Case Study: Telstra's Telecom Marketing Excellence

Telcos today don't just compete with other operators; they also compete with premier brands such as Apple, Sony, and Microsoft. To be successful, they need to be top-notch marketers, yet traditionally, telcos are poor at this. Telstra, the Australian incumbent, is the exception to this rule. Over the past three years, it has systematically implemented a market-based management (MBM) approach to marketing. MBM places customers at the heart of the business and makes the company sell services to meet their needs rather than just technology or products. MBM requires an intimate understanding of customer needs, investment in IT and process rationalization, investment in people to deliver good service, and the vision to integrate marketing into the business. The results so far have been impressive. The four lessons vendor strategists can take away are: 1) make marketing strategic; 2) use MBM to create real customer focus; 3) expect to invest to deliver on this vision; and 4) tackle the program in steps.