Aspects of Marketing Research: Telstra Corporation - Essay Example

? Marketing Research This paper discusses the various aspects of marketing research and how they affect a company, its strategies, progress, sales, growth etc. The company that has been chosen to apply this knowledge is Australian based; Telstra Corporation. Executive Summary Marketing research is a process that connects the consumer, customer and the marketer through the data and information that has been gathered. This information is collected for the purpose of defining the opportunities that exist for marketing and the problems, generation, refining and evaluation of the actions of marketing. The performance of marketing strategies is evaluated so as to identify the possible steps that can be taken for the improvement of market understanding. Marketing research makes the entire process of data collection very specific in a manner that it attempts to address only those issues which will lead towards the problem solving, it defines and suggests the methods required for data collection, the gathered data is then formatted and prepared for implementation, the results are analyzed and the end result is communicated to the concerned party. It also implies how the changing trend of marketing mix affects the consumer behavior. This term is often interchangeably used with market research, practitioners however have described it as two distinct entities; market research is the research carried out to understand only the market trend whereas marketing research attempts to address to the entire marketing process particularly entailing the changing behavior of the consumers and customers. (David, 2007) Here also marketing research process will be discussed with respect to Telstra Corporation (Australia). The issue under question will be how to address the different categories of consumers and customers using telecommunication services. The paper starts with the basic introduction of the company, their marketing strategies, the variety of users, their mentality, usage, behavior towards the product etc. This will be studied so as to gain comprehensive knowledge and collect the required data that will enable the company to locate their resources in the correct area, understand consumer behavior, and devise a plan to attract, cater to their needs and retain them. The research methodology that has been adopted is secondary. Introduction (Telstra Corporation) Telstra is on of the leading telecommunication and information services company located in Australia. Their network is spread throughout Australia providing people with diversified services in telecommunication; they provide approximately 8.6 million fixed lines and the mobile services amount up to 10.5 million with the inclusion of 8.2 million 3G services. They provide comprehensive and efficient internet services which are popularly known by the name of Big Pond, services are also offered to other telecommunication and internet carriers. Furthermore Telstra has a 50% share in FOXTEL® which deals with cable and television facilities and services. Vision Telstra Corporation’s vision is to make improvements in people’s living and working lifestyle. Mission To build and promote such a technology that is simple, has easy usage and provides value to the customers. Their claim is that they have the best knowledge about their customers’ needs hence designing the appropriate plan to serve them. Research Methodology The research method that has been used here is secondary source. Various published sources are tapped to conduct a comprehensive analysis of Telstra’s ranking in Australia’s telecommunication company. Telstra’s own published literature including quarterly and annual reports are explored to supplement findings. Further analyzed media a source including print media has been used to gain additional knowledge about Telstra. Hypothesis If extensive research is conducted on customers’ behavior, service usage and mentality about the product, it becomes easier to understand their needs and devise the right strategies to cater to them. Market Segmentation Telstra Corporation deals with a diversified and a wide range of customers which have been divided into private also termed as personal users, government and corporate sector. In order to strategically incorporate a plan for them, the two main markets that are targeted are private and personal users of mobile and internet services as they occupy a large chunk of Telstra’s business. The success of a product or service can only be guaranteed if proper marketing research is done which essentially involves better comprehension of consumer behavior and the trends that are observed in their attitude and service usage. First of all, the personal i.e. non business users will be discussed and their different categories will be studied and analyzed. (Michael, 2000) Positioning and Customer Analysis The market segmentation is done keeping in mind the behavioral inclinations related to the product. The two categories are: low usage customers and tech savvy big spenders. Low Usage Customers This includes consumers who are most likely to take affect of the cost of the mobile services but enjoy the security and expediency that is offered by this service. They do not use this service very frequently and are hence categorized as low spending customers. For them, the prepaid services package serves the best which offers the lowest rates as in SMS service. Keeping these traits in mind, it becomes easier for the marketers to determine which market to capture and hence position the product/service. Research was conducted and the end result is as follows: The younger generation who is financially dependant, this attribute contributes to the fact that they may not be the end users of the service; therefore the positioning and advertising campaign is done in a manner that complements and falls in alignment with this information. Service availability that spreads on a wide array of distribution channels is highly valued and regarded. Coverage and wide accessibility to different networks Service reliability Convenience in connection setup Affordability Flexibility in the choice of packages Tech Savvy Big Spenders This target market is characterized by the high spenders who are also considered as early adopters, are affordable and are willing to spend some proportion (usually $100 or more) on the mobile services. Other trends in their behavior include: They use the mobile services very frequently for social as well as regular use. They avail almost all the services which complement their package as well as mobile software irrespective of the price plan. This makes them the early adopters and their mobile also serves as a status symbol. High demand of speedy transmission of data providing access to a large network Physical appearance, functions and design of the handset are of great importance to them Such consumers usual opt for exclusivity and trends prevailing in the society; they exhibit a cynical attitude towards unconventional forms of advertising. They are not much sensitive to price inflation In order to engage and attract consumers falling in this category, unique selling proposition and advertising style should needs to adopt. (Hooley, 2008) Telstra’s Action Plan Keeping the above information in mind, Telstra has designed an action plan consisting of different agenda for the two different categories; low usage customers and tech savvy big spenders. Low Usage Customers Marketing research process was carried out to study the behavior of low usage customers and based on this study; Telstra Corporation has been able to come up with the following actions that will enable them to capture the market through better means. Focus will be paid on the area of devising such strategies that will retain the frequent SMS users and subscribers of the prepaid services. Ensuring continuous growth of the new subscribers simultaneously increasing the usage of SMS through the introduction of new and innovative packages Introduction of more value added services to increase customer convenience and loyalty Gaining competitive advantage over other service providers by introducing unique SMS packages Tech Savvy Big Spenders The mobile market in Australia is moving towards the saturation point which demands that Telstra should come up with such unique selling propositions which will make it prominent among other service providers making its presence felt among the customers. To implement this, Telstra plans to focus on the 3G services which are only being provided by Hutchison’s 3 and are not of standard quality. Telstra’s main objective is to enter this market and provide services that ensure customer convenience, standard and promises Telstra’s dominance in the market. Initially the target market will be the tech savvy big spenders and the following steps will be taken in the course of action: Identification of the high spenders’ behavior towards this service through marketing research and collection of primary data Extensive promotion of 3G services among the target consumers via advertising and PR approach Establishing a unique position among other 3G service providers by utilizing Telstra integrated services Analyzing the reasons behind the failure of Hutchison’s 3G plan and ensuring their eradication while planning Telstra’s launch Conclusion Keeping in view the information revealed and discussed in this paper, the significance of marketing research can be easily understood. It is a very essential part and forms the core of all the successful organizations since a company cannot make a mark unless it boasts satisfied customers who can only be attained when proper marketing research is conducted and the information is carefully implemented, it is only then that the desired results can be obtained. References David, Burns. (2007) Marketing Research. India. Pearson Education. Hooley, Graham. (2008) Marketing Strategy and Competitive Positioning. Pearson Education. Michael, Croft. (2000) Market Segmentation. Routledge. Read More