Developing a Marketing Strategy for Telstra

This paper analyzes the operation of Telstra and the subsequent development of a marketing strategy. It discusses the company's description, 5Cs, collection of information, and the development of marketing tactics.

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MARKETING AND MANAGEMENT
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Introduction
Marketing strategy development requires an understanding of the organization's operating
environment. Understanding of various market factors in which an organization operates is
important for gathering of information. Marketing perspective of an organization is important for
ensuring reaching out to more customers strategically. The following paper analyses the
operation of Telstra and the subsequent development of a marketing strategy.
Issue 1: Organizations description (AFP 2018)
Telstra is one of the Australian largest telecommunication companies that offer products
such as mobile data bundle, cable TV service, Mobile phones, and many other
telecommunication product. The flagship product of the company is data bundle that enhance
connectivity and voice calls between individuals. In addition, the company also offers web
solutions to customers within the country and internationally. The mission statement of the
company is to built technology and content solution that is simple, easy to use and valued by
customers. The vision of the company is to improve the way people live and work through
technology. The value statement or the slogan of the company is ‘ It’s how we connect’ that
signal the value of connectivity that the company offers to customers. The company plays an
important role in the market that include provision of data bundles for connectivity, offering
telecommunication services to both business and individuals. The company also offers TV

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sevices to customer for enhanced servics. Telstra belongs to telecommunication industries of
Australia and regionally with an extension to other countries globally (Mason 2017).
Figure 1: Telstra Slogan (Montgomery 2017)
Issue 2: Company’s 5Cs
a. Company
Telstra has maintained brand strength in the Australian market that builds customers
trust. Telstra has been operating in the telecommunication industry with high capability to meet
customers needs. The company has a diversified product portfolio that enable the company to
reach a large number of customers within the country and internationally. Telstra analysis shows
the company has both strengths to meet customer needs and some weakness that affects its
competition within the market (Kotler 2012).
SWOT Analysis
Strength
1. The company has a strong supplier
base that makes its products reliable
2. The successful track record of the
Telstra makes easily integrate
Weaknesses
1. Limited planning as making the
company affects its asset ration
2. Limited integration of core business
and product segments

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technologies
3. The company has a good distribution
network that reaches customers in
remote places of the country
3. Limited possibility of expansion as the
organizational structure reduce
expansion
Opportunity
1. Online customer base offer
opportunity for Telstra to get more
customers
2. New consumer trend characterized by
high bundle offers the opportunity for
Telstra
Threat
1. The growing trend of counterfeit is a
threat to Telstra operations
2. The intensive competition that
currently involves many new
companies in the market is a threat to
Telstra operations
3. Fluctuation in the market condition
within various countries Telstra
operates is a threat (Tedlow & Jones
2014)
b. Customer
Telstra Corporation has a wide range of customers that purchase various products and
service that the company sell. The company control market share of 46.5% as of 2019 and this is
majorly from the mobile subscribers. The company also has customers that come to purchase
mobile phones and other products (French & Ross 2015).
c. Collaborators

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Telstra has a group of collaborates that enable the company to meet customer need in the
Australian telecommunication market. These collaborators are distributors, suppliers and
alliances or partners. Telstra has collaborated with a number of companies for the provision of
services and some of these collaborators include cisco that enables cloud-based services.
Microsoft is another company that has formed a collaboration with Telstra to provide the
company with office software such as Microsoft 365 Enterprise. Secondly, the company has a
wide range of suppliers that supply the company with many different products such as software
and other technological materials. Lastly, the distribution channel of the company has been
successful owing to a strong group of suppliers that has form collaboration with the company
(Hutchinson 2014).
d. Competitors
The Australian telecommunication market has many companies that compete with Telstra to give
customers various needs. There are three main competitors for Telstra that include Optus, Virgin
Mobile, and Vodafone. Vodafone has a market share of 17% within the Australian
telecommunication market. Optus mobile telecommunication market share is 24.8% and is
currently the second largest market share (Shimizu 2016).
e. Context
The context of the company involves various macro-economic factors that determine the
operation of the company within the market. The telecommunication market of Australia has
various political, economic, social, technological and legal factors. Firstly, the political factor
affects Telstra operations being the company international company. The legal environment of
the telecommunication (Lee 2011)

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Issue 3: Collection of information
Telstra has a wide network of an information system that helps the company to gather
information from various aspects of the company. Some of the areas that the company gather
information is majorly from customers, collaborators, competitors, business environment
a. What customers want
The company has an advanced feedback system that enables the company to gather
information from customers and determines their needs. Firstly, the company has a feedback
system based on the company online platforms and website that allow customers to share their
opinion. Secondly, the company has a customer rating system that enables the customer to rate
products and services offered for effective services. Thirdly, the customer care system is
structured to allow customers to give information on the way they have been served once offered
services. Lastly, the company also marketing research department that gathers data from
customers and other stakeholders on the type of service they need (Celebi 2015).
b. Which competitors
Telstra has a strong marketing department that conducts research through various means
to determine the competitor strength. Firstly, Telstra has been using its online presence to gather
information on competitors based on their marketing and service delivery strategies. Secondly,
data mining and business intelligence is an area that the company has invested to determine the
competitor’s strategic information. The company has been using analytical data and data mining
tools to determine the strength of its competitors in the market. Thirdly, marketing research is
another area that serves to give the company information on the competitor that is a threat
(Breakenridge 2012).

