Telstra's Marketing Mix Analysis

This assignment requires an in-depth analysis of Telstra's marketing mix. Students need to examine the company's product offerings (broadband, mobile plans), pricing strategies, distribution channels, promotional activities, and its focus on customer service. The analysis should explore how these elements contribute to Telstra's brand equity and overall market performance. The assignment also encourages students to consider contemporary marketing trends and challenges faced by Telstra in the telecommunications industry.

Marketing

EXECUTIVE SUMMARY
The marketing strategies that are designed by a company are based on certain theoretical
concepts and principles. One of these renowned principles is Marketing mix. It consists of 8
elements that cover entire product cycle so effectively that probability of failure of strategy is
minimum. Testra is an international telecommunications company based in Australia. It has been
providing its services in this technical field since 40 years. An analytical judgement is created
about broadband services provided by the company in its native country, using marketing mix.
This analysis forms the basis of various recommendations that can be implied when forming
future strategies.
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
1.1 Company................................................................................................................................4
1.2 Product and Location.............................................................................................................5
1.3 Consumer...............................................................................................................................5
ANALYSIS......................................................................................................................................6
2.1 Product...................................................................................................................................6
2.2 Price.......................................................................................................................................7
2.3 Place.......................................................................................................................................8
2.4 Promotion...............................................................................................................................8
2.5 Processes................................................................................................................................9
2.6 Physical Evidence..................................................................................................................9
2.7 People...................................................................................................................................10
2.8 Partnerships..........................................................................................................................10
RECOMMENDATIONS...............................................................................................................10
3.1 Product.................................................................................................................................10
3.2 Price.....................................................................................................................................11
3.3 Place.....................................................................................................................................11
3.4 Promotion.............................................................................................................................11
3.5 Processes..............................................................................................................................12
3.6 Physical Evidence................................................................................................................12
3.7 People...................................................................................................................................12
3.8 Partnerships..........................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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Illustration Index
Illustration 1: Logo of Telstra..........................................................................................................5
Illustration 2: Current market share ................................................................................................7
Illustration 3: A broadband device...................................................................................................8
Illustration 4: A monthly plan for broadband .................................................................................9
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INTRODUCTION
Business organisations share an exchanging relationship with customers when it comes to
marketing concept. Every strategy that is being devised for the same is successful only when
acceptance level at consumer end is high. Hence, marketing planning is performed with help of
marketing mix tool which is based on 8 elements or 8Ps that is product, price, place, promotion,
people, process, physical evidence and partnerships. This assessment is based on Testra
Corporation Limited and the application of marketing mix tool on its strategies. A broad insight
will be gained regarding the described elements and their contribution to successful product
cycle.
1.1 Company
Telstra Corporation Limited is a business organisation based in Australia and it is
functioning in telecommunications industry. Founded in 1975, the company was originally a part
of government's telecommunications department that is Telecom Australia. But currently the
organisation is a private sector undertaking and present CEO of Telstra is Andy Penn. Basically,
the process of conversion from a public sector company to private sector was quite complex
when considering the case of Telstra. The process of conversion took place in three stages.
Government sold one third of its shares in separate phases that is T1, T2 and T3 which finally
resulted in completely private ownership at the end.
Rapid growth in technology and digitalisation of world, industrial dynamics are
changing. Telstra is facing and fighting tough competition in the Australian markets. About 17.2
million mobile services are provided by this company with the majority customer share in its
hand. Telstra aims to create development in country by devising strategies that are quality
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Illustration 1: Logo of Telstra

