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Telstra: Implementing market-based management

Implementing market-based management

Australians connect with each other through various forms of telecommunications. Whether it be the internet, telephone, mobile telephone or SMS messaging, the majority of Australians have embraced a wide variety of technology to enable them to keep in touch with their families, loved ones and conduct business from many places in the world.

Australian telecommunications provider Telstra has undertaken a significant change in its marketing practices over recent years to better meet the needs of today's customers.

By reading this Case Study, students should be able to:

  • Understand the concept of Market Based Management
  • Outline the key steps in preparing a marketing plan 
  • Explain the importance of responding to consumer needs.

Telstra

Introduction

Telstra is one of only a few telecommunications companies in Australia that has the ability to provide customers with an integrated telecommunications experience using its own assets and content services such as Sensis® and BigPond®.

The expanding marketplace

Since its inception at the turn of last century, Telstra (or PMG as it was known then) has shifted its concentration from being a technology and product focused organisation to becoming a customer focused company practising Market Based Management (MBM).

Market and competition

Markets are often affected by external factors. This is certainly the case with the telecommunications industry which has undergone a rapid transformation over previous decades – and will continue to do so in the future.

Understanding customers and the marketing mix

In order to differentiate itself from its many competitors, Telstra repositioned its marketing plan to put into practice a Market Based Management (MBM) approach.

Meeting customer needs

Telstra introduced their Next G™ mobile broadband network in October 2006, responding to customer needs identified as part of the MBM approach.

Conclusion

Telstra has adopted a Market Based Management approach to provide better services to customer segments and to give it the competitive edge over other telecommunications companies in the marketplace.

 

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Associated with:
Learning Area(s):
  • Business Environment | Types of large organisations
  • Business Structure and Organisation | Forms of ownership of large organisations
  • Management Skills | Role of planning
  • Management and ICT | The impact of technology on business
  • Marketing | Market research methods/analysis
  • Marketing | Marketing analysis and segmentation
  • Marketing | Pricing strategies and their application
  • Marketing | Product development
  • Marketing | Promotion strategies and their application
From: Edition 4

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