telemarketing

The business or practice of marketing goods or services by telephone.

Selling over the telephone.

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Use of the telephone as an interactive medium for promotion or promotion response; also known as teleselling. Telemarketing, a response vehicle, includes receiving orders, inquiries, and donation pledges in response to print and broadcast advertising, catalogs, and direct-mail promotions, and also receiving customer inquiries and complaints. Incoming telephone callers are usually given access to an in-wats number but may also call collect or call at their own expense. Outbound telemarketing is used to follow-up on inquiries, to sell products or services, to clarify or upgrade an order, or to gather information about consumers or other aspects of the market.

Unlike other promotion mediums, outbound telemarketing calls interrupt the consumer by demanding immediate attention and are not identifiable as a promotion before the consumer is interrupted. Therefore, telemarketers must be particularly careful not to antagonize the consumer. For example, calls should not be made at inconvenient hours such as dinnertime or early morning. A carefully written script should be utilized by every caller to get the most value from the time and money spent on each call and to avoid angering or annoying the person receiving the call. Some elaborate calling scripts include answers to every objection a prospective buyer might mention. In contrast, a few telemarketers have utilized a prerecorded message rather than a "live" caller; the consumer can respond to the recording by pressing numbers on a touch-tone telephone dial. Telephone numbers can be dialed at random by a computer that relays the call to an operator when a contact is made. Calls are frequently made to preselected individuals such as current or prior customers or likely prospects selected from a rented list.

Telemarketing is used heavily by business-to-business marketers to identify qualified leads, avoiding travel and other costs associated with personal sales calls. One telemarketing call can cost four times as much as a direct-mail piece but can generate as much as two to six times the response. The success of a telemarketing program is measured in terms of contacts made (reaching the right person), attempts made (calls that do not reach the right person, busy signals, or no-answers), and conversions (completed sales, surveys, etc.).

The direct marketing association has established guidelines for telemarketing, concerning issues such as calling hours, use of unlisted telephone numbers, and recording of conversations. See also telephone agency.

Use of the telephone as an interactive medium for promotion or promotion response; also known as teleselling. Telemarketing as a response vehicle includes receiving orders, inquiries, and donation pledges in response to print and broadcast advertisements, catalogs, and direct-mail promotions, and also receiving customer inquiries and complaints.

Telemarketing is the process of selling goods and services over the telephone. It has been used to successfully market a variety of products ranging from insurance to newspapers to industrial equipment, and it has the potential for selling virtually any product.

There are two kinds of telemarketing— outbound and inbound. Outbound telemarketing calls are those placed by salespeople to homes or businesses. Inbound telemarketing occurs when customers call in to businesses to place orders.

Outbound telemarketing is particularly appealing to businesses whose salespeople have traditionally made outside sales calls. It reduces the cost per contact, increases the number of contacts that can be made per day or week, and still retains the human element. Computerized databases of prospects and automated predictive dialers can further extend the potential number of contacts a telemarketer can make. Outbound calls can be used to canvass for new business, follow up former customers, and contact new leads.

Outbound calls present an ideal marketing situation in which the telemarketer has the undivided attention of the prospect and can get immediate feedback. At the same time, the limited window of opportunity requires that the sales person establish rapport and trust quickly, listen carefully, and provide clear information. Success in outbound sales is related to product knowledge and presentation skills and, thus, can be enhanced by training.

Inbound telemarketing is also a very efficient marketing approach that also retains the element of personal interaction. Calls are generated by catalogues mailed to prospective customers or by radio, television, or print advertisements. These promotional pieces solicit customers to buy by calling a toll-free number. When customers call in, they may either reach a telemarketer directly or receive an electronic message that gives them the option to be connected to a salesperson. Since inbound callers have entered the buying process when they call in, a customer service orientation is more critical to the success of the telemarketer than sales training.

The use of the telephone as a sales tool dates back to the early 1900s. However, the full potential of outbound telemarketing was not recognized by business until WATS (wide area telephone service) lines came into existence in 1960. Likewise, the full potential for inbound sales did not become apparent until the Sheraton motel chain implemented the first toll-free 800 lines in 1967. During the 1970s, telemarketing techniques became more refined and were incorporated into the marketing strategies of business of all sizes. Between 1981 and 1991, spending on telemarketing efforts grew from $1 billion to $60 billion. And in 1997 telemarketing sales, to consumers and businesses, totaled $425.5 billion.

Although telemarketing has experienced continued growth, it has not been without problems. Many consumers have a negative perception of it because of untimely and annoying calls. It has also been the vehicle for a variety of fraudulent schemes, a fact that prompted a crackdown by the U.S. attorney general in 1997. Despite these concerns, the outlook for the industry appears to be positive. Research indicates that businesses are becoming increasingly receptive to doing business with sales representatives by telephone, sales trends are upward, and expansion is indicated by the projection that an additional 5 million telemarketing employees will be hired between 1995 and 2000.

