Introduction

Market Segmentation and Decision Making of Telstra

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Table of Contents

Introduction. 3

Discussion. 3

Conclusion. 6

References. 8

Introduction

In this assessment, the chosen company is Telstra which is based in Australia and it provides mobile networks to the customers. It is a leading company which provides telecommunication service in Australia. Market segmentation helps this company to understand the target market and also helps this company to get the idea about the right choice for the company which helps the managers of the company to make better decisions in the difficult situation. Market segmentation helps to engage the people with the organization and also creates a strong bond between them which helps to develop and expand the business globally.

Discussion

Market segmentation of Telstra

Market segmentation is the method through which the organization breaks the consumers into groups. Market segmentation helps to find out the characteristics of consumers and also come up with the possible solutions that help to improve the business process and also put them in place. Market segmentation also gives the managers of the organization a broader aspect of market analysis. It also helps to understand the trend of the markets. Market segmentation helps the telecommunication companies to retain the knowledge and the data from the different sites which helps them to characterize the customers (Kamthania, Pawa & Madhavan, 2018). In this section, Telstra company chooses all types of segmentation processes to get a better analysis which helps them to understand the market position and also helps them to get the characteristics of the customers. Telecommunication companies like Telstar can predict sales with the help of market segmentation and also develop corporate services through the market segmentation process (Wisesa, Adriansyah & Khalaf, 2020). Market segmentation helps to make a plan which becomes successful and the industry is also able to achieve the long-term goal (Dolnicar, Grün & Leisch, 2018). Telecommunication industries like Telstra use big data technology to improve their services and are also able to predict the sales which develop their business (Wisesa, Adriansyah & Khalaf, 2020). There are different types of market segmentation method which helps Telstra to identify the market trends.

Demographic segmentation

This segmentation helps the Telstra company to identify the age, education level, and income source of the customers through which this company is able to identify their target market and their target customers. This segmentation process helps this organization to identify the customers with differences. Demographic segmentation helps Telstra to narrow down the market situation and also helps them to get the information of the customers that which customer group is appropriate for the company. Demographic segmentation is the basic segmentation process of market segmentation. It helps to identify the target market of Telstra and they choose different audiences from households to individuals as their target customers. Telstra also targets large companies and also targets small businesses to expand its own business in the international market level.

Figure 1: Graph regarding the growth of Telstra after segmentations

Source: (Wisesa, Adriansyah & Khalaf, 2020)

Behavioral segmentation

Behavioural segmentation splits the consumers according to their benefits and beliefs which they are searching for in the services and products of the company. The market distribution process helps to get the response of the customers which also benefited the organization to increase the business methods like Telstra. This segmentation process occurs according to the behaviour of the customers. In this market distribution process, all the other standards are described. This market segmentation process splits the customers as per their value. This segmentation process influences the price and the retention directly in the telecommunication industry like Telstra. Now Telstra is able to know the habits of the customers and thus they want to launch a 5g network as market segmentation helps them to identify that customers are looking for a high-speed network. Telstra becomes capable of gaining practical advantages from behavioural distribution which helps them to recognise the target consumers and market. The behavioural segmentation process also gives Telstra the basic idea about the group of customers and also about the purchasing decisions and habits which also helps them to develop their economical background.

Decision making of Telstra

Simplify the products

Telstra simplifies the products which help them to attract the customers into their platforms and this organization also provides different offers to the customers through which they are able to attract the buyers. Telstra also organizes their internal culture and also organizes their employees to make proper decisions for the organization. Employees are the core factors that help the digital transformation in the telecommunication industry and Telstra also focuses on that. Telstra also simplifies their products so that it becomes easy for the customers and also they provide offers so that this can help to attract the customers.

Technology inclusion

Implementation of the technology also helps Telstra to develop the business process in an international market. Prediction of the customer’s experience and also providing the solution to the customers are also important parts of the decision-making process (Achmad, Anggina & Rudito, 2022). The inclusion of technology helps Telstra to get the information immediately and also helps to improve the services which satisfy the customers

Value of customer

Enhancing the value of buyers also helps Telstra to improve their decision-making process. Customer value creates a market culture that helps to build trust for the company and also helps to build a brand image of the company (Madhani, 2018). It also creates a strong bond between the organization and the customers which also helps the managers of Telstra in their decision-making process. These criteria also help to improve the leadership quality which also helps to improve the decision-making process.

Conclusion

Market segmentation helps Telstra to recognize the target consumers and market. It also helps them to characterize the customers and also understand the habits of the customers. After Reading the entire assessment it can be concluded that the market segmentation helps to assess the market situation. It also helps organizations to understand the trend of markets. It also helps them to develop their marketing plan and also helps organizations to analyze the chances in the target market. The vision of Telstra is to expand the business in the international market. The market distribution process helps to split the consumers into different categories through which the leaders become capable to recognize the behavior of the consumers and also understand their choices. Market segmentation also gives the advantage to recognize the target consumers and target market which also helps to improve the business process and also helps the organization to achieve the purpose.

References

Achmad, S. A., Anggina, P., & Rudito, P. (2022). Strategic Planning Customer Experience using Predictive Analysis Indihome PT Telkom. IPTEK Journal of Proceedings Series, (1), 457-468. Retrieved from: https://iptek.its.ac.id/index.php/jps/article/view/11950

Dolnicar, S., Grün, B., & Leisch, F. (2018). Market segmentation analysis: Understanding it, doing it, and making it useful (p. 324). Springer Nature. Retrieved from: https://library.oapen.org/bitstream/handle/20.500.12657/23073/1007085.pdf?sequence=1

Kamthania, D., Pawa, A., & Madhavan, S. S. (2018). Market segmentation analysis and visualization using K-mode clustering algorithm for E-commerce business. Journal of computing and information technology, 26(1), 57-68. Retrieved from: https://hrcak.srce.hr/clanak/300229

Madhani, P. M. (2018). Enhancing Customer Value Creation with Market Culture: Developing 7Cs Framework. IUP Journal of Management Research, 17(3). Retrieved from: https://www.researchgate.net/profile/Dr-Pankaj-Madhani/publication/333773857_Enhancing_Customer_Value_Creation_with_Market_Culture_Developing_7Cs_Framework/links/5d031cf992851c874c65056d/Enhancing-Customer-Value-Creation-with-Market-Culture-Developing-7Cs-Framework.pdf

Wisesa, O., Adriansyah, A., & Khalaf, O. I. (2020, September). Prediction analysis sales for corporate services telecommunications companies using gradient boost algorithm. In 2020 2nd International Conference on Broadband Communications, Wireless Sensors and Powering (BCWSP) (pp. 101-106). IEEE. DOI: https://doi.org/10.1109/BCWSP50066.2020.9249397