Marketing Management of Telstra Corporation Limited

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MARKETING MANAGEMENT ASSIGNMENT
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Table of Contents
Introduction................................................................................................................................................4
Issue 1........................................................................................................................................................5
Issue 2........................................................................................................................................................6
Issue 3........................................................................................................................................................8
Issue 4......................................................................................................................................................10
Issue 5......................................................................................................................................................12
Conclusion...............................................................................................................................................14
References..............................................................................................................................................15
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Introduction
Marketing Management is the activity to make strategies and plan for goods & services,
promote, advertise and sales to reach desired consumers. The marketing management
helps to satisfy the needs and wants of customers. It helps in increasing the sales. It
maximises the profits of the company. It maintains the competitive position in the
market. Marketing management performs functions such as planning, organizing,
motivating, coordinating, controlling and directing. In this study, there will be a
discussion on Telstra Corporation Limited. It is the biggest telecommunication company
which deals in mobile, markets voice, internet access, telecommunication network and
pay television. It is situated in Australia. This study will analyse the 5cs of Telstra. It
includes company, customers, collaborators, competitors, and context. The firm collects
information about market research and market intelligence of the company. The market
segment includes the choice of target market and value of proposition of the target
market will be discussed. In addition to that 7ps of marketing strategy will be discussed.
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Issue 1
Telstra is one of the largest telecommunication organizations in Australia which builds
the telecommunication network. It is completely privatized company. Telstra has more
than one million shareholders. The main goal of Telstra is to improve the digital
channels for customer service. Its mission statement is to become a world class
technology organization which provides empowering to the people for connecting. It
accelerates the traditional method of telecommunication. The improvement will bring by
implementing innovation in digitalization.
Telstra used the slogan for attracting the customer or when they launched new service
in the market “It’s how we connect”. It improves the brand values in the market and
enhances the level of organization in the existing industry.
Services provided by the Telstra are mobile communication services, broadband, data
and internet services. Telstra services are secure over its network and provide its best
services to its customer (Penter, 2018).
The marketing tools of Telstra used are sponsorship, promotion, advertisement and
development in share prices. Brand strategy of Telstra is providing safe and secure
services to its customer. Availability of service is 24*7. They are providing services on
TV, mobiles, tablets, media, offices and homes (Palmatier, 2019).
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Issue 2
Strength: Telstra has active dealing community with its distributor who promotes or
advertises its product. The company also provides best training methods by which they
get maximum benefit. Its position in the market is the most dominant. Its overall history
records show that it brings various new techniques which improve the digital channels in
the market. Its suppliers are reliable who provide the raw material and enables the
company to continue its supply chain with the supplier. It has a good return on the
expenditure because of the stable distribution majority.
Weakness: Telstra weak point is that it's stuck in one area only, no innovation or
enhancement of modern technology. It is the most required area to invest money in
bringing new technology or change in the market. Its financial planning is also not an
efficient. Telstra does not move towards Research and development which may help to
grow faster. It has limited expansion. The major weakness is its prices are higher than
its competitor.
Opportunities: Telstra has the chance to enter a new project or business which
improves its services in the existing market. The services must need to renew by which
services get improved and developed more in the area. Telstra moves towards joint
venture in the international market Asia, China.
Threats: Australia deals with the saturated mobile market in which the same services
will be repeated various times. New technology brings numerous competitors in the
market, and new start-up and SME’s offers the same services at low prices to the
customer. Different country has different laws which need to be regulated (Turban,
2018).
Customer
Telstra provides its services in offices, homes and shopping malls. People are
connected with mobiles, laptop, and tablet. The telecommunication services use by
local public and international public. Telstra launches the new facility to the disable a
person. Rural and regional communities are connected with the Telstra
telecommunication because according to them that it is the most reliable organization.
Its services are secure and safe. Customer behaviour towards the company is loyal and
regular.
Collaborators
Supplier of Telstra has used some code of conduct which already set the minimum
standard. The standards are set based on human rights, safety, environment, cyber
security, business integrity and privacy. It deals with the Australian supplier because of
long-time consistent relationship.
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Distributor of Telstra is Anyware Corporation, Leader Computers, Dicker Data,
VExpress Distribution. Reseller or integrator provides the solution to the partner and
they are indirect helps in the distribution of their services over the customer.
These distributors are necessary for an organization because it enhances the growth of
the organization. Distributors increase the area of service productivity, and it is used for
optimizing the efficient result of resources.
Competitors
The competitor of Telstra Corporation is FOXTEL, OPTUS. It is the Australian television
company which operates the cable services, satellite communication and streaming
services. OPTUS is one of the leading telecommunication companies in Australia. The
revenue of OPTUS is 893 Crores AUD and FOXTEL revenue is $ 10.5Billion.According
to the Telstra revenue, i.e. 2600 Crores AUD. So these two organizations are the most
competitor of Telstra.