oriented and focus on generating employment opportunities. The mission and vision of Telstra is
to take actions which provide overall development rather than individual benefits.
1.2 Product and Location
Headquarter of Telstra is situated in Melbourne, Australia. Major products and services
that are provided by the company are telecommunications lines, mobiles, broadbandservices,
voice calling facilities and several entertainment products. Services like satellite internet, dial up
networks, ADSL internet, subscription television and online music services, blogging network
and active mobile network services are additional products and benefits of Telstra (Purpose &
values, 2017). The organization aims to fulfil its corporate social responsibility which involves a
caring attitude towards both employees as well as customers. This organisation has developed a
nationalised broadband network for Australia and also major broadband services are also
provided by Telstra only.
1.3 Consumer
There are four operational segments of Telstra Corporation Limited. These include
Telstra Retail, Global Enterprise and Services, Telstra Operations and Telstra Wholesale
segment. The diversity in products and services helps the business organisations to grow and
earn huge profits. As people come to know that commodities that are given by a company are
good in quality and affordable, their tendency to make purchase from this particular firm will
increase. This organisation Telstra has consumers in about 22 countries. With 7 million
customers that are engaged solely in Australia, the company has become a powerful
multinational (Our company, 2017). In 2016, this organisation has contributed large amounts of
revenue to the GDP of country which implies that customers are inclined for investing in Telstra.
The consumers that opt for broadband services of Telstra are from almost all age groups. But
major consumption is of young adults and office professionals. From multinational professionals
to college students, people use Telstra's broadband services for accessing internet.
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ANALYSIS
2.1 Product
The essence of functioning for a business organisation is caught by its products and
services. Being the first element of marketing mix tool, commodities are like lifelines of business
operations. Telstra has products and services in which mobile, broadband and internet services
are growing briskly. Company has been involved in developing communications network within
the country so that efficient connectivity is established (Jain, 2013). Since, internet services and
voice calling facilities are not present in the physical form but can only be experienced;
company's responsibility towards making it consistent increases. Broadband services are used for
accessing internet by generally a group of individuals. Competitors like Vodafone, Virgin
Mobile and Optus are also generating similar competent services and products. Henceforth,
Telstra is devising digital technology marketing tools which will help in reducing the
competition.
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Illustration 2: Current market share

2.2 Price
Company's broadband services are planned and segregated into various categories. It
becomes easier for the customers to choose a particular plan according to their needs and
requirements. Availability of such options brings certain advantages to the organisation (Sharma
and Lambert, 2013). Purchasers also have the convenience of selecting nature of service that is
either a broadband or landlines internet. Large area of application with little monetary
investments is a plus point for Telstra. This firm also provides discounts and offers to regular
customers which help in fighting competition in the long run.
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Illustration 3: A broadband device

2.3 Place
The channels that are involved in taking manufactured product and generated service
from company to customers are known as the distribution channels. These have to be strong and
efficient enough in meeting customer demands on time so that brand reputation is not damaged.
Place element of marketing mix consists of this concept (George, 2015). Optical fibre
communication system has been opted by Telstra for distribution of broadband services across
the country. The retail segment of the company is a one stop solution for the customers. They
can resolve their queries and complaints and can even make new purchases at these points. Other
distribution channels include exclusive options for brand loyal customers. Telstra also holds
about 100 franchises in Australia.
2.4 Promotion
Brand recognition is attained when excessive promotion strategies are adhered to product
development and market acquisition plans. Promotion includes sales management, advertising
and developing public relations (Srinivasan, Rutz and Pauwels, 2016). The techniques that can
be opted for enhancing this element of marketing mix are television commercials, radio
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Illustration 4: A monthly plan for broadband

