Telemarketing
Telemarketing is a direct marketing process that utilizes the telephone to communicate with prospects for a company’s products or services.
It can also be supplemented by Internet web conferencing arranged via telephone. The term telemarketing was originally coined during the 1970s to describe Bell System outbound WATS service and inbound toll-free calling. Today, the two major categories of telemarketing are business-to-business and business-to-consumer sales. There are four major sub-categories within these two categories that include lead generation, sales, outbound pro-active marketing and inbound reactive reception of orders and information requests.
What are the telemarketing procedures?
Telemarketing is done from an office, call center or from home. It can be performed by a live caller or by a recording. In the latter case, it is known as ‘automated telemarketing’ utilizing voice broadcasting. Political candidates use this automated method and call it “Robocalling.” To be effective, telemarketing usually requites two or more separate calls. The first is intended to find out what the customer’s needs are and the second or third to motivate the customer to make a purchase. Payments are generally made with credit cards or debit cards.
Telemarketing on the web is a variation that uses the widespread dissemination of e-mail messages that are referred to as “spam.” FAX messages are also occasionally used. Political parties, charities and alumni associations frequently use telemarketing to solicit donations. Market research organizations use it to perform surveys or to assess how well a market will accept a new product or service. Public opinion polls also use the technique to assemble statistical data.
Telemarketing has a negative perception with many consumers
The telemarketing industry has been widely associated with many scams or frauds that are continually perpetrated. These include pyramid sales schemes and products and services that are significantly overpriced. Some schemes also purport to be representing charities, police, fire or educational groups that they do not represent. These scammers traditionally target the elderly and share lists to solicit. They use a male voice to convince the unsuspecting victims that they are actually talking to a police officer or fireman.
Telemarketers often operate from ‘boiler rooms’ that use high-pressure sales techniques that are considered unethical business practices. Regrettably, these ‘bad eggs’ have received much negative publicity that affects the legitimate, ethical marketers as well. Many of the legitimate industry groups belong to professional associations with ethical codes and standards that member businesses adhere to in order to encourage more public confidence.
The telemarketing industry does have some regulation
The telemarketing industry is subject to the regulatory and legislative mandates of consumer privacy and protection laws. These include the Telephone Consumer Protection Act of 1991 and the Federal Trade Commission’s Telemarketing Sales Rule. There have also been “Do Not Call” lists instituted in various states that provide severe penalties for those telemarketers who don’t exclude people on the list. There is also a federal “Do Not Call Registry” instituted by the Federal Trade Commission. Telemarketing in Australia is regulated by the Australian federal government and policed by the Australian Communications & Media Authority. Calling hours there are restricted and there is also a “Do Not Call” registry in Australia.
