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{{Short description|Method of direct marketing}}
{{pp-pc1pc|small=yes}}
{{for|the American true crime documentary series|Telemarketers (TV series)}}
[[File:Telemarketing.JPG|thumb|Telemarketing]]
'''Telemarketing''' (sometimes known as '''[[inside sales]]''',<ref>{{cite journal | doi=10.1002/dir.4000050404 | volume=5 | issue=4 | title=The roles of outside and inside sales representatives. Conflict or cooperation? | journal=Journal of Direct Marketing | pages=8–17| year=1991 | last1=Marshall | first1=Judith J. | last2=Vredenburg | first2=Harrie }}</ref> or '''telesales''' in the UK and Ireland) is a method of [[direct marketing]] in which a [[salessalesperson]]person solicits prospective [[customer]]scustomers to buy [[product (business)|products]], subscriptions or [[Service (economics)|services]], either over the phone or through a subsequent face to face or [[web conferencing]] appointment scheduled during the call. Telemarketing can also include recorded sales pitches programmed to be played over the phone via automatic dialing.
 
Telemarketing is defined as contacting, qualifying, and canvassing prospective customers using telecommunications devices such as telephone, fax, and internet. It does not include direct mail marketing.<ref>{{Cite web|url=http://www.businessdictionary.com/definition/telemarketing.html|title=What is telemarketing? definition and meaning|website=BusinessDictionary.com|language=en|access-date=2018-03-21|archive-date=2018-03-22|archive-url=https://web.archive.org/web/20180322081744/http://www.businessdictionary.com/definition/telemarketing.html|url-status=dead}}</ref>
 
== History ==
The term ''telemarketing'' was first used extensively in the late 1970s to describe [[Bell System]] communications which related to new uses for the outbound [[Wide Area Telephone Service|WATS]] and inbound [[Toll-free telephone number|Toll-free]] services.<ref>{{Cite news|url=http://adage.com/article/adage-encyclopedia/telemarketing-overview/98900/|title=Telemarketing: Overview|access-date=2018-03-21|language=en}}</ref>
 
=== Telephonists ===
The rise of telemarketing can be traced back to the 19th century telephonists, or [[switchboard operator]]s. Trans-cultural hiring of switchboard operators (mostly women) became especially popular in North America throughout the 20th century, partially due to popularity gained through advertising.{{r|rakow|p=183–184}} After the shift from [[public switched telephone network]] to computer-based [[electronic switching system]], the job of switchboard operators gradually diminished. However, with the rise of advertising and with the popularity of the telephone use, new jobs, including telemarketing jobs, were created.
 
=== Women in telemarketing ===
Telemarketing, as was the case with telephone operators, is one of the fields known to be occupied mostly by women.<ref>{{cite journal|doi=10.1080/13691180051033315 |title=Women's Work in the Information Economy | volume=3 |issue=3 | journal=Information, Communication |pages=366–385|year=2000 |last1=Belt |first1=Vicki |last2=Richardson |first2=Ranald |last3=Webster |first3=Juliet |s2cid=144267029 }}</ref> The central reason for hiring women operators lay in the fact that women's work was considered a form of cheap labor: female telemarketers earned about one-half to one-quarter of men's wages.{{r|rakow|p=183}} It was also highlighted, however, that women were more polite and well mannered than male operators.{{r|rakow|p=183}} Moreover, the calming, more delicate nature of a woman's voice was considered to be women's natural quality, although no scientific evidence supports this statement.<ref>{{Cite journal|last=Dykema, Diloreto, Price, White, Cate Schaeffer|first=Jennifer, Kerryann , Jessica L., Eric, Nora|date=Jul 2012|title=ACASI Gender-of-Interviewer Voice Effects on Reports to Questions about Sensitive Behaviors Among Young Adults|journal=Public Opin Q|volume=76|issue=2|pages=311–325|pmc=4079084|pmid=24991062|doi=10.1093/poq/nfs021}}</ref> This naturalization led to normalizing the perception of women as telephone operators and consultants, which is currently reflected in the telemarketing industry.
 
== Categories ==
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===Subcategories===
* '''Lead generation''', the gathering of information and contacts.
* '''Sales''', using persuasion to sell a product or service.
* '''Outbound''', proactive marketing in which prospective and preexisting customers are contacted directly,
* '''Inbound''', reception of incoming orders and requests for information. Demand is generally created by advertising, publicity, or the efforts of outside salespeople.
 