advertisements, print media that is newspapers, magazines, posters, banners, etc. Sponsorships
and campaigning is also a part of promotional strategies of Telstra. The company has sales
function that looks after promotion of products and services. Broadband services are broadcasted
using web banners and online campaigns. The purpose behind marketing is served when
effective public relations are developed with the help of proposed promotional strategies.
Business organisations consider this plan as a way to get connected with audiences and potential
consumers (Kucuk, 2017).
2.5 Processes
Traditional marketing mix principle had only four elements that were discussed earlier.
These consecutive components are considered as part of extended marketing mix. Process is a
collective informative assessment that describes systems and techniques which are involved in
production of commodities. Telstra's entire service generation is based on technical equipment
and digital software. These are a part of production system which is monitored by computerised
network which is established in internal environment of the company (Hwang and Thomadsen,
2015). For example, broadband services are generated with help of an exchange system that
consists of modem, routers, web servers, an internal telephone exchange, etc. This process is
resulted in the form of fulfilment of customer request that is desired web result. Basically,
broadband is the medium through which internet can be accessed.
2.6 Physical Evidence
The existence of a product or service is guaranteed with help of physical evidence.
Businesses develop certain commodities that cannot be judged by customers without
experiencing. Telecommunications networks and services are purchased on this though process.
A certain amount of risk is related in such situations at buyer side (Vemanna and Rao, 2016).
Hence, this element was introduced in marketing mix structure so that consumers will be
safeguarded from frauds and illegal practises that often originate in highly competitive markets.
For instance, Telstra has proper documentation and recording system that provides a physical
evidence for purchase of their services by particular consumers. The copy of this evidence is
handled to consumers also so that legal complications do not arise. Manipulation of consumers
doesn't take place when physical evidence is provided by companies (Wasan and Tripathi, 2014).
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2.7 People
Market structure keeps on fluctuating because of changes in demands and requirements
of consumers. People who are related to particular product and service are to be considered
before implementing any strategy. Employees, shareholders, customers, suppliers and producers
are the people that are related when a commodity or service is considered in a business
organisation. Telstra provides effective training to its employees and workforce because
maximum percentage of its working staff is directly involved with customers. This makes them
more responsible for handling public relations. Handling complaints and feedbacks is effective
when care and attention is received by workforce and customers simultaneously (Lee and et. al.,
2014). Telstra holds an internal competitive advantage because of its strategic approach towards
its internal environment. Moreover, positive attitudes towards negative feedbacks and complaints
shall be adapted by leaders and managers so that good corporate culture is initiated.
2.8 Partnerships
This component of marketing mix intends towards generating responsibility towards
partnerships. Often business organisations become so profit oriented that they do not want to
share their successes and privileges with partners and shareholders. This creates a drift between
internal functioning which results in breaking of bonds and agreements (Suárez and Estevez,
2016). Therefore, decision making must be based on improving and maintaining productivity and
quality of organisation. Both customers and partners of Telstra are quite satisfied by the quality
and quantity of services that are being generated. Moreover, several entertainment products like
subscribed television, online music streaming, etc. have received positive feedbacks and
appreciations. Benefits of such strategies are realised by partners in the form of profits and by
customers in the form of satisfaction.
RECOMMENDATIONS
3.1 Product
Telstra has been advancing in the field of communications and entertainment. In order to
maintain its growth and development, several products and services can be upgraded. Business
organisations turn into brands when their commodities get a touch of uniqueness and excellence.
Although this organisation has been functioning with corporate social responsibility of making a
cleaner, greener and sustainable working environment, there are certain attributes that need to be
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developed. Market development strategies can be designed for business expansion in foreign
countries mostly the developing ones (Huang and Sarigöllü, 2014). Such places can be explored
where resources are cheap and demands are high. Technology is the demand of hour. If Telstra
plans to develop a technically advanced mobile phone and launches it to highly demanding
markets of countries like India, China, Dubai then huge profits can be incurred.
3.2 Price
Foreign exchange plays a major role in economic development of a country. Australia is
emerging as a global giant in various industries. The idea of business expansion can only be
successful when appropriate pricing strategies are adopted. Telstra can opt for designing a
strategy that collectively combines broadband plans with maximum benefits and applies it to
smartphone prices (Our company, 2017). This deadly combination will attract customers because
of their perception as a money saving plan. People will push their limits and compromise with
specifications up to certain limits when they are getting huge benefits over internet. The basic
reason behind this level of craziness is growing demand of broadband services. Every individual
wants to stay connected and cannot think of their survival without this technology.
3.3 Place
Aforementioned blend of product and services can be turned down if efficient distribution
channels and techniques are not utilised by the company. Marketing strategy are best
implemented with help of correct choice of distributors with appropriate mediums (Jain, 2013).
Telstra already has cost effective options of optical fibres but several wireless mediums like
satellites and broadband lines can also be established for better coverage. Although satellites are
