HI5004 Marketing Management : Telecommunication and Media Organization

Role of organisation’s marketing strategy

The telecommunications market is incredibly big compared to ten years ago. The market includes major competitors like Optus and Vodafone. The marketing strategy is important from the point of gaining market competencies. They have gradually diversified into other market like Telstra TV (Armstrong, et al 2014).

Telstra's First Objective

The primary marketing strategy of Telstra is to generate responsibility. The purpose is to gain long term market sustainability and outreach. Telstra understands the purpose of gaining market effectiveness by delivering diverse range of products (Roberts, 2005).

Telstra's Second Objective

The second strategy is to connect future in order to gain effectiveness. They value each of its customers to gain competencies. Its Telstra responsibility to manage the changes in the market they serve (Shankar, Carpenter and Farley, 2012).

Telstra's Third Objective

Marketing strategy plays a crucial role for the organization. They understand the importance of Change to implement little benefit. Alteration in the market strategy is to determine change in the social, economic and cultural environment.

Telstra aspire at targeting the whole of Australia in term of Local and international customers. It needs to turn out to be the foremost network and phone service provider in Australia. Telstra is setting a high market goal for gaining market competencies and best quality products and services (Palmatier, et al 2016).

1. Through an effective Product and Pricing
2. By Distribution and Promotion functions
3. Operational preparation and Sales Promotion
4. Advertising and Public Relations
5. Direct and Online Marketing Programme

Telstra is constantly improving and developing different ways to gain and initiate new customers. They are constantly upgrading existing customers through innovative strategies. The main policy is to achieve creating bundles/deals that suit every customer in a better way. They form alliance with the companies in order to gain overseas mobile network market. In this way Telstra can get rid of the overseas daily expenses. The Telecom market is full of variables, risks of investment, difficult to control, and is of complex nature.  Telstra faces competition and complaints regarding monopoly from other rivals.  It has gained the position as a leading competitor due to the leading position in information and ICT services market. The future prospect of Telstra is to dominate the wholesale market and to meet the upcoming challenges in future (Mort and Drennan, 2002).

Analysis of 5Cs

Company- SWOT Analysis

Customers 

STP 

Segmentation

Telstra is currently focusing on mobile telecommunications services, broadband access and Internet services. They are also managing IT and telecommunications services through advertising, search and information services.  Telstra has an effective market channel through cable distribution services for FOXTEL and different television services (Zikmund et al 2014).

Target Group

They are providing Services to the majority homes and businesses in Australia. They are providing services to other carriers, advertising service and ISP in order to gain market competencies.

Positioning

They have a valuable market position. In a very short time they have gained a position of an efficient network provider. They have moreover Improved Customer Service & Online “Crowd Support” initiatives to gain a vital market position (Perrott, 2005).

Collaborators their suppliers, distributors or other 

For a business organization like Telstra, collaboration and business association plays an important role.  Business associations play an important role in gaining market capabilities on a long run. This further helps in gaining market capabilities. Telstra has formed business association with small and large sized organizations. This is helping them in gaining competency.  They have formed alliance with government bodies to provide effective network services to its customers.  The purpose is to gain competencies against the other telecom service provider. The brand has collaborated to focus on improving its productivity technology experiences. There strategy of Telstra is to focus on managing experience to its customers by enhancing their network connectivity (Chan, 2006). Overseas collaboration is important for Telstra in achieving pre-defined targets. They understand the importance of collaborating with foreign companies. This allows them in gaining market competencies with pre-defined market goals. This enables them in business expansion and growth.

 Competitors 

Telstra is facing competition from the Telecom provider in Australia: Vodafone, Optus and Virgin Mobile. Telstra supplied almost 51 per cent of the 1.48 million NBN fixed-line services in operation as on 31 December 2016. The competition in the telecom industry is limited. With time the business is expanding. Telstra has diversified business in different sectors by introducing Telstra TV, broad brand facilities etc. There are very few market players in the current market. New business enterprise is enterprise is entering into the Telecom sectors. This is causing competition to the company. The Telecommunication companies are increasing business advancement creating a better opportunities. In this way it is possible to manage the growing business opportunities in a best possible way.

