An In-depth Analysis of Telstra's Marketing and Management Strategies

This report provides a comprehensive overview of Telstra Corporation's marketing and management strategies. It begins with an introduction to Telstra, followed by an analysis of its background, growth, and profitability. The report delves into the macro-environment using a PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors. It then identifies Telstra's market segments, including primary and secondary targets, and explores its marketing mix, encompassing product, price, promotion, place, people, process, and physical evidence. The report also examines the involvement of the primary segment in the decision-making process, highlighting customer feedback and relationship management. Furthermore, it assesses the competitive landscape, identifying key competitors like Optus and Vodafone, and evaluates Telstra's strengths and weaknesses. The report concludes with recommendations based on the analyses.

Running head: Marketing and management
Marketing and management

Marketing and management
Table of Contents
Introduction.................................................................................................................................................4
Background of the company........................................................................................................................4
Growth and profitability..............................................................................................................................4
Macro environment.....................................................................................................................................5
PESTLE analysis.........................................................................................................................................6
Market segments of Telstra.........................................................................................................................7
Marketing mix of Telstra.............................................................................................................................8
Involvement of primary segment in terms of decision making process.......................................................9
Competition in Telstra...............................................................................................................................10
Positioning Map........................................................................................................................................12
Conclusion.................................................................................................................................................13
Recommendation.......................................................................................................................................13
References.................................................................................................................................................14
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Marketing and management
Introduction
The report presents a brief overview of the Telstra Company. It describes that how the
company provides telecommunication products and services to its customers. It explains the
growth and profitability of the company. It analyses and evaluates the micro and macro
environment of the company. It explains that how external macro environment factors affect the
business activities of the company. Telstra is one of the biggest telecommunication companies
across the world. The report also explains the primary and secondary market of the company. It
describes that how the company involves the primary market segment in the decision-making
process. It explains the market mix strategies of the company. The report tells that how the
competitors influence the business activities of Telstra. It also evaluates and analyzes the
strengths and weaknesses of the company. It analyzes that how the company is increasing its
business in the market.
Background of the company
Telstra Corporation Ltd. is an Australian telecommunication and media corporation
which was founded on 12 June 1975. It provides telecommunication network and market voice,
internet access, mobile, pay television and other products and services. It is one of the largest
telecommunication company in the world. Telstra head office is located in Melbourne, Australia.
It also provides GSM, CDMA, 3G wireless and satellite services to worldwide customers
(Dalcher, 2014). Currently, the company operates and manages the telecommunication network
in more than 19 countries globally. The main vision of the company is to enhance and improve
its position in the market. Telstra has made many worldwide investments in the Asia Pacific
areas. The Australian government sells 4.9 percent of share to the individual and institutional
investors to stake in the association partial privatization. The company established a special
department which is responsible for the development of the data, e-commerce business and
internet. The company also launched a new generation of the mobile network to share and
exchange the server. The company uses customer focused marketing strategy and value
differentiation strategy to achieve the organizational goals and objectives (Loomis & Taylor,
2012).
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Marketing and management
Growth and profitability
The Telstra makes excellent growth and profitability strategies to gain various advantages
in the market. Telstra earning income is approx $636 million under the NBN definitive
agreements (Raiche, 2015). Net cash from operating activities has increased and the revenue of
the Telstra is approx $27.1 billion (2016) and the operating income is approx $6.3 billion (2016).
The total profits and assets are also increasing day by day. The total profit of the Telstra is
approx $5.8 billion (2016) and the total assets are approx $40.45 billion (2015). The total equity
of the company is approx $14.51 billion (2015).
Retail revenue of Telstra: Telstra retailers provide various kinds of telecommunication
products and services to its customers (Moorhead, 2015). The retail revenue of the company is
showing in below chart.
(Source: Somasundaram, 2017)
Macro environment
The macro environment is a situation that exists in an entire economy. The macro
environment factors include the external and uncontrollable factors which influence an
organizational decision-making process and affect its strategies and performance. The external
environment also affects the business activities of the company. Thus, the company should
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Marketing and management
evaluate and analyze the macro environment factors which exist in the environment. The external
factors are such as legal, political, demographic, technological changes, social conditions and
natural forces (Alqahtani, 2013).
PESTLE analysis
PESTLE analysis is an analysis of the macro environment which affects the Telstra. An
organization cannot control on external factors, therefore, they are beyond the control of the
firm. It creates different kinds of threats and opportunities in the company. PESTLE stands for
political, economic, social, technological, legal and environmental factors of the macro
environment (Curwen & Whalley, 2014). The external factors are discussed below.
Political factors: The political factors affect the Telstra business. The political factors are
discussed below.
 Political steadiness, antitrust laws, wage legislation
 Product labeling requirements, pricing regulations
 Intellectual property protection, industrial safety regulation
Economic factors: These factors also influence the business activities of Telstra which are
discussed below.
