A good utilization of promotional strategies

Running head: MARKETING
The Influence of Cultural and Interpersonal Effects on the Decision Making Behaviour in
Marketing
[Telstra]
Name of the student:
Name of the university:
Author note:

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Executive summary
Consumer behavior can be considered a mysterious topic for its diverse group of thoughts. One
such group of thoughts is the millennials. They think differently and react differently as well
from their ancestors to a product or service. The main purpose of this study is to discuss the
impacts of several cultures and social groups on purchase behavior. Additionally, the purpose is
also to suggest some ways of improvement in offers to Telstra, so that, an increased number of
millennials are satisfied with the change. The paper recommends that Telstra along with cheaper
and attractive offers should do a good utilization of promotional strategies. The likes of short
messaging, social site promotion and customer database can help connect more with the
millennials. It can be useful also in gaining more awareness of millennials' interest in internet
service. With such promotional strategies in place, Telstra can offer more relevant offers to its
customers.

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Table of Contents
1. Introduction..................................................................................................................................3
1.1. Company...........................................................................................................................3
1.2. Specific Product / Service offering.......................................................................................3
1.3. Consumer..............................................................................................................................3
2. Cultural and interpersonal influences..........................................................................................4
2.1 Students..................................................................................................................................4
2.2 Middle class...........................................................................................................................5
2.3 Family as a reference group...................................................................................................5
2.4 Friends as reference groups...................................................................................................6
2.5 Office workers.......................................................................................................................6
2.6 Online reference groups.........................................................................................................7
3. Recommendations........................................................................................................................7
4. Conclusion...................................................................................................................................9
References......................................................................................................................................10

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1. Introduction
This section introduces the case company (Telstra) chosen for this study. The discussion
will be held related to a particular product. The discussion will target one particular segment.
1.1. Company
The case study organization for this study is ‘Telstra Corporation Limited’. Telstra is
the oldest and largest telecommunications and media provider of Australia. It offers a range of
services like telecommunications networks, internet access, pay television, mobile services and
other entertainment-based services and products. Telstra offers quality service, which is even
better than its competitors Vodafone and Optus. However, Telstra may not be very suitable for
consumers seeking cheaper offers. In this regard, cheaper network providers like Boost Mobile,
ALDI Mobile, Virgin Mobile and more others can be more effective than Telstra. Telstra’s
market share of Australia’s total mobile phone services stood at 42% for the fiscal year 2018
(Statista.com, 2019). Their customers are mainly families, students, office workers and other
major populations of Australia (Telstra.com.au, 2019).
1.2. Specific Product / Service offering
The service, which is being considered for this study is ‘Low-Cost Internet Service’.
Telstra is mainly a quality service provider in different telecommunications segments like fixed-
line services, broadband services and others. Telstra is not someone that targets low-cost offers.
However, sensing the need to dig deeper into the industry and be flexible with changing demand
patterns, it entered a price-war battle in the quota-based internet offers. The primary purpose was
to acquire a good space into this segment of the market. Telstra competed against iiNet's Jiva for
internet service provider business at a low cost (Itnews.com.au, 2019).
1.3. Consumer
The group of consumers picked up for this study is the ‘Millennial’. They are the youth
population of Australia across different cultural and sub-cultural groups and the different
personalities.

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Fig 1: Millennial
The above is an image of a few millennials busy doing different things on their phones.
This consumer group will be discussed in more detail later. Millennials for this study comprises
of students, office workers, family members and so forth. In this study, this consumer group will
be discussed to analyze their impacts over decision-making for product and service selection, and
marketing activities. More specifically, what academic pieces of literature say about this
consumer group and their influence on the telecommunications sector will be discussed here.
2. Cultural and interpersonal influences
This section will discuss the purchase behavior of people based on their cultural
background and interpersonal influences.
2.1 Students
As identified by Arif, Aslam & Ali (2016), social needs, social influence and
convenience significantly influences student's dependence on smartphones and their purchase
behavior. There is no doubt the use of smartphones is growing across university students. It is
due to increasing addiction to social sites such as Facebook and many other activities. There was
a time when PCs and Laptops used to be the most used medium for internet access and social
sites. With smartphones in place, all these have become much friendlier. Now, there is a huge

