Telstra have dominated the telecommunications market for over a century by providing integrated services with vast geographical coverage. Telstra’s main areas of expertise are providing telephone, mobile, internet services and its 3G network to households and businesses across Australia with 9.2 million fixed line services and 9.7 million mobile services. Telstra have strived to be number one in their industry and achieve ultimate customer satisfaction (Telstra website 2009). After largely dominating the telecommunications market for a century, Telstra’s competition has recently become more widespread. In order to effectively adapt to this changing market, Telstra has employed the use of market segmentation in an attempt to increase its customer base and continue to meet the individual needs of its consumers. As Telstra’s customers consist of both consumer markets and business markets, segmentation of both sections was required. In the business market, the segments were divided into ‘Small Business’ and “Managers and ‘Entrepreneurs’. Whereas the consumer segments were more specifically divided into segments including ‘Friends, Fun and Fashion’, Family and Fun’, ‘Family and Self Development’, ‘Family Safe Keeper’, ‘Safe and Respected’, ‘Principled Professional’ and “Work Hard, Play Hard’. With the use of this segmentation, Telstra continues to dominate the telecommunications market.
Telstra sells its prepaid mobile phones through a direct channel in the form of retail intermediaries (Telstra website 2009). As there are numerous Telstra stores established in all areas of Australia, this increases the rate of personal selling which in turn increases the potential of creating a customer relationship (Kotler et al. 2009). Another method of selling through its direct channel that has proved to be quite successful for Telstra is selling through its website. The modernised website contains information about various offers and deals Telstra provides for its prepaid mobile packages, much like an online catalogue. By selling directly to consumers, Telstra cuts costs on intermediaries and can better focus on its target market within each segment (Telstra website 2009). Promotion
Telstra uses many forms of promotion in order to enlighten the customers of their products they have to offer. Using the numerous mediums of promotion benefits Telstra as it is more likely to access all selected market segments through the various forms. Some of the more concentrated forms of promotion for Telstra include television advertising, newspaper advertising, internet advertising and sponsorship (Telstra website 2009). Telstra offers numerous promotions as incentives for customers to purchase their prepaid mobile phones. A recent promotion for prepaid Telstra customers is that by answering incoming calls, you can earn 5 cents credit for every full minute of the call, which is a great incentive for customers to use Telstra’s prepaid mobile service. These types of marketing strategies are excellent in persuading customers to encourage their friends to also join Telstra to receive cheaper rates; it also helps create relationship marketing between customer and company (Telstra website 2009).
Three Service P’s:
Because Telstra provides not just products, but also service, it is important to look at the extended marketing mix. Building strong relationships with customers is an important key which you can only achieve in providing good service. Telstra’s employees play a main role, thus people is one of the extended P’s in the marketing mix. Conveying excitement about Telstra’s products and treating their customers well Telstra’s employees create value for customers, who are involved in the process of creating and enjoying experiences. However, a lot of customers are not satisfied with Telstra’s service (Field 2007). Consequently, this is an aspect Telstra has to improve if it does not want to lose more...