Bibliography

Goldstein, Linda. (1996). "Reflections on the Past and Predictions for the Future of Telemarketing Legislation." Telemarketing and Call Center Solutions February: 48-50.

Kordahl, Eugene B. (1984). "An Overview of the Telemarketing Industry." ZIP /Target Marketing June: 22-26.

McHatton, Robert J. (1988). Total Telemarketing. New York: John Wiley.

Romano, Catherine (1998). "Telemarketing Grows Up." Management Review June: 31-34.

[Article by: EARL C. MEYER; WINIFRED L. GREEN]

Author and activist Bob Wood places one of his numerous phone calls to residents in Muskegon County, Michigan.

Telemarketing (known as telesales in the UK and Ireland) is a method of direct marketing in which a salesperson solicits to prospective customers to buy products or services, either over the phone or through a subsequent face to face or Web conferencing appointment scheduled during the call.

Telemarketing can also include recorded sales pitches programmed to be played over the phone via automatic dialing. Telemarketing has come under fire in recent years, being viewed as an annoyance by many.

Contents 1 History 2 Categories 2.1 Subcategories 3 Procedure 4 Negative perceptions and criticism 5 Regulations 6 Technology 7 References 8 See also 9 External links

History

Some people^[who?] believe that in the 1950s, DialAmerica Marketing, Inc became the first company completely dedicated to inbound and outbound telephone sales and services. The company, spun-off and sold by Time, Inc. magazine in 1976, became the largest provider of telephone sales and services to magazine publishing companies. The term telemarketing was first used extensively in the late 1970s to describe Bell System communications which related to new uses for the outbound WATS and inbound Toll-free services.

Categories

The two major categories of telemarketing are Business-to-business and Business-to-consumer.

Subcategories

• Lead Generation, the gathering of information
• Sales, using persuasion to sell a product or service
• Outbound, proactive marketing in which prospective and preexisting customers are contacted directly
• Inbound, reactive reception of incoming orders and requests for information. Demand is generally created by advertising, publicity, or the efforts of outside salespeople.

Telemarketing office

Procedure

Telemarketing may be done from a company office, from a call centre, or from home. It may involve either a live operator or a recorded message, in which case it is known as "automated telemarketing" using voice broadcasting. "Robocalling" is a form of voice broadcasting which is most frequently associated with political messages.

An effective telemarketing process often involves two or more calls. The first call (or series of calls) determines the customer’s needs. The final call (or series of calls) motivates the customer to make a purchase.

Prospective customers are identified by various means, including past purchase history, previous requests for information, credit limit, competition entry forms, and application forms. Names may also be purchased from another company's consumer database or obtained from a telephone directory or another public list. The qualification process is intended to determine which customers are most likely to purchase the product or service.

Charitable organizations, alumni associations, and political parties often use telemarketing to solicit donations. Marketing research companies use telemarketing techniques to survey the prospective or past customers of a client’s business in order to assess market acceptance of or satisfaction with a particular product, service, brand, or company. Public opinion polls are conducted in a similar manner.

Telemarketing techniques are also applied to other forms of electronic marketing using e-mail or fax messages, in which case they are frequently considered spam by other people.

Telemarketing agent sitting in a cubicle. The brightly colored rebuttal sheets are used to answer most questions a customer might have.

Negative perceptions and criticism

See also: Telemarketing fraud

Telemarketing has been negatively associated with various scams and frauds, such as pyramid schemes, and with deceptively overpriced products and services. Fraudulent telemarketing companies are frequently referred to as "telemarketing boiler rooms" or simply "boiler rooms." Telemarketing is often criticized as an unethical business practice due to the perception of high-pressure sales techniques during unsolicited calls. Telemarketers marketing telephone companies may participate in telephone slamming, the practice of switching a customer's telephone service without their knowledge or authorization.

Telemarketing calls are often considered an annoyance, especially when they occur during the dinner hour, early in the morning, or late in the evening.

A recent trend in telemarketing is to use automated messages in a sales pitch. These often include intentionally deceptive tactics, with computer recorded messages saying things like "Don't panic but this is your final notice" or "We have already attempted to contact you through the mail." These messages are often outright lies, intended to incite concern or fear in the potential customer.

Robo-Calls are known for failing to add numbers to their do-not-call list and repeatedly interrupting individuals at all hours of the day.

Regulations

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Telemarketing is subject to regulatory and legislative controls related to consumer privacy and protection.

