Telemarketing is marketing through telephone. The prospective buyer is contacted on telephone and persuaded to buy a particular product.
The details of the product are explained to the customer and terms and conditions are also explained.
Telemarketing excludes the use of literature and personal visit. But in India, customers expect to get more details from the representative of the company before deciding the purchase.
A company going for telemarketing should train the persons for this work. They should know the traits of products, their uses, terms and conditions of sale, etc. The target market should be decided first and then a list of customers to be contacted is prepared.
The telephone numbers of the persons can be seen from the telephone directory or addresses can be procured from various social clubs. The company representatives keep contacting people on telephone. The purpose of the call is first explained and then details of the product are given. In case the customer shows any inclination then a meeting is fixed at his convenience. The companies engaged in selling books, magazines, providing financial services are mainly using this method.
The main benefit of telemarketing is that the customer can place orders at his convenience. He has not to waste time for going to the store for purchasing. Companies are now using recorded messages and record the information provided by customers.
The main drawback of this type of marketing is the contacting of the customer. The telephone call may be at odd times which may annoy the customer. Moreover, the company representative may not be able to explicitly explain about the product. This method also involves high costs.