THAKUR COLLEGE OF SCIENCE AND COMMERCE

(ISO 9001:2008 Certified, NAAC Accredited)

Project report on
TELEMARKETING

Submitted for the partial fulfillment of Degree of B.M.S.

By
APOORVA KOTIAN
T.Y. B.M.S. (Sem V)

Under the guidance of

Dr. (Prof.) RICHA JAIN

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 DECLARATION

I, APOORVA KOTIAN, student of Thakur College of Science and Commerce

of TYBMS (SEM V), hereby declare that I have completed this project on
TELEMARETING in the academic year 2012-13. The information
submitted here is true and original to the best of my knowledge.

Signature of Student

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 CERTIFICATE

I, Dr. Prof. Richa Jain, hereby certify that APOORVA KOTIAN, student of
Thakur College of Science and Commerce, of TYBMS (SEM V), has
completed a project on TELEMARKING in the academic year 2012-13
under my guidance. The information submitted is true and original to the best of
my knowledge.

Signature of
Signature of
Principal Project
Guide

Signature of
Signature of
External Examiner BMS
Coordinator

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 ACKNOWLEDGEMENT

Before we get into thick of things, I would like to add a few words of appreciation for
the people who have been a part of this project right from its inception. The
writing this project has been one of the most significant academic challenges I
have faced and without the support , patience, and guidance of the people involved, this
task would not have been completed. It is to them I owe my deepest gratitude.

Firstly I would like to express my gratitude to our teacher and co-ordinator, Mrs. Richa Jain,
for having given me an opportunity to work on this project and for having guided me through
it, giving me a chance to learn more about corporate social responsibility. I also feel the
heartiest sense of obligation towards my friends and family without whom it would have been
impossible to collect, process and draft the manuscript. The project is dedicated to all those
people, who helped me while doing this project.

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 CONTENTS

CHAPTE PAGE
NAME
R NO. NO.

1. INTRODUCTION 7

2. TELEMARKETING CAMPAIGN 12

TELEMARKETING SERVICES
3. 23

TELEMARKETING FRAUDS AND MEASURES

4. TO PREVENT FRAUDS
40

5. TOP TELEMARKETING COMPANIES 49

6. TELEMARKETERS 63

7. ANALYSIS OF RESEARCH 90

8. CONCLUSIONS AND RECOMMENDATIONS 93

EXECUTIVE SUMMARY
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 In spite of the growing use of telemarketing by companies, it can be an affront to
personal privacy or could be an opportunity depending on the attitudes of customers towards
telemarketing. The purpose of this project is to understand the attitudes of consumers towards
telemarketing and related issues.
The study was conducted using the personal survey method from a sample of 400.
The major findings of the study depict the attitudes of customers towards telemarketing
related to 5 areas out of which 2 factors were found to have a positive effect on customers'
purchase intention and 3 were found to have a negative effect. Consequently two segments of
customers were identified: Conformists and Defectors. Findings also show that customer
awareness regarding misuse of information provided by them is high while their awareness
related to regulations governing telemarketing in India is low.

Telemarketing involves situations in which companies call consumers to sell their

goods or services, or consumers call companies to make purchases in response to mailings or
other forms of advertising. Telemarketing also includes sales solicitations via fax, the Internet
and mail, if the consumer is encouraged to respond via the telephone, fax or Internet.
Although a large number of legitimate businesses use telemarketing to reach
consumers, this method of conducting business can be easily abused by con artists looking to
take advantage of unsuspecting individuals. Telemarketing fraud robs consumers of
approximately $40 billion every year.
Another thing is that the telemarketers usually call their customers at odd times like
after working hours or late afternoons or early mornings which is the time when most of
people relax. People hence dont pay much of an attention.

There are several telemarketing companies which are providing great facilities to
its customers. Their services are really secured

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 Chapter 1- Introduction

Telemarketing is a method of direct marketing in which a salesperson solicits

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.
Telemarketing is especially useful when the customers for a small business's
products or services are located in hard-to-reach places, or when many prospects must be
contacted in order to find one interested in making a purchase. Although some small
businesses operate exclusively by telephone, telemarketing is most often used as part of an
overall marketing program to tie together advertising and personal selling efforts. For
example, a company might send introductory information through the mail, then follow-up
with a telemarketing call to assess the prospect's interest, and finally send a salesperson to
visit.
Telemarketing can be either inbound or outbound in scope. Inbound telemarketing
consists of handling incoming telephone callsoften generated by broadcast advertising,
direct mail, or catalogsand taking orders for a wide range of products. Representatives
working in this type of telemarketing program normally do not need as much training as
outbound reps because the customer already has shown an interest by calling in.
Outbound telemarketing can be aimed directly at the end consumerfor example, a
home repair business may call people in its community to search for prospectsor can be part
of a business-to-business marketing program. Representatives working on this side of the
industry generally require more training and product knowledge, as more actual selling is
involved than with inbound operations.
Major applications of business-to-business telemarketing include selling to existing
accounts, outbound new account development, inbound order processing and inquiry
handling, customer service, and supporting the existing field sales force. As the costs of field
sales continue to escalate, businesses are using telemarketing as a way to reduce the cost of
selling and give more attention to marginal accounts. Telemarketing programs can be either
handled in-house by a company or farmed out to service bureaus. Operations range in size

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from a one-person in-house staff member at a small business to a major corporation or service
center that may have as many as 1,000 telephone stations.
One of the advantages telemarketing has over other direct marketing methods is that
it involves human interaction. Used correctly and by professionals, the telephone is a very
cost-efficient, flexible and statistically accountable medium. At the same time, the telephone
is still very intimate and personal, one person speaking with another.
Although telemarketing has been the center of some controversiesranging from
scams run over the phone to a number of legal issues that have been the center of debate at
both the state and national levelsthe industry continues to grow. In fact, the American
Telemarketing Association found that spending on telemarketing activities increased from $1
billion to $60 billion between 1981 and 1991. By the mid-1990s, telemarketing accounted for
more than $450 billion in annual sales. This increased use of telemarketing resulted in an
unexpectedly strong backlash and for telemarketing firms the landscape in the early 21st
century has changed dramatically.

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1) Background
Some people 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.

Regulations
In some countries telemarketing is subject to regulatory and legislative controls
related to consumer privacy and protection.
United States of America
It is not known exactly when (or if) telemarkting officially became legal in the
United States of America. Telemarketing in the United States of America 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. However, the U.S. 10th Circuit Court of Appeals upheld the National Do Not
Call Registry on February 17, 2004.
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
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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.

Canada
In Canada, telemarketing is regulated by Federal Government, specifically handled by
Canadian Radio-television and Telecommunications Commission.
Australia
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.
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.
Inbound telemarketing is another major industry. It involves both live operators and IVR
Interactive Voice Response. IVR is also known as audio-text or automated call processing.
Usually, major television campaigns and advertisers use toll-free telephone number 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 toll-free telephone
number is advertised on television

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2) OBJECTIVES

Any task without sound objectives is like Tree without roots. Similarly in case of any
research study undertaken, initially the objectives of the same are determined and accordingly
the further steps are taken on. A research study may have many objectives but all these
objectives revolve around one major objective which is the focus of the study.
The basic idea for this project is:

1. To study whether telemarketing is increasing the sales or is just a mere waste of resource.

2. To get to know the frauds taking place in this sector and how to fight it back.

3. To know how the telemarketers are treated in their work place.

3) RATIONALE OF STUDY

When you are marketing business to business and you feel that things are not
moving as they should be, then we would like to recommend something that many small
business owners prefer to leave out. What is that? Telemarketing!

Why is it that so many small business owners leave out this option ?
Its because that many people like to do things the quiet way and not have to deal with
rejection. What is the quiet way? This is done by submitting articles, press releases,
posting on forums and so on.

How can telemarketing - when done right - help your business grow ?
Just take a look at some major corporations how they hire companies to run
telemarketing campaigns for them. With telemarketing you can directly talk with the
prospect and direct him to your website or ask to mail him some information about
your products or services. This way your prospect will be expecting your email or mail
and not think its junk mail.

There are 7 steps to be a good telemarketer.

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 I. Prepare for telemarketing.

Learn as much as you can about what you are selling. You should have a thorough
understanding of what it is, how it works and how it may be useful to potential
customers. Additionally, you should have genuine confidence in what you are selling,
and in its value to the people you will be calling.

II. Express confidence. A good telemarketer speaks with a tone of authority that puts
customers' minds at ease. If you are amply prepared, then you should be able to talk
about the reason for your call and your company with confidence.
III. Practice effective communications skills.

Speak slowly, loudly and clearly enough that customers can easily understand you. Do
not mumble.

Be considerate of the people you are calling. Introduce yourself and explain the
purpose of your call as soon as possible in the conversation. Pause and take time to
listen to responses as you go.

IV. Try not to sound rehearsed. Scripts are common in telemarketing, especially in a call
center atmosphere, but it is possible to deliver a script without sounding like you are
reading from a piece of paper. Take some slow breaths and relax before making your
calls, then focus on the message behind what you are saying rather than the words
themselves.

V. Maintain a positive mental attitude. Remember that some (or many) of the people
you call may not be expecting your call and, additionally, may not be receptive to your
call. It is not unusual for even a good telemarketer to be rejected by several potential
customers in a row before reaching 1 interested customer. Don't take rejections
personally but, rather, take them as opportunities to develop your telemarketing skills.

VI. Stay resilient. Telemarketing is a numbers game, and it takes time and persistence to
develop good telemarketing skills. Commit to making a certain number of calls each
day and see those calls through.

VII. Recognize when it is time to move on to the next call. If a contact is expressly not
interested in what you have to say, then politely end the call and move on to the next
call.

4) SCOPE OF STUDY

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Types of telemarketing
Use In-bound Telemarketing to:
Receive calls when customers see your phone numbers in catalogs, direct mail, emails
faxes, print ads, on websites and in TV/radio spots to generate orders and leads. Your
telemarketing call center will receive these calls, answer questions, and sell your
product.
Use Outbound telemarketing to:
Call customers and prospects to sell products and services, generate and qualify leads,
prompt them to visit stores and showrooms and set appointments. Your telemarketing
call center can also notify current customers of special sales and promotions.

Use business to business telemarketing to:

acquire customers, qualify prospects and pass hot leads to sales reps and deal closers.
Your telemarketing call center can keep other businesses aware of your latest products
and services.

Use Business to Consumer Telemarketing to :

notify people who depend on your outbound telemarketing and inbound telemarketing
programs to buy goods and services. Present special offers to prospects and existing
customers with outbound telemarketing calls.

Use Automated Telemarketing to :

process large numbers of inbound telemarketing calls. Outbound telemarketing
delivers offers quickly at low cost, generating inbound telemarketing leads and sales.
In both cases, special equipment contacts customers or receives calls from customers
without any live staff needed.

Telemarketing (or telesales) has proven effective for

businesses of all types and sizes. Any of these five types of
telemarketing may be used separately, or in combination, to
provide the optimum results for the sale of your product.

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The Difference between Inbound and Outbound Telemarketing

With technology on the rise, companies need to cope up with the recent changes in
order to do business effectively. Companies that devote themselves to adapt with
technology can now easily reach their clients and consumers by various means
throughout the course of the rise in technology. Business owners can go online into the
internet and market their products through various social media.

Even with all the great news and advancements in technology, telemarketing is still
one of the most reliable procedures in order to get the word around about your
company's business. For many reasons abound, a telemarketing company's services
can be very useful in terms of sales and information gathering.
With Business Process Outsourcing companies becoming a trend these days, they
provide an affordable service to locations where labor would be expensive.

A telemarketing company can branch out into many categories but can be seen into
two main categories which are the inbound and the outbound telemarketing.

The use of these services depends on which one would be the best to use for your
business.

Inbound Telemarketing
Most people think about this type of service as similar to customer support. This type
of service is slightly different to that of customer service since it would put into
account some sales dealings in the process. This is because when we say customer
service it solely represents a representative answering the calls of clients in order to
answer queries and help them with their problems and needs with little or no money
involved.

For example, a travel agency for an airline company will try and generate leads as well
as gather information about the people who they know will purchase tickets for airline
travel some time in the future.
Once these leads have already decided to purchase the ticket, the inbound call center
representative from this company will now cater to the call of the lead into booking
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 the flight for him. This is called order processing and is a part of inbound
telemarketing.

Outbound Telemarketing
In this type of service, call center representatives would normally do a process called
cold calling wherein they would call prospects and try to persuade them into
purchasing a specific product or service that is being offered to their leads. These
prospects do not know that they will be called by the telemarketer so there would be a
lot of times that they will be interrupted in what they are trying to do before the
representative called.

Besides sales, telemarketers can also do lead generation campaigns. This is where call
center representatives would call prospect clients and try to gather as much
information as possible from the people that they have called.

The main difference between inbound and outbound services from these companies is
that in inbound the telemarketers receive calls from customers whereas outbound
would call people and try to make them customers.

With inbound call center services, sales training within the company is less strenuous
than that of outbound services. This is because inbound call center agents tend to
people that are already customers before the call was even made. Outbound call center
representatives need a lot more sales training than that of inbound because it is part of
their job designation to reach a certain quota in order to satisfy the requirements
bestowed upon them by their respective clients.

Even though these two types of services may be different, they can work together in
order to complete processes within a company. When these two services work
together, a company can cater to clients and prospects clients with ease.

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2) RESEARCH METHODOLOGY

TYPE OF RESEARCH
This project is a mixture of theoretical as well as practical knowledge.
It is an exploratory n observational type of research.
The project includes sorting all the raw data and arranging them in perfect order. To add value
to the project and understand the practicality of telemarketing , primary data has been
extracted too along with secondary data.

DATA COLLECTION METHOD:

Primary data

I have taken a survey & asked some common questions to some sample of 100
respondents which included my family and friends. Thats how I got to know how people
respond to and perceive telemarketing companies when they call them up and what are the
response that they get from the telemarketers when they call them up for some queries.

Questionnaire design: As the questionnaire is self-administered one, the survey is kept

simple and user friendly. Words used in the questionnaire are easily understandable for all the
respondents. Also technical jargons are avoided to ensure that there is no confusion for the
respondents.

Secondary data

Secondary data is collected from various means like the internet, newspapers various
magazines & also articles. I surfed many sites on telemarketing to know more about it , the
statistics used in the project have been taken from internet

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2) LIMITATIONS

1. Past data included.

2. Even in the books there were only partial knowledge about the topic mostly was taken up
by website.

3. While doing the survey people werent showing that much interest and werent much
concerned.

3) CONCLUSION

Telemarketing has been a big headache for customers since they

either do not provide any information when asked for or provide more
information when it isnt required. Telemarketer call up at odd times which
irritates the customers the most.