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c. Context of the business
The company has an information system that is used to gather various through its vast
network of researchers and strategists. In the age of digital information system, Telstra being an
important technology company within the Australian market uses its data analysis to determines
the changing business environment within the market. The company has been using its marketing
reach team to gather information from the market in terms of customer need, economic factors,
political and legal development within the country and internationally (Hunt & Goolsby 2011).
d. Role of collaborators
Collaboratorsplay an important role in feeding the company with the information
regarding the area they operate in. firstly, distributors have been diving the company the
information they gather from customers interms of their need and preferred services. In addition,
distributors gather information on the market factors such as the demand for products and
services that enable the company to improve on its marketing. Suppliers are another set of
collaborators that has information from manufacturers and other stakeholders that is important
for designing the marketing communication system of the company (Hague & Carol-Ann 2013).
Issue 4: Developing a strategy
The Australian telecommunication market has been changing with the behavior of
customers shifting from traditional cluster to a contemporary cluster. Telstra has the opportunity
to reach many customers within Australia and internationally. Firstly, the potential market that is
available for Telstra is online and mobile data bundle market. The largest market that is readily
available is the online market. The statistic shows that the number of customers that spend most
of their time browsing online has increased massively in the recent past. This market is currently

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offering the customer cluster that can be utilized for effective company growth. Secondly, the
international market is other areas that the company has been penetrating and this offer the
company opportunity to reach out customers from country such as New Zealand where Telstra
has also taken market share (Goyat 2011).
The target market, therefore, can be classified based on product type, geographical and
behavioral target market. Firstly, in terms of behavior, customers within the Australian
telecommunication market has changed behavior with many customers shifting their needs
online. This implies that the company needs to diversify its mobile data to accommodate more
demand. Secondly, the company should consider reaching out to an online market that keeps on
wideningwithin the country (Zeithaml, Bitner & Gremler 2013). The company needs to target
online and international customers as the home market the company is already the leading
company. The company has opportunities to reach international customers, especially within the
region. Lastly, the data bundle target segment is another area that has a projection of high
growth. In order to reap out big, the company needs to diversify its data bundles to accommodate
more customers that currently use data bundle (Bettersby 2011).
The marketing value proposition is ‘we improving connectivity and customer
technological experience’. This value proposition rests on the core value of the company and its
vision statement that majorly seeks to improve the way people live. In addition, the value
proposition combines various company culture of serving the customer to increase their
experience within the company. The value proposition shows the company's flagship product
line that is majorly connectivity.The positioning statement for Telstra will be ‘the number one
premier connective and one online stop shop for everyone'. The statement highlights the product

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line of technological connectivity and the company's potential position in the market especially
the online market (Mintz & Currim 2013).
Issue 5: Developing marketing tactics
In light of the marketing situation analysis, the company needs to have a marketing mix
strategy that combines all the 7Ps marketing mix. The marketing strategies that will reach the
target market and increase the brand position require integration of 7Ps of marketing together
(Rafiq 2016).
Figure 2: 7Ps Integrated with telecomunication (ExtraDigital 2019)
Product
The main product that the company needs to focus on is the mobile data bundle
diversified to meet customer needs and demand. The mobile data is chosen as flagship product
since the company has been leading and the customer base is also increasing daily on the data
bundle market. In addition, offering a product to customers requires a high level of customer
service that is characterized with satisfaction (Shimizu 2014).

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Place
The company needs to strengthen its distribution channel to ensure that various products
are available to customers. The company has been known with excellent distribution and there is
need to diversify distribution to increase the availability of products to customers everywhere
(Solis 2011).
Price
The price of mobile bundles, for instance, needs to be satisfactorily giving the customer
the value for their money as this is important for competition. The price of company products is
set based on the marketing forces as opposed to high prices that reduce the sale (Mason 2017).
People
People that will be involved in the marketing include the marketing department,
marketing research and development, and company information system department. These are
the key people that are involved in Telstra marketing campaigns (Gerd 2014).
Promotion
Product promotion should include integrated marketing communication that brings
together all marketing tools such as social media, personal selling, advertisement, and other
media. This integrated marketing communication is based on the flagship products and the value
proposition of the company (Ashley & Tuten 2015).
Physical evidence
Establishment of company offices in various places and online platform serves to
provides the physical evidence for Telstra. The company has been having many offices across

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the country and there is need to increase these offices to ensure customer confidence. These
offices also help the online customer and international customers to get assistance if needed
(Hoffman, Bateson, Elliot & Birch 2010).
Process
Service delivery processes is another area that is important for Telstra marketing and the
company need to involve both operational processes and information processes. The operational
processes ensure that products are supplied, branded and distributed to consumers. Information
system processes ensure that inventory is well managed for profitability (Chaffey & Ellis-
Chadwick 2012).
Conclusion
In conclusion, marketing strategies require an understanding of the organizational
environment and situation that enable the gathering of information. An organization such as
Telstra Corporation require analysis of situation and context that enable the development of
marketing strategy to reach more customers. A good marketing strategy integrates various
elements of the 7Ps of the marketing mix through an elaborated marketing communication
strategy. This will enable Telstra to reach a more online market and international customers
within the region.

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