Context 

PESTLE Analysis

Political environment

The Australian political system supports business organization and mechanism in an effective way. The business is supported by favourable external environment allowing organizations to use the business facilities in an effective way. The legal system is well regulated with a better framework allowing business to grow efficiently. The process is very well supported by the political system and reformative policies are building according to the needs. Business in Australia has a high degree of certainty while comparing it with other countries (Campbell, 2016).

Economic

Australian has a better life style and standard of living. The economic policies are effective enough to handle the situation. People are ready to spend money lead a better life. The country has a strong economic growth rates higher than in most OECD countries like US and UK. The working GDP of Australia is higher than the other countries hence creating better opportunities.

Social

The social and cultural background in Australia is effective enough. Telecom industry plays a vital role in managing the local sector in a better way. The country is providing with best employment opportunities. As a result, tertiary education is widely available and is undertaken by a progressively larger proportion of the population. This is available in the form of higher education program available in the country. The social environment creates better opportunities for the local population (Nicholls, 2017).

Technological

Australian culture is promoting Technology and development. With an advancement of technology and growth, there is a growth and development in different sectors creating ample of opportunities. Telstra foster innovation and technology in its process. Software up-gradation is their priority. For the reason, they have hired competent employees to help in gaining market competencies. Technology up-gradation and development is important for gaining competencies over the other companies. In such a scenario, it is becoming important to develop technological competencies. Telstra has valued the internal culture through implementation of characteristics like: humbleness, Desire to learn and with valor to confront ourselves and others.

Legal

The legal framework provides different act and regulation to support the interest of an individual and an organization. The competition commission keeps a check over the monopoly of the company. There are distinct rules and regulation that support the overall legal framework in a better way. This help in enhancing the level of economy.

Environment

Telstra is a pioneer of sustainable growth and development. They do understand the importance of environment in nature. It focuses on developing effective policies to support nature. CSR is an important function in the organization. It consistently supports the interest of the public and the organization in a better way.

Consumer Behaviour 

 Telstra has a huge following in terms of consumer market. It has taken over a large amount of market share. Consumers are more informed and demanding and less patient than at any other time. The consumers do have a higher expectation from the company. They are ready to buy the goods only when they are satisfied. Telstra in network applications and services business has an enormous opportunity in Asia, as well as up-and-coming prospect in digital media, global applications and platforms. Telecommunications companies are at the heart of a social and economic change.  Telstra understand the needs of the customer and working proactively to mitigate the short-coming. They are market leader in telecommunication sector. With an advancement of technology and communication the company is expanding its business into other sectors. This is facilitating better growth opportunities.

What customers want?

The consumer desires are unpredictable and changing each day with technology advancement. Consumers are more informed, further demanding and less patient. They are looking for better services. They tend to switch to other Telecom provider, in case if they are not getting better services and opportunities. Telstra is a pioneer of innovation and change. They incorporate efficient technology in their system. This is helping them in meeting the gigantic targets. The intelligence that now exists in networks has improved functionality. New generation human to machine interfaces like Sire and Google permit technology to be used in a simple way. Machine intelligence, gesture recognition is revolutionary in the industry. These machine user interfaces are important in meeting the target. The brand has collaborated to focus on improving its productivity technology experiences. There strategy of Telstra is to focus on managing experience to its customers by enhancing their network connectivity (Business Insider Australia, 2013).

Which competitors pose a threat? 

Virgin, Vodafone and Optus are causing an extreme level of competition to the company. These serves are providing services at a completive rate. The competition is checked by Competition commission in Australia. This is for promoting the interest of all the companies working in Australia.  There are small players who are entering into the industry; However Telstra has a wide market reach.

How the context of business is changing, if at all? 

The business is expanding day by day creating better opportunities for the business organization. Business organizations are expanding opportunities and diversifying accordingly. There are other allied services provided by the Business in order to sustain competition (Thomas, et al 2016). 

What role collaborators play in the process? 