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diversity between students in terms of their addiction to the internet and the capacity to purchase
a smartphone. Ifinedo (2016) says that few students possess high addiction to social sites surfing
whereas few others do not. As pointed out in the article, there are some other uses of a
smartphone. It includes but not limited to such as browsing academic works of literature and
genuine websites on phones to get assistance on academic curriculum modules. Those who find
class lectures difficult to be understood for that the lecturer is not very expressive or something
else, they find internet articles comparatively easier to digest. Such students prefer reading more
from online resources. Some students do both of these like they read articles as well as do social
activities. Those who do a lot of internet use; they normally look for the best offers available in
the market. According to Javornik (2016), buyers look for different things when they intend to
purchase an internet package. They look for the best deal. The deal will be considered the best
when it delivers the highest values to consumer spending. To a few students, and unlimited
internet package is worth a purchase whereas the service quality and internet plans for many
others.
2.2 Middle class
These consumers are typically value-oriented and always seek the best deal. In the
opinion of Situmorang, Rini & Muda (2017), the best deal to this consumer group is providing
value to their spending. It implies good quality products at the most competitive pricing.
Telecommunication companies usually have one specific target market. However, when they
think of expanding their customer base the best thing that comes into their mind is bringing
flexibility to offers. A country as in Australia comprises of different cultures and social classes.
When one intends to offer a quality service, it will compromise on the pricing. It is because their
target market is intellect people who are very concerned with the service quality. People of such
kind would go for the premium service. However, many others cannot afford premium offers.
They rather want the best deal, which means quality service with affordable pricing.
The findings of the article suggest that decision-makers in telecommunication companies
do care of these factors when designing an offer. The basis of the interest of the target group
their offers vary. When talking about millennials it can be said that they are very concerned with
the service quality as well as the pricing. However, the quality of service and the offered price
will vary depending on the interpersonal influences. When the target market is middle-class
people, the telecommunication companies should keep the offers in budget range while not
compromising on quality.
2.3 Family as a reference group
Family, as identified by Khraim (2016), is a kind of a reference group, which refers its
people to a service or product. When they like a product or service they refer it to other members
of the family. The word-of-mouth publicity they do is an effective promotion of a product or
service. As opined by Subramanian (2018), word-of-mouth publicity happens when a product or
service is liked by a person and they discuss their experience with their relatives, friends and
dear ones. They do it just for the sake they cannot stop them from sharing some good things. All
these explain how decisions are being made. For example, if one of the members is a customer of

