Report on Telstra Marketing Strategies Essay

AbstractMarketing strategies are the main drives for promoting a smart sets products to come forwardgrowth its sales and to build its send. With regards to contest, a company inevitably to strengthen their trade strategies to stay competitive. With the intense competition in the telecommunication fabrication, merchandising is an measurable element in Telstra to build its armorial bearing in the community. This report seeks to dissect Telstras merchandising strategies and identify critiques help to point out the areas of tuition for Telstra.IntroductionFormed in 1901, Telstra is Australias oldest and coarsest telecommunication service provider, with a market allocate of 74.5%. Telstra was partially privatized by the Commonwealth Government in twain commonplace canings in 1997 and 1999. receivable to government activity deregulations kinsfolk 2002, Telstra has begun to open itself to more competition and the companys stock has turned to be more transparent.Its und erway principle activities include a wide array of telecommunication and reading products and serve. As Telstra services a wide demographic of guests, their products are part harmonize to varied target markets.Market SegmentationUnder the management of its new CEO, sol Trujillo, Telstra is aimed towards understanding and satisfying its customer needs (Shanahan 2006). New market re search is to be conducted to satisfy different customer comp unmatchablents who had demonstrated different needs from the broader telecommunications industry. He mentions that, when the market query had been completed, Telstra would befool interviewed over 90,000 consumer customers and created a subaltern business panel of 16,000 businesses. This thorough market research is being conducted as it was sh hold that there is a reducing market in the energetic segment (Corner, 2006).Marketing Strategy AnalysisAs Telstra is involved in the telecommunications and information services industry, the m erchandise strategies will be divided and analysed consort to their respective industries.Telecommunication Industry reapingTelstra provides sundry(a) products and services in the telecommunications industry. Among them are landlines, mobile remembers and the cyberspace.LandlinesTelstra owns and manages close to public switched hollo nedeucerk (PSTN) services. Most of Telstras r even offues are generated from fixed-line services. However, its revenue from its fixed-line services has been declining delinquent to the reduced number of local calls made. Among the fixed line products and services offered by Telstra are the business line plans, fixed and rental ph atomic number 53s.Mobile Ph unitarysTelstra has deuce core services in mobile earpiece communication prepaid and pre-paid mobile phone plans. The company provides products such as mobile phones. As these mobile phone sales are a relatively teeny part of the total revenue these phones are to be viewed as a means to s ell more plans. As Telstra emphasises on providing the latest engineering in the industry, it has repennyly introduced its Next G network, which claims to be the largest, fastest mobile broadband network. Their mobile phone plans work as a tooth root for beneficial segmentation. The casual plan allows for more flexibility for change, while the phone plans offers the added make headway of including a handset. profitsTelstra has a wide variety of lucre services, which is offered to a wide demographic of customers. Among the products offered are dial-up, cable internet, ADSL, wireless, and satellite. Telstra brands its Internet service as Bigpond. With Bigpond wideband, the internet is provided at a blisteringly fast travel. For more traditional Internet services, Telstra alike offers dial-up and ISDN services. With these services, Telstra has segmented apiece service by pre-paid and business free radical plans. Its ISDN service is targeted to mountain with limited broadband a vailability.CritiquesTelstra seeks to increase its customer construe and satisfaction by reward programs and product bundling. Telstra has de bulls eyeed telecommunication plans that offer more options, value and control to meet the customers needs. wizard such example is that it offers the latest fixedphones that take some of the surpass features from mobile phones, such as address book and caller ID. by dint of with(predicate) product bundling, Telstra is able to package a combination of these services into one large offer and single bill service, which makes its mobile products more bewitching for consumers.Although Telstra boasts on having a stable and reliable internet connection, its internet speed has been observed to perform poorly. According to ACCC chairman Graeme Samuel, Telstras competitors have been offering ADSL2+ since 2005, but until now Telstras fastest DSL offering was a mere 1.5 megabits per second (mbps). Its reluctance to switch to ADSL2+ has been based o n the fear that the Australian Competition and Consumer Commission would declare it, thereby braggart(a) competitors access to ADSL2+ at controlled expenditures (Barker, 2006).Telstra does not use much of traditional publicise for fixed-line products and services such as bill batting