Overview of Telecommunication Service by Telstra Assignment 2022

Running head: MARKETING MANAGEMENT
Marketing Management
August 26
2019

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Table of Contents
Introduction................................................................................................................................2
Overview of Telecommunication Service by Telstra.............................................................2
Porter Five Force Framework................................................................................................3
PEST Analysis.......................................................................................................................4
Demand forecast.....................................................................................................................5
Market Segmentation.............................................................................................................5
Targeting Market....................................................................................................................5
Positioning..............................................................................................................................6
References..................................................................................................................................7

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Introduction
Marketing management is said to be the administrative discipline that concentrates on the
real-world application of the methods and techniques of marketing and orientation present
within the business and the organization of the activities as well as resources of marketing of
the firm. Marketing management makes use of different tools from competitive strategy for
analyzing the industry and environment in which business works. These include PESTLE
Analysis, Porter Five force framework, competitor analysis, value chain, etc. (Beverland and
Lindgreen,2010). This paper intends to perform the environment, competitor, and market
segment analysis of Telstra which is one of the well-known companies of Australia offering
Telecommunication Services. Besides this, the paper is also highlighting the brand
positioning and the leaders present in the Telecommunication services of Australia. The
pricing strategy that a business uses to offer its services to the target audience is also being
discussed. In the end, the paper is presenting the integrated marketing communications matrix
to highlight the communication channels and tools used to make the customer aware of its
services.
Task 1
Overview of Telecommunication Service by Telstra
Telstra Corporate Limited is the known telecommunication service company which offer and
build telecommunication networks, internet access, mobile, pay television, etc. The fixed
telecommunication network of Telstra extends all over in Australia covering around 90% of
the calls and offering services virtually in all the homes of Australia and the considerable
majority of the businesses of Australia (Telstra, 2019b). Telstra is the biggest company of

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telecommunication service in the Australia incorporate area comprising 91% of the
population of Australia (Telstra, 2019a).
The Australian market of telecommunication service is moving towards a new level of
intense competition which is comprised of some of the main players like Telstra, Optus,
Vodafone, and TPG Telecom (Financial Review, 2018). All these players are involved in the
cut-throat competition by introducing different competitive offers for the customers in the
market. But, this competition is providing benefits to the customers in terms of availing
telecommunication services at reasonable prices. Presently, Telstra has occupied the leading
competitive position among all the players present in the market through its effective
marketing and pricing strategy.
Porter Five Force Framework
Forces Impact – low to high
Threat of Substitute products Low threat of the substitute product
Power of Supplier The supplier’s bargaining power is moderate
in the Telecommunication service business
Threat of New Entrant This force raise low threat for the businesses
in the industry because in order to offer
telecommunication service in the market
there is a need for high capital and
investment which is not possible for every
business.
Competition among existing players The intensity of the competition is high due
to the presence of several large players (Chief
Sustainability Officer, 2017).

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Power of Customer The customer’s power of bargaining is high
because of the availability of different
players providing services at low prices.
PEST Analysis
Political Force – Telecommunication service business that is Telstra enjoys the support of
Government because it is the Australian flagship telecom company. But, after its
privatization, the support of the government has been reduced and Infrastructure Australia is
establishing a restructuring in the Universal Services Obligation. This provides benefit to the
National Broadband Network that is supported by the government. The political push can in
the future ask Telstra to vend its copper and HFC networks to the Australia's NBN (Duckett,
2016). This will also result in reducing the barriers of entry for the new players in the
industry.
Economic force – Economic situation is considered as the major force that impacts the
operations of Telstra. Globalization has jumped the national borders, unlocked and
augmented trade which offers increased opportunities to the businesses (Cavusgil, Knight and
Rose, 2014). Thus, the utilization of the telecommunication services has also augmented at a
global level and it is anticipated to increase in the future. This offers the opportunity to
Telstra to invest in the overseas market, for enlarging the operations, market, and manage
profitability.
Social Force – The culture and social background of Australia is unique which gives chance
and opportunity to new businesses to operate in the country. In addition to this, the preference
and choice of the people in the market are changing which results in raising requirement for
the businesses to adopt these change and offer customers the best services.