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CHAPTER 2- TELEMARKETING CAMPAIGN

The phrase cold calling sends chills down the spines of many businesspeople. Its often
viewed as an intimidating, difficult, and boring process and that means it doesnt get done
as often as it should.

Telemarketing campaigns help companies reach a group of targeted prospects or

customers to communicate a message, gather feedback, and determine a next step for
the relationship. Telemarketing can be an important part of any marketing strategy for
example, you can use it to
Generate leads
Qualify prospects who have downloaded information from your website or attended a
webinar
Follow up on a direct mail or email offer
Take orders for special promotions
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 Keep your marketing database current
Conduct marketing research
In many companies, sales reps should make hundreds or thousands of cold calls every month
to set appointments and/or generate leads. But busy reps usually prefer to work on closing
their existing pipeline. Prospecting often slips on the priority list; as a result, the sales pipeline
isnt always filled with new prospects. If cold calling is an effective way to introduce your
company to new prospects, dont ignore it. Instead of forcing a sales team to devote time to
prospecting, many companies use an in-house or outsourced telemarketing group to make a
high volume of calls, find decision makers and qualify leads for the field sales group.
When telemarketers handle prospecting, salespeople can spend 100% of their time selling and
closing. Your company can produce more revenue in the same amount of time; your reps earn
more commission, theyre doing what they love, and theyre more satisfied with their jobs.
You can use a telemarketing team in a variety of campaigns:

OUTBOUND LEAD OUTBOUND CAMPAIGN

INBOUND SALES SUPPORT
GENERATION SUPPORT
Company As telemarketers call Company B increases theirCompany C makes sure that
targeted lists. They identify the response rates by including aprospects who visit their website
decision maker, ask qualifying phone call in campaigns. Forcan call and speak with someone
questions, and gauge the example, when they hold an eventimmediately. They use an
prospects needs and interest at a trade show, they callinbound sales support team to
level. If a prospect meets certain prospects before mailing an inviteanswer questions and probe
criteria, the telemarketer sets a to lifts their response rate. Theycallers. The reps send follow up
follow up appointment for a also follow up with those whomaterials and a field sales rep
sales rep. dont respond. follows up with the most qualified
prospects.

With the right strategy and proper management, a good telemarketing operation can produce
great value for your company.

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Best Case Neutral Case Worst Case
You have a team or vendor to You have a vendor or in-houseYou dont have a telemarketing
pre-qualify leads and handle team and their performance isoperation. Sales reps make their
inbound and outbound calls for average. If theyre in-house, you own cold-calls but they simply
marketing campaigns. Your team have some statistics, but notdont make enough. When
successfully represents your enough, and theres a fair amountprospects call from your website,
brand to your market. You have of turnover in the position. In fact,there frequently isnt a person
strong management in place and youre always training someoneavailable to talk with them live.
can easily report on key new. You see the value in usingAnd when you need to include a
statistics: contacts per hour, stats telemarketing and you think yourphone call in a marketing
by rep, etc. You set goals and hit operation could improve. campaign, its an enormous battle
them consistently. to get reps to make calls.

2.1 Key concepts & steps

Before you begin

If you can immediately gain new prospects and customers, dont hesitate to launch a
telemarketing campaign right now. You may also decide to pursue telemarketing after
developing your annual marketing plan

Set your goals

You can use telemarketing in many ways; brainstorm the campaigns that will work best for
your company. For example, you may need to generate leads for your sales team or use
telemarketing to support other marketing campaigns.

Forecast and budget; determine whether to build in-house or outsource

Estimate your call volume, then think about hours of operation, fluctuations in call
volume, and the skill set youll need in your reps.

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 Your call volume also drives your headcount, software, phone system and the office
space youll need.
These requirements will help you decide whether to use a vendor or hire and manage a
team in-house. If you look at vendors, the requirements will make your discussions easier
and faster.
Budget for everything including headcount, software licenses, bonuses and
management.

Develop good scripts

Reps will need to capture attention, build value, and close; a good script will help them do it
consistently.

Make your scripts conversational, simple, and focused on the end goal.
It helps to make and listen to calls as youre developing and refining your script. What
looks good on paper may not work on the phone.
Get feedback from your team as well.

Train and coach your team

Regular coaching and quality assurance is crucial.

Engage your reps, role-play and guide them through calls.

Listen to calls regularly, evaluate your reps and coach them to improve their
performance.

Make it fun!
Telemarketing is a tough job and turnover is a big issue.

Make things fun with contests, events, and other incentives.

Make their space comfortable and interesting tiny cubes, old chairs and windowless rooms
dont put a smile in anyones voice.

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Report your results

Define the reports youll need your system may not be able to provide all of the
data, but you can probably find an alternate solution.
Use reports to consistently evaluate progress and improve your campaigns.

Whats next?

Its all about execution, so manage your team and devote the resources necessary for success.
Telemarketing can be very effective and is often underutilized in B2B marketing plans.

2.2 Top 10 outbound telemarketing campaign mistakes

Telemarketing services are growing in popularity; however, it is safe to say that there are
more and more telemarketing programs that are also failing to meet expectations.
The following are 10okay maybe 12 of the most common reasons that telemarketing
campaigns fail.
1. Not Establishing a Goal
More and more people are returning to the telemarketing services industry to
capitalize on a direct marketing tool with a proven rate of success. However, many do so
without first really looking at what their ROI needs to be and how many sales or leads then
need to generate in order to hit their ROI. Understanding these numbers are absolutely key to
any and all telemarketing campaigns.

One of the secondary problems that may result with the selection of goals results in designing
the program around untested goals, or goals that may essentially be too high-- resulting in a
poor test periods. It is important to make sure that your goals are realistic and that
telemarketing service providers can meet these expectations. Talking to several different
telemarketing service providers should help to ensure that enough telemarketing providers
agree with the programs concept to assume it can be successful.
2. Not Understanding the Data
Telemarketing services can be one of the most intensive forms of data driven direct
marketing. Using telemarketing services also means that just by calling potential customers
agents are going to gather massive amounts of data. Outside of just the leads generated

22
through telemarketing services there are numerous amounts of non-sales data that can be
extremely valuable when looking at what can be successful with customers. One simple
example is adding a refusal list to every calling campaign. Look at it this way; there are 8-50
different refusals per sale, depending on the difficulty of the offer. Each of those refusals has
more than likely provided agents with a reason for their decline. These reasons can vary
greatly but they offer an opportunity to understand what potential customers are looking for as
well as an indication on how to remarket certain leads. For example, maybe they are looking
for a more cost effective solution or they will not be in the market for another year. This offers
an open opportunity for a lower priced solution as well as a time frame on when it may be
best to target them.

3. Selecting a Telemarketing Service Provider Based Only on Price

Lets face it, cost can be everything, and every dollar spent is a dollar taken off of the
overall profit. The extra money being spent is only a problem when it does not improve the
overall results of the telemarketing services campaign. Lower priced telemarketing services
providers often lower their costs so they can recoup them in other areas. Some are lower
because of the region they live in. Rural call centers or centers located in medium-sized cities
can afford a lower wage rate and still retain the same quality telemarketing services agent.
Other groups may give the agents a larger portion of the overall cost but at the same time they
may cut other areas such as training, motivation, supervision and quality assurance. It is
important to make sure all areas of your program are diligently covered.

4. Moving the Program Overseas

This is not just coming from someone who works in the telemarketing services
industry; this is coming from a person who is constantly frustrated by inbound and outbound
telemarketing service efforts from people whom I cannot understand. At this point there is
general understanding about offshore telemarketing service agencies, "If you can lose the
customers--save the money," "If you cannot afford to lose your customers-- keep your
telemarketing service program onshore." If you do not believe me take a close look at what
happened to Dell computers when they outsourced.

5. Relying Completely on Scripting

The telemarketing services industry has a large number of diversified employees

23
doing the same thing hundreds of times over and over each day. They should be pretty good at
it but there are shortcomings from time to time. In addition, because telemarketing services
rely solely on the communication between two people, and people can be as unpredictable as
they are predictable, it can be nearly impossible to have a proper response for every situation
that arises on the phone. Telemarketing services customers can often have two very different
approaches to the idea of scripting, one customer may look at scripting everything---scripts
with 8-20 pages, and then an additional 75-100 of rebuttals or statements to say after an
objection, and some may even look to have all of the potential statements listed on screen,
creating massive amounts of agent searching while on the phone. Others may look to train
agents in the hopes that they are prepared to give the correct response in certain incidents that
may arise on the phone. The best practice for this process is a combination of both. Having
the right materials in front of an agent is one thing and having the rebuttal process on screen is
great as well. However, it is safe to say that all of the time spent searching for rebuttals and
delivering the right response can detract from the conversation. Having a reference tool and
the ability for agents to modify these responses though constant up training and agent
development is the best way to ensure agents give the right answers at the right time to the
right customers.

6. Choosing Only Regional Vendors

This is a problem that can often lead to choosing a vendor that is less qualified
simply out of proximity. The reality is that being close to a telemarketing service provider is
not going to make the program any more effective or productive. In fact, having a long
standing presence with the group may make it more difficult to operate with them.
Telemarketing services can be preformed from anywhere in the world. Dealing with someone
locally at first may be a good initially but when it comes to the final ROI that choice may
haunt you.

7. Not Visiting the Telemarketing Service Provider

Sometimes a quick look at a telemarketing vendor that you are looking at working
with can make all the difference. Are they really running with a 10:1 agent to supervisor ratio?
Do they really have agents that are older and mature who have made a career out of the
telemarketing industry or do they have high school students that are ready to call your
customers. Also, this is a great chance to look at the environment where the calling is being

24
done. It can allow for a 1 on 1 visit with the agents that are going to be working on the
program. Finally, perhaps the most crucial is a face value understanding of the everyday
activities of the telemarketing services provider. This understanding is crucial for future
working relationships with your outsourced telemarketing services provider.

8. Improper Set-Up Materials

The telemarketing services provider that is going to be dialing your telemarketing
program needs to have the right materials in order to design your program for telemarketing.
Making sure the program is ready from day one is one of the best ways to ensure that the
program will have the best success. Data processes both back and forth as well as the data
structure should be established right away. In addition, the quality and training processes can
be established at this point so they are not done at the last minuet before dialing begins.

9. Not Taking the Time to Understand the IT Department

Call it what you like, IT, IS computer geeks, it does not matter, just make sure they
know they what they do, and how they do it. From late reports to poor dialing algorithms, an
incompetent IT department can significantly reduce the success of a telemarketing campaign.
In addition, a remote IT department can delay much of the activities that need to be completed
or communicated in order to ensure the program success.

10. Not Following Do Not Call

At this point, it is most likely an obvious statement to say that it is important to make
sure your telemarketing program is compliant with all Federal and State Do Not Call
Laws. With so many programs dialing these days and so many companies being fined for
illegal telemarketing, it is clear people do not have a good understanding of the telemarketing
laws that are being passed. Make sure to research the legalities of your telemarketing services
program before it is dialed.

11. Not paying Attention to Quality Assurance

In addition, make sure to have a clear understanding of the goals and practices of the
quality assurance department. Quality Assurance processes can make or break the backend of
a program. Quality Assurance should ensure each sale made or lead generated is verified for

25
accuracy and acceptance. If this is not done, chances are many of the sales and leads that have
been telemarketed will not end up paying, will be charged back, will drop out early, or waste a
sales persons time.
In addition, it is important to see what QA is doing to improve the sales results by
working with agents. Quality Assurance should be working with each sales agent at least once
every 24 hours, monitoring them and then creating a performance report. This constant push
to make sure that telemarketing agents are improving is the only way to ensure that a
telemarketing program is going to be successful.

12. Not Watching the Results of the Backend

Many groups who use telemarketing look only at the front end of a program and what
the telemarketing group generated in sales or leads. However, they often ignore the payout
rate of these customers or the dropout rate. Sometimes they even ignore the conversion rates
with sales agents when generating leads. The bottom line here is that companies need to watch
the results of what happens to the generated sales. If the dropout rate or conversion rate is low,
then it is most likely a result of poor quality assurance and agents pushing for sales. If the
customer provides a credit card and they sign up for a continuity program but drop out after
the first month, it is most likely a result of agents not explaining enough. High return rates can
also be a symptom of this problem. Pulling a random sample recording file is a great way to
make sure that all of the calling is done correctly and that sales are being properly verified
Essentially, there are thousands of ways a telemarketing campaign can fail. Much the
same as there are thousands of ways a direct mail piece can fail and millions of ways
anything online can fail. Choosing a quality telemarketing services provider should be
the most important part of the telemarketing process. Even choosing a good consultant
to help with the telemarketing campaign may be a more profitable way to ensure
success.

2.3 Get the most out of your Telemarketing Campaign: Five Tips for Phone
Sales Success

Despite DNC laws that have changed the telemarketing industry, the phone is
still a powerful way for businesses to reach out to customers. Whether you're trying to drum
up business for your sole-proprietor graphic design shop, or contacting millions of consumers
26
via a call center, you'll be able to put these tips for phone sales success to work for your next
telemarketing campaign.

Have a clear objective.

It's important to know why you're calling before you-or your phone salespeople-
make the call. What is your goal for each phone call? What do you want your prospect to do
as a result of your phone call? Know your goal, and craft your sales message around it.

Know your prospect.

Companies who make calls to consumers are lucky-they have to deal with Do Not
Call regulation. That means you can't call anyone on the Do Not Call list-and hardly anyone
isn't, nowadays-who hasn't already made contact and expressed interest in your business.
That's actually a good thing-it self-selects so that only people who are likely to buy from you
are on your list. Make sure you have a general idea who these people are in terms of
demographics and why they're likely to be interested in your company.

Outsource your call center.

Many frugal business owners prefer to keep their telemarketing efforts in-house.
However, a good outsourced call center could save you money in the long run-and it'll
definitely save you time.

Get a killer script.

The right script is crucial to your telemarketing success. Generally, prospects

respond better if the caller is offering something they want-not just trying to pressure them to
buy. Since the Do Not Call list took effect, many of the people you call will have done
business with you before. That means you can call to offer them special sales or discounts
they might be interested in, referencing your previous business contact. Studies show that
people are a great deal more likely to buy from someone they've bought from before-so take
the small window of opportunity you have to remind them of their prior business with you.

Practice till it sounds natural.