 Labor costs, inflation rates, interest rates, economic growth rate
 Unemployment rate, infrastructure quality, comparative benefits of host country
 Efficiency and effectiveness of financial market, discretionary income, government
involvement in the free market (Ganesh & Zorn, 2011).
Social analysis: The social external factors play a significant role in Telstra business. The social
factors are as follows.
 Demographic, education, values, and attitudes of people
 Education, leisure interest, culture of people
Technological factors: If the company wants to run the business successfully then it should
analyze the external environment (Coutts, 2015). Technological factors also affect the business
of the company. These factors are discussed below.
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Marketing and management
 Impact on cost formation and structure, the rate of technological diffusion, impact on
value chain structure.
 Technological impact on product offering
Legal factors: Telstra strategies include the following legal factors are discussed below.
 Power consumption regulations
Environmental factors: The following external economic factors affect the company market.
They are discussed below.
 Increasing ecological programs, climate changes (Campbell, 2016).
Market segments of Telstra
Australians interconnect with each other through the various forms of telecommunication
like the internet, telephone, mobile phone, SMS messaging. Now a day’s Telstra is fulfilling the
needs of Australians. On the basis of potential consumers, the Telstra target market divided into
two categories (Arokiasamy & Abdullah, 2013). They are discussed below.
Primary target markets: The primary target market plays a significant role in Telstra
Company. The primary market segment includes the consumers, small business owners, and
managers. The consumers of Telstra are more traditional rather than progressive. The company
builds tradition and heritage relationship with consumers. Mostly, consumers of the company are
residing in Sydney and they are the age group of between 40-50. Small businesses include the
traditional small businesses, on the road business and home business. The company divides its
small business according to the types of business through which the company operates and
interacts with their customers. Residential and wholesale customers and governments are also
involved in a primary market segment of Telstra (Beltrán, 2014).
Secondary target markets: The secondary market also plays a significant role in Telstra.
Secondary market includes shareholders, media, and Telstra staff. Australian’s
telecommunication markets are opened to full competition. The company has a great liberty to
develop and improve product packaging to meet the specific requirements of specific customer
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Marketing and management
segments. The company should analyze the secondary market segment to provide the products
and services to its customers (Goggin, 2012).
Marketing mix of Telstra
The marketing mix plays a significant role in Telstra. The marketing mix of Telstra
includes the product, prices, promotion, place, people, process and physical evidence. The
company marketing mix is discussed below.
Product: Telstra is one of the biggest telecom players in Australia. The product and services of
the company depend on the types of consumers exist in the market. Small businesses offer the
digital technology, SIM, bundles, mobile phones, the internet and online services.
Price: The Company adopts the excellent pricing strategy to attract the consumers in the market.
Telstra offers the special prices for the combo packages which also consists broadband like TV,
home phones, and movies. The price strategy of Telstra is easily accepted by the consumers and
they take benefits of this strategy.
Promotion: Telstra makes attractive promotional strategies to attract the customers in the
market. It generates special offers on occasions. The company not only offers the products and
services at discounted prices but also utilize the Wi-Fi, hotspot to improve and develop its
visibility and it creates hum among its customers.
Place: Telstra uses various online tools to increase the sale of its products and services. The
company has the various online stores to provide services to its customers. In this way, it
provides faster telecommunication products and services to its customers (Greenland,
Bainbridge, Galloway & Gill, 2012).
People: The company provides effective customers services and it enhances the consumer
experience in the market.
Process: It provides online technical support for sell the products and services of the company.
The company also provides 24x7 customer’s services to its customers. Process plays a significant
role in Telstra marketing mix.
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Marketing and management
Physical evidence: It has the various offline stores and centers across the world. Psychical
evidence also plays a significant role in Telstra marketing mix.
Now it is assumed that marketing mix plays a significant role in Telstra. The company
focuses on the customers through marketing mix strategies. It takes various benefits with the
help of effective marketing mix strategies.
Involvement of primary segment in terms of decision-making process
The primary market plays an integral role in the decision-making process of Telstra
Company. Telstra is the largest telecommunication organization to provide customer services at
home. It is the fully integrated telecommunication organization. The company maintains
excellent relationship with consumers to gain competitive benefits. It involves the primary
segment in terms of the decision-making process. The company takes regular feedback from
consumers to improve the products and services (Cradduck, 2011). It uses customer support
system to improve the telecommunication network and market voice. The residential and
potential customers provide support to improve service level and business performance of the
organization. Area sales managers are appointed to address and resolve the problems of
customers related to sales and services of the company. Customers provide support to improve
the business efficiency and financial performance of the company. The company focuses on the
communication services and channel of communication. The company has 16 offices across the
world including USA, Europe, and Asia Pacific. Therefore, the company provides
telecommunication services to multinational customers and international service providers. It
takes the opinion of managers and owners for providing effective services to the customers
(Simon & Slay, 2011).
Through feedback, the company can take reviews of consumers to overcome on the competitors.
