Marketing Management of Telstra: Issues and Strategies

This report defines the marketing management of Telstra, Australia's top telecommunication company. It includes issues related to the description of the organization, 5Cs of Telstra, and the company's initiatives for collecting information like market research and market intelligence. The report also outlines potential market segments and marketing tactics for the marketing mix.

Executive summary
Telstra is Australia’s top telecommunication company. The company provides a complete
series of communication services and dedicated to playing an important role in competing for
telecommunications market. This report defines the marketing management of Telstra. The
report includes several issues. The issues identified are related to the description of the
organization, 5Cs of Telstra, and the company has taken initiatives for collecting information
like market research and market intelligence. The issue has been also identified for
developing marketing strategy outlining the potential market segments. Finally, the issue of
marketing tactics has been developed and the marketing mix has been supported for the
marketing strategy. The reasonable arguments are given for each issue identified.
Finally, it can be concluded that Telstra can do marketing strategy development by
undertaking all the above concerns.

Contents
Executive summary....................................................................................................................1
Issue 1- Brief discussion of the organization.............................................................................3
Issue 2- 5Cs................................................................................................................................3
Issue 3- Collecting information about the 5Cs...........................................................................5
Issue 4- Developing marketing strategies..................................................................................6
Issue5- Developing marketing tactics........................................................................................8
References................................................................................................................................11

Issue 1- Brief discussion of the organization
Telstra is Australia’s leading telecommunication company which provides a complete range
of communication services. Telstra constructs and runs telecommunication networks, markets
voice, internet accessibility, mobile, television and more products and services. The company
provides 18 million retail mobile facilities, 3.7 million retail secure packages and separate
data services and 1.7 million retail secure impartial voice services. The company have faith in
connecting more people so that it can grab more opportunities. This is the reason Telstra is
creating an intensely connected future for everyone on a regular basis. Telstra is developing
technology and content keys which are modest and calm to use. The company endeavors to
serve and identify customers better than others by providing a choice of digital link along
with the digital content (Nulty and Nulty, 2016).
It is the vision of Telstra to sort itself a word class technology company which authorizes
people to unite. The company offers an extensive choice of connectivity, media, and content
to the customers and trades in Australia. It also offers cloud and other technology services to
the business, initiative, government and the customers (Barns, et al. 2017). The mission of
Telstra is to construct technology and content explanations which are modest and tranquil to
use and appreciated by the customers. The company pursues to know and serve customers
well. Telstra is having an international presence in more than twenty countries. In the twenty-
first century, prospect states to the associated governments, trades, individuals, and societies.
Being Australia’s leading telecommunication Services Company, Telstra is proud of assisting
customers and enhance the ways in which customers live and work through the association
(McDougal, 2017). The marketing strategy of Telstra is intensive on driving evolution and
forming value for the long term shareholder value. It working on 3 pillars, like refining
customer encouragement, driving value and growth from the basic and constructing new
growth businesses.
Issue 2- 5Cs
Company
Telstra is one of the pioneer companies to offer services like 3G and 4G. The company has
created a strong customer foundation along with trust. It has even managed to expanse the
value of the customer’s money. The company has effectively set up an inclusive website and

have stores all through Australia. Additionally, 3G services of the company have covered
99% of Australia’s population. On the other side, 4G service of the Telstra is still in the early
stages of its execution plans and there is enough scope for the enhancement. The pricing
fixed by the company is also high in comparison to competitors like Optus and Vodafone.
Add on, 4G service is available in the major metropolises and regional city centres only
(Venter, Wright, and Dibb, 2015). The company has made use of the opportunities and made
a significant profit throughout the years through the 3G and 4G services. The advertisement
of the company also represents the diversity of the customers. Telstra is having a threat from
the rival companies. Telstra can have needed to review the prices and plans due to the regular
changes taking place globally.
Customers
The customers have only a few firms to choose from. The product differentiation in the
industry is high and customers are not in the condition of finding alternative companies
producing the specific product. The income of the buyers is low which causing those to be
price sensitive. The behavior of the customers is identified by Telstra on the base of the age,
gender, income, regime, and values (Tate, 2015). The customers are divided as per the usage
occasions, brand loyalty, and usage frequency. The customers like to purchase products at the
minimum prices. In this context combos are offered by the company. The customers tend to
attain highest value at least prices. It puts burden on the Telstra’s success in the long run. The
company has smaller and the influential customer base and their bargaining power is higher.
The ability of the customers seeking discounts and offers also increases. Collaborators
The company views its suppliers as partners and cautions about the way they do the business.
The minimum standard of behavior is set by the supplier code of conduct of the company.
The company expects its suppliers to meet in the concerns like health and safety, labor and
human rights, business reliability, environment, privacy, cybersecurity and supplier diversity
(Stead, and Hastings, 2018). The suppliers, distributors, and partners are the precarious
resources and help to keep Australians connected for more than 100 years. If Telstra does not
have any then it will not have appropriate resources outside the company in order to deliver
great service. There will not be an incredible diverse range of the products and services
(Verikios, and Zhang, 2016).