[[Image:Telemarketoffice.jpg|thumb|left|Telemarketing office]]
 
====Service Styles====
* '''Call to Action''', the implementation of outbound telemarketing to "activate" or elicit an action or response from prospects (i.e., entice prospects to visit a client's website).
* '''Appointment Setting''', utilizing inbound or outbound telemarketing to create face-to-face or telephone appointments for sales purposes.<ref>{{cite web|url=http://www.appointmentsetter.net.au/telemarketing|title=Telemarketing - Appointment Setter Telemarketing Services|website=appointmentsetter.net.au|access-date=7 April 2018}}</ref>
* '''Database Cleansing''', the outbound calling of databases with the particular purpose to clean and prepare data (i.e. removing outdated and incorrect data) and contact details for future telemarketing campaigns.
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Telemarketing has been negatively associated with various [[Confidence trick|scams]] and [[fraud]]s, such as [[pyramid scheme]]s, and with deceptively overpriced products and services. Fraudulent telemarketing companies are frequently referred to as "telemarketing boiler rooms" or simply "[[Boiler room (business)|boiler rooms]]". Telemarketing is often criticized as an [[Business ethics|unethical business practice]] due to the perception of high-pressure sales techniques during unsolicited calls. Telemarketers marketing telephone companies may participate in [[telephone slamming]], the practice of switching a customer's telephone service without their knowledge or authorization.
 
Telemarketing calls are often considered an annoyance, especially when they occur during the dinner hour, early in the morning, or late in the evening. SomeA common complaint about telemarketing has been that the calls are a nuisance and a distraction. In 1909, one target of the unwelcome calls declared "My telephone is far more of a nuisance to me than it is a convenience".<ref>[https://babel.hathitrust.org/cgi/pt?id=mdp.39015080168233&seq=231 "Housekeeper Objects to Telephone Advertising"], ''Telephony'', February 20, 1909, page 227.</ref> However, some companies have capitalized on these negative emotions. Since 2007 several forums have sprouted and act as complaint boards where consumers can voice their concerns and criticism. In response some telemarketing companies have filed lawsuits against these portals.<ref>{{cite web|url=http://pubcit.typepad.com/clpblog/2010/10/gds-publishing-provides-a-timely-reminder-of-why-we-needed-the-libel-tourism-law.html|title=GDS Publishing Provides a Timely Reminder of Why We Needed the Libel Tourism Law (CL&P Blog)|access-date=14 June 2015}}</ref><ref>{{cite web|url=http://www.citmedialaw.org/blog/2008/lawyer-attempts-end-run-around-cda-230-finds-stronger-defense-he-expected|title=Lawyer Attempts End Run Around CDA 230, Finds a Stronger Defense Than He Expected|access-date=14 June 2015}}</ref><ref>{{cite web|url=http://www.techdirt.com/articles/20080708/0038361619.shtml|title=Once Again: Do Not Send Legal Threats To Companies Because You Don't Like What A User Says|work=Techdirt.|date=9 July 2008 |access-date=14 June 2015}}</ref> The current legal system in the U.S grants such forums a certain degree of protection through "[[Section 230 of the Communications Decency Act|Communications Decency Act, 47 U.S.C 230]]" and California's Anti-[[Strategic lawsuit against public participation|SLAPP]] law.
 
===Robotic telemarketing and ringless voicemail===
A recent trend in telemarketing is to use [[robocall]]s: automated telephone calls that use both computerized [[autodialer]]s and computer-delivered pre-recorded messages in a [[Sales Pitch|sales pitch]]. Some can simulate a personalized phone call through personalized pre-recorded messages.
 
Telemarketing has recently been advanced to implement a programmed women's voice as the operator instead of hiring a real woman to perform the task (see example of Samantha West<ref>{{cite news|url=http://newsfeed.time.com/2013/12/10/meet-the-robot-telemarketer-who-denies-shes-a-robot/|title=Samantha West The Telemarketer Robot Who Swears She's Not a Robot - TIME.com|work=TIME.com|access-date=14 June 2015|date=10 December 2013}}</ref>).
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Since many telemarketing calls now originate offshore, beyond the reach of US legal or regulatory agencies, the [[National Do Not Call Registry]] is usually ignored, as well as FTC regulations, and every possible number is called in an area code block. Some automated services are sophisticated enough to analyze the audio from the answering party, and if it determines that a human did not respond, will call repeatedly until one does or a limit is reached. This may be coupled with a fake Caller ID display ("spoofing") to mislead the call recipient into answering, or even thinking it is a local number calling. These are not actions of legitimate businesses.
 
Telemarketing techniques are increasingly used in political campaigns. Because of free-speech issues, the laws governing political phone calls are much lesslesser stringent than those applying to commercial messages. Even so, a number of states have barred or restricted political robocalls.
 
The [[National Do Not Call Registry]] has helped to substantially curb telemarketing calls to landlines and has also helped with the increasing trend for telemarketers to target mobile phones. As a result, there has been a greater push for mobile applications to help with unwanted calls from telemarketers, like [[PrivacyStar]]. These companies have helped to log thousands of complaints to the DNC Registry, since the inception of the registry itself.<ref>Matt Brownell, The Street. "[http://www.thestreet.com/print/story/11439016.html http://www.thestreet.com/print/story/11439016.html]." March 1, 2012. Retrieved August 27, 2012.</ref>
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|title=Beat nuisance phone calls
|date=August 25, 2013}}</ref> Specific mention was also made of calls from "overseas companies."
 