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Technological Force – Today, technology is developing and changing and fast rate. New
services such as Internet telephone and the augmented users of telecommunication are the
main cause for the businesses to invest in introducing advanced technologies for the
development services and products. To be the leading business, Telstra has to regularly invest
in developing advanced technologies for its continuous growth.
Demand forecast
The subdivision of the telecommunication services has transformed the manner people of
Australia interact by offering services to increase the connectivity. Augmenting demand for
the mobile services has taken place at the charge of fixed-line services. Earned revenue from
the wireless services has augmented, defined by the growing volume of consumption of
mobile data and enhanced connectivity. But, the demand for the fixed lines services is
decreasing and aggressive competition in the mobile services has taken place (IBIS World,
2018).
Market Segmentation
Telstra divides its population into different segments based on the geographic, demographic,
psychographic, and behavioral variables. Under the demographic variable, the company
divides the market depending on age, income, gender, size of family, nationality, and
occupation (Menzly and Ozbas, 2010). Under the geographic variable, the company divides
the market on the base of the location. The psychographic variables that are considered to
divide the market are social class, personality, and lifestyle. In the end, in consideration of the
behavior variable the company divide the market based on the usage of product, knowledge,
and response.

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Targeting Market
Target market is comprised of identifying and selecting one or more groups for designing
specific programs to attract them to purchase the product. The Telstra target market is the
customer who makes less use of the services and those who are technologically conscious.
The customers use less services is the one who are bound to use SMS and prepaid services of
the company. Meanwhile, for the customers who are technically conscious, the company
come with its attractive packages for promoting a 5G network in Australia (Donnelly, 2019).
Positioning
Positioning is said to be the image that has been gained by the business in the eyes of the
customer. Telstra is the leading telecommunication service company which has maintained
this position through its aggressive public relation and advertisement strategies. In addition to
this, the company uses a Positioning Statement to attract customers that are "Australia's
connection to the Future”. (Telstra, 2004)
Task 2
Brand Positioning of Telecommunication Service of Telstra
The brand positioning of the Telecommunication services of Telstra is a reliable and superior
network business that is regularly being offered to the customers for which they proudly
believe in (Truly Deeply, 2019). Most of the campaigns of Telstra have positioned it as the
differentiated brand and the customers of the company have delighted in availing the services
the time their friends on any other network have not. Telstra is the leading telecommunication
service business by offering high quality and premium network. The other players in the
market that offer and compete with Telstra are Optus, Vodafone, etc. The four pillar strategy
of Telstra for the three years has been introduced in the year 2018 to give strong competition
to its rivals and maintain its leading position in the Australian market. The strategy has six

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goals that are to enhance experience of customer, streamline its products, business along with
its operating model; outspread its superiority of network and 5G leadership, attain high
performance at global level in terms of workforce engagement, attain a cost productivity of
around AU$2.5 billion by the financial year 2022 and achieve a post-National Broadband
Network (NBN) return on investment of 10% (Reichert, 2018).
Optus – The niche that has been selected by Optus to serve is comprised of communications
services that comprises mobile at national, local and long-distance services, and international
telephony along with the business network services, satellite, and internet services. In the
Australian market, the place of Optus has not been changed. From at least a decade, the
company has successfully maintained its top two positions by holding the 20 to 25% of the
market share (Optus, 2019). In spite of being the strong player in offer services in the mobile
market, Optus is unable to beat Telstra in Australia. In fact, the company is unable to gain the
opportunity of ‘Vodadail’ period in increasing its market share.
Vodafone – Hutchison Australia has been involved in the merger with Vodafone Australia by
owning half of the share of the new enterprise. Vodafone and Hutchison run the business
under the name VHA, with services promoted under the Vodafone brand. The infrastructure
of Vodafone has experienced a vital renovation, majorly because of the successful
restructuring of its 850MHz concessions which enabled it to transform 3G to LTE in all over
the nation (Vodafone, 2019). The company has started using the main resources for assessing
possible fixed-line services over NBN. The company is focusing on maintaining the
leadership in the next generation of mobile; proclaiming that it will begin operating 5G lab
trials and demos. Vodafone Australia is trying to gain the lead in the developing space in the
Internet of Things, depicting on the proficiency of the Vodafone Group at the global level.

