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Early History Telemarketing is a registered trademark owned by Nadji Tehrani* who founded TeleMarketing Magazine in 1982. Prior to that, the term was used extensively in Bell System communications relating to new uses for the outbound (WATS) and inbound (Toll-Free 800) services introduced in the late 1970s. It is a form of direct marketing where a salesperson uses the telephone to solicit prospective customers to sell products or services. Categories There are two major categories of telemarketing: Business-to-business and Business-to-consumer. Within these two categories are two other broad divisions: Lead Generation, where the objective is to obtain information and Sales, where the object is to get someone to buy something. Within these two categories, there are two other broad categories: Outbound and Inbound. Outbound telemarketing efforts are proactive, with the marketing person making phone calls to prospects or existing customers. Inbound telemarketing efforts are reactive, where the agent processes requests for information or takes orders. The demand is generally created by advertising, publicity or the efforts of outside salespeople. Telemarketing may be done from a company’s office, a call centre or increasingly from someone’s home. (See also Homesourcing.) Effective telemarketing programs often involve a two or more call process: The first call (or series of calls) determines the prospect or existing customer’s needs. The final call (or series of calls) motivates the prospect or existing customer to make a purchase. The prospective customers are identified and qualified by various means, including past purchase histories, previous requests for information, credit limit, competition entry forms or application forms. Names may also be purchased from another company's customer database, or obtained from a telephone directory or some other public list or forum. The qualification process is intended to find those prospective customers most likely to purchase the product or service being sold or advertised. Charitable organizations, alumni associations and political parties often use telemarketing to solicit donations. Market survey companies use telemarketing techniques to survey prospective or past customers of a client business to assess market acceptance or satisfaction with a particular product, service, brand or company. Public opinion polls are conducted in a similar manner. Telemarketing techniques can also be applied to other forms of electronic marketing using e-mail or fax messages. (See spamming.) Negative Perceptions & Criticism Telemarketing has been negatively associated with various scams or frauds like some multilevel marketing, pyramid schemes or with fraudulently overpriced products or services. Fraudulent telemarketing companies are frequently referred to as telemarketing boiler rooms or simply as a "boiler room". Telemarketing calls may also be considered an annoyance, especially during dinner. Some may criticize telemarketing as being an unethical business practice due to the perception of high-pressure sales techniques during unsolicited calls. Regulations Telemarketing subject to regulatory or legislative controls related to consumer privacy and protection. In particular, telemarketing in the U.S. is restricted at a federal level by the FCC's Telephone Consumer Protection Act of 1991 and the FTC's Telemarketing Sales Rule. Many professional associations of telemarketers do have codes of ethics and standards that member businesses follow to win public confidence. Some jurisdictions have implemented "Do Not Call" listings, either through industry organizations or legislation, in which consumers can indicate that they do not wish to be called by telemarketers. Legislative versions often provide for heavy penalties for companies calling individuals on these listings. The U.S. Federal Trade Commission has now implemented a National Do Not Call Registry in an attempt to reduce intrusive telemarketing on a national basis. Although challenged by telemarketing corporations and trade groups as a violation of commercial speech rights, the National Do Not Call Registry was upheld by the U.S. 10th Circuit Court of Appeals on February 17, 2004. Sound See also | ||||||||
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