Online Marketing Strategy for Retail Businesses

By

ACKNOWLEDGEMENT

My thanks go out to all who have helped me complete this study and with whom this project may have not been possible. In particular, my gratitude goes out to friends, facilitator and family for extensive and helpful comments on early drafts. I am also deeply indebted to the authors who have shared my interest and preceded me. Their works provided me with a host of information to learn from and build upon, also served as examples to emulate.

DECLARATION

I, [names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

TABLE OF CONTENTS

ACKNOWLEDGEMENTii

DECLARATIONiii

CHAPTER 1: INTRODUCTION1

Background of the Study1

Aims and Objectives of the Study3

Problem Statement3

Purpose of the Study4

Rationale of the Study4

Significance of the Study4

Research Questions5

CHAPTER 2: LITERATURE REVIEW6

Theoretical Framework6

Trend of Online Retailing6

Strategy of Online Marketing Strategy in Retailing7

E-Business The new economy9

The Internet10

Changes in business and marketing11

Online Marketing Strategy11

CHAPTER 3: METHODOLOGY13

Research Philosophy13

Research Approach14

Research design15

Data Collection Methods15

Validity16

Ethical Consideration17

REFERENCES18

CHAPTER 1: INTRODUCTION

Background of the Study

The online marketing has emerged as one of the most important channel for marketing the products. The online marketing is mainly associated with the marketing of the products through the internet that uses different technologies. The owners of the retail businesses have made great use of this new technology for advertising their products and enhancing their sales and revenues. The main role in enhancing the sales and revenues of the retail business has been played by the computers.

The Internet has been used as an effective channel for selling and buying products and services since Internet commerce emerged in the middle of the 1980s (Hiser, Lanka, Li, & Oliver &Sioshansi, 2000). A variety of products such as clothes, accessories, computers, books, software, and cosmetics have been purchased through the Internet (UCLA, 2003). According to the USC Annenberg Centre Report for the Digital Future (2005), 78.6 percent of Americans had Internet access in 2005. Specifically, two-thirds of Americans (66.2%) accessed the Internet at home in 2005 as compared to 46.9 percent in 2000 (USC Annenberg Center Report for the Digital Future, 2005). Nearly 63 million U.S. households are projected to shop online in 2008 (Promomagazine.com, 2003). Internet purchasing frequency has continued to increase as well as dollars spent online. In 2005, online shoppers spent $43 a month on average more than they did in 2001 (USC Annenberg Center Report for the Digital Future, 2005).

Online retail sales increased to $82.3 billion in non-travel retail (e.g., apparel and accessories, computer software) in 2005, 24 percent higher than in 2004 (Burns, 2006). According to the 2006 State of Retailing Online study conducted by Forrester Research, online sales in non-travel retail were expected to increase to $138 billion in 2006, approximately 68 percent more than those in 2005. Online sales in 2006 accounted for eight percent of total retail sales (Wolf, ...