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From the above analysis, it could be said that Telstra’s Telecommunication Services is the
leading among all the existing players in the market and through its four-pillar strategy the
business will able to maintain its leading position by focusing on increasing the satisfaction
level of customer and improving their experience with the business.
Perceptual Mapping
Consumer-adoption process
The customer adoption process is comprised of five stages. This process is said to be the
mental procedure that an individual goes through first hearing about the product to the final
adoption of the product (Kotler, Burton and Armstrong, 2015).
High
Speed
Wide
Coverage
Low
Speed
Limited
Coverage
Telstra
Optus
Vodafone

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Awareness Stage – It is the first stage which is experienced by the individual by getting
exposed to the product or service introduced in the market. Here, the customer gets to know
about the service but are not motivated to buy it. In consideration of the telecommunication
service, the customer knows about the service (5G network) in the market through
advertisement, but do not use it due to getting involved in using any other alternative service.
Interest Stage – At this second stage, the individual start taking interest in the 5G network
and search for the additional information related to it. The service at this stage is favored in a
common manner but is too considered in utility terms.
Evaluation Stage – At this stage, the individual put on his/her mental ability to the service
for comparing the current and expected circumstance and then chooses to whether purchase it
or not (Risselada, Verhoef and Bijmolt, 2014). At this stage, the individual gives major
attention. The individual evaluates the service of 5G Network of Telstra Company with other
company’s services like Optus.
Trial Stage – The individual at this stage make use of the service on a small scale to define
its utility in their circumstances. Here, the individual tries the service once or twice form
ensuring the utility. The individual to understand the quality of the 5G network tries the
service of Telstra.
Adoption Stage – At this stage, the individual takes decision-related to whether or not to
continue using this service (Jalkala and Salminen, 2010). This is the stage where the
individual decides to make repurchase the evaluated service. After evaluating the Telstra’s
5G Network service, he/she decides to make repurchase it.
The Telstra’s 5G Network service first target the heavy users and early adopters and then to
the late majorities. The heavy users of Telstra are those who spend high amount also known

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as “High Rollers”. These users are comprised of less than one-third of the service but create
to more than two-thirds of the sales revenue. The estimated time that an individual take to
adopt the telecommunication service is 5 days.
Marketing Mix
Product
Telstra is the leading Australia companies. It has categorized its services depending on
the kind of consumers. The Telstra sell different types of services such as
mobile phones, broadband, smartphone, telecommunication network, etc.
(Telstra Global, 2019). The 5G Network service of the company is considered to
providing high quality and reliable service to the service which covers a
maximum of the market of Australia.
Price
The pricing strategy that Telstra has adopted to sell its 5G Network to the target audience is a
competitive pricing strategy. Under this strategy, it prices its services very smartly. It has
created special pricing for the combo packages comprised of Movies, home phone, and
broadband. The prices for the call rates and packages to meet the customer needs from the
minimum cost of around 420 dollars to 840 dollars every year are set by the company (MBA
Skool, 2018). This pricing scheme of the company has been accepted by the target audience
because Telstra off add on benefits such as mobile data.
Place
Telstra majorly uses many of the online platforms for selling its services and products. The
major one is its websites which shows and offer information related to its services like call
rates, mobile phones, and numerous timely promotional (MBA Skool, 2018). The last desk
allows making bill payment and making online recharge. The company has several numbers

