TeleMarketing
• Telemarketing consists of inbound
(incoming) calls regarding account
information (customer service) and/or
sales OR outbound (outgoing) calls
regarding marketing, advertising or sales.
• Inbound telemarketing is gaining in
popularity because the customers
who want to make contact with the
company can do so (usually through
a 1-800 number).
Advantages:
• Businesses have the ability to fundraise,
process sales orders, collect bills and provide
customer service in a cost efficient manner
• Provides an opportunity to create a
relationship with the customer through direct
contact
Disadvantages
• Many people get angry or are annoyed with
telemarketers calling them
• If you have an inbound calling system set up,
consumers want the service to be fast and
efficient…this can put a strain on the customer
service division
Cost of Telemarketing
• The cost of telemarketing is low compared to
other direct marketing options. Medium to
large businesses can hire call centres to take
care of their telemarketing or small businesses
can use their existing staff to manage this task.
Examples
• Convergys and Faneuil are two examples of
telemarketing call centres in Manitoba. Their
clients include a variety of business in North
America.
• Another example could be a local cable
provider having a 1-800 technical support line
for customers to call should they need
technical support over the phone.
Direct Personal Sales
• Direct personal sales could include
anything from in-home sales parties
to door-to-door sales.
Advantages
• Salesperson has the opportunity to create
relationships with potential customers
• Provides an opportunity for potential
customers to see, touch, sample or test
products
• Customers can make immediate purchases
which means immediate sales
Disadvantages
• This type of direct marketing depends on
individuals inviting their friends to in-home
parties or on the ability of salespeople to get
invited in to a home
• Consumers may be annoyed or skeptical of
door-to-door salespeople (If you don’t know
the salesperson at your door it could be a
safety issue)
Cost of Direct Sales
• The cost of direct personal sales is low
compared to other direct marketing options;
however, it depends on the situation or
circumstance.
Examples
• Companies like Pampered Chef (a cooking
accessory company), PartyLite (a candle
company) or Avon (a cosmetic company) have
trained salespeople who demonstrate
products and make sales pitches at in-home
parties.
• Examples of door-to-door sales include items
such as charity fundraisers, vacuum cleaners,
life insurance or lawn care services.
Avon Calling…
• In fact, the company Avon began when a
young man named David McConnell starting
selling encyclopedias door to door. In order to
increase sales, he decided to offer a small
perfume gift so that he would be invited into a
home to make his sales pitch. He soon
discovered that the buyers (mostly women
during the day at that time) preferred the
perfume over the books.
In 1886 he stopped selling books and focused on
perfume….that is how the Avon cosmetic company got
started!
Direct Response TV
Direct Response Television refers to
longer TV commercials which
attempt to educate consumers
about a product or service.
These commercials are typically 60 seconds
or longer in length. You may also be familiar
with the term infomercial which technically
refers to a commercial that is at least 12
minutes in length or longer. They are also
known as paid programming (or
teleshopping) and are usually shown outside
of peak hours, such as late at night or early
in the morning. Viewers are asked to
respond to the advertisement and take
action in some way.
Advantages:
•
Benefits of the product or service can be
communicated in detail
•
Demonstrations allow the viewer to see
the product in action
•
Production costs are generally less than
regular TV commercials because the
production usually includes straight forward
information and demonstrations
Disadvantages:
• For some products/services 60 seconds may still not
be enough time to communicate the advertising
message
• Viewers will forget about the product/service unless
they hear about it frequently so this will require the
purchase of more media time or efforts through
other types of promotional media
• Some viewers have the perception that infomercials
are related to low quality goods—this negative
stereotype must be tackled in the advertising
message
Cost Issues:
The cost of direct response
television varies depending
on the time slot,
frequency, length and
station.
Proactiv runs direct response TV
commercials for the facial acne treatment
that require the consumer to call or go to
their website to order the product.
https://www.youtube.com/watch?v=dP3r
3SPXgKs
In 2008, the Snuggie Blanket (a
blanket with sleeves) gained a lot of
media attention and sales because
of its popular infomercial.
https://www.youtube.com/watch?v
=7Ajz9NAIX5s
https://www.youtube.com/watch?v=VAQjF5RPgbg&feature=player_detailpage