27
 Your salespeople should never be reading from the script directly-they should use
it as a guide, that's all. Of course, this can be very difficult, especially with inexperienced
salespeople. Before setting your salespeople loose on your new phone marketing campaign,
make sure they're comfortable with the script, are familiar with all the objections a prospect
might have, and know how to counter them confidently. If possible, hold training sessions,
role-playing, and practice time to allow your employees to get to know your script inside and
out.
Telemarketing is still an excellent way to reach consumers and get your message out there.
With the right staff, the right script, and solid marketing goals for each call, you're sure to
reach your financial goals for this year through a strong telemarketing campaign.

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 CHAPTER 3 - TELEMARKETING SERVICES

3.1 Telemarketing services in india

With the availability of skilled manpower and quality output, telemarketing services
from India are being outsourced globally. Telemarketing is in fact, one of the key services that
is being offered to clients across the world by talented call center consultants working round
the clock at international standards.

Outsourcing telemarketings services have helped companies get high quality

services, but have also saved a lot on the costs that might have incurred if they had utilized
telemarketing services from elsewhere. They get the access to intelligent, patient and
technically advanced team of professionals with good presentation and communication skills.

By outsourcing telemarketing services from India, you also get the benefit of keeping a check
on the team that is working for you. You can track and record their conversations and also
record their movements by watching them on an in-built camera. Apart from this, you can be
sure that the best security measures have been taken to ensure that the details about your
company are in confidential hands.

Telemarketing services involve outbound calls made by BPO consultants to potential

customers to sell wireless services maybe for a telecom provider, to retail households to sell
leisure holidays, to existing customers to sell a new rate card for a mobile service provider or
to sell credit or debit cards etc. These calls are made to generate interest to promote and cross
sell to an existing customer base or to complete the sales process online.

Apart from the above, India 's offshore telemarketing solutions include Telemarketing lead
management, Lead Generation / Qualification of telemarketing lead lists, Decision Maker
Contacts, Appointment Scheduling, Debt Collection Services, Database Selling, Market
Intelligence Services, Product Promotion, Research Surveys and Polling, Customer
Satisfaction, Telephone and Web Based Business Development, Up Sell/Cross Sell
Campaigns, Direct Mail Follow-up, Seminar Population.

29
Call centers in India follow a planned strategy for each of their clients to ensure optimum
productivity. Every outsourced telemarketing project is preceded by a thorough briefing and
intensive audio and video-based training to all the members in the team. Everyone is given
complete knowledge about the product to prepare them for any kind of queries from the
customers. They are also familiarized with the accents and the environment of the potential
customers they will be calling to ensure success of the telemarketing campaign.

India is becoming the destination of choice for offshore call centers. Large multinational
companies have demonstrated their growing confidence in India as an outsourcing hub by
signing multi-million-dollar, long-term BPO contracts with trusted Indian outsourcing service
providers.

3.2 Inbound telemarketing services

As mentioned earlier Inbound telemarketing consists of handling incoming telephone calls
often generated by broadcast advertising, direct mail, or catalogsand taking orders for a
wide range of products. Lets get into detail about the same

Broadcast advertising

Broadcast advertising is radio and television commercials. Broadcast media reaches a broad
audience. Radio and television broadcast advertising is known as mass marketing since
national or even worldwide audiences can be reached. Advertising is one of the components
of marketing. Marketing promotes services, products and ideas through specific channels.

Broadcast advertising persuades consumers of the benefits of advertisers' brands.

Organizations such as the Federal Trade Commission (FTC) monitor television and radio
commercials to make sure advertisers and broadcasters aren't making false claims that may
mislead consumers into buying their products. Radio and television stations must ensure
commercials meet FTC standards before broadcasting them.

Advertisers pay broadcasters for a spot. An advertising spot is typically 30 seconds on both
radio and television, although occasionally it may run up to 60 seconds. Although
most broadcast advertising is paid, free public service announcements are typical broadcasting
fare on television and radio. Broadcasters allow non profit groups and the government a
30
limited number of free spots to promote messages and information for the general safety of
the public. Public service announcements may include anti-drug messages or information
about what to do in an influenza outbreak.

The widespread use of broadcast advertising dates back to the 1920s. Radio shows and then
television programs began to be popular. Companies that sold products began to sponsor the
programs by paying broadcasters to spread their promotional messages to consumers. Early
on, the advertiser's name was often used with the show's title to signify the broadcast time
they had purchased for their promotion such as the 1920s and 1930s radio show "The
Champion Spark Plug Hour."

Today, broadcast advertising agencies create and produce radio and/or television ads
for broadcast. Their clients are companies with products or services to promote. In general,
larger rather than small businesses tend to advertise on television or radio. This changes for
local channels however. Broadcast advertising agencies consult with clients to advise them if
local or national broadcasting would be the best marketing strategy for the clients product
and budget. Budget is a main concern in broadcasting commercials. Businesses often hire
marketing consultants to determine the return on investment (ROI) possibilities of spending
on television or radio advertising spots. Advertising market researchers may run sample
commercials for test audiences to determine their response to ads before the client chooses
to broadcast them.

Radio advertising

People love the radio. Not only because that's where it all began for them, but because
listeners love radio. Around 80% of listeners say the station they listen to is
'aimed at people like me'. As at 2008/09:

90% of the UK population listen to the radio

67% of radio listeners tune in on a daily basis

31% of listeners listen to the radio via the internet

28% have a radio on their mobile phone

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13% listen via their TV set

Radio Advertising - % Exposure to the Broadcasting Market Place (2009))

Television advertising

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Mobile advertising

Mobile advertising is a form of advertising via mobile (wireless) phones or other

mobile devices. It is a subset of mobile marketing. Some see mobile advertising as closely
related to online or internet advertising, though its reach is far greater - currently, most mobile
advertising is targeted at mobile phones, that came estimably to a global total of 4.6 billion as
of 2009. Notably computers, including desktops and laptops, are currently estimated at 1.1
billion globally.

It is probable that advertisers and media industry will increasingly take account of a
bigger and fast-growing mobile market, though it remains at around 1% of global advertising
spent. Mobile media is evolving rapidly and while mobile phone will continue to be the
mainstay, it is not clear whether mobile phones based on cellular backhaul or smartphones
based on WiFi hot spot or WiMAX hot zone will also strengthen. However, such is the
emergence of this form of advertising, that there is now a dedicated global awards ceremony
organized every year by Visiongain.

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Teleshopping

Teleshopping is another name for Direct Response Television (DRTV) shopping, a concept
that originated in the US in the mid- 1980s. in 1990s two types of info commercials were
used. Some featured celebrities using products and benefiting from it scheduled between TV
programs and at the end flashing a telephone number.

In other method there were in studio production with live audience showing that it was not a
mere commercial luring customer

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Turnover of teleshopping industry in India

Teleshopping customer profile Year 2000

In the above figure it is clear that in the year 2000 10% male and 90% female were found to
use teleshopping service

Year 2010

35
whereas in the year 2010 we can see that 40% male and 60% female use this service

3.3 Telemarketing in different service sectors

Banking

The largest bank in Louisiana doesn't wait for customers to come into its branches to
open accounts, apply for loans or learn about new bank offerings. Hibernia National Bank,
ranked one of the top five in the United States by U.S. Banker, is making 20,000 outbound
calls a week to existing and potential bank customers.

The results'? Hibernia's telebanking center is outselling the bank's 201 branches
combined in many products -- after only six months of operation.

36
 Telebanking is not new; Hibernia and many banks offer customers 24-hour access to
their accounts and to bank services via automated inbound call centers. For example, bank
customers can call in to get checking account balances or transfer money from one account to
another. Some banks sell credit card services through outbound calling campaigns. However,
telemarketing bank products, such as checking accounts, loans, CDs and other investment
opportunities to consumer and business accounts is new - and Hibernia is doing it. More than
30 trained telebankers on 78 phone lines are following Hibernia's customized eight-step sales
process. This process, coupled with sophisticated inbound, outbound and blended call center
technology, is producing results far exceeding original projections.

Hibernia's Revenue-Building Process Ellis credits this operation's success to two

other critical elements: excellent telebankers and Hibernia's reputation. "Our telebankers are
highly trained, highly paid banking and sales professionals who know how to listen and how
to assess needs." he said. "These professionals are offering to add to or improve services for
our customers, such as offering a better interest rate. Or they're offering a product or service to
someone who does not yet bank with us. Either way, it's relationship selling -- building on an
existing relationship or trying to start a new one. And our name recognition and reputation in
Louisiana and Texas give us a critical edge; people are more receptive to the call when they
hear the Hibernia name."

Telemarketing to existing and potential customers adds to Hibernia's ability to

serve customers while significantly increasing revenue. Telebanking has not replaced face-to-
face contact in the branch; customers who want to discuss bank products and services in a
branch building can do so. However, the telebanking call center is acquiring and serving
customers without creating the need for new branch buildings (at a cost of more than $2
million per branch building) to accommodate the rapidly growing new business and client
base.

Insurance

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 Insurance telemarketing has been a staple part of the telemarketing services industry
for decades. However, in order to actually sell insurance over the phone telemarketing
services agents need to have insurance licenses. There are essentially two different types of
telemarketing agents in the insurance world a Tier 1 and a Tier 2 agent. Tier 1 is licensed and
Tier 2 is unlicensed.

In the beginning many telemarketing firms would simply generate leads for insurance
agents. While this is still the case, additional telemarketing services providers have taken this
practice a step further by actually offering the insurance sales over the phone, eliminating the
need for an agent. Telemarketing agents are actually licensed at the telemarketing service
providers facility and trained to make the insurance sale right over the phone. Although leads
can still be sent to agents, the industry has managed to move to more successful methods.

Insurance telemarketing will also work well in conjunction with Credit and debit
cards. For example a person can get certain credit card and in a few weeks expect to receive a
telemarketing call for a telemarketing services provider. The agent will be a Tier 2
telemarketing agent and without a license, however, they will essentially sell the insurance
with their telemarketing pitch. Once the customer has agreed to parts of the insurance the
telemarketing agent will then Live Transfer the telemarketing call to another agent in house
or in another facility that is a Tier 1 or licensed telemarketing agent. The interesting thing to
note here is that the Tier 2 agent was allowed to call the customer because of an existing
business relationship as a result of the debit card. In addition, when the buyer agrees to

38
looking at the information of signing to the insurance policy than that telemarketing customer
can get billed on the card that the telemarketing call originated from.

Airlines

Indian outsourcing vendors such as Wipro (NYSE: WIT), WNS (NYSE: WNS)
and Tata Consultancy Services are setting their sights high, with global airlines outsourcing
to India on the rise. Wipro has been in talks with Singapore Airlines to relocate the airlines
call centers handling reservation services from four existing locations in the US, Canada,
Australia and New Zealand to India. Tata Consultancy Services (TCS) recently won a multi-
year US$90 million deal with Qantas Airways for application development and support.

3.4 Non voice call center services

The title is a sort of an oxymoron because we associate the BPO desk with
voice calls and answering service. However, in the recent times, the phone answering agents
have broken away from the mould that we had slotted them in. A call center agent is not
content with just taking calls. An agent can contribute to other call center services as well and
many of these have nothing to do with voice calls. In fact, the traditional methods of lead
generation and telemarketing that made use of voice calls have alternatives in the non-voice
BPO services as well. Lets pick up each of the call center services and find out their non-
voice alternatives.

Lets begin with the customer care department. Answering service agents are
known to receive and process calls from enquiring customers and callers. In the non-voice
system, the phone answering agents do not talk on the phone. They answer emails and
comments written by the users on the clients websites or other corporate pages. To bring
those users to the clients website, search engine optimization (SEO) is carried out by the call
center agents. When the interested viewers look for certain keywords, they are directed to the
clients website. The users read the content and sometimes leave a comment. The comments
are tackled by the inbound call center team. The users also leave emails that the BPO agents
can answer. This provides them an opportunity to highlight the products/services without
intruding on the privacy of the callers.

39
 Now lets shift to lead generation. BPO agents are depending on social media and
websites for lead generation. Telemarketing is still an effective option. There are plenty of
results coming in through telemarketing services but no call center would like to leave out the
very lucrative online scenario. With the coming of the social media, sales lead generation has
become easier for the BPO units. Agents can create profiles and post updates about their
products and services on these networks. With the right kind of people as friends and
followers, the call center service can amass quite a few leads without relying on the phone
calls. This is a method that is fast catching up. Clients are also becoming conscious about
their corporate website. Many of them are commissioning the BPO service unit to build them
a website that suits their needs. SEO on websites have brought healthy results because of the
growing usage of the internet to hunt for information and services.

The use of the non-voice methods by call centers proves a point. It proves that
BPO units are always trying to innovate and look for alternatives. In an age when
telemarketing stands threatened because of the Do Not Call lists and other legal impositions,
the non-voice methods of lead generation will certainly offer a breather to these agents.
Clients also find a way out that can get them to have new subscribers on board. The business
growth should not stop because of the hurdles on the way. Fuelled by this desire, business
process outsourcing is now ready with Plan B.

We lay equal stress on both voice and non-voice call center methods. Our clients
decide what kind of a BPO effort they want.

3.5 IN-HOUSE VS. OUTSIDE SERVICE BUREAUS

When establishing a telemarketing program, a company has the option of setting

up the operation in-house, or subcontracting it to an outside service bureau. Both have
advantages and disadvantages. In-house programs usually are better if products and/or
services require extensive technical expertise to explain. They also can be better for firms
making a long-term commitment to telemarketing. Service bureaus, on the other hand, can
help firms that need around-the-clock coverage for inbound programs, are supporting
television ad campaigns, or are running a seasonal marketing program.

40
Service Bureaus

One of the main advantages of service bureaus is that they likely can offer lower
costs. By grouping programs from several different companies, service bureaus can generate
sufficient volume to reduce labor and telephone costs, which make up a majority of total
costs. They can also get a program started more quickly because they have experienced
telephone reps on staff, along with necessary equipment.

When 24-hour coverage is needed on an inbound telemarketing program, it

probably is more cost-effective to go with a bureau. When setting up an outbound program,
the experienced managers at a bureau can help a company avoid making mistakes and often
can accurately project call volumes and sales per hour. Service bureaus also can help with
testing new programs and have a greater ability to handle demand peaks.

On the downside, several client companies often must compete for a service
bureau's attention, and for firms that share service with a broadcast advertiser whose response
rates are underestimated, that can be a decided drawback. Stability of service bureaus has also
been a problem at times.

