Telstra Service: Market Segmentation and Service Performance Analysis

This paper discusses the operation and market segmentation of Telstra, a renowned service brand in Australia. It analyzes the target market based on demographic, geographic, psychographic, and behavioral segmentation. It also examines the service performance analysis on two of the 7Ps: product and place. Recommendations for product variation and expanding 3G and 4G services are provided.

Running head: TELSTRA SERVICE
TELSTRA SERVICE
Name of the Student:
Name of the University:
Author Note:

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Table of Contents
Introduction:...............................................................................................................................2
Service provider description:.....................................................................................................2
Target market analysis:..............................................................................................................3
Demographic..........................................................................................................................3
Geographic:............................................................................................................................4
Psychographic........................................................................................................................4
Behavioural............................................................................................................................5
Service performance analysis on two of the 7Ps:.......................................................................5
Product...................................................................................................................................5
Place.......................................................................................................................................6
Recommendations:.....................................................................................................................6
Conclusion:................................................................................................................................6
References:.................................................................................................................................7

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Introduction:
The aim of this paper is to discuss the operation and market segmentation of one of
the most reputed service brand of Australia namely, Telstra. The company has working
experience of more than four decades and aimed the people and enterprises in every corner of
the country. This paper will be detailing the operation of the company and how it has
segmented the target market in a proficient way. Depending upon the geographic,
demographic, psychographic and behavioural segmentation for the customers, the company
has been operating in the market of Australia and the other countries of the UK, US and some
Asian counties effectively. The paper will be discussing the two p’s of marketing mix
(Ramani & Srinivasan, 2019). This paper has concluded with the two recommendation which
can help the
Service provider description:
Telstra Corporation Limited is an Australia based service provider of
Telecommunication which is renowned for its pioneering in providing 3G and 4G services
across Australia. The company has established and operates telecommunication network and
also offers internet connection, mobile network, pay television services and other services for
entertainment to its customers. The company was established in 1975 and has headquarter in
Melbourne Australia. The company is well known for its effective services which are of high
quality as the organisation embraces new changes for providing quality service. This
company was nominated to be the communication partner of the government for providing
high level communication through mobile, telephone and HD television (Telstra.com.au,
2019).
The company is entering the international business as well by building its offices in
several Asian countries, UK and US. For long this company has been balancing the demands

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and needs of the external environment with the internal by focusing upon the interests of
different stakeholders. The company is trying to maintain its capability for establishing it to
be a powerful as well as efficient service provider in in Australian as well as International
telecommunication world (Telstra.com.au, 2019). The company has successfully established
a comprehensive website and opened different stores throughout this country of Australia.
Telstra is the most popular telecommunication network in this country as more than 99% of
Australian population use the 3G services from Telstra.
Target market analysis:
Market segmentation is a process that helps the companies to divide the complete
Market full of potential consumers into different groups and segments. Market segmentation
is based upon the different characteristics of the customers which ultimately guide the
companies to lay Strategies and implement them. These segments are created composition
customers who can respond similarly to different marketing strategies implemented by the
company and share traits like similar needs, location and interest.
Demographic
 In the case of Telstra the consumers of the service of this company are banded
together into the group depending upon the variables like gender, age, family size,
occupation, income, religion, education, race, culture and nationality (Bhatti,
Abareshi & Pittayachawan, 2019). The company pays more attention to craft its
marketing strategies to focus the need of the customers of young age and high
income. It has different types of plans for younger age group and provide different
types of networking plans for different income groups.
 The company is capable to identify as well as full fail the technology and
communication requirement for all different is group. For example Telstra has various

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types of SMS plan for the young generation because they send more messages to their
friends then and the other age group does (Bhatti, Abareshi & Pittayachawan, 2019).
Similarly for the age group of older people where are plans regarding talk time and
internet services.
 Income also plays an important role because the company aims to capture the
dependability of the customers (Lui et al., 2017). This is the reason why they are
affordable plans for all different groups related to monthly and weekly expenditure on
call or internet use.
 In the case of gender the company has focused on design of mobile phones as the
women customers pay more attention to the tiny details of appearance of the mobile
phone (Bhatti, Abareshi & Pittayachawan, 2016). On the other hand the male
consumers focus upon the features and technicalities.
Geographic:
 As the company offers services throughout the country there has segmented the
customers depending upon their residence in the cities and States.
 In this regard different age group and people from different race and religion are more
prevalent in certain geographical areas. For example the booming business industries
are situated in Melbourne and making it a Metropolitan state with developed local
government area. This area has working professionals as population (Datta, Ailawadi
& Van Heerde, 2017). Similarly in the small district of Albany does not have similar
type of consumers.
 Due to this diversity of population in different geographical areas the company has
introduced different marketing strategies at services for example the 4G network
services are found in in the City areas which can be affordable for the people living in
the cities but not in the small states (Bhatti, Abareshi & Pittayachawan, 2017).

