TELEMARKETING

Telemarketing is the process of selling goods and services
over the telephone. It has been used to successfully market
a variety of products ranging from insurance to newspapers
to industrial equipment, and it has the potential for
selling virtually any product. There are two types of telemarketing:
outbound and inbound. Outbound telemarketing
calls are those placed by salespeople to homes or

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businesses. Inbound telemarketing occurs when customers
call in to businesses to place orders.
OUTBOUND CALLS
Outbound telemarketing is particularly appealing to businesses
whose salespeople have traditionally made outside
sales calls. It reduces the cost per contact, increases the
number of contacts that can be made per day or week, and
still retains the human element. Computerized databases
of prospects and automated predictive dialers can further
extend the potential number of contacts a telemarketer
can make. Outbound calls can be used to canvass for new
business, follow up former customers, contact new leads,
speed up payments on past due accounts, and raise funds
for nonprofit organizations.
Outbound calls present an ideal marketing situation
in which the telemarketer has the undivided attention of
the prospect and can get immediate feedback. At the same
time, the limited window of opportunity requires that the
salesperson establish rapport and trust quickly, listen carefully,
and provide clear information. Success in outbound
sales is related to product knowledge and presentation
skills and, thus, can be enhanced by training.
INBOUND CALLS
Inbound telemarketing is also a very efficient marketing
approach that also retains the element of personal interaction.
Calls are generated by catalogs mailed to prospective
customers or by radio, television, commercial Web sites,
or print advertisements. These promotional pieces solicit
customers to buy by calling a toll-free number. When customers
call in, they may either reach a telemarketer
directly or receive an electronic message that gives them
the option of being connected to a salesperson. Since
inbound callers have entered the buying process when
they call in, a customer service orientation is more critical
to the success of the telemarketer than sales training.
The use of the telephone as a sales tool dates back to
the early 1900s. The full potential of outbound telemarketing,
however, was not recognized by business until
Wide-Area Telecommunications Service lines came into
existence in 1960. Likewise, the full potential for inbound
Operators at a telemarketing center in Japan. © TOM WAGNER/CORBIS SABA

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sales did not become apparent until the Sheraton hotel
chain implemented the first toll-free 800 lines in 1967. By
2001 telemarketing sales to consumers and businesses
exceeded $660 billion, with a projected growth rate of 8.4
percent through 2006. Employment in the teleservices
industry surpassed 6 million in 2001, with a projected
growth rate of 4.2 percent through 2006.
PERCEPTIONS AND OUTLOOK
Although telemarketing has experienced continued
growth, it has not been without problems. Many consumers
have a negative perception of it, particularly with
outbound telemarketing, because of untimely and annoying
calls. This discontent led to the development of the
National Do Not Call Registry by the Federal Trade Commission
in 2003. The registry listed over 58 million phone
numbers in the first eight months. Many states also have
instituted do-not-call lists.
Another problem with telemarketing is that it has
been the vehicle for a variety of fraudulent schemes, which
prompted a crackdown by the U.S. attorney general in
1997. Despite these concerns, the outlook for the industry
appears to be positive. Research indicates that businesses
are becoming increasingly receptive to doing
business with sales representatives by telephone and
inbound telemarketing is becoming an even more important
component of a direct-marketing campaign.
SEE ALSO Marketing
BIBLIOGRAPHY
Direct Marketing Association. (2005). Teleservices in the United
States. Retrieved September 14, 2005, from http://www.thedma.
org/government/USmap.pdf
Goldstein, Linda (1996, February). Reflections on the past and
predictions for the future of telemarketing legislation. Telemarketing
and Call Center Solutions, 48–50.
Kotler, Philip, and Armstrong, Gary (2006). Principles of marketing
(11th ed.). Upper Saddle River, NJ: Pearson Prentice-
Hall.
Kotler, Philip, and Keller, Kevin (2006). Marketing management:
Analysis, planning, implementation, and control (12th ed.).
Upper Saddle River, NJ: Pearson Prentice Hall.
Lascu, D. N., and Clow, K. E. (2004). Marketing frontiers: Concepts
and tools. Cincinnati: Atomic Dog.
Pride, William M., and Ferrell, O. C. (2006). Marketing concepts
and strategies. Boston: Houghton Mifflin.
Solomon, M. R., Marshall, G. W., and Stuart E. W. (2006).
Marketing: Real people, real choices. Upper Saddle River, NJ:
Pearson Prentice-Hall.
Thomas R. Baird
Earl C. Meyer
Winifred L. Green
TELEPHONE SKILLS
Telephones are devices that allow the user to communicate
messages across lines electronically. One can easily
communicate with those both nearby and far away using
the telephone by simply dialing a specially designated
number. The word telephone comes from two Greek
words meaning “far” and “sound.”
Alexander Graham Bell invented the first telephone
in 1876 in Boston, an outgrowth of his teaching the deaf
and his experimentation with devices to assist in improving
the hearing process.
It is difficult to estimate the total number of telephones
in existence today. They are ubiquitous because of
their extreme importance as a communications tool. Telephones
come in a wide variety of shapes, sizes, and colors,
as well as with options that can be configured to accommodate
almost any conceivable need.
DEVELOPING EFFECTIVE
TELEPHONE SKILLS
Effective telephone skills are predicated on strong communications
skills. The four major means of communication
are speaking, reading, writing, and listening—with
listening being the most important part.
Listening involves sensing, interpreting, evaluating,
and responding. The major roadblocks to effective listening
include distractions and interruptions. Roadblocks to
effective listening can be overcome by practicing the following
techniques:
• Being ready to listen actively.
• Keeping your emotions in check.
• Listening for specific information.
• Asking questions when necessary.
PARTS OF AN EFFECTIVE
TELEPHONE CALL
Telephone calls may be broken into three major parts—
(1) the introduction, in which both parties establish their
identity and the convenience of the call; (2) the purpose,
which involves communicating needs by asking well constructed
questions; and (3) the conclusion, whereby both
parties reach a verbal agreement on the points made during
the call and any specific action that needs to be taken.
QUESTIONING SKILLS
Questions should be asked in such a way as to obtain the
desired information. There are three major types of questions:

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• Open questions: These questions call for more than a
yes/no answer and often begin with who, what,
where, when, why or how.
• Closed questions: These questions are used primarily
to verify information. Often these questions begin
with are you, do you, can, could, did, will, or would.
• Forced-choice questions: These questions call for an
either/or response. The listener has the choice
between at least two options.
It is an excellent idea to write down any questions
prior to beginning the call or during the call. During the
call, when both parties are asking questions, it is equally
important to listen attentively. Attentive listening can be
demonstrated by speaking in such a way that the listener
knows you are hearing.
SKILLS FOR MAKING EFFECTIVE
TELEPHONE CALLS
Before making a telephone call, consider its purpose. Calls
could possibly be made to obtain information, return a
call, schedule an appointment, or service a customer.
Be ready psychologically to make the call. Have a
positive attitude toward making the call while making it.
Have all necessary information available when you make
the call.
When making a call, be sure to do the following:
• Identify yourself immediately to get the call off to a
positive start.
• Tell the person the purpose of the call. Be specific.
• Ask well-stated, appropriate questions to obtain the
desired action.
• Close the call in a friendly tone with an understanding
between both parties of the action(s) that need
to be taken.
TOOLS FOR EFFECTIVELY MAKING
TELEPHONE CALLS
Telephone numbers may be obtained from your own
record, from directories, or from directory assistance.
Have the telephone number visible when you get
ready to make the call. Developing a personal telephone
list is very helpful.
Telephone directories that contain both White Pages
and Yellow Pages can also be sources of excellent information.
Use the White Pages to locate a specific name of a
person. Use the Yellow Pages to locate a product or service.
Directory assistance provides access to a telephone
number by going through a directory assistance operator.
Usually there is a fee for obtaining this information.
Directory information is also available on the Internet.
OPERATOR-ASSISTED CALLS
Operator-assisted calls are the most expensive type of telephone
calls. Avoid them if possible. Types of operatorassisted
calls include the following:
• Collect calls: In collect calls, the person being called
must agree to accept the charges for the call.
• Third-number billing: Such a call is billed to a third
party.
• Person-to-person: Such a call involves telling the
operator you will speak only to a designated person.
If that person is unavailable, you will not have to
pay for the call.
INCOMING TELEPHONE CALLS
Be prepared to answer the telephone when it rings. Keep
pens and message pads close by as well as telephone directories
and other reference materials. Use an answering
machine if necessary.
When answering the phone, follow these guidelines:
• Answer the telephone no later than the second ring.
• Identify yourself in a friendly tone.
• Use the caller’s name.
• Gather as much information as possible.
• Do not interrupt the caller.
• Give accurate information.
SCREENING CALLS
Screening a call means using judgment to determine
whether you should put the caller through to the desired
person by being friendly to the caller without revealing
embarrassing or unnecessary information.
TRANSFERRING CALLS
Transferring a call means that, for any number of reasons,
it would be best for the caller to speak with someone else.
It is important to be thoroughly familiar with the specific
procedure for transferring a call.
MESSAGE TAKING
Messages may either be left as voice-mail messages for the
person being called or written down by someone else. If

