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Telstra Is A Telecommunication Company Based In Australia Marketing Essay

Paper Type: Free Essay Subject: Marketing
Wordcount: 3455 words Published: 1st Jan 2015

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This report is an analysis of marketing strategies employed by Telstra Communication Company. An overview of the organization with its business specifications is detailed. The two models to be critically analyzed include; the five forces by porter which will focus on external environment and analysis of SWOT to measure the internal aspects. Model by porter illustrates the use of power from both the supplier and the buyer, new competitors in the market and development of product and technology. The finding shows that Telstra has been able to infiltrate markets of other economies in the world like china. Differentiation of the product is the key in its promotion policies. SWOT analysis points out the need for training and development of staff so as to be able to offer better good and services. The strong value system is important in establishing a rapport with the customers. (Bradford, 2005)

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Focus is also laid on market mix. Major areas discussed include the location advantage, pricing mechanism, its promotion, distribution and developments. It is evident Telstra has taken over market niche and with its well-built financial background it has managed to allocate various products prices with respect to ability of the consumer. It is in the companies policies to continuously develop the product through research Guiltinan, 2007)The company makes use of clicks and bricks where the customer may place an order through the internet but picks it from any other outlets. An appreciation of interactivity and individualization is considered by Telstra communication. This is where the customer and the seller are kept at a close range through monitoring and evaluation measures.

The report also furnishes on the lifecycle of a product from its initial stages of idea generation to the final level where the product demand faces a downward trend. Because of the many variants available in the industry, Telstra uses a mechanism to differentiate a product from others. Integral part of product differentiations is an acute use of color, graphical displays, text, quantities qualities and the prices (Hill, 2006). Therefore a consumer will fit to his or her category of needs automatically.


Telstra is a telecommunication company based in Australia with its services covering various areas of communication such as internet, mobile phones and its accessories and advertising agents. The company’s broadband modem is very efficient such that it offers a faster access to the internet. In the same line of business, Telstra Company offers a great deal of services related to the usage of internet such as sending electronic mails, the use of servers, and general networking. This company manages its services by the use of subsidiary companies like the BigPond which offers cables and connectivity to the internet at a higher speed to the community and other businesses.

Another subsidiary is a wholesale which sells products to other companies. Telstra has outlets for its products. These are the points where the customer who needs their services gets a chance to quickly scrutinize the product or service before acquiring it for a fee. Telstra has a big asset base and for this reason it is capable of providing its products to customers locally or even internationally for resale. In essence it supplies both the retailers and consumers in the way (Brendan, 2005).

Its mobile telephony is the largest in terms of coverage and the number of people who have Telstra’s services. The company covers more than 50% of Australia which makes it a major service supplier. These telephone mobile services are up to date and more so have high quality voice calls within the specified frequency range. Telstra also participates in advertisements for other companies around the world and also individuals. These services have been offered to a subsidiary company to print telephone directories, and other related advertising work. Various websites have been considered where companies can place there adverts for a fee. This service is important especially to other companies who want to offer a customer experience interaction so as to raise their sales levels. The service comes in terms of search mechanism, maps, and sites highlighting description of places and phenomenon (Philip, 2009).The development of fiber to node by Telstra Company is an addition of value to the company and the Australia economy at large. This is because of the increase in speed to a 100Mbps upload and download speed. The result was meant to speed up communication between businesses and the world.

Since the company has a big financial base, it has employed a big workforce in its various departments. Data revealed shows that manpower with special talents and abilities have been employed to give competitive services. By doing so it has been able to secure a big customer base. Telstra is considering expanding its subsidiaries to other countries. Already markets have been realized in Europe, New Zealand, Asia and china. These countries benefits from quality services offered i.e. cables connection, internet services, mobile telephone subscriptions. The investments made in other countries simply earn foreign earnings thus boosting the base countries economy (Ulrich, 2008) .

Telstra participates in community development issues like diverting funds to aid various organizations such as sports. This was actualized when it sponsored swimming and rugby teams in their 2002 competition (Seglin, 2003). By so doing it shows a sense of social responsibility advocated by the state government.

To be able to discuss the Telstra’s competitive advantage in various areas we will consider a model by Porter. This model considers forces driving competition in the market.

