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Situation Analysis And Strategic Marketing Practice Add in library

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Identify and analyse the strategic marketing practices of Telstra?



Telstra leads information and communication service in Australia. However, Telstra is the best brand in telemarketing service in Australia. The company currently provides 9.6 million fixed line service and over 9.3 mobile communication service including 3.3 million 3G connection in Australia.

This study represents the current marketing analysis of Telstra such as identification of target market, evaluation of marketing strategies, analysis of return of investment, etc. After analyzing the current market situation, analyst design new marketing strategy for Telstra in order to improve their business profit.

Identification of target market segment:

In order to get higher profit from the market, Telstra segment their target market into four variables such as –

Demographic – Telstra banded their consumer based on age, sex, education, nationality, religion, etc. In order to attain high market attention Telstra is paying more attention in market crafting strategies (Brei, Vieira and Matos, 2014). For instance, they provide special SMS plan for the young generation customers.

Geographic: As Telstra is big brand in telecommunication market, they divided their market based on cities and states (Jain, 2012). For instance, Melbourne is the big states in Australia. They serve higher quality service 3G service in Melbourne.

Psychographic: Telstra segmented target market based on lifestyle of consumer and social class. For instance, Telstra provide fun seeker group to those customer who always demand for excitement in life.

Behavioral: According to knowledge, usage and response, Telstra segment target market. For example, Telstra offer extra 10 percent discount if the customer recharge their mobile within 3 days.


Current Marketing mix strategies

Product: In order to sell more products in market, Telstra provide right and accurate data plan in the form of business.

Price: In order to make service available and attract more user, Telstra takes marketing strategies for giving extra discount on data plan recharge and low down their promo plan (Kucuk, 2014). According to the customer group, various pricing structure offered by the company.

Place: In Australia. Telstra developed more than 300 stores. Apart from that, Telstra facilitate customer to take their service via filling up the form online (Pirog, 2010). Moreover, customer can get balance by online recharge from the e-commerce site of Telstra.

Promotion: In order to promote the business, Telstra takes the strategy of advertising through newspaper, cable TV, online, social media, etc.

Analysis of marketing costs and returns

Marketing Costs and Returns: The marketing cost of Telstra is relatively high to about $200 million but company is able to generate good return from their investment. The involvement of marketing costs helped the company in making their product aware in the market.

Non-financial: in order to motivate the employee, Telstra offered special discount. Moreover the company, offered to their employee for tour via providing target. The company not only provides retails service but also act as a wholesaler in telemarketing service in Australia. Apart from that, Telstra has also cable service name FOXEL where they share 50 percent of total costs.

Ethical and Stakeholder consideration of Telstra

Stakeholder consideration: Customers are the key stakeholder of Telstra. In order to attract them, Telstra provided discount offer in data plan. Apart from that, based on region they offer several promo plans within a given period of time (Tadajewski, 2012). For employee, Telstra implement privacy protection strategies. Telstra uses electromagnetic energy within their workplace.

Ethical consideration: Telstra adopted policy and set up privacy instrument within the business. In order to maintain privacy, Telstra implement Telecommunication act 1997 and privacy act 1988.






Telstra already have 4G mobile service in a limited area. Telstra can expand its mobile phone service in a much broader aspect and in a broader geographical area. This is done for satisfying the customers to a huge extent and increase a huge customer database.


The prices of the mobile service should be comparatively low in order to attract a huge customer database. So, initially, when the new customers will be given the connection, apart from the charges of the SIM card, an extra advantage of 15GB data usage for free will be given for 1 month. Later the company will be using low price strategy for the connection. The customers will be getting a lightning fast connection along with excellent data usage that will attract the customers to a great extent.


Previously, Telstra provided this 4G service in a limited area of Melbourne. The services need to expand itself all through Australia.


For promotion of this service, social networking is the best option for it. Moreover flash messages in the existing connections will be given in order to inform the customers about it.


The production of the internet network should be high to meet up the expectations of the customers with lightening speed.


Generally, most of the people having Smartphone, Iphone and other mobile devices have internet connection, so all the mobile users are targeted for the product.


The process should keep a balance between customization and standardization and should be clearly defined. The service should be delivered to the customers in time and as per the promise of the company.

Physical Evidence

The location of the service provider need to be in the prime location and the organization need to provide a sense of safety to the new customers.





Month 1

Month 2

Month 3

Month 4

Month 5

Month 6






















Product Development







Product and Process Validation







Product Testing







Product Feedback







Corrective Action







Product Launch




























Selecting promotion method







Engaging staff







Promotion Testing




























Table 1: Timetable for Product and Promotion Development



From the whole study, it can be concluded that strategic marketing practices can be advantageous for the future of Telstra and its product. Further in the study, the marketing practices has been identified which provide a picture of marketing strategy adopted by the company to promote their product in the market. On the other hand, the target market has been mentioned which helps the company in deciding their future plan and also it helps in generating income for the company. Apart from that, strategy of current market mix is effective in increasing their quality and provide better product to the customers. Moreover, it can be understood that marketing costs incurred by the company is significantly high but the company is able to generate better return from their investment. On the other side, new marketing strategy has been designed by considering eight P’s of marketing mix so that it can help the company in increasing their market share and better customer base. Further, the timetable has been developed which provide a schedule about the product development and promotion to make the product presence in market.



Brei, V., Vieira, V. and Matos, C. (2014). Meta-Analysis In Marketing. REMark, 13(02), pp.84-97.

Jain, S. (2012). Marketing of Vice Goods: A Strategic Analysis of the Package Size Decision.Marketing Science, 31(1), pp.36-51.

Kucuk, S. (2014). A semiotic analysis of consumer-generated antibranding. Marketing Theory.

Pirog, S. (2010). Promoting Statistical Analysis in the Marketing Curriculum: A Conjoint Analysis Exercise. Marketing Education Review, 20(3), pp.249-254.

Tadajewski, M. (2012). Character analysis and racism in marketing theory and practice. Marketing Theory, 12(4), pp.485-508.

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