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Psychographic
 There are several segments in the society depending upon the social class personality
characteristics and lifestyles which is included in the company’s marketing campaign.
For example there are high achievers who are successful and tend to use the latest
technology for keeping themselves upgraded with the changing technological growth
of the world (Ridge, 2018). For this type of persons Telstra has brought offers which
are different from those for the youngsters.
 Telstra has focused upon the family oriented customers who to use their service for
keeping in touch with the families.
Behavioural
 This segmentation is based upon the knowledge uses and response to the services.
Based on this variable the company has understood the factors like uses status as well
as their usage rate.
 There are low uses customers and the big spenders. This is the reason why the
company has different data and call plans which are fit for every segment of
consumers.
Service performance analysis on two of the 7Ps:
Telstra uses every aspects of local target market. In order to understand the needs of
the market and catering all of these the company analyses marketing mix which include
people, promotion, product, price, place, packaging and positioning (Massingham &
Pomering 2017).

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Product
In the case of Telstra the product is similar to the services and these are segmented
into three parts like personal, small business and business and Enterprise. As the company
scatters the need of individual customers as well as the medium and large companies, it has
different product segments. For the personal use the company provides mobile phones, sim
only plans, prepaid mobile, tablets, mobile broadband, internet and broadband, entertainment
through TV plans and national broadband network plans or NBN. All of these products and
services are provided to the small business companies with addition in in websites and e-
commerce and fixed line telephone. In the case of Business and Enterprise the company
provides services like mobility, cloud computing, collaboration blanks customer contact and
network services (Telstra.com.au, 2019).
Place
As mentioned previously Telstra has great accessibility in different markets of cities
and districts in Australia. Moreover it has also expanded in the countries of the United
Kingdom and United States as well as of Asia. In Australia Telstra has proved to be
providing the fastest broadband service. Initially the 4G services where only available at the
cities and Central business district in Australia but now the company has expanded this
service to the rural areas also. By 2011 the company has covered all the associated airports
and location associated with town centres (Telstra.com.au, 2019). However depending upon
the geography and accessibility the connection speed and network difference but the number
of users and distance from the base station are increasing (Haider et al. 2019) .
Recommendations:
Despite the fact that the company provides different types of offers to different
customer segment but it is often found that the customers and not getting proper plants fitting

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their needs therefore The product variation is needed to be enlarged so that the customer base
can be enhanced.
Telstra must develop its 3G and 4G services irrespective of geographical
segmentation so that the technological growth of the market is increased. There is also a need
for introducing family pack for the rural areas.
Conclusion:
Therefore, it can be concluded that the company has a well-structured business and
marketing plan that can motivate the marketing process to follow innovative ways to reach
the new base of customers. The company introduces different new plans and offers which are
acceptable for the people of all income group and all age group. The company has focussed
upon the offers and services to the three segments like personal use, small business and for
the medium and large enterprises. Along with the products, the places are also important for
the company. The service performance analysis on product and place reveals that there are
scopes for the company to grow extensively in the rural region of Australia and bring new
offers to satisfy the needs of the customers efficiently.

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References:
Bhatti, H. S., Abareshi, A., & Pittayachawan, S. (2016, July). An Empirical Examination of
Customer Retention in Mobile Telecommunication Services in Australia. In ICE-
B (pp. 72-77).
Bhatti, H. S., Abareshi, A., & Pittayachawan, S. (2017, July). The Analysis of Antecedents of
Customer Loyalty in the Australian Mobile Telecommunication Market. In ICE-
B (pp. 91-99).
Bhatti, H. S., Abareshi, A., & Pittayachawan, S. (2019). Factors That Impact
Customers’loyalty For Mobile Telecommunication Products And Services In
Australia. In International Conference on Information Resources (CONF-IRM) (pp.
1-10). Association for Information Systems.
Bhatti, H., Abareshi, A., & Pittayachawan, S. (2016, December). An evaluation of customer
repurchase behaviour in mobile telecommunication services in Australia. In 2016
IEEE International Conference on Industrial Engineering and Engineering
Management (IEEM) (pp. 602-606). IEEE.
Datta, H., Ailawadi, K. L., & Van Heerde, H. J. (2017). How well does consumer-based
brand equity align with sales-based brand equity and marketing-mix
response?. Journal of Marketing, 81(3), 1-20.
Haider, A. A., Zafar, A., Khalid, A., Majid, A., Abdullah, M. A., & Sarwar, M. B. (2019).
Marketing Management.
Liu, Y., Li, K. J., Chen, H., & Balachander, S. (2017). The effects of products’ aesthetic
design on demand and marketing-mix effectiveness: The role of segment
prototypicality and brand consistency. Journal of Marketing, 81(1), 83-102.

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Massingham, P. R., & Pomering, A. A. (2017). Introducing Knowledge Management to the
Marketing Mix.
Ramani, N., & Srinivasan, R. (2019). Effects of Liberalization on Incumbent Firms’
Marketing-Mix Responses and Performance: Evidence from a Quasi-
Experiment. Journal of Marketing, 83(5), 97-114.
Ridge, L. (2018). The National Broadband Network (NBN)-back to the future for
Australia. Australian Options, (89), 19.
Telstra.com.au. (2019). Telstra - mobile phones, prepaid phones, broadband, internet, home
phones, business phones. Retrieved 7 October 2019, from
https://www.telstra.com.au/#tab-business