quite costly, the profits that are retrieved through this distribution channel are commendable.
Hence, it is recommended that Telstra must develop new places which will enhance business
expansion in foreign countries.
3.4 Promotion
Public relations is the essence of impressive promotional tactics. Enterprises have entered
a world of severe competition. From advertising to sales enhancement, all activities must be
carried out in such a way that competitors do not get sustainable advantage. Technology is the
most important resource for Testra. The company can develop its promotional strategies by
involving in global events as a sponsor. In addition to this, digital technology can be used for
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communicating the marketing message of company to customers (Sharma and Lambert, 2013).
Testra can be omnipresent with help of social media communities. These are digital platforms
that enhance promotional planning and improve market position of products and services. The
final proposed tactic should be informative and attractive so that customer attention can be
grabbed.
3.5 Processes
Service generation cannot be possible if processes and systems which are involved in
production are not efficient. Equipment is the most important component of a technical
company. If software is updated regularly, customers will not face any issue during their usage
period. Moreover, quality of products and services that are being generated will be strengthened
(George, 2015). Testra must not take steps which are not in favour of profit margins of the
company. The enhancements that are planned must be cost effective and appropriate enough to
maximise profits. Buyers must feel that their purchase is a form of investment for their own
benefits. This attribute can be developed only when effective processes are formulated.
3.6 Physical Evidence
The position of actually witnessing or experiencing a service by a buyer is grabbed when
companies provide a physical evidence. For example: Regulatory body of Australia in
telecommunication network handling has devised certain rules and regulations that have to be
followed by every company dealing in this sector. Customers can gain trust regarding services
only when organisation is able to produce certain proofs (Srinivasan, Rutz and Pauwels, 2016).
These can be authorisation certificates, legal documents, etc. Telstra can recognise the needs and
impact current physical evidences are having on consumer purchase decisions. Moreover, an
identification analysis can be performed for accessing future opportunities that are being
generated. These techniques will enhance the marketing strategy of Testra.
3.7 People
Employees are service generators of any functioning enterprise. Their attitudes and
behaviour towards organisation plays a significant role in production of services and
commodities. Testra can reinforce its labourers and employees by introducing incentives and
appraisal systems in its organisational structure. Corporate governance involves ethical
engagement of the company. The major contemporary issue of biasness and unethical practises
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can be resolved with help of transparency in leadership. Appraisal systems help in managing
people related to a product cycle efficiently and results in increasing productivity. Overall
strategic development is managed (Srinivasan, Rutz and Pauwels, 2016).
3.8 Partnerships
Though it is advisable for business organisations to run individually but partnerships are
a way in which innovative strategies can be formed. When people with diverse skill set are
working together, then new areas of development are easily explored. It also helps in managing
work pressures very well. Testra can involve in fruitful partnerships with their shareholders and
create new joint ventures. New products and service lines can be launched by company without
involvement of huge risks. Moreover, product and quality of services are improved when
companies are engaged in partnerships.
CONCLUSION
Marketing is an integral part of every business's development schedule. The techniques
and strategies that are formed for enhancing marketing concepts are technological aid, theories
and principles, etc. Organisations use marketing mix tool in preparing strategies so that no flaws
are left undetected. There are some recommendations provided in this report which can be used
by Testra to develop its marketing strategies.
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REFERENCES
Books and Journals
George, W. R., 2015. Internal marketing for retailers: The junior executive employee. In
Proceedings of the 1984 Academy of Marketing Science (AMS) Annual Conference (pp.
322-325). Springer International Publishing.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors. Springer
New York. pp. 113-132.
Hwang, M. and Thomadsen, R., 2015. How point-of-sale marketing mix impacts national-brand
purchase shares. Management Science. 62(2). pp.571-590.
Jain, M. K., 2013. An analysis of marketing mix: 7Ps or more. Asian Journal of Multidisciplinary
Studies. 1(4).
Kucuk, S. U., 2017. Marketing and Marketing Mix. In Visualizing Marketing (pp. 3-7). Springer
International Publishing.
Lee, C. H. and et. al., 2014. Marketing mix and customer equity of SPA brands: Cross-cultural
perspectives. Journal of Business Research. 67(10). pp.2155-2163.
Sharma, A. and Lambert, D. M., 2013. Segmentation of markets based on customer service.
International Journal of Physical Distribution & Logistics Management.
Srinivasan, S., Rutz, O. J. and Pauwels, K., 2016. Paths to and off purchase: quantifying the
impact of traditional marketing and online consumer activity. Journal of the Academy of
Marketing Science. 44(4). pp.440-453.
Suárez, M. M. and Estevez, M., 2016. Calculation of marketing ROI in marketing mix models,
from ROMI, to marketing-created value for shareholders, EVAM. Universia Business
Review. (52). pp.18-75.
Vemanna, N. and Rao, V. N., 2016. Consumer Behaviour Towards Organized Retailing–A Study
of Product and Price in the Marketing Mix. International Journal of Scientific Research.
4(10).
Wasan, P. G. and Tripathi, G., 2014. Revisiting social marketing mix: a socio-cultural
perspective. Journal of Services Research. 14(2). p.127.
Online
Our company. 2017. [Online]. Available Through:<https://www.telstra.com.au/aboutus/our-
company>. [Accessed on 2nd February, 2017].
Purpose & values. 2017. [Online]. Available Through:<https://www.telstra.com.au/aboutus/our-
company/present/purpose-values>. [Accessed on 2nd February, 2017].
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