Telstra Marketing Strategies

Marketing Management
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Executive Summary
Marketing management tools assist firms in formulating strategies to successfully target the
customer base. Telstra is a major telecommunication company in Australia. The purpose of
this study is to assess various telecommunication tools with a view of understanding Telstra’s
marketing strategies.
At the onset, the study draws an outline of the products, mission, values and slogan of
Telstra. In continuation the study tries to outline the five Cs of marketing for Telstra. Five Cs is
a marketing tool that assesses the external environment of a company. In this assessment
the study focuses on the company, customer, competitor, collaborators and context of Telstra.
Further, the study tries to ascertain how the company collects information of the five Cs. In
continuation, the study tries to evaluate the market strategy for a potential new market for
Telstra. The study elaborates upon target market, positioning and value preposition for this
new segment
Finally, the study recommends the 7Ps of marketing mix for Telstra in the new market
segment.
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Contents
Executive Summary...................................................................................................................................2
Introduction...............................................................................................................................................4
Company Brief.....................................................................................................................................4
Analysis of 5Cs for Telstra.....................................................................................................................4
Collection of information about the 5Cs...............................................................................................6
Market strategies for a potencies market segment............................................................................7
Potential new segment for Telstra....................................................................................................7
The target Market................................................................................................................................8
The value preposition.........................................................................................................................8
The Positioning strategy.....................................................................................................................8
Marketing Tactic- Marketing mix recommendation for the potential market segment.................8
Conclusion..............................................................................................................................................10
References.............................................................................................................................................11
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Introduction
Marketing management involves devising strategies to that the product or the service can
reach desired consumer segments in the required manner (Armstrong, 2012). It also involves
formulation of plans and strategies to accomplish the marketing goals of an organisation.
Company Brief
Telstra is one of the largest and most popular Australian telecommunication company.
(Telstra, 2019). The company provides services like voice, internet data and pay television
(Telstra, 2019). Prior to the nineteen, Telecommunication sector in Australia was Government
controlled and was known as telecommunication commission (Telstra, 2019). However, the
commission was renamed as Telstra in 1993 and was fully privatised in 1997.
The mission statement of Telstra is- ‘to build, simple and easy to use technology and content
solutions which can add value for the customer’ (Telstra, 2019). Another mission statement of
Telstra is ‘to serve and know the customers better than anyone else’. Telstra gives
importance to values like respect, integrity, trust, teamwork, accountability and service
(Telstra, 2019). Telstra communicates its purpose of being there to serve the customer
through its slogan which is “It’s how we connect”
Telstra functions in a highly competitive telecommunication industry where service provided is
homogenous in nature (Berry, 2017). The firm has to provide various value-added services
and employ marketing techniques to sustain its market leader position (Yohn, 2015).
Therefore, Telstra’s business orientation is marketing oriented. Through its ad campaigns,
slogans and service quality Telstra tries to stay on top of the customer’s mind (Hoffman &
Bateson, 2010). This is how Telstra has been able to capture 51% market share in Australia.
Telstra frequently launches new and catchy Ad campaigns to stay in the customers mind
(Forbes, 2019).
Creation and delivery of telecommunication services like voice, data, internet access, mobiles
and pay television are the major producers of Telstra (Telstra, 2019). The brand has an
important role to play in the marketing strategy as the company is an old brand and invokes
trust and quality appeals for the customers (Lovelock, 2012). Major strategy of Telstra is
based on customer value creation through quality service.
Analysis of 5Cs for Telstra
The 5C framework is a framework to assess the environment in which a company functions
(Baines, 2013). It assesses five major decisions of business strategy. Following is a 5C
analysis of Telstra.
Company- Telstra is an old name in telecommunication and hence its goodwill and brand
image are its key resource and strength (Paradis, 2015). Excellent and innovative staff and
state of the art communication towers and other equipment are also its key resource (Telstra,
2019). Major weakness which the company faces is high research cost in telecommunication
technology (budde.com.au, 2017). Additionally, due to homogeneity of services lot of
emphasis is required on customer service and service maintenance which costs a lot of
money.
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