In-house Operations

The main reason companies decide to run their own telemarketing campaign is
that they can maintain total control over all facets, including hiring and firing, scripts and
presentations, budgets, advertising, and compensation and incentive policies. When
telemarketing programs are kept in-house, phone reps have ready access to company
information, so they can confirm delivery, authorize credit, and suggest alternatives to out-of-
stock items.

Since in-house reps are trained on individual product lines, they can handle highly
technical calls no service bureau likely would attempt. Such technical expertise also helps
companies maintain effective customer service programs through observation (such as via call
monitoring). In addition, it is easier to gain company loyalty from actual employees than from
people employed by an outside bureau. The biggest drawback to taking a program in-house is
the large capital investment needed to get a telemarketing program started. It involves hiring

41
and training new personnel, purchasing new communications equipment, and dealing with a
process that is unfamiliar to many in business.

3.6 TECHNOLOGICAL AND HUMAN ELEMENTS

Computers have played an important role in the growth of telemarketing. Access

to databases provides phone reps with account histories, stock status, order-taking formats,
and other vital information. Besides analyzing data, computers are used for scheduling,
scripting, and follow-ups. Computers also can be programmed to automatically dial phone
numbers and connect the calls to telemarketers only if they are answered, screen out
answering machines, and guide the phone rep through the telemarketing presentation.

While technology plays a vital role in keeping telemarketing cost-effective, the

human element is critical in making the effort successful. Unfortunately, many firms still view
telemarketing positions as clerical-level jobs staffed by people with few skills, no training,
and little understanding of the product or service being sold. Often, the manager of a
telemarketing operation is the only person in an organization familiar with the discipline.
Some firms, though, have come to realize the importance of the telemarketers, as the firm's
image is on the line with every call. They realize the position needs skilled, trained
professionals who must be adequately compensated.

For compensation, most companies use a combination of salary, commission,

and/or bonuses. Studies indicate that incentives generally aid in sales success, but it is
important to link the inducements to the performance desired, be it total sales, calls
completed, or presentations given. Some form of quotas are also commonly used so that sales
reps know what is expected of them. Firms should be reasonable in setting quotas. If the goals
are too high, the reps will become frustrated, leading to morale and worker retention
problems. Conversely, low quotas can create an environment in which effort is lacking,
especially if the compensation package in place is heavily weighted toward base salary.

Telemarketing positions typically show high levels of turnover, in large measure

because the majority of interactions with potential customers end in rejection. Working
shorter shifts or using computers to prescreen customers can help reduce the amount of
rejection telemarketers experience. Training is another important factor. If the individuals that
comprise your telemarketing staff are trained to be specific, control the time and pace of
42
conversation, ask questions and listen without interrupting or rushing the customer's response,
and respond to objections or concerns in a positive manner, they will experience greater levels
of successand hence, a more positive outlook on their duties.

3.7 Its a boon

Telemarketing not only comes in a survival zone for the an individual but its at the
peak of the zone in todays business. It is useful in various industries and business such as
Hotel, Finance, Telecom, Banking etcThe scope of telemarketing is widening at the rate of
70 percent every year and is spreading in many countries like an virus. The countries which
are more into the business of telemarketing are US, UK, Canada and India. There are many
reasons for why telemarketing is hitting todays market, some of them are- Optimum
utilization of resources.

1) Minimization of cost.

2) Provides employment at large level and

3) Brings technology and thus saves time.

Telemarketing can be done at national as well as international level which means

services can be outsourced to the countries abroad reasons being cheap labor, low capital
investment and many others. The business of telemarketing is not a science which can be
learned from the books but is an art where the basic important thing is to have skills, no doubt
at higher level the skill varies. Thats because in order to do telemarketing an individual not
only needs telemarketing skills but also needs skill of management like planning, organizing,
controlling and very important decision making.

This is one industry which is spreading its wings everywhere as telemarketing is not
only considered to be making outbound calls but also inbound, web-based and BPOs and also
making lots of money for everyone. Telemarketing also has many of its disadvantages but
those disadvantages can be swept under the carpet as compared to the advantages what it
brings.

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 CHAPTER 4- TELEMARKETING FRAUDS AND MEASURES
TO PREVENT FRAUDS

4.1Telemarketing fraud in Jan-Sept.2000

The most common scams, the amounts of money victims were losing, and other aspects of
telemarketing and Internet fraud that changed in some important respects which was based on
complaints made to the National Consumers League's National Fraud Information
Center/Internet Fraud Watch programs. Statistics from the first nine months of 2000 provide
some interesting insights, especially in the methods of payment in connection with certain
fraud categories.

Telemarketing Fraud

Work-at-home scams had been fallen since attaining the status of #1 telemarketing fraud
last(1999) year. Prizes and sweepstakes topped the list in 2000. While telephone billing scams
such as slamming and cramming had also declined, complaints about bogus offers for credit
cards and credit card protection plans were rising. Reports about charges for buyers clubs that
consumers never agreed to pay for and Nigerian money offers were also increasing; in 1999
neither of those categories were in the top ten. Complaints about buyers clubs had more than

44
tripled, from an average of four per month in 1999 to nearly 14 per month in the first nine
months of 2000. Nigerian money offers had increased six-fold, from two per month to more
than 12. The good news, however, is that in both telemarketing and Internet fraud, none of the
consumers who received the Nigerian money offers actually went far enough to lose money in
the schemes. The top ten telemarketing scams and percentage of total reported are indicated
below:

1999 Top 10 Frauds Jan.-Sept. 2000 Top 10 Frauds

Work-At-Home 16% Prizes/Sweepstakes 18%
Prizes/Sweepstakes 15% Magazine Sales 14%
Telephone Slamming 15% Credit Card Sales 12%
Advance Fee Loans 11% Work-At-Home 9%
Magazine Sales 10% Telephone Slamming 7%
Telephone Cramming 9% Advance Fee Loans 7%
Credit Card Offers 5% Credit Card Loss Protection 4%
Travel/Vacation 3% Telephone Cramming 3%
Credit Card Loss Protection 2% Buyers Clubs 3%
Investments 2% Nigerian Money Offers 2%

Methods of Contact

Consumers fall prey to telemarketing fraud in a number of ways, but con artists
most frequently solicit them by phone, mail, or in print advertisements. Telephone
solicitations have increased significantly as indicated below:

Jan.-Sept. 2000 Solicitation

1999 Solicitation Method
Method
Mail 52% Phone 50%
Phone 30% Mail 35%
Print 11% Print 9%

Methods of Contact

45
 More seniors are being victimized by telemarketing fraud. In 1999, 26 percent
were age 60 and older, but that age group was increased to 36 percent of victims in the
first nine months of 2000.

Money Lost

Consumers were losing more money to telemarketing fraud, an average of $1,425

per person so far in 2000 compared to $975 in 1999. While the most common method
of payment is still by cheque, there has been a dramatic increase in payments by credit
card and debits from consumers bank accounts. Those increases were due in part to
the rise in complaints about credit card loss protection plans, buyer's clubs, credit card
offers, and magazine sales scams.

The top five methods of payment for all telemarketing frauds and percentage of all
payments are as follows:

1999 Top 5 Payment Jan.-Sept. 2000 Top 5 Payment

Check 36% Check 24%
Telephone Bill 23% Credit 23%
Money Order 15% Bank Account Debit 15%
Credit Card 12% Telephone Bill 14%
Bank Account Debit 6% Money Order 10%

When the top telemarketing frauds from January through September 2000 were
examined individually in terms of the top methods of payment in each category, stark
differences appear. Nigerian money offers are not included since no payments were
made:

Telemarketing Fraud Method of Payment

Prizes/Sweepstakes Check 36%
Credit Card 18%
Wire 16%
Money Order 11%
Cash 7%
Magazine Sales Check 44%
Credit Card 39%
Bank Account Debit 11%
Money Order 3%

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 Debit Card 2%
Work-At-Home Money Order 60%
Check 13%
Credit Card 10%
Bank Account Debit 5%
Cash 3%
Credit Card Offer Bank Account Debit 60%
Check 13%
Money Order 10%
Credit Card 5%
Debit Card 3%
Work-At-Home Money Order 31%
Check 30%
Credit Card 19%
Bank Account Debit 9%
Cash 6%
Telephone Slamming Telephone Bill 93%
Check 3%
Bank Account Debit 2%
Advance Fee Loans Money Order 44%
Wire 18%
Check 12%
Cash 11%
Bank Account Debit 5%
Credit Card Loss Protection Credit Card 86%
Bank Account Debit 7%
Debit Card 3%
Check 2%
Telephone Cramming Telephone Bill 88%
Check 2%
Buyers Clubs Credit Card 65%
Bank Account Debit 16%
Checks 6%
Debit Card 6%
Check 2%

From the information taken in connection with telemarketing fraud reports, it is not
possible to determine how many victims gave the companies their bank account or
credit card numbers and how many of those companies already had that information.
However, at a workshop held by the Federal Trade Commission in July to discuss the
Telemarketing Sales Rule, industry representatives acknowledged that there is a
growing trend toward marketers having "pre-acquired account information" about
consumers.

That information is obtained from the consumers' banks or from other companies
with whom they have done business. Pre-acquired account information makes it easier
47
 to conclude a sales call quickly because the consumer does not have to provide that
information. But it also makes it easier for fraudulent vendors to make credit card
charges or withdrawals from consumers' bank accounts even if those consumers never
agreed to pay. Credit card charges are especially high in reports about fraudulent credit
card loss protection plans and buyers clubs. Bank withdrawals also rank high in
several categories, particularly in bogus credit card offers and buyers clubs.

It is interesting to note the percentage of consumers who wire their payments in

prize and sweepstakes scams and advance fee loan offers. This is likely due to the
sense of urgency that con artists in both schemes create. It is also alarming to see that
cash is being sent in some categories: prizes and sweepstakes, work-at-home, and
advance fee loans. Payment by cash, often using courier services, helps fraudulent
telemarketers get their money quickly and conceal their crimes, and makes it difficult
for consumers to document that the frauds occurred.

4.2 Measures to prevent/fight fraud calls

Since the number of frauds were increased in 1999-2000 there has been measures
brought up by the FTC(Federal Trade Commission) to prevent or to fight such fraud calls.

REPORTING A SCAM OR FRAUD CALL.

Many phone sales pitches are made on behalf of legitimate organizations offering
genuine products and services. Unfortunately, scammers also use the telephone to commit
fraud. That's why the Federal Trade Commission (FTC) encourages you to be skeptical when
you hear a phone solicitation and to report it if you think the call may be fraudulent.

Your complaint counts! Fight telephone fraud. Report telephone scam artists to the FTC and
to your state Attorney General. When you report phone fraud to the FTC, your complaint is
entered into a secure database that is available to hundreds of civil and criminal law
enforcement agencies in the U.S. and abroad. By reporting telemarketing fraud, you are
providing important information to help law enforcement officials track down scam artists
and stop them.

THE THINGS YOU NEED TO NOTE DOWN BEFORE REPORTING A COMPLAINT

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 Where to report: If you get a call you suspect is fraudulent, report it to the
FTC and to your State Attorney General.
What information to provide: When you report telemarketing fraud, your
information may help local and federal law enforcers investigate the scammers.
Provide the telemarketer's name or phone number, as well as the date and time
of the call.

Why: Your complaint is entered into the FTC's Consumer Sentinel

system: a secure, online database used by more than 1,000 civil and criminal
law enforcement agencies.

THE NATIONAL DO NOT CALL REGISTRY

The National Do Not Call Registry gives you an opportunity to limit the telemarketing
calls you receive. Once you register your phone number, telemarketers covered by the
Telemarketing Sales Rule have up to 31 days from the date you register to stop calling you.
You can register your number by calling toll-free 1-888-382-1222 from the number you wish
to register. Registration is free.

Placing your number on the National Do Not Call Registry will stop most telemarketing
calls, but not all. Calls from or on behalf of political organizations, charities, and telephone
pollsters are still permitted.

Organizations with which you have an established business relationship can call you for
up to 18 months after your last purchase, payment, or delivery - even if your number is on the
National Do Not Call Registry. And companies to which you've made an inquiry or submitted
an application can call you for three months.

If your number has been on the National Do Not Call Registry for at least 31 days and
you receive a call from a telemarketer that you believe is covered by the National Do Not Call
Registry, you can file a complaint at the registry's website or by calling the registry's toll-free
number at 1-888-382-1222 (for TTY, call 1-866-290-4236). To file a complaint, you must
know either the name or telephone number of the company that called you, and the date the
company called you.

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This is explained further in detail.

DANGEROUS TEXT MESSAGE SCAMS FROM FRAUDULENT

TELEMARKETERS

Fraudulent drug companies recently started sending text messages to random cell phone
numbers, claiming to offer discounted drugs without prescriptions. The contact info connects
the victim with an imposter website asking for credit card information. These are especially
dangerous when directed to mobile phones of minors. Opening the message will incur a
charge as only a few cell phone models allow text messages to be deleted without first
opening them. Advise minors not to respond to messages from unknown numbers, often
appearing as "Withheld" or "Unknown" on mobile screens.

HANG UP ON TELEMARKETING SCAMS

Both the FTC and Phone busters advise consumers responding to a call to hang up if the
telemarketer insists on an advance payment for a service or product. Any telemarketing calls
asking for banking info or received before 8 am or after 9 pm are against the law. A "service
scam" occurs when telemarketers pose as mortgage or loan officers, soliciting low interest
rates, advance free loans, or offers to repair consumer credit for an advance fee to start the
service. Legitimate credit repair and credit services do not ask for payment in advance of
services.

SECRET AGENTS OR SCAMMERS ?

Another cell phone scam became prevalent towards the end of December 2009. Someone
posing as an FDA or FTC agent offers to retrieve money lost by the consumer in a previous
scam and insists on verifying credit card or banking info to "solve" the case. Consumers
should ask the "agent" for contact info, then hang up and report the callers number to Phone
busters or the FTC. The "prize" or "sweepstakes scam" has also resurfaced for 2010.
Consumers are asked to make a purchase to receive a "free" prize. Check the origin of a
number through websites like 800Notes.com. Note number and report it.

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 GRANNY SCAM PLAYS ON EMOTIONS

The "emergency" phone and email scam became prominent in the last two months and plays
on the emotions of its victims. The caller or email poses as a family member or family friend.
They make a frantic appeal for help, suggesting they are in an emergency, an accident, or
legal complications in a foreign country. The consumer is asked to wire money to a foreign
city and is warned not to contact other family members for fear of embarrassing the "victim".
This scam is usually played on the elderly with the caller posing as the friend or traveling
companion of a grandchild. Wary consumers should insist on verifying the identity of the
caller or simply hang up and report number to Phone busters or the FTC.