orders, banners and digital banners, but rather it spends most of its publicize on new products and services such as BigPond Broadband and the Next G network. This is made possible as Telstra monopolizes the landlines in Australia, and mint would stable use its fixed-line products and services. Telstra should march on doing this and to continue to spend more in merchandise its new products and services to meet the demand of the emerging market. given this, Telstra is gaining the demands for both its fixed-line and new products and services.PriceTelstra is focused on product line price, where products deep down the corresponding product wrap are priced differently, depending on its features a nd benefits. This price contrariety is to assist Telstra in maximising their turnover and profit.LandlinesBusiness line plans are priced at $99.90 per calendar month (including monthly Line Rental), where the customer can get inexhaustible local and STD calls and valued rates on calls to mobiles. For fixed home phones, the price ranges from $60 to $500. The average pricing for rental phones includes the provisioning fee of $20 positive(p) $3.00 per month for rental.Mobile PhonesTelstras mobile services are priced according to mobile phone plans, with the model of the phone being the main determinant of their price, where the greater the features of the phone, the dearer the price. As Telstra is by large a service oriented company, they emphasise on communicating more on the benefits of their services, such as covering most parts of Australia and its appurtenant services and network stability.InternetThe Bigpond Internet is priced according to the type of infrastructure used. Fo r example, its prepaid dial-up lines have a fee range of $2 to $19.95 for a validity of up to 45 days, while their wireless service price ranges from $29.95 to $199.95 on a 12 month contract.CritiquesA comparison of the pricing component of Telstras marketing system with offerings from competitors such as Virgin and Optus reveals that Telstra does not always have the worst rates. For example, Optus offers a cable connection of 20GB for $79.95, where as Telstra offers it for $99.95. Comparing the plans Optus has a give way price in some ein truth internet product than Telstra. In addition to that, Optus provides free initial time for one or two months on a variety of their internet connections which lacks in Telstra. Telstra also has a slow internet speed compared to Optus. From Telstras mobile plans, its 24 month long phone plans provide the lowest call rates out of Telstras offerings while the two shorter member- and casual plans have more overpriced call rates. Due to its wid e network coverage, Telstra emphasizes on this feature, rather than button their price as their primary selling point.On the other hand, the company is trying to get price conscious consumers with its money back forward motion for pre-paid mobile plans. In mid-July 2005, Telstra launched a major advertising campaign, where they promote the benefit of gaining credit for doing nothing but talk. Customers can gain up to an tautological $50 in call credit to each one month, 5 cent exceptional for each incoming minute and 1 cent extra for every outgoing minute. This advance campaigns are created to outdo the competition from Optus and Vodafone. They busy in price war in format to offer the stovepipe options. Here, customers arebenefiting from lower prices, but unfortunately it is not likewise for these companies. Here, the governments implementation of the ceiling and floor price for telecommunications regulation is monumental to avoid farther price war.PlaceTelstras telecommu nications products and services are widely available throughout Australia. Telstra has 115 owned Telstra branded stores and 153 licensed shops, with two of its largest licensors being the mobile phone chain hazardous Johns and Australia Post. In addition, the company also has a compelling web presence with a complete online shop for the purchasing of mobile phone plans, pre-paid refills, handsets and supplementary services such as ring tones and games. Telstra boasts of a strong internet presence, with its network covering almost 98% of the population, providing internet service to even the remotest area in Australia.CritiquesTelstra shops and dealers are strategically located across Australia. It attends to the need of the people in their respective area. Apart from its own dealers and shops, it also has Crazy John as its exclusive mobile phone dealers which are very re localiseable and successful dealers. Telstra definitely has the edge over its competitors in price of numbers and locations.PromotionTelstra promotes its products through media, out-of home billboards and also through their in-store value-added product offerings. For example, the promotion of the Bigpond is done in variety of ways, such as using image and celebrities through their airments and electronic billboards in train stations, advertisements on trams, and also on their website. Telstra also promotes their products and services through providing value-added components to attract customers and promote customer inscription. For example, Telstra uses loyalty programs such as Telstra