Competitors
The main competitors of the Telstra are Optus, Vodafone, and Virgin Mobile. Telstra faces
potential threats like rapid technological changes, strict regulations, and increasing
competition. It is difficult to attain economies of scale in the diligence where Telstra operates.
The new entrants to the market place sell differentiated products than the standardized
products. The accessibility to the distribution network is tranquil for the new entrants. These
can even set up delivery channels and come into the corporate (Patrutiu-Baltes, 2016). But
there is a requirement of the strict certifying and legal necessities to be content before
initiating a business which makes problematic for the new applicants to join the industry.
Context
Telstra is affected by several factors in Australia. There is a stable political environment with
a growing economy. There is a well-educated and multi lingual workforce with a competitive
cost base in Australia. The economy is anticipated to grow in the impending years on a
constant basis. It is also one of the best countries from the perspective of the wealth, health,
education, employment and quality of life. The country is technologically advanced and well
known for the adoption of the new technologies at a rapid rate. Other companies also invest
in the technologies in order to encounter the growing demand of the customers, so the Telstra
has to keep itself updated with the technology (Najafi-Tavani, Sharifi, and Najafi-Tavani,
2016). Here are some environmental challenges took place in the country and climate change
is one of the greatest challenges. Telstra is required to practice fair trading. The country is
having fair competition laws, fair trading laws, and consumer laws.
Issue 3- Collecting information about the 5Cs
The customers want: The buyers of Telstra are demanding a lot. They like to purchase the
best helps availed by offering the least prices as imaginable. It puts pressure on the
company’s effectiveness in the long run. The smaller and the influential customer base of the
Telstra is, advanced is the bargaining power. The ability of the customers seeking discounts
and offers also increases. The company needs to innovate products on a regular basis. The

products can be established by offering discounts to customers. It can even assist the
company in limiting the bargaining power of the customers (Mostaghel, et al. 2019)
A competitor poses a threat: The competitors like Vodafone and Optus poses threat to
Telstra. There are a few competitors in the industry. Telstra charges higher prices than
competitors. It has even increased competitiveness as associated to the competitors. The
market expansion has led to the erosion of the competitor’s advantage. The innovative
technologies advanced by the competitor companies can pose a sombre menace to the Telstra
in the medium to long term period. Telstra even suffers from the latency issues as compared
to the competitors. The company has to accomplish challenges and form active barriers in
order to protect the modest advantage (Menon, et al. 2015).
The context of business: The business of Telstra is changing and has built skill in arriving
new markets and making a accomplishment of them. It has even helped the company in
constructing a new revenue stream. Telstra has even reliable distribution network which is
capable of reaching the majority of the potential market. The organization is even successful
at the execution of the record of integrating complimentary firms by the mergers and
acquisitions.
Role of Collaborators: Telstra buys its raw material from several suppliers. The
collaborators are having a leading position and can decline the margins of the company. The
collaborators have used the negotiating power to excerpt the higher prices from the company.
The whole impact of the higher collaborator’s bargaining power has lowered the profitability
of the telecommunication services. Telstra can build an efficient supply chain with the several
collaborators and enhance business (Madden, and Ahmad, 2015).
Issue 4- Developing marketing strategies
Segmentation
The market segmentation of Telstra has been divided into the following segments:
Demographic variables: As per the demographic variable, the customers are lined together
into the assemblies by using variables like gender, age, family size, income, profession,

religion, learning, nationality and more. The company focuses more on crafting marketing
strategies by concentrating more on gender, age, and income. For instance, as per the gender,
both men and women focus on the different things like women focuses more on the tiny
details like design and look of a mobile phone. On the other side, men are more seen
concerned in the structures and functions (Schlegelmilch, 2016).
Geographic variables: The company is offering its services in Australia and have divided
customers as per the states and cities. Here are several factors which are taken into
consideration at the time of forming market strategies. The geographical areas undertake a
convinced age group, race or belief. The company has even originated with several trades and
marketing strategies due to the multiplicity in the populace of certain geographic areas of
Australia. For instance, 3G service is offered by Telstra in the major cities only. Such
expensive programs are only beneficial if the good amount of customers is grabbed by the
company to try out the new products and services (Andaleeb, 2016).
Psychographic variables: The Psychographic variables comprise grouping clienteles on the
basis of the social class, lifestyle or disposition features. The advertisements as a part of the
marketing campaign of Telstra depict several clusters of people foremost to the varied
lifestyles. For instance, the fun-seeking group always look for the excitement in life. These
are the customers who adore using text messaging and looking for the great value for money.
The other group is identified as high achievers. These are highly effective and use the modern
technology to keep up to date with the work (Ali, 2017). Telstra portrays in its campaign
‘family comes first’ group. Such customers are family oriented and use technology as a
source to keep in hint with family members.
Behaviouristic variable: This group is divided as per the knowledge, reaction, and usage of
the product. Telstra markets products on the basis of the behaviouristic variables like benefit,
occasions, user status, the user status, and loyalty status. User status and usage rate are given
more attention by the company. The promotional programs are used by the company to
maintain customer loyalty. For instance, if the prepaid card is recharged by the customers
within the seven days period, then the customers are rewarded with the 10% discount off on
any purchase (Hansen, McDonald, and Mitchell, 2017).
Targeting