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a specific telecom service provider, he or she would promote it in the family if the offers are
really good. It is because they will want their family members to purchase the best deal.
Millennials who have a family they learn it from their family members like how to make
the purchase decision. Their learning dimensions may be much bigger than just referring to one
or a few of the family members. They can also learn it from the world of the internet regarding
which service to use or avoid. The internet world has information on everything a person needs
to identify the best deal suiting their service requirements. In spite of this people have the
influence of their family members on their purchase decision. There is less guarantee of the
information to be true, which is available online. Conversely, when one sees their family
members satisfied with a product or service they have less hesitation than more reasons to go for
a buy. It is therefore important to take each one of the customers seriously as they would be
influencing an entire family.
2.4 Friends as reference groups
Friends also act like reference groups. When there are good reviews on a product or
service from one of the friends, the rest of the others give it concern also. If they found the
product or service needful they will make the purchase decision. Previte, Fry, Drennan & Hasan
(2015) say that friends act like reference groups. The product or service they use becomes a
matter of concern for the rest if they find the deal needful. There are many telecom service
providers in Australia; however, they all differ from each in some respects. Few telecom
companies are offer-oriented like Aldi Mobile and Virgin Mobile. They offer low-cost internet to
their target people. On the other hand, few telecom operators are service-oriented. Telstra, for
example, is the leading fixed-line service provider in Australia. It is widely popular in the
country for service excellence. It gives its customers a wider network coverage as well as
excellent signal quality. As found by Orji, Sabo, Abubakar & Usman (2017), every business has
its customers and it knows well how to cater to the needs of its customers. Few businesses target
consumers needing low-cost offers. Such businesses are cost-oriented. On the other hand, few
businesses look to offer a good service while keeping the pricing a bit higher from the rest. If one
of the friends is using a low-cost service he or she will inspire others; however, the purchase
decision will depend on the suitability of the offers for the person in concern.
Applying the findings of the discussion conducted as above it looks certain that
millennials do influence their friends. However, the degree of influence may depend on the
suitability of the offers. Some people may like costly services whereas rest others may not.
2.5 Office workers
‘Office workers’ as identified by Liang & Dang (2015) is a kind of reference group. In a
workplace environment, people of different cultures and classes exist. These different cultures
and classes are also different in their product or service preferences. People belonging to similar
groups possess similar customs and traditions. However, they would not necessarily be the same
in making a purchase decision. They would rather different in many cases such as for a purchase
of a smartphone or a monthly voice-internet package. Their purchase decision would rather
depend on their phone requirements and monthly earnings. Some workers may just need the

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calling services while many others would want both calling and the internet. Office workers as
stated by Allen et al. (2015) may find their needs as relatable to other colleagues; however, the
purchase decision will depend on their income and desires to avail of a service.
The findings of the paragraph above suggest that millennials in a corporate place will get
influenced by their colleagues. The influence will be higher in case they share similar customs
and traditions. However, the final purchase decision will depend on the feasibility of the offers.
If the offer is fulfilling their needs and if are also in their budget area, they will feel like
purchasing it.
2.6 Online reference groups
Consumer blogging is a kind of online reference group. All blogs that are available online
may not necessarily be influencing to its readers. However, few of the blogs with good content
can have an impact on its readers. For example, if there is a blog stating the usefulness of 4G
internet service, readers will give it another look to know what is so special about it. Blogs can
be a good source to influence the readers and encourage the purchase. Businesses can use
consumer blogging for generating public awareness of a product or service. Consumer blog
writing is a kind of content marketing that can encourage a purchase. However, Colton (2018)
says that it purely depends on the contents of the blogs, the offers described in it and consumers’
needs of the offers being discussed.
The findings of the paragraph suggest that millennials should be targeted with influencing
blogs. The telecom operators should use it to good effect to encourage the purchase.
3. Recommendations
This section will show how Telstra can do better with its marketing strategies. There will
be recommendations given on Pricing, Place and Promotion strategies. Telstra is the leading
Australian company in terms of market share and fixed-line services. It has tried up as well
matching with the low-cost model of Aldi Mobile and Virgin Mobile. However, there are still
more rooms to accommodate to emerge the most effective telecom service provider concerning
service quality and low-cost offers. This section will try to fill this gap by recommending
renewed pricing, place and promotion strategies for Telstra. Hence;
Pricing
Pricing should be done in a way it looks promising to the target market (millennials).
There should be a plan for $9.00 for 28 days in a month. The plan will give its users 42 GB data
for 28 days. There will be a capping of 1.5 GB/day. With this plan, the customer will have access
to unlimited Live Sports Streaming, Apple Music Streaming, free Telstra Wi-Fi data, and
unlimited national standard calls and messaging. There will be another 7 days plan for 8.00. The
plan will give its users free 4GB data. Along with it, they will have access to live sports
broadcasting and the apple music stream for free. Telstra Wi-Fi data will also be free. Customers
can enjoy unlimited calls and messages for 7 days.