Rewards for landlines. This loyalty program entitles eligible customers to receive a 5% or 10% discount off eligible calls and charges.It is also observed that product bundling is commonly used in Telstra as a means of attracting customers to sign up for their products and services ata cheaper price. For example, product bundling is targeted to families, where families are given the option of combining thei r Telstra bills at a cheaper price. Telstra also provides discounted Bluetooth headsets with selected fixed phones in its product offering. Telstra promotes heavily on its mobile phone offering through service improvements, such as covering 96 percent of Australia with its GSM network and 98 percent with its CDMA network.CritiquesTelstra is one of the countrys largest investor in out-of-home advertising, spending more than $A9 million during the first off six months of 2005. Despite being one of the largest spenders on advertising, Telstra has to be on the lookout of Optus, its close competitor in fixed-line service. Although revenue from its fixed-line services have been declining out-of-pocket to the increased dependence of mobile phones and the internet, little has been done to promote Telstras fixed line services. Again this is because more emphasize is being put into promoting its new products and services, and also the fact that fixed-line is declining in demand. Telstra bi llboards were located in the titty of the cities and traffic for peoples easy access.PeoplePeople are greatest asset for Telstra. In selling and marketing, Telstra aims to attract the best people by keeping them contented and encouraging them to grow and improve. Telstra develops their module through a school development framework, including online development courses, frontline manager and leadership programs, and a comprehensive range of options that develop technical and interpersonal skills. Telstra strives to build a culture that prize and harnesses the individual differences that all people bring to an organization. Through the Telstra Business Principles and the order of Conduct standards of appropriate business and ethical behaviors are valued and anticipate from all employees.CritiquesThrough mystery shopping and observation, the sales staffs are good at communicating. They are knowledgeable about the products and services featured. Telstra has a diversity of staff consisting from various non-English speaking backgrounds. This portrays Telstras success in maintaining its image as a company that values diverse workforce in order tomeet the customers needs.ProcessThe process of applying for Telstras telecommunication products and services are relatively easy, where customers can go through Telstra shops and dealers and also through the Internet. The process involves interacting with Telstras sales team and providing relevant documents when applying for their products.However, the mystery shopping revealed that the processes of the new users cover for the latest technology next G network took a long-life time to be completed which is due to unfamiliarity with the new product. personal EvidenceProducts such as telephones, mobile phones and Internet hardware such as modems and routers are provided by Telstra. These products are often offered as value-added components to their service for customers when sign language up with Telstra. Being a larg e establishment in this industry, Telstra has a strong 24 hour customer support, which provides assurance to consumers that Telstra are reliable.2.Information servicesBeing a telecommunications provider, Telstra complements this service with a directory service, through Yellow Pages, White Pages and the Trading Post. Due to the increasing dependence on the internet, Telstra has designed Sensis as a search engine to bring unneurotic listed businesses in the directory under one umbrella.Product/ServiceTelstras information services operate under the brand attain Sensis. Sensis is designed as a search engine for Australians, bringing together businesses listed in the Yellow Pages, White Pages and Trading Post under one search engine. It acts as a platform that brings together businesses and customers. Sensis has a large network quisling, which includes some of Australias more popular websites, such as CitySearch and Whereis.CritiquesSensis should be commended on trying to build a rel iable clan of trust through their partner networks. With these alliances, Sensis is able to build up its brand through popular websites and establish a high standardof reliability.PriceSensis has its own unique pricing strategy, with BidSmart, which acts as a method that determines the priority of each business listed in a particular search. A company/business with a higher bid for listing in sensis.com.au will show up first compared to other businesses that have a lower bid with the same search phrase. At the end of the month, the price paid by each business is determined according to the number of hits the websites get from search traffics.CritiquesThis pricing strategy is suitable for Sensis. Being a pioneer in providing directory services through the Internet, Sensis is able to create value for its advertisers, by allowing them to pay according to the number