==== Restrictions ====
Telemarketing restrictions in the UK are in place to protect consumers from unwanted and intrusive marketing calls. The use of predictive dialers, which are computer programs that dial telephone numbers automatically and connect the calls to an available agent, can make compliance with these restrictions more challenging. The Information Commissioner's Office (ICO), the UK's independent regulator for data protection and privacy, has issued guidelines on the use of predictive dialers for telemarketing, which require explicit consent from individuals, clear information about the purpose of the call and the business making the call, an option for individuals to opt-out of future calls, and an accurate and up-to-date call list. Additionally, businesses must ensure that their predictive dialer does not generate abandoned calls at a rate higher than 3%<ref>{{Cite web |last=Schotel |first=Spencer |date=February 3, 2023 |title=Telemarketing Restrictions in the UK with a Dialer |url=https://www.xlmg.co.uk/post/telemarketing-restrictions-in-the-uk-with-a-dialer |url-status=live |archive-url=https://archive.today/20230227140938/https://www.xlmg.co.uk/post/telemarketing-restrictions-in-the-uk-with-a-dialer |archive-date=February 27, 2023 |access-date=February 27, 2023 |website=XL Marketing}}</ref> of live calls and must comply with the General Data Protection Regulation (GDPR) when processing personal data for marketing purposes. Failure to comply with these regulations can result in severe penalties, including fines and damage to a business's reputation.
 
===Finland===
In Finland, call centers employ an estimated 100,000 people, but most work with customer relations in larger companies. 10,000 people are working for companies involved with telemarketing. Telemarketing often is the first job young people get. But it is also a way out or back to the labour market for handicapped, immigrants and pensioners, In Finland, the profession has had a bad reputation because of work-related injuries. The strain on neck, shoulders, eyes and ears can be considerable. Health problems have however been reduced considerably thanks to lightweight headsets, ergonomic working stations and more tasks, like documentation, done automatically by computers.<ref>{{cite journal |last=Lindén |first=Carl-Gustav Lindén |date=October 9, 2013 |title=Call centres: young people's entry into working life |url=http://www.nordiclabourjournal.org/i-fokus/youths-work-environment/article.2013-10-09.7210069409 |journal=Nordic Labour Journal |access-date=14 June 2015}}</ref>
In Finland, call centres employ an estimated 100,000 people, but most work with customer relations in larger companies. 10,000 people are working for companies involved with telemarketing.
Telemarketing often is the first job young people get. But it is also a way out or back to the labour market for handicapped, immigrants and pensioners.
In Finland, the profession has had a bad reputation because of work-related injuries. The strain on neck, shoulders, eyes and ears can be considerable.
Health problems have however been reduced considerably thanks to lightweight headsets, ergonomic working stations and more tasks, like documentation, done automatically by computers.<ref>{{cite journal|url=http://www.nordiclabourjournal.org/i-fokus/youths-work-environment/article.2013-10-09.7210069409|title=Call centres: young people's entry into working life|access-date=14 June 2015}}</ref>
 
===France===
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|title=Law Toughened against Telemarketing Calls
|date=August 8, 2019}}</ref>
== History ==
The term ''telemarketing'' was first used extensively in the late 1970s to describe [[Bell System]] communications which related to new uses for the outbound [[Wide Area Telephone Service|WATS]] and inbound [[Toll-free telephone number|Toll-free]] services.<ref>{{Cite news|url=httphttps://adage.com/article/adage-encyclopedia/telemarketing-overview/98900/|title=Telemarketing: Overview|date=September 15, 2003|access-date=2018-03-21|language=en}}</ref> However, the practice of contacting potential customers by telephone originated in the late 19th century.
 