Anyone with a mobile or smart phone is subject to telecommunications fraud and online
scams, but the informed consumer insures that telemarketers do not call once phones
are registered and violators are reported.

CHAPTER 5 - TOP TELEMARKETING COMPANIES

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 Headquartered in Tamarac , Florida. Talk2Rep is a leading call center and contact
management services provider. Formed by former AT&T Call Center executives, Talk2Rep
offers fully integrated high quality contact management services for government agencies and
private industries in multiple vertical industries such as Healthcare, Financial, Retail,
Insurance, Technology, Travel and Telecommunications and more. Talk2Rep is industry
recognized as a top teleservices solutions agency servicing some of the largest companies in
the world with inbound and outbound telemarketing and customer services, data collection
and market research.

Why Talk2Rep Call Centers and Contact Management Services?

Positive interaction with your customers and clients is critical to your business
or department. Whether your customer is purchasing an item, resolving an issue or simply
asking a question, bad representation is a reflection on you and your product. An unsatisfied
customer can turn quickly to your competitors with a poor experience.

In today's economy, who can afford to lose a customer? To ensure a positive

experience can cost significant capital and many businesses are questioning whether or not
managing a call center is a core competency. That's why many companies from startup's to the
Fortune 500 use our call centers as a seamless extension of their business.

West Corporation
52
 To many of the top companies in nearly every industry, West provides the
technology and customized services to connect with their customers, workforce, partners and
vendors. They help their clients communicate clearly, confidently, persuasively in a market
place that spans the globe and yet is as personal as a conversation between two people.

Headquartered in Omaha, Nebraska, West processes billions of minutes in voice-related

transactions every year. Their employees are located throughout the United States, Canada,
Europe, the Middle East, Asia Pacific and Latin America. And while their own client base is
expansive, their focus is singular. They specialize in the creation of solutions that cover
every aspect of voice communication - uniquely applied to each industry, each market and
each customer. They deliver exceptional results to their clients through the following services:

Conferencing and Collaboration

InterCall is the world's largest conferencing and collaboration services provider

helping companies stay connected with their internal teams, vendors, customers and partners.

Public Safety

Intrado provides the core of the nation's 911 infrastructure, supporting over 200
million calls to 911 each year. Automated Services - West Interactive is a leading provider of
hosted and managed automated customer contact solutions that help companies realize
significant savings and increased customer satisfaction.

Alerts and Notifications

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 Robust, multi-channel communications solutions that gives companies the power to
easily deliver simultaneous real-time notifications to millions of people located anywhere in
the world by voice, email, text or fax.

Systems Integration and Consultation

SKT Business Communication Solutions, a leader in integrating voice, video,

messaging and collaboration solutions, works with companies to plan and execute their
Unified Communications and Collaboration initiatives.

Facility-based Agents

West delivers customized customer care, customer acquisition and technical support
solutions through agents based in facilities located stateside, near-shore and offshore.

Home-based Agents

Through West at Home companies can increase staffing flexibility, improve quality
and reduce costs.

Business-to-Business Inside Sales Solutions

West Business Services help companies drive incremental sales, increase market share
and strengthen relationships with their customers.

Direct Response Solutions

West Direct delivers industry specific solutions designed to sell products and service
to consumers responding to mass media advertisements.

Intelemark
54
 Intelemark provides superior sales lead generation and business-to-business
appointment setting as well as other quality telemarketing services. They are
renowned for their B2B appointment setting with a proven track record of success
with companies of varying sizes, industries, and marketing objectives.

Their specialty services are:

Customer care

Intelemark helps clients stay in touch with their customers on a regular basis. This
process allows our clients to know if they are maintaining quality standards and
providing customers the value they expect and deserve.

Intelemark ensures our clients enjoy the benefits of being more informed about their
customers' needs in order to build and foster stronger relationships. Questions answered
include:

Is my customer doing business with the competition?

What do our customers say about us?

Are there customer service or quality issues?

How are we perceived in our market?

What do our customers want and what don't they want?

What are some of the issues that our customers haven't

told us?

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Tradeshow/Direct Response Follow-Up

Prospects gathered from tradeshows, seminar attendees, business reply card

respondents, in-bound calls, and other marketing promotions are stellar sales opportunities.
However, without rapid and professional follow-up they quickly become stale.

Intelemark's successful event support provides immediate post tradeshow response

to inquiries including: seamless information fulfillment via e-mail, lead source tracking, and
real time online seminar registration fulfillment.

Intelesure Teleservices

Intelesure has a proven track record of success with prestigious clients and
businesses, such as State Farm Insurance and the California Association of Realtors. They
initially started as a call center solution, but have quickly grown to offer a wide variety of
telemarketing services, including superior call center services, web services, and direct mail
and print services.

Located in Boise, Idaho, the heart of the beautiful Treasure Valley, Intelesure was
originally created in 2003 as a marketing solution for insurance and financial professionals.

As our reputation for quality and results spread, so did the markets we began to serve. To
date we have created and implemented various marketing plans for over 50 different
industries.

Although we initially started as a Call Center solution, our business has grown to include
an ever-increasing portfolio of marketing services... from call center services to direct mail
creation to internet marketing.
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Our basic philosophy is that marketing is a Process, not just an Event. Therefore, the
center of our planning process hinges on creating marketing programs for our customers that
work.

Founded in 2003 and headquartered in Iowa City, IA TMone (pronounced T-M-one)

is a leading front office Business Process Outsourcing (BPO) firm specializing in customer
relationship management (CRM) and database management through multiple service delivery
locations.

The two divisions of the company function independently while capitalizing on

unique operating synergies to deliver solutions exclusive to individual industries. TMone was
co-founded in 2002 by President Anthony Marlowe and by COO John Burchert. Jason Hall is
TMones CEO.

TMone was named to Inc. Magazines list of Fastest Growing Privately Held
Companies in 2007, 2008, and 2009.

Customer Relationship Management (CRM) Division

As Inside Sales Outsourcing (ISO) experts TMone operates on behalf of growth and
brand-focused companies primarily in the communications, financial services, software, and
utility sectors. The CRM division provides both business-to-business (B2B) and business-to-
consumer (B2C) multi-channel, one-to-one customer interaction services.

By employing inbound and outbound channels to manage customer relationships

throughout their life cycles, and acquire new customers, TMone's contact centers provide a
wide range of services including: outsourced sales, high-end customer care, telephone
57
account management (TAM) and support services. Specializing in B2B interactions, TMone
contact centers are able to accommodate all customer interactions effectively.

A proven history of high performance in conjunction with company-wide six-sigma

based quality adherence processes ensure TMone clients experience increased customer
loyalty, consistent sales performance, financial efficiencies and diligent adherence to existing
marketing communications strategy. Clients increase company focus and their scope of
resources with TMone's value added capabilities.

Clients of the CRM division enjoy the use of the database management divisions
interactive communications platforms. The platform enables our clients to turn real time
marketing intelligence into real time data feeds that can be efficiently leveraged to drive
individually targeted loyalty and sales campaigns via any channel.

Database Management Division

The database management division delivers marketing database, automation and

integration solutions for targeting new clients as well as sophisticated interactive
communications platforms for existing clients. TMone provides targeted databases, database
processing and database appends to companies executing direct marketing campaigns such as
direct mail and telesales. By aggregating, overlaying and sourcing new lists and databases the
division supports clientele globally of all sizes and in every industry.

TMone takes time to understand objectives and develop solutions that directly
address the goals and expectations of its clients. From concept to execution, TMones
analytical CRM and database management division supports its clients efforts by providing
targeted direct marketing lists and associated ancillary services such as database profiling,
analysis, creative services and the execution of campaigns.
TMone also develops large strategic highly targeted prospect databases using a
variety of proven proprietary methods to aggregate marketing intelligence for mass
marketers. TMone is a PCI compliant company.

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 Tele Resources, Inc. is the experts choice for outbound telemarketing
services. Whether servicing fortune 500 clients, ATA members, DMA members, or
clients who just rely on telemarketing services, Tele Resources, Inc. constantly
outperforms any and all telemarketing competition. Tele Resources, Inc. is one of the
last remaining telemarketing service centers devoted only to outbound telemarketing.
Focusing only on outbound telemarketing services, Tele Resources, Inc. has managed
to redesign the structure of a telemarketing service company and improve the
telemarketing process through millions upon millions of outbound telemarketing calls,
careful analysis, and dedication. Tele Resources, Inc. is not only the experts
telemarketing choice it is the best choice for outbound only telemarketing services.

Tele Resources, Inc. has been providing outbound only telemarketing and
telemarketing services for over ten years. Tele Resources, Inc. was designed by
telemarketing experts who have been operating and consulting telemarketing programs
and running telemarketing services centers for over 30 years. Now working with
Fortune 500 companies and companies who have a vested interest in telemarketing as
a direct marketing solution; Tele Resources, Inc. has grown to become an extremely
well respected member of the telemarketing services community.

Tele Resources, Inc. works diligently to improve the face of the telemarketing industry
and is a proud member of several trade organizations including that ATA or American
Teleservices Association, and the DMA Direct Marketing Organization. Tele
Resources, Inc. also participates in several different yearly activities geared at
promoting the health and quality of the telemarketing services industry.
Tele Resources, Inc. has made a contentious effort to remain an outbound
telemarketing center because it has been proven that agents working in an outbound
59
 telemarketing environment are more effective than agents working in mixed or
blended telemarketing environments. In order to ensure our telemarketing clients are
receiving the best in service, Tele Resources, Inc., has opted to maintain an outbound
only telemarketing focus.

Tele Resources, Inc. houses 160 telemarketing stations and over 200 employees. Tele
Resources, Inc. specializes in telemarketing and lead generation services.

As the worlds largest telemessaging (telephone answering) firm and full service provider of
Inbound, Outbound and E-bound call center services, AnswerNet provides customizable
business solutions for over 35,000 clients throughout North America.

AnswerNets award-winning call centers handle over 50 million phone and Internet contacts
each year. By utilizing our 50+ call centers and cutting-edge technology, AnswerNet gives
your organization the capability to provide 24/7/365 customer service in a cost efficient and
highly effective business environment.

AnswerNets dynamic call center services include telesales, telemarketing, customer service,
customer care and help desk, disaster response, product recall, Direct Response Television
(DRTV), telephone answering, appointment setting services, and many more, all designed to
fit your business needs.

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 AnswerNet services include both inbound and outbound telemarketing, both automated
and live services, and both business-to-business and business-to-consumer telemarketing
services. They work a wide array of marketing campaigns to ensure you are satisfied. They
participate in sales, lead generation and lead qualification, appointment scheduling, surveys,
seminar registrations, and quality market research

Headquartered in La Jolla, California, Contact America is a dynamic, full

capabilities call center outsourcing company specializing in inbound, outbound and e-
commerce telemarketing, customer service, and customer relationship management.

Contact America maintains a state-of-the-art computer integrated telephony system

to serve a wide range of corporate, customer service, and e-commerce clients.

Over the last 13 years, they have successfully managed their growth without
sacrificing quality or attention to detail. As a result, Contact Americas business has grown
exponentially and has a reputation for providing the highest quality service in the industry. In
fact, Call Center Solutions Magazine awarded Contact America the Call Center Solutions
MVP Award, for providing high quality and impeccable service.

Contact America is a wholly owned division of AnswerNet, a premier national

provider of 24/7 call center services and contact center solutions. As a division of AnswerNet,
Contact America is part of a robust network of 50-plus call centers across the United States
and Canada supplying inbound, outbound, email and call center outsourcing services for all
types of businesses, organizations, and industries.

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Their Mission

To understand a company, it's important to know what they value. Perhaps the easiest
way to convey what is important to Contact America is to share the "Mission" section from
our employee handbook.

MISSION

"To be the best customer contact center company in America."

How they define the best?

Starts with the best management

Superior management is their most important competitive advantage. Each of Contact
Americas departments is the best in the industry. Many of their managers have been with
them since they opened their doors.

Run efficient campaigns

Contact America prides itself on their efficient process flow. They begin projects on time,
achieve their goals, avoid IS complications, and provide the highest quality resulting in
profitable campaigns that optimize client satisfaction and return on investment.

Outstanding customer service

They provide their clients with control, flexibility, quality, dependability, stability, and
commitment, as well as technical, business, and product knowledge.

They continually aim to improve the results, they deliver their clients by reviewing and
analyzing data collected throughout the project. This may include live monitoring, ongoing
training and script revisions as needed.

They provide the flexibility their clients need when developing and managing a project and
continuously look for ways to improve the information they produce.

Professionalism

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Their business is built on reputation, repeat business, customer retention and customer
referrals.

They know from experience that quality, professionalism, and high ethical standards are
essential to client and customer satisfaction.

they establish a climate of mutual respect from day one. They follow through with their
commitments and have frequent and clear communication with their clients.

We are a Sales and Service Organization

They are judged by how well they perform. They believe they are the highest quality sales and
service organization in the industry.

Their objective is to save you money, which makes you money.

They are extremely proud of their long-term client relationships , in fact their very first client
of 14 years is still with them.

A dedicated telemarketing services company backed by 10 years of experience

delivering quality results

Business Beanstalk is a distinguished telemarketing company in the global

outsourcing industry offering telemarketing services to small and medium sized businesses
worldwide. Business Beanstalk can provide the full customer care support your company
63
needs to grow your business. We provide a full range of superior quality, cost-effective
telemarketing services including appointment setting, lead generation, database updating,
telephone surveys, order taking, customer support, and more.

Business Beanstalk offers you efficient business processes through the most
advanced telecommunications equipment and leading technology available today. We identify
and employ only the most extensively experienced telemarketing professionals in the industry.
Our telemarketing people are self-motivated, trained, and focused on providing an exceptional
customer care experience. Through our dedication and resources, we provide you superior
quality and cost-effective outbound and inbound telemarketing services.

Grow your Company

We grow your business by letting your people focus and develop on your companys main
strengths. We understand that most sales specialists dislike the arduous task of cold calling, so
we take care of that for you.

Dialing for dollars

We recognize that business is won by perseverance. At Business Beanstalk, we
have perfected the art of dialing for dollars. We liberate your precious time and effort from
cold calling so you can concentrate your skilled efforts in closing pre-qualified prospects or
appointments, therefore providing your clients with the best products and telemarketing
services.