Context
Telstra is affected by some factor and its decision implemented according to rule over
these factors.
Political factor Property protection, trading partners,
employees benefits, taxation, corruption,
etc.
Economic factor Exchange rate, quality of infrastructure,
rate of unemployment, labour cost, interest
rate.
Social factor Roles of gender and social conventions,
level of education, attitude, and behaviour
Technological factor Product offering, diffusion in technology
rate, cost structure, chain structure
Environmental factor Attitude toward renewable resources,
waste management, recycling, ecological
product.
Legal Factor Protection of data, patent, copyright, safety
law (Specht, 2018)
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Issue 3
Telstra perform collects data from market research or market intelligence. It gathers
information from its customer. The customer behaviour and attitude also give a
tremendous amount of information regarding the service which is provided by the
company. Information needs to be analysed at a high level which is used performance
of demographic and behavioural data.
The survey or the recent trend analyse customer requirement. Companies work over
the demand and expectation of customer so according to the behaviour of the latest
trend is that the company knows that internet data and broadband is the most efficient
service which is used by the customer.
FOXTEL, OPTUS both are the strong competitor of Telstra both are dealing with the
approximately same market, and its revenue is more significant than Telstra. This
information is latest published in newspaper and magazines. Telstra wants to overcome
from both of these companies, but it requires some innovative ideas which give instant
growth trio the organization. Competitors are a threat a probability or impact which may
be great in the market. The threat is showing the current position in the market, and it
will be described to buy the performance rate of organization, total revenue earned by
the organization. If Telstra wants to start healthy competition in the market for this, it
begins work on some innovative ideas which gives a different direction to the business
although this information is fetched from the customer behaviour, sale rate and profit
rate of the company (Hughes, 2018).
Context of business is changing due to the trend and environment of the market.
Business strategies change if there is modification or alteration in restructuring,
reorganization and the turnaround. These contexts depend on the performance of the
organization. Development in the organization or business may change the factor like
Telstra political factors are a trading partner and these if the organization will become a
public sector in the future there is no deal with the partner is necessary so the context
may alter or affect according to the acceptability of company.
Their contribution to the business understands the role of collaborator. It is the most
important factor of an organization. Collaborator includes suppliers, distributor and
others who contribute to the growth of the organization. This information is collected
from the research experience where it gets to understand how the distributor or supplier
distribute the services in the area and supply the raw material to the industry ( Chen,
2016).
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Issue 4
Developing a marketing strategy
Telstra Corporation is Australia’s biggest company in the telecommunication industry. It
provides 3G and 4G services in Australia. It is a popular for launching market voice and
telecommunication networks. It offers pay television service, internet connection, and
mobile services to the consumer. Telstra focuses on people of major cities. The target
market of Telstra is big cities who are working on technologies (Chan, et. al., 2012).
Choice of the target market by Telstra– In Australia, the telecommunication industry
is changing day by day. According to research, the telecommunication industry of
Australia is getting stronger by time. There are following factors considers while
determining the target market:
Demographic variables –Telstra make strategies by considering various factors such
as gender, income groups and age groups. For the young generation, SMS plan is
made. This strategy is made by Telstra for the young generation to message frequently
to their message. Telstra makes plans according to income groups. It focuses on both
genders of societies. When making strategies for a female group it decides on the basis
of colors and designs. Telstra offers the phone according to the choice.
Geographic variables –The customer is based according to states and cities.
According to the research of Telstra geographical factor plays an important role in the
market demand. Telstra makes strategies according to everyone. Telstra launches 3G
services in cities. It is quite costly and not an affordable low-income group. Telstra offer
services to a number of customers in different cities.
Psychographic Variable –Psychographic factors include lifestyle, class of society and
personality. Telstra gives attention to different variables of Psychographic. It launches
various plans according to a group of people. Telstra launches a plan according to the
different age people.
Behavioristic Variable –Telstra focuses on consumers related to the big spender and
low usage customers. The 3G services launched for high-class people. It message
scheme for low customer usage (Lindgreen, et. al., 2012).
A value proposition for the target market of Telstra
Telstra sets the strategy for simplifying the structure, cut costs and improved customer
experience. It creates the infrastructure of the business unit. The transformation in the
plan helps to deliver better customer service. The productivity is increased by various
programs. The monetization in assets is to improve the strengths of an organisation.
Telstra launches 5G and win the premium brand. Telstra introduces a new strategy in
Australia by simplifying the operations. It sets the product to improve customer
experience. Telstra offers the product, eliminate customer pain points. It creates all
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digital experiences. It establishes the business infrastructure to drive performance. It
simplifies the structure of work. The industry focuses on cost reduction program (Lusch
and Vargo, 2014). It also manages the portfolio. Telstra is creating a new and leading
market. The workforce will be knowledge-based and smaller in structure. It helps in
understanding the impact of employees which suggest in taking a decision. It committed
to talking with employees and support through the program.