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of offline stores too and also places wi-fi and hotspots services for supporting the customer in
getting faster connectivity.
Promotion
Telstra makes use of attractive promotional offers like data doubling when the consumer
purchase by the online medium. It also designs special offers majorly during festivals for
vending its mobile accessories at the discount price with the offer of extra mobile data
(Chung, 2016).
Task 3
Integrated Marketing communication
IMC is comprised of organizing the different elements of promotion and other different
marketing activities that communicate with the customers of the company. The fundamental
tools of IMC utilized to attain the communication objective of the business are called a
promotional mix. Integrated marketing communication makes use of
channels such as personal selling, advertising, PR, Sales promotion, etc.
(Naeem, Bilal and Naz, 2013). IMC is very essential for gaining competitive
advantage in the market. With the augmented level of marketing research,
the likings of the consumers are known by the managers. With this
knowledge, the executives of the company become capable to design the
marketing communications that are united to the preference of the customer
and at the same time it is interconnected at the time when the consumer
desires (Sagala, Destriani and Kumar, 2014).
The communication objective of Telstra to offer 5G Network to its customers
is to offer them better quality network services with better offers. This is

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communicated with the help of different elements of the promotional mix
that is:
Advertising – The Telstra make use of advertisement as its promotional mix
element for the promotion of its services and products in the wide market.
The variables of advertisement are television, radio, billboards, hoardings,
etc.
Sales Promotion – It is one of the media as well as non-media marketing
communication that is utilized by the businesses for the pre-decided short-
term duration with the increasing demand of the customers, enhances
product availability, etc. (Dinnie, Melewar and Musa, 2010). Some of the ways that
are used by Telstra for the promotion of business is exhibitions, coupons,
contests, etc.
Public Relations – Public relations is also called as publicity which is adopted
to spread the information related to the service or product of the company by
the third party in an indirect way. It comprises paid as well as free publicity.
The strategies used for maintaining Public relations are press release and
parties on corporate anniversary.
Personal Selling – It is the process of persuading and supporting one or more
prospects to buy a service or product. This is some through sales
representations, sales training, incentive programs, and sales meetings
(Erevelles and Fukawa, 2013). Telstra uses this by providing training to its sales
representatives for selling the services and products to different distributors
and retailers.

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Direct Marketing – It is a kind of advertisement that enables business and
non-profits for communicating with the approaches like email, online display
ads, messaging, and promotional letters. Telstra also uses direct marketing
for the promotion of its 5G Network among customers.
Integrated Marketing Communication matrix
Cost Time Reach Range
Advertising $10000 Changing
advertisement
after every 3
months
Maximum reach
targeting the
entire population
of Australia
Broad
Direct Marketing $5000 On a continuous
basis
Internet users Wide
Personal Selling $6000 Whenever a new
service or offer
introduced in
the market
Distributors and
Retails
Australian
market
Public Relations $500 At the time of
introduction of
service that is
5G Network
Media Online and
offline
Sales Promotion $1000 During festivals Through the
online and
offline medium
Australian
market

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Conclusion
The above report is comprised of three tasks which are explaining different stages and
elements of the cycle of the Telstra's Telecommunication Services. The analysis has
highlighted that Telstra is the leading telecommunication service and product company that
has covered a maximum of the share of the Australian market through its reliable services.
The Optus and Vodafone are considered to be the nearer competitor of the company who is
trying to compete Telstra in terms of price, promotion, etc. The customer adoption process
has also been explained that is followed by the individual while judging the company's
services. The report has also discussed the integrated market communication used by Telstra
for the promotion of its services and products and attaining competitive advantage against its
competitors. From the analysis, it has been identified that the company is presently involved
in using direct market, advertisement, public relation, sales promotion, and personal selling.

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