Cost Efficiency
Business Beanstalk telemarketing professionals have called for businesses of all
sizes ranging from small businesses to the largest Fortune 500 companies, covering a wide
variety of industries. From janitorial services to software development firms, companies have
relied on us to further fuel their growth and expand their business at the least possible cost.

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 CHAPTER 6- TELEMARKETERS

Telemarketer is the one who carries out the activity of telemarketing. A

telemarketer is the one who is the executor of the plan prepared by the company for selling
the products to the customer. Its the telemarketers skill of persuading the customer to buy a
product.

The way the telemarketer interacts with the customers gives an idea to the customer
about the company and its product. If a telemarketer of a company forces its customer to buy
a product or is rude to the customer or doesnt respond properly to the complains made then
the customer will definitely have a wrong image of the company and its product whereas even
if the product is not good and the telemarketer has a good vocabulary, is pleasing and looks
after all their queries and complaints the customer will automatically be influenced to buy the
product.

Telemarketing is a science that applies personal attention combined with time tested
techniques to provide you with unique business solutions. Time-tested sales skills combined
with innovative technology provide your telemarketing campaign with a unique advantage

65
over your competition. Telemarketing is not as easy as it looks. Telemarketing involves
talking on the phone to someone you do not know and trying to convince them to buy a
product, use a service, or sign up for a special offer.

Many times, telemarketers fail because they are not doing the job properly.
Speaking is a skill, and there are techniques that can be applied to speaking that will help
anyone become a successful telemarketer.

Telemarketers follow the below steps to improve their skills:

1. Be Clear When Cold Calling

Successful telemarketing begins with knowing your purpose before you
initiate the call. Are you trying to find out the name of the decision maker? Do you want to
send information? Do you want an opportunity to pitch your product or service? Are you
conducting a survey? If you know your purpose in advance you'll communicate the right
message in subtle, subconscious ways. You'll be more confident and everyone knows that
confidence wins mindshare, which is what sales is all about.

2. Be Prepared for Each Cold Call

One of the best kept secrets of telemarketing is to know your script. Cold calling is a
numbers game and the only way to skew the numbers in your favor is to be prepared.
Confidence in your purpose and control of your message shows your prospect that you are a
professional and that your product or service is of value.

3. Be Efficient While Telemarketing

Even if the message is welcome it's an interruption to what your prospect was doing
before they answered your call. Show them that you respect their time and yours.

4. Make the customer feel important

During the call, it's important to make your prospect feel like they're the most
important person in the world to you. Take the time to really understand their needs and match
your pitch to the issues they face.

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5. Be Interested and Interesting During Cold Calls
Prospects are used to the sales pitch. In fact they've all-but become immune to it.
When you call, grab their attention with power words that provoke interest, then try to get
them talking about themselves. Take notes, then use what they said as you relate the reason
for your call. People will care what you know when they see clearly how it applies to their
life. Remember that people don't buy products, they buy results.

6. Ask questions
By asking questions, you're showing an interest in your prospect and encouraging
them to talk about themselves. Don't be afraid to ask as many questions as you like. Make
sure you ask a good proportion of open questions, i.e. those which require something other
than a "yes" or "no" answer. It might help to make a list of such questions to refer to when
you're on the phone

7. Smile as you dial

When cold calling, always put on a positive and friendly front. Your prospects do not
have to listen to you and will not if you're not enigmatic and engaging. A calm and confident
manner will yield far better results, and your success will breed further success.

8. Perseverance
Cold calling can feel like an uphill struggle sometimes, and it can make you want to
give up. By persevering, you will learn more about what appeals to customers, and hone your
technique to improve your results.

9. Maintain the initiative

When finishing your call, suggest a time to get back in touch. And make sure it's
you that calls them back. Your call will be more welcome if you agree a time to call back and
stick to it.

10. Close the deal

Once you have established some interest in your company and/or products, it's

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time to close the deal. Consider what you need to secure the order i.e. a visit in person or a
signed order form and don't be afraid to ask for it, once you're sure your buyer is keen.

11. Be Someone They Want to Call Back

Voicemail isn't a dead end. Too many telemarketers lose opportunities by not leaving
messages for their prospects via voice messaging systems. To catch attention on voicemail
begin with the end in mind. You want them to call you back so leave your name and number.
Tell them to write that down. People write numbers when they are dictated anticipating that
the information might be necessary. Use that to your advantage. Next state a compelling
reason why you're calling and an even more compelling reason for them to call you back.
Project confidence but don't sound slick. Finally leave your name and number again in case
they didn't get it.

12. Motivation

One of the most important things in telemarketing is motivation. Someone has to

want to do the job. The overall motivation will determine how they speak to people. So,
successful telemarketers are very motivated to do the job.

13. Product knowledge

In order to successfully speak about a product or a service, the telemarketer must

know about the product or the service. Customers will ask questions before they buy or sign
up for something, so the telemarketer should be able to answer the questions. Knowing the
product or service will help the telemarketer make a successful deal.

14. Know the call format

The telemarketer should have a call format or a call plan. They should know the order of
the call: the introduction, the description of the product, the price, the value of the product,
how to order, and the closing. Many companies will have a script to follow. A successful
telemarketer will know the script and use it to their advantage.

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15. Attitude

Attitude is evident on the phone. When someone' happy and excited, those emotions will
palatable, even on the hone. Angry, upset, or frustrated telemarketers are usually not
successful. So, the successful telemarketer will have a positive attitude while doing their job.

16. Know the customer

A good telemarketer will know the customer. Know when it is a good time to call.
Calling during dinner, early in the morning, or late at night will not be successful. If you call
at a bad time, ask the customer when a better time to call would be. Know what they are
looking for. Do not try to sell them something they are not interested in. This will create
hostility. Listen to what the customer has to say. Their comments and input can help you guide
the direction of your call. Respect the customer's feelings and comments. Knowing the
customer is a successful technique for any telemarketer.

17. Visualize your success

Many telemarketers receive bonuses or rewards for a job well done. A successful
telemarketer will visualize his or her success. They set goals and work towards those goals.
Having a vision of what you want to get out of this job will help create a successful
telemarketer.

18. Enjoy the success

A successful telemarketer will always take the time to enjoy the fruit of their hard work.
They will be proud of their successes and will continue to strive for future success.

6.1 HUMAN ISSUES IN CALL-CENTER INDUSTRY

Stress

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 For many employed in the call center sector, "the daily experience is of repetitive,
intensive and stressful work, based upon Taylorist principles (breaking down an activity, job
or task into small simple segments which can be easily analyzed and taught), which frequently
results in employee "burnout". Brown, more vividly, characterizes the work as "repetitive
brain strain". These descriptions are hardly surprising, in a way, given that call centers are
established by organizations to "create an environment in which work can be standardized to
create relatively uniform and repetitious activities so as to achieve economies of scale and
consistent quality of customer service". This means, in other words, that workplaces are
organized in ways that weaken employee autonomy and enhance the potential for
management control, and "a loss of control is generally understood to be an important
indicator of work-related stress".

There is almost universal consensus that call center work is stressful. Even in studies
that report the observation that some staff actually enjoys their work, mention of stress is still
the norm, and a significant portion of the call center literature is devoted to detailing the
sources of stress in call center work.

Four Key stressors

'Can we get off the phone for a while?'

The primary source of stress reported is inherent to the nature of the job: spending
all day on the phone dealing with people one after another, day after day, is difficult. Doing it
under constant pressure to keep call volumes up, with no time between calls to "recover from
an awkward call or from 'customer rejection'" is even more difficult. And doing it with "very
little authority or autonomy to rectify problems" that arise is perhaps the most difficult of all.
Many studies report agents as wanting to 'just get off the phones'. For example, Belt and
colleagues note "agents in all three sectors [financial services, IT, and third-party services]
spoke of the phenomenon of 'burnout', caused by the pressure of working exclusively 'on the
phones'". In the same study, the authors mention that the issue of 'burnout' was also
recognized by some managers: "It was pointed out that managers face an inherent conflict

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between the need to reduce staff boredom and labor turnover, and the pressure to concentrate
staff energies on telephone based work".

"The question of how call center employees deal with stress is an important one,
particularly in view of evidence that a build-up of stress leads to illness, absenteeism and
turnover," writes Houlihan. Many authors agree, and there are a variety of individual coping
mechanisms described in the literature. Tricks to circumvent control mechanisms, such as
those discussed above are sometimes mentioned as attempts at stress reduction, although they
are unreliable in this role as they may also increase stress. Others mention social interaction
squeezed into brief moments--Callaghan and Thompson describe agents using humorous (or
rude) gestures towards the phone, or making faces at colleagues to defuse stress over angry or
abusive callers, and making jokes to combat the tedium of the day. Lankshear and Mason
describe a similarly social approach to reducing tension in one of the sites they observed,
where staff often laughed and joked with one another in intervals between calls, with
management's approval. More formally, some call centers include stress management as a
component in training programs, and many have, or claim to have, team de-briefings which
permit staff to vent frustrations while discussing difficult calls or dissatisfactions with
elements of work.

Knights and McCabe take a different approach to stress in the workplace. They
note that although much organizational analysis and most of the call center literature tends to
conceptualize stress as an individual problem, it is actually located within "a framework that
emphasizes the interrelationships between structural relations of power and the subjective
interpretations and actions of employees". This more nuance positioning may provide more
insight into call center conditions, as it allows a researcher to consider the response of
employees "forced to interpret the often contradictory demands management place upon
them" including "contradictionsover service quality versus the quantity of work output".
"Clearly," these authors write, "staff face some fundamental contradictions over unity versus
conflict, uncertainty versus certainty, quality versus quantity and these are at the heart of the
reproduction of stress, resistance and control". This focus on the "contradictory" nature of
demands strikes at the heart of the second inherent sources of stress in (primarily inbound)
call center works: the quality/quantity conflict.

Quality/Quantity conflict
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 Typically, organizational rhetoric in inbound call centers is concerned with
'customer care', or 'keeping customers happy' (providing quality service), yet these goals are
juxtaposed with an ongoing pressure to keep call times down and call volumes up. Houlihan
describes the difficulty concisely:

Call centers are rooted in contradictory tensions and structural paradoxes, and
confront a number of trade-offs on that basis. These set a context for attitudes towards the
organization and can impose conflicting role requirements on agents. A core example is that
of the pressure for quantity versus the aspiration for quality, the guiding logic of which is the
conundrum of trying to get closer to the customer while routinising, centralizing, reducing
costs and prescribing standards.

The dichotomy is not completely straightforward, it is important to note. Part of

providing quality service from a management perspective is making sure customers do not
wait too long for their calls to be answered, even though the push to keep queue waiting times
short is typically categorized as part of the pressure towards quantity. As Bain points out,
"efforts to attain what is perceived to be the desired balance between the quantity and the
quality of calls presents a perennial challenge".

The practice of ongoing work practice modification and target revision as

management swings from one side to another of the quality/quantity debate is a major source
of stress for call center agents. As Houlihan notes: "The practice of putting a 'drive' on
particular targets for improvement (for example, the collection of renewal dates, the up-
selling or cross-selling of products, the quality of data input, or the intensity of sales push)
and continual reprioritisation means that the 'goalposts' are constantly shifting". Virtually all
of the call center authors who write about work conditions mention the difficulty of dealing
with these competing goals. Korczynski and colleagues suggest that this dilemma is
particularly difficult for front-line workers because they may be likely "to identify with
embodied individual customers, for interactions with specific customers may be an important
arena for meaning and satisfaction within the work". They contrast this customer-as-
individual orientation to the managerial goal of balancing customer orientation with
efficiency, which they suggest leads management to prefer workers to identify with a generic
category, 'the customer', since "such a disembodied image of the customer will encourage

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workers to deal with individual customers efficiently because they will be conscious of the
concerns of other customers waiting in a queue".

Intensity
The third central stressor in call center work is its intensity. As Bain (2001) argues,
"far from being either in terminal decline or on the wane, Taylorism-in conjunction with a
range of other control mechanisms-is not only alive, well and deeply embedded in the call
center labor process, but its malevolent influence appears to be spreading to previously
uncharted territory". There is widespread consensus that "call centers are a new, and
particularly effective, manifestation of the increasingly capital intensive 'industrialization'
of service sector work, and work performed in them is highly intensive and routine".

Buchanan and Koch-Schulte quote one call center worker who describes the
constant pressure graphically: Ellen: It's almost like the army. It's very regimented. You punch
in with a time clock. You come in and you sit down, and the numbers are all computerized. As
soon as you finish a call, the minute you hang up another call comes up just this constant, all
day, repetitiousconstant sort of like beating on a drum, but day after day.

The pace of work is determined by the combination of technologies that deliver calls
to the headset and account details to the screen, and workers often have no control over this
process.

Descriptions such as "exhausting," "robotic," "controlled," and agents discussing the

nature of their work often use "machine-like". Houlihan expands on the idea of controlled,
machine-like agents by suggesting that this is in fact exactly the way that the organization
conceives of them:

Call centers are information handling organizations. As currently characterized, the

job of the agent is to be the voice of the organization, interfacing with the client or customer.

The organization rehearses the things it wants said and feeds them through the
agent. The agent is largely constructed as a mouthpiece rather than as a brain.

Buchanan and Koch-Schulte spoke with a call-center worker who articulated her
feelings about the organization's expectations of its agents in very similar terms: Rosa: You

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are standing waiting to be used by the technology, and it's a physical embodiment of that. You
are standing, waiting until that call comes in to use you to make money. And you are simply
another part of that machine.

When this feeling of being a cog in a machine which never stops as it grinds on,
repeating the same actions over and over again, is combined with "the cumulative emotional
demands presented by the interpersonal nature of the work", stress is inevitable.

Targets
There is a fourth feature of some call center work that may engender stress:
performance targets. There are various types of targets, which may vary between inbound
and outbound centers. Inbound centers typically have targets for call duration, 'wrap time',
and daily call volume. Outbound centers often also have sales or 'completion' targets,
which are closely monitored and upon which pay may be partially based. In addition, in
some sectors, inbound call centers are attempting to introduce the practice of cross selling,
where agents attempt to sell additional products to the customers who call in for another
purpose. In these centers, sales targets similar to those in outbound centers are often in
place.

Taylor and Bain argue that particularly in the financial services industry in the UK,
targets are a significant source of stress for workers as more and more importance is placed
upon meeting them in an increasingly competitive business environment.
Sales targets, in particular, are difficult to accept, or meet, for staff who often consider
themselves as service personnel, particularly when they are set centrally and implemented
locally: "Cross-selling is seen by employees, not as an opportunity to engage in creative work,
but as an additional and acute source of pressure". This is especially the case when sales
targets are parachuted in on top of service targets set originally when there was no pressure to
produce sales.

