Discuss the use of telemarketing in sales.

Discuss the use of telemarketing in sales.

Counting on the perspective, the term telemarketing can conjure up very different pictures. As a business owner selling to consumers or other businesses, telemarketing may be a solution for infinitely improving sales, generating greater success, and exceedingly expanding the reach of the business without ever leaving the comfort of the office (Leyens 2007). “More than 70% of business transactions take place over the telephone (GeoTel 2006).” Telemarketing is defined as “a marketing communication system where trained specialists use telecommunications and information technologies to conduct marketing and sales activities (Lancaster 2006) .”

Utilizing salespersons’ voice as a sales instrument, the telephone, and the maybe some related technology, a firm can cost effectively initiate a telemarketing effort that will let the company to boost its sales, reach more qualified prospects earlier, and more easily reach its sales objectives. Together the businesses are working to increase their customer base, the telephone can be used to improve and toughen the relationships they have with existing customers and help them create more repeat business. (Wyman 1992) Telemarketing is being used by a huge number of companies across many industries and customer segments to meet these needs. It is part of the marketing communications mix with the aim of always creating the highest impact on customers at the lowest cost. It is both a substitute for and a supplement to other types of selling, servicing and communicating with customers. (Wyman 1992)

While telemarketing is a good concept, it can also be segmented in a number of ways. One of the most general segmentations is based on the initiator of the call. Reactive telemarketing, commonly referred to as inward telemarketing, occurs when the customer initiates the call. Proactive marketing, commonly called outward telemarketing, occurs when a business or organization initiates the call to the customer. Telemarketing is also segmented by communications between business (i.e., business-to-business telemarketing) and between business and consumers. (Wyman 1992)

There are a number of ways that telemarketing can aid firms meet customer needs while at the same time rising profits. Telemarketing gives an easy way to enlarge companies’ territory. Firms can access more customers – nationally or internally – with no raising the number of branch offices. Telemarketing allows companies to offer better quality of customer service at a satisfactory cost. Businesses can construct one loyalty of existing customers via fast, convenient and personalized service. Telemarketing lets firms to advertise new products and services or special offers to existing or potential customers rapidly. Firms can attain competitive advantages by defeating competitors to the customer by using outbound telemarketing to increase the number of contacts firms make with each customer. Companies can raise the value of a customer’s order through improve selling and special offers on incoming calls. (Wyman 1992)

Perhaps the biggest drawback to telemarketing is the lack of face-to-face communication with the prospect. Instead, firms must rely solely on their verbal communication skills to convey information about the product, set the mood, and develop a bond between them and the prospect. (Bendremer 2003)

Therefore, using the telephone not only will firms save a tremendous amount of time, but their cost of sale will drop dramatically as they greatly improve their sales ratio. From the seller's standpoint, telemarketing certainly makes sense in many sales situations; in addition, from the customer's perspective, it's also a time saver. After all, it's a lot easier for a busy person to allocate a few minutes for a telephone call than it is to block out time in his or her schedule for a time-consuming in-person meeting/sales presentation. (Leyens 2007)