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2 Can be viewed both as a marketing medium and a

response mechanism
2 Telemarketing is a medium that uses sophisticated
telecommunications and information systems
combined with personal selling and servicing skills to
help companies keep in close contact with present
and potential customers, increase sales, and
enhance business productivity.
 

 




2  


 awhere customers are calling in) -
reactive telemarketing
2 Applications:
± Ordering or inquiring
± Clarifying or requesting assistance
± Responding immediately to an advertisement
± Expediting processing
± Making pledges or contributions
± Obtaining financial data, stock prices, etc..
 

 




2 



awhere firms call the customers) -
Proactive telemarketing
2 Applications:
± Generating new sales, including reorders and new product
introductions
± Generating leads
± Serving present accounts
± Reactivating old customers
± Surveying customers, members, voters
¦  

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2 ¦  2  
± Two-way communication
± Immediate feedback
± Very flexible medium
± Most productive medium
± Cost-effective medium
± Intrusive marketing
medium
± Lacks visual
enhancement
± Does not provide a
permanent response
device
± Retaining highly trained
telephone operators
Telephone Technology

2 DNIS adialed number identification system)

2 allows any organization that has multiple 800 or 900
numbers to differentiate incoming calls based on the
number dialed by the caller.
2 Can be used to track media performance and
accountability
Telephone Technology

2 ANIa automated number identification)

± Identifies the number of the person calling
± The number can be matched against a database
Telephone Technology

2  




 

 

 

± Audiotex-involves playing of prerecorded
messages on request
± Voice messaging-the process of storing and
retrieving voice mail from mailboxes
± Interactive voice response- enables callers to
access and update a database using their touch-
tone key pads
 ^


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^ 

2 ^ 


 

± Aids the telephone operator, like an outline
2 |


 
  
 

 
± Experience, computer literacy, people skills, reliability,
organization & problem-solving skills
2  
!
 
 
± Television, direct mail, catalogs, print, radio, yellow pages,
Internet



  

2 A ©

© is a dedicated team supported by

various telephone technological resources to provide
responses to customer inquires
2 Telemarketing activities can be carried out via call
centers in a variety of ways:
± Within the companyain-house)
± Outside of the companyacalls are made by a teleservice
outsourcing firm)
± a combination of both methods
"# 




  

2 Advantage-the degree of control the company has

over the telemarketing operations
2 Disadvantage-time and expense of training the
telemarketers and large financial burden
2 ³Call-abandonment´ is the number of callers that
hang-up before being serviced by a telephone sales
representative




  

± ¦  ±  
2 Low initial investment 2 Lack of direct control

2 Fixed operating costs 2 Lack of direct

2 Quick start up
security
2 Lack of employee
2 Time Flexibility
loyalty
2 Mass-market
approach
G 
G   

2 Inbound calls are generally less expensive

than outbound calls.
2 3 components that make up the cost of
telemarketing calls are:
± Personnel a 0% of costs)
± Equipment and overhead a30% of costs)
± Telecommunications service a
0% of costs)


$
% 

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2 The DMA aDirect Marketing Association) and the

ERA aElectronic Retailing Association) address the
ethical aspects of telephone marketing by the
issuance of ethical guidelines.
2 The FTC aFederal Trade Commission) and the FCC
aFederal Communication Commission) has issued a
set of telemarketing rules that organizations must
follow in order to conform to the legal constraints of
using the phone as a marketing medium
DMA Guidelines:

2 Use of automatic equipment

± Prompt 2 Taping of conversations
disclosure/identity of
seller 2 Name removal
± Honesty 2 Minors
± Terms of the offer 2 Monitoring
± Reasonable hours 2 Prompt delivery
± Transfer of Data 2 Cooling off period
± Laws, codes, and 2 Restricted contracts
regulations
ERA Guidelines

2 All statements made during a telemarketing call

must be truthful and not misleading
2 Members should ensure that the billing methods
they will use are clearly disclosed to consumers
before completing a phone sale
2 Members should maintain, and require their
telemarketing service providers to maintain, a list
of consumers who ask not to receive telemarketing
calls
The FTC Rules

2 Disclosure Requirements
2 Prohibited Misrepresentation
2 Assisting Telemarketing Fraud
2 Do Not Call List