A positioning statement for the target market of Telstra
Telstra divides the large market into smaller groups. It chooses the market segment
wisely. It needs and expectation matches from the capabilities and resources. The
evaluation of the target market is by commercial attractiveness. The potential growth
determines by different segments. It determines the segment have an appropriate size.
It has concrete differences. The profits which are estimated determine the additional
marketing cost. The segments are easily accessible. Telstra focuses on establishing the
image in the market. It focuses on attracting customer buy goods and services. Telstra
makes strategies for effective positioning. It develops the statement of posting for
Telstra Corporation. The messaging and communication compares the strategy of
messaging with competitors which reveal the area of potential buyers. It addresses the
positioning of the target market. It also determines the strength and weakness of the
business. It compares competitors to fill the gap. It analyses the positioning of
competitors. It evaluates its own position in the market. It is analysing the data which is
collected from a different market. Competitor survey helps in identifying the market. It
helps in setting the price of goods and services (Miquel-Romero, et. al., 2014).
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Issue 5
Marketing mix 7Ps to support the marketing strategy
The tool of the marketing mix is used by marketers and businesses to identify the brand
and product offering. It is a continuous process. The 7ps are helpful in promoting goods
and services in the market. It helps to satisfy the needs and wants of customers. The
framework of marketing helps to achieve the goals of the organisation. It maintains
strong foundation to execute the activities of marketing. Marketing strategies help to
achieve goals with less wastage of resources and use of marketing budget. It helps in
satisfying the needs and wants of customers. It helps in generating revenue
(Tadajewski and Jones, 2012). It helps in generating profits. Following is the
description of 7ps:
Product–Product must be according to the need and wants of the consumer. It should
work and expects from the consumer to get. Product is something for which the
customer is paying. It includes advantages, features, and benefits that customer attract
to buy that product. While doing marketing of the product, Telstra focuses on the needs
and wants of customers. It provides the product with quality, style, accessories, and
repairs. Product and services are provided by the company its customers.
Price–The strategy of pricing of goods and services affects the consumers. It
determines the consumers are ready to pay the decided price. It includes the payments,
costs and profit margins. It attracts consumers with seasonal pricing and discounts.
Pricing helps to maintain a competitive advantage in the market. Pricing assists in
retaining the customer for a longer time. Reasonable prices play an important role in
attracting the consumer for buying. Price is determined by the company which the
customer needs to pay while purchasing goods and services. Price determined by
considering factors such as competitor’s reputation, low-cost service provider, high-cost
service provider and number of players in industry.
Promotion–Promotional activities help to maintain the goodwill of goods and services in
the market. It includes sales tactics, advertising, direct marketing, and promotions. The
marketing tactics used by Telstra to promote goods and services. By the help of
promotion activities, customers get aware of the existence of goods and services. The
promotion of services includes business developers, search engine optimization, social
media marketing, paid advertising, public relations, and billboard ads. The promotion
strategy focuses on getting more clients.
Place –Place is the location where goods and services distributed. It is accessible to
customers. It is essential that consumers easily find out the place to purchase. In a
competitive market, it is important to design retail place attractive to attract the
consumers. In the process of marketing business place considers being effective.
Customer prefers locally manufacture products. The place of selling goods and services
is the marketing tactic(Zimmerman and Blythe, 2017). The place is where customer
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contact for purchasing of goods and services. The physical address of business serves
professional to interact with consumers.
People–People in the business includes employees and salesman who work for
Telstra. By delivering good services to customers, the positive experience for
consumers must be created. The customers spread their experiences with the people
they met. The hiring of talented staff and proper training of employees maintains a
competitive advantage in the market.People includes consultants, freelancers, and
employees to deliver the services to the consumer. People include knowledge-based
services. It is essential to hire the right people which suit the culture of organisation
(Lindgreen, et. al., 2012).
Process – Process includes distributing goods and services to consumers. The smooth
process helps to reach the maximum customers. The good process helps to repeatedly
deliver satisfactory service to consumers. By increasing efficiency, it saves time and
money. The process is the step by step procedure to deliver the service to the
customer. The process design map includes functions, activities, processes, and tasks.
The company is able to share the process with employees to achieve success in
business.
Physical evidence–Physical evidence includes customers interacting with a business.
It includes a physical environment where it provides goods & services, layout,
packaging, and branding. Physical evidence also includes employees and how they act.
The physical evidence capital requires service brochure, request for proposal, social
media accounts, corporate website and other unique deliverables from the organisation
(Miquel-Romero, et. al., 2014).
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