The number of people using the Internet has doubled each year for the past six years. Approximately 37 million people are using the Internet with a monthly growth rate of 10 percent. As a result, the use of internet marketing has been very promising to most companies.
There are many benefits of internet that all marketers are aware of, for example, it is an excellent way to reach millions of customer in second. However, Internet marketing also has some downsides. For instance, the internet can be used as a medium to send out information to customers but markets can not control when the message is to be received.
As for Tsutaya, the blast of the internet has created many opportunities to capture the new market. The Internet helps the company in reaching to a much wider range of customers. Unlike any other direct marketing format, the Internet is not restricted by geographic barriers. Customers across Thailand can make purchases 24 hours a day, 365 days a year. While it has a broad reach, the market is narrow. The majority of the Internet’s users are limited to an age range between 14 to 34, whereas traditional marketing media can reach a broader group, mainly all ages all genders and all occupations.
Since the technology infrastructure in Thailand is not so advanced, the problems of some internet campaigns can not be run smoothly still occur. For example, similar to an overcrowded traffic on the road, while using the service over the internet Tsutaya’s customers can run into traffic in cyberspace. Another example is that the SMS campaign will not be working properly if the telecommunication network providers suffer from the network failure occasionally.
In case of acquiring new customers, internet marketing can not segment customers according to their conditions or preferences. One of its weaknesses is that it can not reach specific target market, whereas offline marketing can. Traditional marketing can use demographic information to determine the time and place to broadcast, which allows marketers to target a specific market.