If the company takes feedback of customers then it can improve its online products and services.
In this way, the consumers will use the services of the company and they will also buy the online
products. After receiving the feedback from customers, the company makes innovative strategies
and plans to improve the online and telecommunication services. The company delivers the
excellent consumers experience by rendering the best products and online services to its
customers. It is developing the telecommunication network for future. Telstra is a leader of
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Marketing and management
telecommunication industry in Australia thus, the company knows the need and requirements of
the customers in the Australia. The well trained technical staff has been appointed by the
company to resolve the problems of the consumers. The company and handset manufacturers
maintain a close co-cooperation and coordination to create a wide range of business in the
market. After the various researches, it has been analyzed that Telstra provides a wide range of
telecommunication services and products to its customers. In this way, it satisfies the needs and
requirements of the customers (Power & Power, 2010).
Competition in Telstra
The main competitors of Telstra are Optus, Macquarie telecom group, Vodafone, iiNet,
and Transact capital communication. Optus provide a high range of telecommunication products
and services, business network services and local and international telephone services to the
different kinds of customers. Vodafone also provides telecom services to the customers.
Therefore, highly competition exists in the market among Optus, Vodafone, and Telstra. Telstra
has maintained the high level of market share in the customary product areas. Telstra can
overcome on the competitors through its excellent strengths (Voon & Mitchell, 2011).
On the basis of strengths and weaknesses, the differences among Telstra, Vodafone, and Optus
are discussed below.
Basis Telstra Optus Vodafone
Strengths  It expands its business
in key market
 It maintains amiable
relations with
regulatory bodies.
 It provides wide range
of customer portfolio
services to its
customers
 Approx 35,000
employees provide
 It is one of the largest
companies in the
Australia.
 Provide local support
and fast trustworthy
services.
 Approx. 8500
employees are
working for the
organization.
 It includes huge
market exposure
 Generates high
revenue and profit
 Use excellent
marketing
strategies
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Marketing and management
services to its
customers across the
230countries indirectly.
Weaknesses  Unsatisfactory
consumer services and
operational and
managerial
inefficiencies.
 It suffers from latency
problems when
compared to the
competitors Optus and
Vodafone.
 Its prices are higher
than competitors.
 It maintains limited
liquidity position in the
market.
 Might drop the fast
move benefits
 Limited regional
presence as compared
to worldwide
competitors.
 It reducing
subscriber base
 Reducing brand
valuation
 Poor performance
in Europe
 It is losing market
share in the USA.
The above description shows that strengths of Telstra are the weaknesses of Optus and
Vodafone and the weaknesses of competitors are the strengths of Telstra. Therefore, Telstra
takes the various benefits from the weaknesses of the competitors. In this way, the company can
maintain the good position in the market. The Optus and Vodafone are not being able to maintain
cordial relations with the consumers while Telstra makes good relations with customers. If
Telstra wants to overcome on the competitors then it should analyze and evaluate the weaknesses
of the competitors. Telstra has launched 4G mobile broadband network in the world. It is also
increasing IT services in the market. Therefore, it is increasing its business activities day by day
(Liu, Brotherton, Shellard, Donovan, Saville & Kaldor, 2011).
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Marketing and management
Positioning Map
The below positioning map of the market is showing that Telstra maintains high
competition and high level of involvement, it means that it involves the large number of
customers in the decision-making process. In this way, the company gains the benefits of high
competition. On the other hand, Optus maintains a low level of involvement and high
competition in the market (Gerrand, 2013). Therefore, Optus cannot take more benefits due to
the low level of involvement of the customers. The positioning map for the market place is
showing in below diagram.
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High competition
Low Level of
involvement
Low competition
High level of
involvement

Marketing and management
Conclusion
Now it is concluded that Telstra is the biggest telecommunication company in the world.
It provides various kinds of internet and telecommunication products and services to its
customers domestically as well as internationally. Now a day’s Telstra is showing the enormous
growth in the telecommunication sector. It uses effective marketing strategies to overcome on the
competitors. It maintains the loyalty and dignity and good relations with the consumers in the
market. Therefore, it attracts the consumers and increases the revenue of the company. It is one
of the best well-known brands in the world. Telstra has proved the effectiveness of its network
strategy. Now it is assumed that the company should make plans to enhance the
telecommunication and internet services in future. In this way, it can make a good identity in the
market and it can also take benefits of its competitors (Cripps & Standing, 2011).
Recommendation
Some recommendations have been given to Telstra to provide better telecommunication
services to its customers. They are discussed below.
 The company should continue to work with agents of people to resolve any service
concern and problems.
 Telstra must report to the government on the outcomes and result of its projects to
improve the coordination and cooperation of new service connection.
 The company should use more effective strategies to improve the telephone services.
 The company should analyze the needs and requirements of different customers in the
market to introduce the innovative products and services in the future. In this way, the
company can gain high growth and success in the future.
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