The targeting segmentation is relatively diverse from the market segmentation. This segment
is also recognised as the ‘rifle’ approach. Telstra targets mainly 2 market segmentations, low
practice customers and technologically cognizant customers. The low practise is the
customers who have pledged to the messages and prepaid services. Such users are also not
monetarily independent. On the other side, technologically cognizant customers come up
with striking programs to shove 3G services (Sinapuelas, Wang, and Bohlmann, 2015).
Positioning
The effective positioning of the products allows customers to custom a positive insight about
the products before discerning concerning the opposing brands. This marketing strategy is
applied by the company through aggressive advertising and PR strategies. The company even
tried to create a new appearance by a new motto in 2011 which said, “Australia’s connection
to the future”. This slogan was in combination with the Telstra’s efforts to locate as one of
the main communication and technology company which offers world-class 3G services in
Australia (Gruber-Muecke and Hofer, 2015).
Issue5- Developing marketing tactics
Marketing Tactics
Product: Telstra is one of the greatest telecom players in Australia. The company categorizes
its products and services on the basis of the nature of the customers. The broad classes
comprise private, small business and initiative. These categories are suitable for the low
practice of customers and technically conscious customers. The personal category comprises
tablets, mobile phones, prepaid mobile phones, NBN, bundles, broadband, mobile brand, TV
music, movies, and smart phone. The small business offers broadband, digital office
technology, tablets, nbn, mobile phones and fixed line telephone. On the other side, the
enterprise offers customers with the internet of things, mobility, association and cloud
services.
Price: competitive pricing is adopted by the company in its marketing mix. The company
fixes the prices of the products very smartly. It has even made distinct pricing for the combo
suites comprising TV, movies, broad band and home phone. Telstra price its call rates and
packages in order to provide to the requisite of the target customers from the lowest cost of

$420 to $840 per year. The pricing structure of the company is easily recognised by the
customers. The customers are even provided with additional benefits like mobile data. Telstra
tries to cut down the prices in order to keep customers satisfied (Datta, Ailawadi, and van
Heerde, 2017).
Place: The company uses mainly several online platforms in order to enable the sales of the
products and services. The conspicuous online platform is its websites which shows and
offers data concerning products like mobile sets, call rates and several judicious promotional
offers company makes. There is even a exceptional desk for making payment of the bills and
make recharge online. Telstra has even a great number of the off stores and it also places Wi-
Fi spots which assist customers to connect faster (Wang, and Miao, 2015).
Promotion: Telstra believes in the striking promotional offers like copying data when the
customers buy through the online dais. The company also provides special promotional offers
at the time of Christmas like marketing products mainly mobile accoutrements at the
discounted prices (Gerpott, and Meinert, 2016). Telstra as a fragment of the promotional
strategy proposals products at the reduced price, pays Wi-Fi hotspots in order to enhance
perceptibility and generate thrill among the customers. The company also makes use of social
media platforms like Twitter, Facebook, and Instagram to endorse its product aids (Dehghani,
and Tumer, 2015). The company even distributes CD-ROMS in the regions having high
traffic to educate and aware the common public regarding the new plans and enhancement in
the telecommunications services.
People: The company has enough staff to carry out the operations. The CEO of Telstra is
David Thodey and employs 36, 165 employees across the country to conduct its operations.
The company provides excellent services to its customers. The company even have a
smartphone app named as “Telstra 24X7” which offers access to the customers to accomplish
their account at any time. It has eased the availability of the services. Telstra has a distinct
option of crowd sustenance to improve customer experience. It is an connected forum to
assist the customers in getting a response for the questions through the experts.
Process: Telstra offers a choice of tracing stores through its website. The company hires a
customer forum to provide to queries and applications sent by the customers. The online
technical support is also provided by the Telstra for every product it sells. An option of
checking the status of the query posted by the customers is also provided. This option works

for a specific period of time. Telstra also provides the facility of appealing in the customer
service 24X7 by the helpdesk.
Physical evidence: The company has a business centre positioned in Melbourne, Australia
which is its headquarter as well. Telstra is having a very collaborative website which
empowers the sales of several products offering it produces. Telstra has even several offline
stores prevalent across the nation. The advertisements are also released in the public
newspapers which generate the part of the company’s physical evidence (Fan, Lau, and Zhao,
2015).

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