6.3 Recommendation
By considering the analysis and review of secondary data for research, it has been suggested to the organization to make emphasize on the marketing approach and improve the utilization of online platform and budget. The improvement in marketing budget will support to cover the wide areas of market and help organization to encourage the sales and profitability. Moreover, it is also recommended to organization to conduct the market research on regular basis to gain knowledge about customer and competitor organization to make changes in existing marketing plan.
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Appendix
Data of sale and marketing of organization:
|
Year |
Sales (AUS) |
Revenue (AUS) |
Marketing budget (AUS) |
|
2013 |
$28 billion |
$31 billion |
$50 million |
|
2014 |
$31 billion |
$ 33 billion |
$ 50 million |
|
2015 |
$ 51 billion |
$ 62 billion |
$ 72 million |
|
2016 |
$ 54 billion |
$ 59 billion |
$ 60 million |
|
2017 |
$ 52 billion |
$ 60 billion |
$ 75 million |
|
ANOVAa |
||||||
|
Model |
Sum of Squares |
df |
Mean Square |
F |
Sig. |
|
|
1 |
Regression |
446.352 |
1 |
446.352 |
7.106 |
.076b |
|
Residual |
188.448 |
3 |
62.816 |
|||
|
Total |
634.800 |
4 |
||||
|
a. Dependent Variable: Profit or Net Income (AUS) $ billion |
||||||
|
b. Predictors: (Constant), Marketing budget (AUS) $ million |
|
ANOVAa |
||||||
|
Model |
Sum of Squares |
df |
Mean Square |
F |
Sig. |
|
|
1 |
Regression |
781.332 |
1 |
781.332 |
12.424 |
.039b |
|
Residual |
188.668 |
3 |
62.889 |
|||
|
Total |
970.000 |
4 |
||||
|
a. Dependent Variable: Revenue (AUS) $ in billion |
||||||
|
b. Predictors: (Constant), Marketing budget (AUS) $ million |
The graph of descriptive analysis shows sales, marketing and profitability of organization in last five years. It can be identified that as organization increases the budget for marketing of products and services the sales was increased accordingly. The organization has earned higher profit in the 2017.
From the research, it has been carried out that marketing is one of the essential elements that have direct impact on the sale and revenue generation of organization like Woolworth.
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