A 1903 report documented using the telephone for local marketing by a dry goods store, which reported that it was more effective than "sending clerks or errand boys" to inform potential clients about buying opportunities.<ref>[https://babel.hathitrust.org/cgi/pt?id=nyp.33433018878268&seq=1015 "Advertising by Telephone"], ''Dry Goods Reporter'', March 14, 1903, page 77.</ref> In 1909, a department store's "general solicitation", made by telephone to over 1,000 prospective customers, promoted "a carnival of values... an offering of exceptional qualities at prices we have never before been able to make".<ref>[https://babel.hathitrust.org/cgi/pt?id=hvd.hnt57p&seq=295 "Retailing by Wire"] by Lynn Sumner, ''System'', March 1909, pages 279-280.</ref> A year later, an electric power company's practice of calling potential customers at home, noted that "Regarding time of calling it is suggested that between 8 and 9 is preferable, owing to the fact that the head of the house is generally in at that time and a sufficient length of time has elapsed after the evening meal".<ref>[https://babel.hathitrust.org/cgi/pt?id=mdp.39015023540944&seq=1214 "Canvassing by Telephone"], ''Electrical Review and Western Electrician'', December 10, 1910, page 1192.</ref> By 1912, the practice was established to the degree that a reviewer outlined fourteen specific ideas for soliciting and securing orders by telephone.<ref>[https://babel.hathitrust.org/cgi/pt?id=iau.31858034273296&seq=404 "Selling by Telephone"] by Marshall Jewell Bailey, ''System'', April 1912, pages 396-402.</ref> Telephone solicitation also developed political uses, including in 1908 "get out the vote" calls,<ref>[https://babel.hathitrust.org/cgi/pt?id=osu.32435063043483&seq=383 "Telephone Help Election Day"], ''Telephony'', June 1908, pages 373-374.</ref> and recorded political speeches played for prospective voters.<ref>[https://babel.hathitrust.org/cgi/pt?id=osu.32435063043434&seq=358 "Campaign Speeches by Telephone"], ''Telephony'', October 3, 1908, pages 338-339.</ref>
 
=== Telephonists ===
The rise of telemarketing can be traced back to the 19th century telephonistsTelephonists, or [[switchboard operator]]s., Transwere a trans-cultural hiring of switchboard operators (mostly women) which became especially popular in North America throughout the 20th century, partially due to popularity gained through advertising.{{r|rakow|p=183–184}} After the shift from [[public switched telephone network]] to computer-based [[electronic switching system]], the job of switchboard operators gradually diminished. However, with the rise of advertising and with the popularity of the telephone use, new jobs, including telemarketing jobs, were created.
 
=== Women in telemarketing ===
Telemarketing, as was the case with telephone operators, is one of the fields known to be occupied mostly by women.<ref>{{cite journal|doi=10.1080/13691180051033315 |title=Women's Work in the Information Economy | volume=3 |issue=3 | journal=Information, Communication |pages=366–385|year=2000 |last1=Belt |first1=Vicki |last2=Richardson |first2=Ranald |last3=Webster |first3=Juliet |s2cid=144267029 }}</ref> The central reason for hiring women operators lay in the fact that women's work was considered a form of cheap labor: female telemarketers earned about one-half to one-quarter of men's wages.{{r|rakow|p=183}} ItWomen waswere also highlighted,considered however, that women wereas more polite and well mannered than male operators.{{r|rakow|p=183}} Moreover, the calming, more delicate nature of a woman's voice was considered to be women's natural quality, although no scientific evidence supports this statement.<ref>{{Cite journal|last=Dykema, Diloreto, Price, White, Cate Schaeffer|first=Jennifer, Kerryann , Jessica L., Eric, Nora|date=Jul 2012|title=ACASI Gender-of-Interviewer Voice Effects on Reports to Questions about Sensitive Behaviors Among Young Adults|journal=Public Opin Q|volume=76|issue=2|pages=311–325|pmc=4079084|pmid=24991062|doi=10.1093/poq/nfs021}}</ref> This naturalization led to normalizing the perception of women as telephone operators and consultants, which is currently reflected in the telemarketing industry.
 
==Technology==
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==References==
{{Reflist|30em}}
 
==Further reading==
* Frederick, J. George. [https://babel.hathitrust.org/cgi/pt?id=mdp.35128000002400&seq=9 ''Selling by telephone''] (1928)
* Lee, Jinkook, and Loren V. Geistfeld. "Elderly consumers’ receptiveness to telemarketing fraud." ''Journal of Public Policy & Marketing'' 18.2 (1999): 208-217.
* Marshall, Judith J., and Harrie Vredenburg. "Successfully using telemarketing in industrial sales." ''Industrial Marketing'' Management 17.1 (1988): 15-22.
* Tu, Huahong, et al. "Sok: Everyone hates robocalls: A survey of techniques against telephone spam." ''2016 IEEE Symposium on Security and Privacy (SP)'' (IEEE, 2016). [https://oaklandsok.github.io/papers/tu2016.pdf online]
 
==External links==
* [https://www.donotcall.gov/complaint/complaintcheck.aspx File a Complaint to the Do Not Call Registry]
* [https://web.archive.org/web/20030601212106/http://www.ftc.gov/bcp/conline/edcams/donotcall/index.html Federal Trade Commission Do Not Call Registry] (archived 1 June 2003)
* [https://web.archive.org/web/20070509055303/http://www.ucan.org/telecommunications/landline/laws_regulating_telemarketers Laws Regulating Telemarketers] (archived 9 May 2007)
* [http://www.tpsonline.org.uk/ Telephone Preference Service – UK Do Not Call Registry]