Telemarketing in the U.S. is restricted at the federal level by the Telephone Consumer Protection Act of 1991 (TCPA) (47 U.S.C. § 227) and the FTC's Telemarketing Sales Rule (TSR). The FCC derives regulatory authority from the TCPA, adopted as CFR 64.1200. Many professional associations of telemarketers have codes of ethics and standards that member businesses follow to encourage public confidence.

Some jurisdictions have implemented "Do Not Call" lists through industry organizations or legislation; telemarketers are restricted from initiating contact with participating consumers. Legislative versions often provide for heavy penalties on companies which call individuals on these listings. The U.S. Federal Trade Commission has implemented a National Do Not Call Registry in an attempt to reduce intrusive telemarketing nationwide. Telemarketing corporations and trade groups challenged this as a violation of commercial speech rights.^[1] However, the U.S. 10th Circuit Court of Appeals upheld the National Do Not Call Registry on February 17, 2004.^[2]

Companies that use telemarketing as a sales tool are governed by the United States Federal regulations outlined in the TSR (amended on January 29, 2003 originally issued in 1995) and the TCPA. In addition to these Federal regulations, telemarketers calling nationally must also adhere to separate state regulations. Most states have adapted "do not call" files of their own, of which only some states share with the U.S. Federal Do Not Call registry. Each U.S. state also has its own regulations concerning: permission to record, permission to continue, no rebuttaling statutes, Sunday and Holiday calls; as well as the fines and punishments exacted for violations. September 1, 2009, FTC regulations banning most robocall went into effect.

Telemarketing techniques are increasingly used in political campaigns. Because of free-speech issues, the laws governing political phone calls are much less stringent than those applying to commercial messages. Even so, a number of states have barred or restricted political robocalls.

Telemarketing in Australia is restricted by the Australian Federal Government and policed by the Australian Communications and Media Authority (ACMA). Australian Federal legislation provides for a restriction in calling hours for both Research and Marketing calls.^[3]

In 2007 a Do Not Call Register was established for Australian inbound telephone numbers. The register allows a user to register private use telephone numbers. Australian Federal Legislation limits the types of marketing calls that can be made to these registered telephone numbers; however, research calls are allowed. Other exemptions include calls made by charities and political members, parties and candidates^[4]

Inbound telemarketing is another major industry. It involves both live operators and IVR—Interactive Voice Response. IVR is also known as audiotext or automated call processing. Usually, major television campaigns and advertisers use 800 numbers that are answered by IVR service bureaus. Such service bureaus have the technology and call capacity to process the large amounts of simultaneous calls that occur when an 800 number is advertised on television.

Technology

• Autodialer
• Automatic call distributor
• Customer relationship management
• Predictive dialer
• Private Branch eXchange
• Teleblock

References

1. ^ Miller, Jacqui Brown. "Mainstream Marketing Services, et al. v. Federal Trade Commission: Resources and Legal Analysis." ReclaimDemocracy.org. January 20, 2004.
2. ^ Text of the case and the decision. FindLaw.
3. ^ Telecommunications (Do Not Call Register) (Telemarketing and Research Calls) Industry Standard 2007ACMA.
4. ^ Do Not Call Register FAQACMA FAQ.

See also

• Boiler room (business)
• Call Centre
• Cold calling
• Direct marketing
• Marketing
• Reloading scam
• Spamming
• Sucker list
• List of call centre companies

External links

• Congressional Research Service (CRS) Reports regarding Telemarketing
• Federal Trade Commission Information about Telemarketing Rules and Scams
• File a Complaint to the Do Not Call Registry
• Federal Trade Commission Do Not Call Registry
• Laws Regulating Telemarketers
• List of State Do Not Call Lists
• Telephone Preference Service – UK Do Not Call Registry
• telemarketing help to get you started

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Dansk (Danish)
n. - telefon-markedsføring, telemarketing

Nederlands (Dutch)
verkoop via de telefoon

Français (French)
n. - télémarketing

Deutsch (German)
n. - Vermarktung per Telefon

Ελληνική (Greek)
n. - τηλεαγορές

Italiano (Italian)
televendita

Português (Portuguese)
n. - telemarketing (m)

Русский (Russian)
поиски рынка ("маркетинг") посредством телекоммуникации

Español (Spanish)
n. - venta de productos mediante el teléfono

Svenska (Swedish)
n. - telemarketing

中文（简体）(Chinese (Simplified))
电话销售

中文（繁體）(Chinese (Traditional))
n. - 電話銷售

한국어 (Korean)
n. - 전화를 이용한 판매방식, 전화를 걸어서 광고를 함

日本語 (Japanese)
n. - 電子市場売買

العربيه (Arabic)
‏(الاسم) بيع و اعلان بواسطه الهاتف‏

עברית (Hebrew)
n. - ‮שיווק באמצעות הטלפון‬

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