What is Telemarketing?

Say the word "telemarketer" and you'll likely see some eye-rolling, disgusted looks, and hear heavy sighs and many irritating experiences. While it is true that telemarketers generally cause frustration for most people, have you ever wondered why this form of marketing exists? The answer is plain and simple - it works.

Telemarketing is a type of direct marketing that involves a salesperson using a telephone to solicit potential customers to purchase products or services. Recorded solicitation messages are also considered a form of telemarketing known as automated telemarketing. There are two major categories of telemarketing: Business to Consumer and Business to Business.
Telemarketing calls may be made from a company office, a call center, or from an individual's home. An effective telemarketing process actually involves more than one call, with each call attempting to obtain a different goal. For instance, the first call is meant to determine the needs of the customer, while the final call is designed to encourage the customer to purchase a product or service.

Telemarketers obtain the information of potential customers through various means such as credit limit, purchase history, previous information requests, application forms, another company's customer database, a telephone directory, etc. The customers that a telemarketing company will attempt to contact are those that are most likely to purchase the product or service being offered.

Currently in the U.S., there are thousands upon thousands of telemarketers, and telemarketing is among America's thriving industries. This may come as a surprise, but think about it, why would telemarketing still exist if it was an unprofitable business?