Collaborator helps in business expansion and gaining market objectives. Collaboration and business venture is important for a business in gaining market growth. Telecom companies are regularly keeping a check over the activities. International expansion and collaboration is of great importance in gaining better results. The marketing strategy is important from the point of gaining market competencies. They have gradually diversified into other market like Telstra TV (Purves, 2016).

Developing marketing strategy 

Telstra is slowly expanding is business in Asia. This market expansion strategy will help in gaining competencies over other companies. Asia is a wide market for gaining competency. In order to grow in a better way, Market growth and strategy is important.

Recommendation and Justification

Asia is a vast market with lot many opportunities. The economic division of the continent allow in managing the business activities in a better way. Telstra can introduce the business policies according to the market requirements.

The pre-defined services provided by the company can add value in the Asian market. There are wide market opportunities. Low cost service provider can gain market competencies. There is a threat only in the licensing process.

To become one of the best Telecom service provider at Minimum cost. The primary focus should be development of services.

Marketing mix 

Product

Telecommunication products like includes Network, Phones, and tablets, Telstra TV, Mobile on a plan.  The purpose is to provide services at a low cost.

Price

 The only way to gain market competency in The Asian market is through a well-defined price structure. The prices should be competitive enough to gain market growth.

Place

 Telstra should be available at every local market in Asia. This will increase the outreach of the product.

Promotion

 Innovative idea need to be implied while expanding business. The primary focus is to attract new customers. Advertisement, promotional schemes are important for expanding business.

Conclusion

To conclude, Telstra is a values-led organization to gain market opportunity. Telstra has valued the internal culture through implementation of characteristics like: humbleness, Desire to learn and with valor to confront ourselves and others. They understand that the company can attain strategic growth by achieving concrete strategy through a direct approach. The report incorporate the 5 C’s, important for gaining market competencies.

References

Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson Australia.

Business Enterprise, 2017. Online. Available at:  https://www.telstra.com.au/business-enterprise Accessed on: 26 September 2017

Business Insider Australia, 2013. Telstra's CEO Outlines Seven Ways Telco Consumers Are Demanding Change. Online. Available at: https://www.businessinsider.com/telstras-ceo-outlines-seven-ways-telco-consumers-are-demanding-change-2013-10?IR=T Accessed on: 26 September 2017

Campbell, L.H., 2016. The NBN from 2009 to 2016 and Beyond.

Chan, A.M., 2006. Tapping the multicultural market in Australia. Marketing and multicultural diversity, pp.238-252.

Evans, D., 2010. Social media marketing: the next generation of business engagement. John Wiley & Sons.

Mort, G.S. and Drennan, J., 2002. M-marketing: New directions in B2C e-business. In Proceedings of ANZMAC.

Mort, G.S. and Drennan, J., 2002. Mobile digital technology: Emerging issue for marketing. Journal of Database Marketing & Customer Strategy Management, 10(1), pp.9-23.

Nicholls, R., 2017. The Australian Telecommunications Regulatory Environment: An overview. Australian Journal of Telecommunications and the Digital Economy, 4(4), pp.196-213.

Palmatier, R., Stern, L., El-Ansary, A. and Anderson, E., 2016. Marketing channel strategy. Routledge.

Perrott, B., 2005. Towards a manager's model for e-business strategy decisions. Journal of General Management, 30(4), pp.73-90.

Purves, D., 2016. Rethinking the role of equity. Investment Magazine, (130), p.16.

Roberts, J., 2005. Defensive marketing. Harvard business review, 83(11), pp.150-157.

Shankar, V., Carpenter, G.S. and Farley, J. eds., 2012. Handbook of marketing strategy. Edward Elgar Publishing.

Thomas, J., Barraket, J., Ewing, S., MacDonald, T., Mundell, M. and Tucker, J., 2016. Measuring Australia's digital divide: The Australian Digital Inclusion Index 2016.

Zikmund, W.G., D'Alessandro, S., Winzar, H., Lowe, B. and Babin, B., 2014. Marketing research. Cengage Learning Australia.