As a CSR in Taylor and Bain's study emphasizes: "When somebody phones in for a
balance you have to try to get a sale or get them interested as well as turning the call round in
155 seconds".

Even in centers that claim not to prioritize targets, researchers have found that staff
often feels significant pressure. Targets simply intensify the stress produced by the
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quantity/quality debate, or, as one agent is quoted as saying, "They say that they're not really
interested in numbers. They say that they are more into quality. Well, that's a lie. They're
usually more into numbers than anything". It is important not to over generalize however.
While most call centers do have some targets, they are a source of stress that is directly under
management control. Some call centers are managed in such a way that targets are set to
realistically reflect local conditions, are interpreted in light of other, more subjective
information, and are not used punitively or to intensify work. In some they are even used
effectively to motivate and encourage staff. For example, Lankshear and Mason describe a
series of conversations with managers in their call center site where management consistently
conceptualized their performance reports (for example, one commented that it's 'human
nature' for productivity to drop before and after a holiday), and used their stats as an excuse to
praise good performance and coach those who consistently had difficulty meeting targets:
"Our best bet is to develop the people we have got" one manager is quoted as saying.

6.2 Other Health issues

The result of intense, stressful work may be an effect on workers' health. There are
often high rates of absenteeism and sick leave reported in the literature, although there is
relatively little exploration of these issues, particularly when compared to turnover. Most
often, authors provide a brief list of known health issues. For example, Richardson, Belt and
Marshall write that "Health concerns have been expressed, including tension, sleeplessness,
headaches, eye-strain, repetitive strain injury (RSI), voice loss, hearing problems and burn-
out", but they do not develop the point. More detailed descriptions of the causes and effects of
these ailments can be found in industry and trades union reports. For example, the Trades
Union Council (TUC) in its brochure targeted at call center workers, cites the main illnesses
to which call center staff are prone: "back strain and RSI, stress, eyestrain, and voice and
hearing loss".

Also in the UK, regulators have been proactive in their examination of the industry,
with the Health and Safety Executive issuing a bulletin on call center regulations, health risks
and best practices in December 2001. They looked specifically at health issues including
stress, noise levels, musculoskeletal disorders (such as back problems) and voice loss, and
also at display screen issues, working environments, requirements for work stations, daily
work routines, training, organizational working practices and shifts.
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 Sleeping Disorders
No prizes for guessing the most severe ailment afflicting people working in Indian call
centers. Since this is a unique Indian problem, again, no solution appears in sight.
Obviously this affects first timers more severely, as they take time to acclimatize their
biological clocks, but even experienced people or managers are not able to completely
escape from it. Some call centers are looking at devising innovative mechanisms like
flexible shifts with sleeping arrangements in the office premises as possible solutions.

Digestive System Related Disorders

Working long and odd hours without any sleep, and eating food supplied by external
caterers everyday, has led to 41.9% of the respondents suffering from digestive
problems. Especially for the large number of girls working in the industry, the problem
is even more severe. Many call centers are now taking additional care to ensure their
caterers supply hygienic food; besides stipulating strict conditions to maintain the
quality of the food they serve.

Depression
In last year's survey, this was not among the top disorders, but this year it has climbed
up the chart, affecting nearly one-fourth of the respondents. Not surprising, since, as
the industry matures, the initial glitz and glamour wears away and the real problems
come to the fore. Not only are there several health related issues, but, on top of that,
the gradual realization that there is limited scope in developing a career owing to
fewer growth opportunities is increasing the frustration levels. Coupled with growing
mental fatigue and increasingly punishing physical environments, depression is the
obvious end result. Some call centers have now devised different stress management
programs mainly to counter depression.

Severe Stomach Related Problems

Continuing digestive problems lead to severe stomach disorders like gastroenteritis, as
endorsed by more than 24% of the respondents. Even doctors in major cities agree-in
recent times many of the patients with various stomach ailments are from call centers.

Eyesight Problems
Globally call center industry employees are considered a high-risk group for eye-

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 related problems. While the quality of monitors might impact these disorders, sitting
continually without adequate breaks seems to be the truer reason. The number of
people affected seems to be on the rise-last year only 19% complained; this year it has
gone up to 23%. At some point of time, this problem might also afflict the IT services
industry, but for the call center industry, no remedy seems to be in sight.

Ear Problems
More than 16% of the respondents inform that they have hearing problems. Again, no
surprises here, since a call center job involves taking calls throughout the shift, sitting
with headphones. While quality of headphones does make a difference, it would not be
correct to completely wish the problem away by thinking that changing headphones
will solve it.

6.3 Some other Human Issues, in Call-Centers, which need

Immediate Attention

Personal habits
The young executives are getting more than five figure salaries per month in an early age.
They tend to develop certain bad habits such as alcohol, smoking etc. It is not easy to identify
such individuals. It is also very sensitive to talk to them. The professional counselors can
conduct group-counseling, workshops, educative film shows in order to create awareness on
effects of bad habits. Such actions will enable individuals to realize the importance of good
habits and they could seek one to one Counseling sessions to solve their problems.

Discipline and behavioral issues

Call centers provide excellent working environment, free food and transportation. There is
always a situation where individual or group of youngsters tend to commit mistakes and abuse
the freedom. They start behaving like in college campus where they have more freedom.
However, the call center executives have more responsibility and accountability, they need to
follow discipline and do well in the job. The most common behavior is misuse of food,
behave erratically in vans, and smoke in public places, misuse of telephones and other
resources of the company. The supervisors always concentrate on performance and achieving
targets. They do not have time or interest to go deep into these matters and find out the
reasons for such behavior. The professional counselor can play a major role in educating the
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youngsters on discipline; provide advice to erring executives. The counselors with their
wisdom and experience can tackle such issues tactfully and bring change within the
individuals.

As said earlier, to majority of them this is the first employment and they are fresh out of the
colleges. Few tend to behave differently and they have the "do not care" attitude. Such
executives will not take their job seriously, they indulge in teasing, and joking, talking over
mobile phones, have friction within the team. These aspects may go noticed or unnoticed by
the supervisors.

The fact remains that such unacceptable behaviors will cause disturbance to others and overall
it affects the productivity. Sleeping while on duty, reading novels and playing games on the
computer during working hours brings down productivity and quality suffers. The HR
representatives and professional counselors jointly have a role to bring behavioral change
starting from the training days. Continuous education and Counseling will help to mitigate
such problems and it is possible to prevent serious problems.

Inter-personal relationship and friendship

Executives develop friendship quickly and sometime the friendship breaks and
there will be misunderstanding among the team members and naturally affects the team
performance. The supervisors and counselors can play a major role to sort out the
interpersonal relationship and develop team spirit. Healthy relationship among the team
members has always helped the team to out perform. When the relationship fails the
individuals will also break down mentally. They either absent for duties or fall ill or the
performance will come down. It is also true that due to misunderstanding and break in
friendship they change jobs quickly.

Love affair and marriages

Few of the boys and girls fall in love quickly. They maintain the healthy
relationship, behave in a matured manner, plan the future course of action and such persons
have got married with the consent of their parents. They work together in the same
organization for longer duration. There are instances, where lovers fall apart, start disliking,
creating troubles to each other and vitiating the atmosphere. They are immature, take instant
decisions to break or unite and sometimes go to an extent of damaging others reputation. The

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professional counselors can play an important role in explaining the importance of marriage,
preparation required for marriage, how to enter the institution of marriage, which is
acceptable to both parents and society and about the new role and responsibility after getting
married. Counseling services can definitely give emotional support to individuals.

Absenteeism
Absenteeism is very high in calls centers. Employees tend to be very irregular
to the duty due to various reasons. The professional counseling services to such irregular
employees on one to one basis will help to bring down the absenteeism. The counselor can
educate and explain the importance of attending duties to earn the salary and also to meet the
organizational goals. Each individual are unique and the problem they face are also different
in nature. Only the professional counselors can understand, analyze and provide long lasting
solutions for the individuals.

Higher education and part time jobs

It is possible to do higher education while working in BPO units. Few
organizations encourage and offer support services to pursue higher education. However, the
time management by the executives is crucial to go forward in education as well as to
maintain the performance and career growth. Programs on time management, tips to study,
tips to keep fit and such other programs can be offered. These steps would help to seek the
loyalty of employees to the organizations and helps greatly for the retention of employees.

Organizations do not grant permission to pursue part time jobs while working in
BPO units. In order to make quick money and to have options open to change the jobs in
future will drive the employees to do part time work. Human body does not permit to stretch
beyond one's capacity. The executives need to take sufficient rest in the daytime so that
energy levels are maintained. Either due to lack of experience or due to compulsions, the
executives keep their one feet in call center and another in part time jobs. In the long run this
would affect individuals health. The HR executives must identify such persons and offer
professional Counseling services to them.

6.4 Remedial Measures for Stress Management

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 Understanding that the "Stress" is a major concern for all Call-Center Employees, it
is a duty of HR-heads of Call-Centers to address it properly. Some of the common signs and
symptoms of stress Although we all experience stress in different ways, there are certain signs
that are most frequently reported. These signs fall into two major categories;
physical/behavioral signs and emotional signs. If we become aware of our own stress
symptoms, we will be more effective in dealing with them sooner rather than later. What
follows is a list of some of the most experienced symptoms of stress.

The physical/behavioral symptoms include; muscular tension, muscle spasms and

tics, rapid heart beat, shortness of breath and high blood pressure, cold hands and feet,
backaches, headaches and neck aches, stomach problems, indigestion, irritable bowel and
ulcers, feeling fatigued, irritable, decreased ability to concentrate, insomnia and changes in
eating behavior. Since these physical symptoms may be related to physical problems, you
should consult with your medical doctor before you assume that your symptoms are purely
stress-related.

The emotional symptoms include; anxiety in a variety of situations not limited to

the stressful situation, depression, hopelessness and a strong urge to cry without specific
incident, withdrawal from social interactions and avoidance of previously enjoyed activities,
powerlessness and decreased self esteem, hostility, anger and resentment, fears, phobias and
unwanted thoughts.

Learning to become more aware of your own stress symptoms is the first major step in
the stress management and healing process. It is often helpful to monitor your daily symptoms
in a stress diary where you match the stressful events with the symptom experienced. For
example; you made find that if you are stuck in early morning traffic you may experience
irritability and headaches. In this case it will be important to use these symptoms as a cue that
you have to begin managing that stress more effectively when it happens.

6.5 What are the consequences of unmanaged stress?

We all know that stress is something that doesn't feel good to us physically and
emotionally. What is even more compelling is what happens below the surface each time we
experience stress. Stress researcher Hans Selye, determined what happens internally each time
we experience something as threatening or stressful. According to Selye, when we perceive a
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threat in the environment the thinking part of the brain sends an alarm message to the nervous
system via the hypothalamus. The nervous system then makes changes in the body that
prepare you to handle the perceived danger ahead. These changes include increases in heart
rate and blood pressure as well as pupil dilation. In addition, there are hormones and
chemicals secreted such as adrenaline, that give the body the necessary push to be able to
manage the threat ahead. Although there are situations in which these adrenaline surges are
very helpful in helping us mobilize, the constant adrenaline surges due to repeatedly perceived
threats, have a toxic effect on the body. For example, recurrent adrenaline surges inhibit some
of the other important functions in the body including growth and tissue repair, digestion and
the immune response.

Just as the thinking part of your brain is responsible for turning the stress response on,
you can turn it off by changing the threatening appraisals you are making. Once you are able
to determine that a threat does not exist or that it can be effectively managed, your thinking
brain stops sending panic messages to the nervous system. As a result of this reappraisal, the
hormones and chemicals cease to be released and the body returns to normal.

Bringing the body back to an "un-stressed" state is very important since almost every
system in the body can be damaged by stress. Although our bodies are adaptive and can
recover from periodic stressors, chronic stress has serious consequences. We experience the
consequences of stress on three important levels; physically, emotionally and behaviorally.
What follows is a description of the specific consequences in these three categories.

Physically, the body is likely to develop a stress-related disease as a result of the

stress toxins that are released. For example, chronic stress can lead to cardiovascular disease
by elevating blood pressure, damaging the heart and arteries and increasing blood sugar.
Respiratory conditions such as asthma and bronchitis can result from stress-triggered changes
in the lungs. When stress inhibits the body's digestive functions, diseases such as ulcers,
colitis and chronic diarrhea can occur. In addition, stress contributes to inhibited growth of
tissue and bone which can lead to decalcification and osteoporosis. The immune system is
also inhibited by the reduced efficiency of the white blood cells, making the body more
susceptible to disease. Increased muscle tension, fatigue and headaches are additional
consequences of chronic stress.

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 The second category of consequences of chronic stress is the emotional
consequences. Depression can result form chronic stress due to the constant release and
depletion of nor epinephrine. What also contributes to the depression is the thought that life is
terrible and that it is never going to get better. What then results is a feeling of helplessness
and ineffectiveness, feeling like a failure and a reduction in self-confidence. Individuals who
are depressed are also likely to withdraw from relationships and isolate themselves which
often increases the intensity of the depression. In addition, anxiety and fearfulness are
commonly felt emotions if someone constantly perceives threats around the corner. In
addition, individuals who are chronically stressed are likely to exhibit increased cynicism,
rigidity, sarcasm and irritability since they believe that their situation is not likely to improve.

Chronic stress also has significant behavioral consequences. The behavioral

consequences often result from the innate survival urge we have to seek relief, to fight or to
flee. Unfortunately, these relief-seeking behaviors eventually become problematic. For
example, "addictive behaviors" can result from the repeated efforts to soothe or escape the
painful stress. Alcohol, drugs, smoking and overeating are often seen as tools to help manage
the stress even though their effects are short lived and the consequences of chronic use are
destructive to the body and mind. Unfortunately the mind's ability to deny the long-term
consequences in order to fill the short-term need to escape perpetuates the problem and
increases the excessive use behavior. Similarly, procrastination, poor planning, excessive
sleeping and the avoidance of responsibility are examples of behaviors used by stressed
individuals to temporarily flee from the pain. What is most significant about these behaviors
is their ability to generate additional problems that are as severe as the original stressor. For
example, procrastination or avoidance of the management of a stressor only serves to increase
anxiety and exacerbate the stress experience.

The stress consequences reviewed above suggest that in addition to being physically
and psychologically distressing, they reduce the likelihood of effective goal reaching. The
rationale for properly managing and coping with the stress is for health protection in the
future as well as making the present more productive and satisfying.