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Place
Places, where these offers can be accessed, are next to pricing in terms of significance.
Customers can access to Telstra offers on its website. The website is accessible through phones
as well as PCs or Laptops. The use of the website can be beneficial both to reach the potential
and existing customers. This will help to keep them informed of the new services, products or
new launches. Besides, a dedicated app where customers can browse to different offers and also
make the recharge can be useful in selling it quickly.
Promotion
This should perhaps be used to good effect to make the changes noticed. Telstra has been
using some good promotion strategies of late like mobile advertising and public relations
campaigns. However, there is a need to make it more effective than the current with additional
promotional strategies. It is worth a mention that effective promotion will be the key to position
the new offers from Telstra. Telstra is largely known for its quality service. Now, if it intends to
combine quality with low-cost offers, the message should go to the target market in effective
ways. The message can effectively be sent through efficient promotional strategies. Hence
(Arora & Sanni 2019);
 Short Messaging Services
Short messaging, unlike other promotion strategies, can be very effective in communicating a
change in offers. Such messages can help to reach a diverse customer base. It may comprise of
both the existing and potential customers. It is far much better from an audiovisual promotion of
an offer. The impact of this messaging service can be noticed in its wider scope to diverse
consumer groups. It is likely to attract the attention of the target audience. It is because
promotions in the form of short messages are full of simplicity, captivity and friendliness.
Besides, the cost of this promotion strategy is cheaper compared to various other promotion
strategies. In short messaging services, the target customer segment will receive a message
describing an offer in brief. The target customer will then be left to decide on how to react to it.
 Advertising on Social Sites
Social sites can help reach millions in few times. Nevertheless, millennials are an addict of social
sites. The offers recommended to Telstra should be advertised and promoted on social sites like
Facebook, Twitter and others. Facebook and Twitter users, for example, will be able to see the
features, price and quality of the product. Additionally, the users' responses and their interest in
the offers can easily be obtained from these sites. This will allow Telstra to make necessary
changes to the offers if there is a huge demand for the same. By deploying this strategy, there
will be high chances of reaching more people as people active on these social sites will share it
with their friends and groups on these sites. Besides, there will be a link provided with the
advert, which the user can click and follow to know more about the offers. In this way, they can

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analyze the offers from various perspectives. The success of social sites advertising will be
measured in terms of users who have liked it as well as made up their orders on respective social
sites.
 Customer Database
Customer database as captured frequently can notify of several important things. It can be
attributes, previous recharge transactions, individual preferences of a product or service and
responses to several questions being asked. It is therefore recommended for Telstra to do a good
utilization of the database as well as of the banks. The banks’ database can be accessed at low
costs. These entire databases can be used to offer relevant products and services to customers.
The success of this initiative can be measured from customer reviews of a product or service. If
the plans were being changed considering the databases and if this click as well, the initiative
will be termed a success. The initiative can be repeated several times in the future if there is an
increased response to new offers. The success of customer database accessed from within the
company and from respective banks can be monitored basis on customer feedback. If they have
found the offers to be useful that particular promotion strategy will be considered a success. The
customer database is essentially required to understand the unpredictable purchase behaviors of
millennials.
4. Conclusion
Therefore, it can be concluded that various cultural and interpersonal influences do have
impacts over the purchase decision making of millennials. Telstra despite being the leading
fixed-line service provider of Australia lags to Virgin Mobile and others in low-cost offers.
Notably, several cultures and classes existing in corporate places possess differing habits of
purchase. A low-cost model is a preferred choice for a few people whereas quality service to
many others. Telstra is significantly known for its wider service coverage and excellent service
quality. However, there is a need to be more flexible with a diverse customer base in Australia.
Hence, there should be offers for those needing reduced call rates or internet offers. The study
recommends how Telstra can improve its marketing strategies to promote new offers effectively
across social sites and other promotional channels.

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