Model by porter

Power from supplier

Telstra has infiltrated other countries in the world by setting up subsidiaries. China is one of the beneficiaries of the subsidiary company established by Telstra. ~ 50% of shares held by SouFun were taken by Telstra communications. This is an indicator that it is able to manage its businesses market in other countries. Products sold by Telstra are of quality standards such that the customers have complete trust on their supplies. Call centers established by Telstra communications is a sign of good contact with the customers (Dev, 2007). It is clear that the procedures established to guide on transaction processes favors the customer thus that is a reason why there is a well established base.

Relevance of new competitors

There exist regulations from the government to guide on entry into the market. The main competitor was Optus but due to its quality services it has taken over the market. Since Telstra is long established company, it has managed to set up many subsidiaries in Australia. This has enhanced the location advantage in that customers can easily access these products. The strategy to fight new entrants in the market is to avail its product to the customers at a real time. Adverts and promotion is also a key in its strategy to fight competitors in the field (Rothman, 2007). Branding is important when marketing its supplies. The brand name distinguishes the products from those of other companies in the market.

Product and technology development

Telstra has continuous strategy of building on its product through a process of developing a product to respond to market needs. The prices of supplies have been adjusted for them to fit the abilities of a customer. Introducing affordable brand is crucial to the company so as to be able to make sales. The rules from the government direct that a company must be able to release a product considering its importance at such time (Hartman, 2004).

Ability of the buyer

Consumer of such a product must be able to choose between many alternatives in the market. The cost of a product is left to the market forces such that it is always at equilibrium. Communication is of essence at this present age, thus it is unlikely that the company misses out on sales (Grant, 2005).

Competitive aggression

Due to the process of product differentiation and improvements fewer competitors are recorded in the market. Telstra has also been able to increase both the number and sizes of its subsidiaries in the market. Quality of services ranges from basic to complex coverage (Guiltinan , 2007).

Analysis of the SWOT

Telstra communications is established on a strong ground of well trained personnel who are able to deliver. Its financial base is in a way that it is able to meet long and short term liabilities within. Strong values integrated in it the company’s rules and regulation ensures that it survives the test of time. The company is also capable of meeting a wide variety of needs of the customers following its innovative nature and a market controlled prices of goods.

The company faces a challenge from the management in that the process of recruiting the managers has not been adequately transparent. This acts as a setback to those who want to invest in the shares of the company. It has also suffered political interference such that those in authorities hinder its operation. There exist opportunities for the company both within and without. These investments areas are necessary for expansion and differentiation purposes. Well established research departments are necessary to take the products to anew level of innovativeness.

Incorporated strategies

The company has a functional research department and well diversified market to ensure consistent product development and meet the needs of the customers. Employment criteria ensure that qualified and professional individuals are recruited to various departments.

Analysis of marketing

Focus on the mix in marketing

Through the internet it is possible to communicate and get instant feedback thus the overall process of trade is enhanced. An analysis of the product reveals that Telstra is planning to develop FTTN product which is a national broad band. The product would ensure high upload and download speed delivered at home. The product is meant to cover homes in Australia thus it means that it has a wide carrying capacity. It is available at any subsidiary company and all the services regarding installation repair can be accessed easily. Telstra also exercises branding of the new product so as to attract attention of the customers.

The prices will be generally the same with no regard to individual abilities. It is meant to adjust with respect to market forces which will push it to the equilibrium level. An analysis made on the effect of price change on sales levels is critical if price is to be adjusted. Distribution indicates how well the product is availed in various areas. So as to realize this, number of subsidiaries is increased. Therefore the number of stock with respect to the number of person is at an equal level (Dev, 2007).

When a new product is being introduced in the market, it is paramount advertisements re placed in the media. The web powered by ms office is relevant to Telstra in chatting with prospective customers and offering customer solutions in real time. The interactions conducted are relevant in offering; intelligence, bridge distances and reduces cost of doing businesses.

Marketing by interactivity and individualization

Telstra usually updates its website by covering on the demands of the target group. This has been possible by investing in statistical research to deduce the needs of the users. A usual observation is a faster access to sites thus investment made with an aim of enhancing the speed is a step in a positive direction. Telstra organization is on the lead having actualized this. The company has used a good coding and script system which thus attracts internet users. Ability to chat with customer care representative means that individual needs can easily be met. (Joshi, 2005)

Innovations with respect to Web technology

Telstra is in forefront in improving the outlook of its services through advanced tools available for web browsers.