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you are writing down the message, use a telephone message
form to fill in the appropriate parts.
HANDLING COMMON TYPES OF
SPECIALIZED TELEPHONE CALLS
Handling the wide variety of both incoming and outgoing
specialized telephone calls requires in-depth skill. The following
are some of the more common types of specialized
calls:
• Information calls: Calls made to gather information
require careful thought to determine exactly what
information you are trying to obtain.
• Scheduling appointment calls: Know exactly when
you want an appointment before placing the call.
Have all information in front of you when you place
the call. If you are making calls for another individual,
notify that person of the scheduled appointment.
Likewise, be certain you have carefully
recorded on an appointment calendar the designated
scheduled time as well as any special instructions.
• Complaint calls: Often a complaint call can become
a negative experience by nature of the call’s very
existence. Be prepared to deal with emotions in as
positive a fashion as possible.
• Collection calls: Collecting money over the telephone
is a challenging experience. Good questioning skills
are of paramount importance in handling a collection
call.
• Telemarketing calls: Selling a product or service over
the telephone is done by a skilled salesperson called
a telemarketer. Generally, telemarketers have been
trained to deal with a wide variety of responses and
situations.
It is wise to follow these steps when dealing with specialized
calls:
1. Always respond in a courteous and professional
manner.
2. Give accurate information.
3. Be prepared to deal with rejection and negative
responses.
4. Offer a variety of positive solutions.
5. End all calls courteously.
CUSTOMER SERVICE ON THE
TELEPHONE
Customer service is an extremely important aspect of telephone
skills. This is the reason most businesses are in existence—
to serve the customer. Good customer service via
the telephone shows respect for the customer and builds
business over time. Good customer service is provided by
maintaining an excellent voice quality that is easy to
understand and includes a pleasant tone spoken at a reasonable
speed. Selecting appropriate vocabulary is also
important. If words are used that are not understood, positive
communication will not be conveyed. Listen intently
when servicing a customer. Be prepared to offer responses
that will be delivered in a positive manner.
TELEPHONE EQUIPMENT AND
EMERGING TECHNOLOGY
Choosing telephone equipment is a challenge with the wide
variety of choices available. There are many telephonerelated
pieces of equipment that can be used with the telephone.
Some points to consider when selecting telephone
equipment include size, location, number of phones, special
options, and whether to buy or lease. Careful thought
should be given to researching your needs before making
a decision.
Cellular telephones are the type of mobile phones
used, for example, in cars, on planes, or on the street.
These phones are serviced through licensed cellular phone
companies with a variety of configurations. Check them
out carefully. Often bad weather or other types of interference
can make communication by cellular phone difficult.
Cordless telephones are portable and very convenient.
They come in a wide variety of styles for easy use.
Cordless phones can be used only within a certain range
of area. Their base must be attached to a telephone line in
order to function.
Pagers are devices that can be used to alert the user
that someone is trying to call them. Pagers come with various
options. The more options that are selected, the more
expensive the pager.
TELEPHONE SKILLS AND THE
FUTURE
Telephone skills will undoubtedly continue to be increasingly
important as the technology and equipment evolve.
Strong communication skills will always be highly essential
when using the telephone. Evolving technology will
enhance the telephone in the future. Telephone skills must
be integrated with that technology to make the process
work.