of hits obtained. This is a good establishment for Sensis as it is able to attract more businesses to advertise with the m without burdening the businesses with a fixed price as they continue to build the Sensis brand to attract more searches.PlaceSensis is available on the internet and is linked with their network partners. Recent collaborations with carshowroom.com.au are aimed to increase its recognition and customer traffic through the website.CritiquesTransferring Yellow Pages and White Pages to the internet under Sensis is a good move as people are now depending on the internet for faster information. In addition to that, people are not burdened with the hassle of the printed version of these two directories which are bulky and long when searching for information.PromotionSensis promotes itself by collaborating with websites such as carshowroom.com.au to increase its presence in the marketplace. Sensis public relations have also helped gain recognition through press releases and conferences. In addition, Sensis has published a book, Small Business, Big probability and a new website for small b usinesses to aid Australian businesses to optimize their marketing and advertising skills.CritiquesAlthough Sensis does not focus on marketing through billboards and media advertisements, their logotype can be found on Telstra websites and also on their partner network websites that aims to provide a take of interaction between their partners and Sensis.PeopleSensis is accepted as one of Australias leading employers, who strongly encourage an milieu of learning, innovation and enjoyable. Behind these employees is a strong support system its board of directors and executive team leaders who overlook the direction of the business.CritiquesThrough a phone interview enquiring Sensis service, the customer service staff was knowledgeable regarding the processes required to sign up for their services and was also friendly and helpful in providing advice on how to advertise on Sensis.ProcessThe process of signing up to advertise on Sensis is relatively straightforward with a step-by-st ep process. Businesses/advertisers would need to register with Sensis ahead submitting their advertisement to the Sensis search engine. These clients are given the option of choosing among 3 advertising packages to aid in their advertisement presentation. Other websites can form partnerships with Sensis through inserting a Sensis link onto their website. This can be done by downloading a program which integrates the link onto the website.CritiquesThis strategy is good as it provides a level of flexibility and control for clients. With the three types of packages, Sensis is able to attract a wider demographic of businesses to advertise with them as they will be able to address different business needs.Physical EvidenceSensis is available on the Internet, with approximately 100,000 searches per day. According to statistics, Sensis serves almost 13 million users every month and about 150,000 online advertising customers advertise with Sensis.CritiquesAlthough Telstra aims to make Sens is one of Australias premiersearch engine, many people are unaware of the existence of Sensis as it has only been advertised through the Telstra website and their partner network search engines. Consumers are not aware of the meaning of the Sensis logo on these websites, hence decreasing internet hits. Market research shows that Sensis is the 5th visited local search engine in Australia, with 0.39% market share. Although launched in 2004, Sensis has yet to make a big impact in the Australian internet scene. Due to the transition of White Pages onto Sensis, search engine results have been quite inaccurate, affecting its reliability and popularity (Jones, 2006).ConclusionAs the report progresses with the information about Telstras main products and services under two main industries 1) Telecommunication industry and 2) Information services, Telstras marketing strategies are being critiqued using the marketing tool, the 7 Ps framework.In the telecommunication industry, Telstras marketi ng is more on media, billboards and value-added components. Also, it engages more in promoting its new products and services to hitch the emerging market.Also, Sensis has helped Telstra to increase customer usage of the directory, thus the Telstra website which leads to a comprehensive information. In essence, the marketing strategies in its telecommunication industry is currently in good practice but its information service needs further promotion to create more reliability and data accurateness.ReferencesBarker G. 2006, telco finally gets on ADSL2+ bandwagon, The Age, viewed 11 December 2006, Corner S. 2006, Telstras opulent plan to know and serve its customers, ITWIRE, viewed 13 January 2007, Jones M. 2006, Sensis revs engine but Google still rules, Australian Financial Review, viewed 2 January 2007, Government Introduces Laws to Boost Telstra Competition, The Age.com.au, 26 September 2002, viewed on 20 December 2006,Optus, viewed 9 January 2007 Shanahan J. 2006, Consumer-centr icity An idea whose Time Has Come, Australian Marketing Institute, viewed on 5 December 2006, Sensis, viewed 10 January 2007, Telstra, viewed 9 January 2007