Telemarketing | What is telemarketing? | Advantages and functions


what is telemarketing

In this post, we will tell you everything you need to know about telemarketing. If you have doubts about its effectiveness or you are not quite clear about what it is, here we will give you the answers to those questions. Perhaps you are thinking of setting up a telemarketing company or want to start offering your products and services through this channel.

In any of the previous cases, this article will be very useful. The points we will cover are the following:

  • What is telemarketing and what are its functions?
  • Types of telemarketing
  • Telemarketing advantages and disadvantages
  • Telemarketing tools
  • Examples of telemarketing

What is telemarketing and what are its functions?

Telemarketing is a very valuable marketing technique for companies. If we look up its definition in the dictionary we will find that it is a service for selling or promoting products by phone.

In other words, we can also say that telemarketing is a form of direct marketing or direct sales in which an advisor calls potential customers by telephone or mobile phone to market and offer products and services, as well as to inform of new promotions.

The history of telemarketing dates back to 1881 when a Berlin baker increased his sales thanks to the idea he had of offering his products by phone. But it was not until 1962 that this technique was used more frequently. One of the moments that made companies pay attention to this sales technique was the success achieved by Ford’s manager, Lee Lacocca, who commissioned a telemarketing campaign with the aim of contacting 20,000,000 people to obtain two interviews a day for his 23,000 salespeople. The use of this technique became widespread as early as the 1980s and 1990s. 

Types of telemarketing

We can find different types of telemarketing according to the objectives that each company has.

  • Telesales: the reception of catalog or advertisement orders and calls to customers.
  • Telecoverage: calls to customers to maintain and improve relationships.
  • Teleprospecting: preparation and generation of new sales possibilities that will be closed through other sales channels.
  • Customer service: providing customer service, advice, and technical support.
telemarketing advantages

Telemarketing advantages and disadvantages

Among the advantages of telemarketing are the following:

  • Better segmentation of clients thanks to the lead databases.
  • The client can acquire the product or service from his/her home or workplace without having to travel, which saves time and resources.
  • Immediate and quantifiable response.
  • Flexibility: we have the opportunity to know our clients better, what their tastes and needs are, which can give us the possibility of selling other products.
  • A wide coverage can be reached from any geographical point.

As for the disadvantages we can point out the following:

  • There can be a high cost per useful and positive contact if we do not define the objectives well, or we do not have qualified professionals. It is also very important to have an efficient and profitable tool.
  • There is no possibility to give a demonstration or show the product at the time of the call.
  • The call usually has a limited time.

Telemarketing tools

In the past, telemarketing could only be done from a call center or an office with all the necessary equipment, but today we can do telemarketing from home thanks to the digital tools and applications that exist.

With call center software such as Megadialer you can have your own virtual call center. Making digital telemarketing has never been so easy. With this software, the agent will only need a computer to access the program through the browser, a VoIP phone, or a headset with a microphone.

It is a very effective system since it has options for customising the interface (you can create surveys, forms, shopping carts, etc.), predictive dialer and only pay for the minutes of the calls. There is no cost per agent and set up is free.

If you want to try it you can request a free trial here.

Examples of telemarketing

Some examples for which we can use telemarketing are:

  • Invitation to events or confirmation of attendance at events.
  • Lead tracking. We must remember that we are still available when we are needed.
  • Converting leads. Resolve doubts and close the deal to get new customers.
  • Inform about promotions or publicise products and services.
  • Customer service. Serves to advise a company’s customers.

We hope that this guide on what telemarketing is and how it works has helped you. If you have any questions you can leave it in the comments.


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