6.6 Managing Stress

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 Since stress is an inevitable fact of life that we can't always prevent, our efforts need
to be focused on coping with stress more effectively. What follows is a description of a three
pronged approach to stress management which includes behavioral/practical techniques,
relaxation techniques and cognitive/thinking techniques.

The behavioral/practical approaches to stress management include exercise and eating

a healthy, balanced diet, which includes selections from the basic food groups. In addition, it
is recommended that one avoid the excessive use of alcohol, caffeine and sugar, which
contribute to fatigue and vulnerability to mood swings. It is also important to allow the body
to rest and replenish to help inoculate the body against future stress. Building this stress
resistance also includes scheduling time for leisure and pleasure, which provides for a more
balanced, fulfilling life. Anticipating and preparing for recurrent stressors by managing time,
setting priorities and limits, delegating responsibility, and not procrastinating are helpful stress
reducing strategies. These techniques are effective stress management tools because their
utilization is within our control.

The relaxation approaches to stress management include a variety of techniques

designed to help you effectively manage the body/mind tension. Progressive muscle
relaxation is an active form of relaxation where you individually contract the major muscle
groups of your body for about five seconds and then you relax the individual muscle groups
for a five second holds. The contrast experienced by this exercise relieves muscle tension and
relaxes the body. Some of the more passive relaxation approaches include listening to music,
reading and using saunas and hot tubs to relieve tension. Techniques used to relax the mind
include meditation and visual imagery. Meditation teaches you how to clear the mind of
stressful and distracting thoughts by focusing the mental energy on positive coping thoughts.
Visual imagery is designed to help the individual visualize him/herself coping effectively with
a stressor that was previously experienced as overwhelming. The behavioral and relaxation
approaches described above are necessary but not sufficient conditions for stress management.
The third prong to stress management, the cognitive or thinking approach, is essential to
effective coping with stress.

The cognitive or thinking approaches are an integral part of coping effectively

with stress and now the primary focus of many stress management programs. Since it has
been determined that we can turn off the stress response by changing our

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threatening/dangerous event appraisals to appraisals that help us view these events as
manageable challenges, we have a direct link to controlling the stress response. The first step
in the cognitive approach is to identify our thoughts or internal dialog that is negative,
perfectionist, black and white, rigid and demanding. In other words, you are more likely to
experience stress if you believe that you, the world and other people "should or must" behave
in a manner consistent with your demands and standards. For example, you are likely to
experience stress if you believe that the world and your life should be stress free and that you
do not have the resources to handle stress if it does occur. In addition, demands of perfection
on yourself and on others important to you, increases the chance of feeling stressed since
these expectations are unrealistic and rigid. After identifying your stress producing thoughts
you are then able to move onto the second step in the cognitive approach; recognizing the
consequences of this negative, rigid dialog.

The motivation to change the stress-producing dialog comes from the

determination that there are serious consequences that result form these negative, rigid
thoughts. When you talk to yourself in a defeated, pessimistic or rigid way, you deny your
ability to cope and are not likely to manage situations effectively or meet goals you set. In
addition, perfectionist demands are experienced as appropriately unrealistic and contribute to
a "why bother" attitude. This attitude reduces the likelihood that you will address these
demands since it is a realistic fact that no one or nothing is ever perfect. Once you are
convinced that the dialog is negative and counterproductive, you are ready to move on to the
third step in the cognitive approach; challenging and replacing the negative internal dialog
with a healthier, more productive internal dialog.

This important step in the reappraisal process requires that you challenge your
rigid dialog by asking yourself a series of questions about that rigid dialog. For example,
"Why must I perform perfectly in order to believe I am a valuable human being?" In addition,
"Does that demand for perfection increase my anxiety and reduce the likelihood that I perform
well at all?" "What would I feel like and would I be more motivated if I changed my demand
for perfection to a desire to do well?" Another example of this reappraisal process can be seen
in the area of criticism and rejection. A negative internal dialog that would create stress in this
area is "I am worthless because I was rejected and this proves that no one will ever love me."
A healthy challenge to this belief would be, "How does the opinion of this person reflect my
personal worth?' "How does it follow that this rejection will lead to future rejections?" It is
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also important to add, " Even if I were to get rejected repeatedly, could I work to make desired
changes in my personality without condemning myself or feeling worthless?" By replacing
the negative, rigid dialog with more realistic, flexible dialog, you are more likely to feel
healthier emotionally and behave more rationally and productively.

The behavioral, relaxation and cognitive techniques described above have been
determined to be effective ways to manage and cope more effectively with stress. The
techniques give the control back to the individual and empower him/her to manage the
inevitable stressors that will occur in life

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 In 2003, the popular uproar against telemarketing calls grew so loud that
legislators in Washington took notice and took action. Following the lead of several states,
federal legislators passed a law in 2003 that made it possible for people to register to have
their home phones included on a do-not-call list and by so doing "opt-out of telemarketing."
The law is the Do-Not-Call Registry Act of 2003. This act authorized the Federal Trade
Commission (FTC), under sections of the Telemarketing and Consumer Fraud and Abuse
Prevention Act, to implement and enforce a do-not-call registry to be established and run by
the commission. The registry is nationwide in scope, applies to all telemarketers (with the

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exception of certain non-profit organizations), and covers both interstate and intrastate
telemarketing calls. Commercial telemarketers are not allowed to call a number that is on the
registry, subject to certain exceptions.

Organizations not covered by the law include nonprofit organizations, political

campaigns and companies that have an existing business relationship with a call recipient. The
goal is to eliminate cold calls for all those who chose to "opt-out" of telemarketing, it is not
designed to keep companies from calling their customers for repeat sales. As of early 2005,
the FTC reported having close to 65 million numbers in the do-not-call registry with an
additional 150,000 added monthly. Under the law, telemarketers are required to purchase a
copy of the list for the area codes they wish to call and then remove from their call lists all
numbers that appear on the FTC list. Those companies that fail to comply with this law face
the imposition of heavy fines. In late 2005, the largest fine to-date was imposed on the
satellite television company, DirectTV. The fine charged DirectTV was $5.3 million. The
underlying complaint named as defendants DirectTV, five firms that telemarketed on its
behalf and six principals of those telemarketing firms. "This multimillion-dollar penalty
drives home a simple point: Sellers are on the hook for calls placed on their behalf," said FTC
chairman Deborah Platt Majoras in an article in the magazine Brand week.

Although solid numbers are hard to find, one commonly accepted estimate is that
the do-not-call regulation had cut the number of telemarketing calls by half during the first
two years in effect. Telemarketing firms report seeing their lists cut from 35 to 55 percent.

The industry is still adjusting to the new reality that has been created by the do-not-
call registry. They will continue to search for ways in which to generate new telephone lists
that include potential clients that are not on the do-not-call list or clients who by virtue of
signing up for a sweepstakes event have created for themselves a "relationship" with the
seller. Companies with whom a person has done business or with whom a person has signed
up for a drawing are allowed to call that individual whether or not his or her phone number is
on the do-not-call list. Consequently, companies that use telemarketing are researching ways
to go about rebuilding their calling lists.

Although much reduced during the first years of the 21st Century, telemarketing is
still an option for some types of businesses. In particular, business-to-business telemarketing

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is still a useful tool within a larger marketing strategy for companies that sell to other
companies.

Selling

Telemarketing can either supplement or replace face-to-face selling to existing

accounts. It can complement the field sales effort by reaching new customer bases or
geographic markets at relatively low cost. It can also be used to sell goods and services
independently, with no field sales force in place. This method often is used for repetitive
supply purchases or readily identifiable products, though it can be effectively applied to other
products as well.

The inside sales force can be used to replace direct contact for marginally
profitable customers. A general rule of thumb in business says that 20 percent of customers
account for 80 percent of sales, so conversely the remaining 80 percent of customers generate
just 20 percent of sales. But businesses must keep in mind that marginal does not necessarily
mean unprofitable. And the existing customer base is perhaps the most important asset in any
business; increases in sales most often come from current accounts, and it generally is less
costly to maintain current customers than to search out new business, particularly with the
reduction of access resulting from the FTC do-not-call list. Telemarketers can give these
reliable customers the attention they deserve. The reps can phone as often as needed,
determine the customers' purchasing cycles, and contact them at appropriate reorder times.

Lead Generation

Through telemarketing, a company can compile and update lists of customer

prospect leads and then go through these lists searching for sales leads. Telemarketing can
screen the leads and qualify them according to priority, passing the best leads to the field sales
force for immediate action. The inside sales force also can identify the decision maker with
the buying power and set up appointments for the outside sales force.

Gathering Information

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 Telemarketing can provide accurate information on advertising effectiveness,
what customers are buying, from whom they're buying, and when they will buy again. It is
also commonly used in conducting surveys.

Improving Customer Service

Studies show it costs five times more to win over a new customer than to keep an existing
one. By using telemarketing as a main facet of customer service, companies can go a long
way toward keeping customers happy.

In addition, when used in conjunction with current computer technology, a telemarketing

program can be analyzed in terms of costs and benefits, using quantitative data on the number
of contacts, number of presentations, total sales, cost per sale, and income per sale

THE TELECRAPPER 2000

Description
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 The Telecrapper 2000 (TC2K) is a computerized system designed to intercept
incoming Telemarketing calls on the first ring, and then carry on a virtual conversation with
the telemarketer. Here's how it works:

First the TC2K computer (any standard PC) is connected to the phone line via a
Caller ID modem or serial Caller ID device. The user creates a setup text file (called a "hit
list") that declares all of the Caller ID strings (numbers and/or names) he considers
"annoying" and wants intercepted on the first ring. When a call on the users "hit list" arrives,
the computer intercepts the call and picks up the extension. This feature alone is very
valuable. It gives the ability to identify legitimate calls anywhere in the house by simply
waiting to hear a second ring.

As if that feature wasn't enough, the TC2K then plays a wave file over the
extension for the telemarketer to hear. The user can declare a list of wave files, in a specific
order, that he wishes to be played to calls on his "hit list". The first wave file is played
immediately after picking up the extension, the TC2K then waits for the telemarketer to
respond, then the TC2K waits for silence (for the telemarketer to finish speaking), then plays
the next wave file on the list. The cycle of play wave file, wait for response, wait for silence is
repeated for each wave file the user has declared in his setup text file. This way the TC2K can
carry on a "virtual" conversation with the telemarketer and the content of that conversation is
completely up to the user. All the user needs to do is record his own set of wave files to be
played and declare them in a setup file.

Perhaps best of all, the "virtual" conversation between the TC2K and the
telemarketer is recorded for the user to enjoy and share with other TC2K users. I will try to
maintain links to as many TC2K conversations as possible from this page.

Productivity:

Americans have an aversion to telephone solicitation. Because of the pace of

American life, productivity is constantly sought after and guarded. Phone solicitors are
particularly annoying then because they steal our productivity. We spend time with them that
we would otherwise use for more productive purposes.

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 The telemarketing corporations on the other hand have very sophisticated
computer technology on their side to insure maximum productivity from their telemarketers.
Computers do all the dialing and interfacing and only engage a human on their side of the
telephone when they're sure they're talking to a human on our side.

No-Call Lists and gadgets like the Telezapper only shift the telemarketing call
traffic around. Telemarketing is no less attractive to advertisers because their technology still
works the same ... only the numbers dialed have changed. Only the TC2K has the capability
to turn the tables on the telemarketing industry. With similar computer technology on OUR
side, we can reduce the productivity of the telemarketers and make the entire enterprise less
attractive. The more TC2K devices in use, the less productive every telemarketer becomes.
They will spend more and more time talking to OUR computers and less and less time on
potential sales.

CHAPTER 7: ANALYSIS OF RESEARCH

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1. A question was asked to the consumers whether they have used
telemarketing or no and the following are the results.

ATTRIBUTES No. OF
RESPONDENTS
Yes 95
No 5

2. A question was asked to the consumers to know how helpful was

telemarketing.

ATTRIBUTES No. OF
RESPONDENTS
Yes 45
No 55

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3. A question was asked to the consumers to know whether the
telemarketers reply to their queries or no.

ATTRIBUTES No. OF
RESPONDENTS
Yes 60
No 40

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 It was a very tedious job to roam around distributing and
collecting the questionnaires to and from all the people selected for the survey.
Only a few people agreed readily to give their opinions and the rest required a
little convincing. Once the sample was decided, asking the people questions
about the research also was difficultat times as they did not understand the
questions properly; some did not even entertain due to certain reasons.

CHAPTER 8: CONCLUSIONS AND RECOMMENDATIONS

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 Telemarketing has been a big headache for customers since they either do
not provide any information when asked for or provide more information when it isnt
required. Telemarketer call up at odd times which irritates the customers the most.

Also telemarketing frauds are increasing day by day but simultaneously there are
companies and the country itself coming up with more of security when it comes to
telemarketing. At times people fall prey to such frauds but now even they have become more
aware about these things.

To many people, telemarketing clearly is a "bad word". Nonetheless, telemarketing

still remains a very valuable component of the entire mix of marketing tools, and it shouldnt
be discarded merely because of the negative image created by the "wont take no for an
answer" practitioners. Used correctly, telemarketing offers some unique, valuable benefits not
necessarily found in other marketing tools, such as instant sales results and valuable sales
leads.

Questionnaire
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1. Have you ever used a telemarketing service?

Yes. No.

2. Was it really helpful?

Yes. No.

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3. Do the telemarketers respond to your queries in the right manner?

Yes. No.

4. Do you get frequent calls from telemarketers?

Yes. No.

5. What is the frequency?

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Once in a month. Once a week.

Once in two months. Once in three months.

6. Do you give good response when u receive a call from them?

Yes. No.

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7. What time of the day do they call you?

Morning. Afternoon.

Night. Evening.

8. Do you find it a nuisance?

Yes. No.
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9. How long was your last conversation (approximately)?

10 minutes. 20 minutes.

30 minutes. More then 30 minutes.

10. Have you ever been scammed by anyone who claimed to be a telemarketer?

Yes. No.
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11. Do you think telemarketing should be banned?

Yes. No.

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 Bibliography

While making this project I visited some of my relatives and friends who
work in a call centre and asked for their feedback regarding the services provided by their
company.

To give my project a support I used books such as:

Telemarketing tips from A to Z by Nancy J. Friedman.

Newspaper and magazines:

1. Economic times.
2. Business today.

3. Times of India

Webliography

Websites which helped me out were:

En.wikipedia.org

www.engadget.com

www.marketingmo.com

www.talk2rep.com

www.tmone.com

www.buzzle.com

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