Advantages and disadvantages of telemarketing
This article aims to explore some of the advantages and disadvantages of telemarketing. It also looks into the definitions of telemarketing and its different types. Telemarketing is a widely used method of marketing communication; however, it has earned a bad reputation due to its invasive nature.
Definitions of telemarketing
According to Kotler et al. (2009) telemarketing is the use of the telephone and call centres to attract prospects and provide service by taking orders and answering questions.
Telemarketing is sometimes referred to as telesales. It is a common technique employed by direct-sales organisations and individuals to approach their clients, both existing and prospective.
Advantages of telemarketing
Telemarketing is mostly used by companies that are engaged in direct selling. It is also used by non-profit organisations and political parties to achieve a number of objectives such as raising awareness of certain issues and keeping in touch with their support base.
Telemarketing used to make use of devices such as telephone and mobile phone in the past. However, with the development of technology, it is now using online software such as Zoom, and Microsoft Teams. Therefore, it has now become lot easier for salespeople to organise meetings with prospective clients and even close a deal without needing to visit their places.
Telemarketing is a reasonably affordable choice for organisations. Instead of sending their salespeople to the location of the clients, then can ask them to meet the prospective clients via online or via phone calls. This reduces their overhead costs.
Some customers may simply like tele salespeople. For instance, busy or lonely individuals may welcome a friendly and useful voice that solves their problems and provides them with respite they perhaps desperately need.
Telemarketing allows companies to contact a lot of potential customers at a distance. It is also one of the best ways of acquiring new prospects. It is also a very effective tool to follow up with existing customers, particularly during global lockdowns.
Disadvantages of telemarketing
Not everyone can entertain telemarketing. Some customers may not be interested in a product/service a telemarketer is talking about what they have not even heard before. Likewise, it can ruin the image of a business if the calls are carried out poorly, and unprofessionally.
Telemarketing is often perceived as nuisance by many people. They may drop the phone as quickly as they understand that it is a sales call. Likewise, they may discontinue the conversation if they realise that the salespeople lack product knowledge.
Many scammers have been using telemarketing techniques to deceive people. They are becoming more sophisticated and more threatening, and vulnerable people are paying the price (Wakefield, 2021). These scammers have given telemarketing a very bad name, and many victims have developed a very negative perception about it.
Telemarketing can sometimes be very challenging. Obtaining customer lists can be very costly, and sometimes these databases are outdated as well. Likewise, calling individuals who have opted out of receiving live marketing calls may result in big penalties. For instance, Schofield (2018) reports that AMS Marketing Ltd, a telemarketing company in the UK, was fined £100,000 fine for making more than 75,000 nuisance calls about compensation for road traffic accidents.
Types of telemarketing
According to Kotler et al (2009) there are two types of telemarketing i.e. inbound telemarketing and outbound telemarketing. Organisations usually use call centres for inbound telemarketing in order to receive calls from customers. On they other hand, they use outbound telemarketing to call their prospects and customers.
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Last update: 25 March 2021
Kotler, P., Keller, K., Brady, M., Goodman, M., and Hansen, T., (2009) Marketing Management, 1st European Edition, England: Pearson Education Limited
Schofield, C. (2018) A telemarketing firm has been fined £100,000 for more than 75,000 nuisance calls, available at: https://inews.co.uk/news/uk/telemarketing-fined-75000-nuisance-calls-182744 (accessed 22 March 2021)
Wakefield, J. (2021) Phone scammers: ‘Give me £1,000 to stop calling you’, available at: https://www.bbc.co.uk/news/technology-56334466 (accessed 23 March 2021)
Author: Joe David
Joe David has years of experience both in the UK and abroad. He writes regularly online on a variety of topics. He has a keen interest in business, hospitality and tourism management.