About Telstra
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
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Telstra’s shops create a good atmosphere where customers can “play” with new mobile phones and even call somebody to test quality.
Market Segmentation in Telstra
Because of competitors and new entrants like Optus or Vodafone and to meet customer satisfaction to be profitable, Telstra was required to reorganize its long term goals from product base marketing to a customer focus.
Markets consist of buyers that differ in their needs, wants, resources, locations, buying attitudes and buying practices. To reach customer insight, it is important to understand the needs of different segments and to communicate pertinently to them (Brown L, Brown C, Gallagher SM, 2008).
Telstra looks for broad classes of buyers to divide the market. It provides its services and products in three broad categories: Consumer, Business and Government.
The Business Segments consist of Small Business, Corporate ones and Entrepreneurs.
In the case of Consumer Segmentation Telstra targets seven segments and offers different models which provide different benefits to each segment. The seven segments are: “Friends, Fun & Fashion”, “Work Hard, Play Hard”, “Family& Fun”, “Family Safe Keeper”, “Family & Self Development”, “Principled Professional” and “Safe & Respected”.
To facilitate you can divide them in three broad categories:
First, there is the younger generation (Friends, Fun & Fashion and Work Hard, Play Hard) regarding people with the average of age of 25. This segment is likely to enjoy
Telus appeared in the late 1990’s by the merger of Alberta-based Telus and BC Telecom in an environment of significant changes for the incumbent carriers who had previously enjoyed a monopolized service offering. Soon after its creation Telus found itself in the early 2000 to be facing major hurdles of maintaining its financing plans. The early 2000 offered an environment of increased competition for telecom companies, saw the crash of the dot-com bubble and offered a weaker business climate as a result of the 9/11 tragedy. Within this environment, the ratings by credit rating companies had a profound influence on how telecom companies would continue to do business.
§ Diverse markets - Telecommunications markets can local, regional, or global. Furthermore, customer can include residential, business, and government markets.
How should this market be segmented? Identify the key segmentation variables that are relevant for this market.
This report all concerns to identifying and assessing potential segments for BSkyB (Sky) UK telecommunication market. This business organizing operating in UK telecommunication industry is yet to make a mark and achieve a leading position. On the basis of identified market opportunities, it might be suggested to BSkyB (Sky) to concentrate on mobile telecommunications services, which appears a promising market segment, where BSkyB (Sky) huge opportunities to expand its business and so the profitability in order to emerge as a leading player in UK telecommunication industry. It is worth to mention here that UK mobile telecommunications market corresponds to one of the most striking tele-communications markets globally , with the mobile telecommunications services market segment creating
Telstra segment their residential customer based upon customer usage and lifestyle patterns and for small business customers according to the type of business they operate and the way they interact with their customers. Telstra enable customers to interact with them online, through door-to-door sales representatives and telephone sales channels and face-to-face via Telstra Shops.
Since Telstra is just giving their administrations in Australia, they have separated their purchasers as indicated by states and urban communities (Mullins, Walker, and Boyd, 2009). There are numerous components that will come in play when this variable is thought about while organizing showcasing systems. For instance, Melbourne is a metropolitan state with blasting business enterprises and also created neighborhood government ranges. In this manner, the populace has countless experts (Lees-Marshment, 2009). Notwithstanding, a little locale, for example, Albany in Western Australia will depict an alternate demographics by and large. A specific age gathering, race or religion might be more predominant at certain land territories (Lees-Marshment,
To be specific, the two performance measures demonstrated by Telstra in the FY13 LTI Plan are RTSR which account for 50 percent related to share price performance and RCF RIO which also stand for 50 percent relevant to the investment. It may help executives to consider investment for higher return rather than achieving higher customer satisfaction (Telstra Annual Report, 2013. P. 51). However, the majority of large or small enterprises operate business successfully with building strategy and programs based on customers' demands. For example, the mobile manufacturers set wireless and 3G option for smart phones as customers expect to access the internet more conveniently. Thus, understanding the expectations of customer effectively prevents company from losing market share.
3.2 Telstra Market PositioningTelstra's target segments are based on knowing customers and meeting their needs. And its positioning strategy is to express the valuable differences on products and services offered and create competitive advantages. To position Telstra and capture its target segments most effectively, the followings need to be taken into consideration:•Important: the key difference to promote is the scope and reliability of Telstra products and services.
Telstra is a prime example of a government imposed price control in Australia which has not been significantly effective. Price controls were implemented towards Telstra in 1989 when it was the only telecommunication provider and have been placed ever since. In the Telecommunications (Consumer Protection and Service Standards) Act 1999, Telstra agreed to retail price control arrangement but are now currently reviewed since 2010 by the Australian Competition and Consumer Protection (ACCC) who monitor and report to the Minister for communications.
The telecommunications coverage in rural and regional areas in Australia has monopolistic characteristics. Telstra has a competitive advantage over Optus with 99.3% coverage of the population compared to Optus with a 98.5%, this is equivalent to an estimated 192,000 more potential customers. Although Telstra has this competitive advantage they claim that the revenue received from their rural base stations does not cover the cost of development and maintenance.3.
Rogers Cable is the leader in Canada’s cable television market, with a over 2.3 million cable television subscribers and 500000 internet subscribers. In 1993 the Canadian government relaxed the norms of telecommunications industry followed by an application in 1999, allowing local carriers to change the content of the information passing through their networks. This led to increased competition in the market and the customers enjoyed a lot of choice. As such Rogers Cable focused completely on increasing its subscriber base and
As every customer has unique needs and expectations towards certain products, the ultimate goal of market segmentation is to organize customers into groups which allows targeting of customers with similar needs of and response to the products. The key is to minimize differentiation within each segment
Vodafone is one of the most important players on the European telecommunications market. However, this does not mean that the company has an easy job at retaining its customers and at increasing its market share. The most important competitors of Vodafone are represented by Orange and Cosmote. The regulations in the business field determine these companies to provide similar products and services, at similar prices. Therefore, it is important that Vodafone focuses on its communications strategy in order to strengthen its position on the market.
They are very keen in serving the needs and demands of the customers, providing good maintenance of the environment, making Telstra a convenient workplace for the people to work, increasing the value of shareholders and to protect their interests. One of the primary corporate responsibilities also includes leading the nationwide interest by building up the effectiveness of the domestic telecommunications framework, which will in turn provide a strong bottom line for sustainable accomplishment, commercial development, productivity growth and international competitive gain. Enhanced technologies have changed the lifestyle of the people in many ways. Telstra knows that it is very important for a company to delight its customers in more satisfactory manner by providing them with superior products and influential services. It did not forget to improve the customer experience. It always had a path to build a powerful civilization by changing the way, customers talk about the product and
Market segmentation is based on the assumption that not all consumers are alike and each have different needs for the products and services provided by MTN. Based on this premise, the broader market can then be split into groups of consumers who have similar needs and requirements. The characteristics of the product and services may determine the criteria in which the market may be divided by factors such as geographic location, income, age or gender. In this regard marketing activities and campaigns can be developed and implemented to target specific customer segments.