The life Cycle of a Product

This has to do with generation of ideas about a product, its introduction to the market, how it grows and finally the reduction. Therefore the time that a product takes to reach the final consumer while taking into consideration the related costs and time is of much importance. At the initial stage, the firms focus is on promoting the product in the market through advertisements and use of distinctive features on the website. The pricing mechanism is such that it attracts many customers since this is an initial level. The distribution mechanism is such that only the identified place is supplied with the product.

At the growth and development stage, the firm main focus is on increasing the distinguishing features. The price is held at a fixed rate since demand is on the increase. At this stage, it is relevant to increase the number distribution agents like subsidiary companies. To promote the product at this level, Telstra considers a wide society.

To enter maturity stage, the product is modified such that it can be identified from other product in the market. It is the advisable to reduce the prices of the product so as to check on the competitors. Market coverage is enhanced such that it is easy to find the product at any place. Telstra seeks to ensure product discrimination since it is evident that there are many products in the market. This is a measure to ensure distinction

At the final stage, it is evident that output to the market declines. The management has to consider introducing another competitive product or adding specialized features to the product. The focus market is the local market segment.

Strategy of Clicks and bricks

Telstra incorporates this strategy when carrying out its marketing. This involves conducting sales online while the customer takes an initiative of picking it from any distribution branches. The company makes use of software to trace transaction and locates it to the customer. This strategy is effective since time is saved for other business activities (Brendan, 2006).

Variant Product

Since Telstra participates in selling of many products, a catalogue used assist to speed up business activity. The catalogue is in form of software which involves completion of a wizard to give a specific product. JD Edwards offers a solution to difficulty of distinguishing products. Telstra has incorporated the use of color, style graphics quantities and prices. This involves classification of products into the similar attribute so that the target customers can identify exactly what they require in the market. A company can be able to make high level of sales if their customers easily identify a product they need from a group. Thus Telstra Company considers good stores displays effective in increasing sales.

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Telstra has employed a strategy which has responded to market needs. It is evident that scientific and technological change is a continuous process. The use of product mix ad a marketing strategy goes long way in enhancing sales. The pricing, promotion, distribution aspects are essential when determining the market to focus on. Costs to be incurred must not exceed expected returns from the investments.

Personalized interaction between the consumer and the seller has enhanced sales levels. It is easier to source information directly from the sales representative through chats and use of customer service experience calls. Sufficient information channeled to the customer ensures they are kept at a level of market awareness. This is possible by the use of mails sent to customers who frequent Telstra’s website. The site also is needs to be enhanced by stepping up its uploading and downloading speed.

The company should be in the forefront in coming up with new and best practices such that the final consumer is satisfied with the product supplied from Telstra. It is not necessary to exercise a complete overhaul of the system but it should be a continuous transition process of change which does not affect the target niche.


For a company to achieve its objectives it is essential that efficient marketing tools are employed. E marketing bridges the gab between the old age and the present times where transactions are done at a high speed. Direct response and interchange of ideas across the networks has ensured that new businesses are created and brand is developed while retaining other business deals. Returns on investments exceed the classical theories of marketing.

E marketing is essential since most of the banks have utilized transactions done in the internet around the world. For this reason there is no need to physically visit the bank in order to complete a transaction. The use of e marketing integrates various sectors of the economy such that the result mutual trade. E marketing demands that businesses be conducted with high standards of integrity, trust and honesty. Research shows that internet is full of scum, theft and fraud, tempering of copyrights and registration issues. For this reason government must regulate and put in place surveillance to counter the problem.


Telstra must look into the possibility of establishing e-store where the sole purpose is to sell a variety of products to customers from around the world. E-stores appreciate need for speed in conducting businesses. The use of search engine at an optimum level is necessary so as to take over a specific market niche. This has been necessitated by technological progress where the use of internet for business deals is essential.

Telstra needs to look into the possibility of using trade magazine to infiltrate various market segments. This is important because some population description favors the use of magazine in making decisions. Psychological orientation of the target group contributes to the choice of media. Also individual choices must be considered when designing media to use for advertisements. A continuous process of improving the website is essential to attract the customers. This is possible if a technical team is constituted to research on integrating the needs of customers in their website development criteria. The privacy of the customer must be protected at all times. The customers are stakeholders in any business entity thus for it to continue into foreseeable future, good ethics must be exercised by the business world mutually.


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