Telemarketing Industry

Telemarketing Industry

Introduction

Just as societies evolves, so does marketing. Telemarketing is a way of marketing a product (tangible or intangible) through telephone. In the U.S., 145,000 business organizations have an integrated telemarketing service within the company. This service is used for direct sale to arrange the visit of sellers, to provide information to consumers, etc..

Telemarketing applications are many and are limited only by our creative ability. The Telemarketing, is a telephone communication tool, efficient and modern, and provides services to companies and organizations of any size to negotiate with products or services. Their key success factors are access a limitless market, increased sales and achieving the set goals faster and more effectively. The overall costs are lower than traditional methods (teleresources.net).

Teleoperators are properly instructed to talk on the phone, conveying sympathy and optimism, communicate in pleasant voice, and have a high cultural level. The confidentiality of calls is fully guaranteed. All calls are managed by the computer, with automatic dialing from the database, which eliminate errors and save time. Call centers are the productive phenomenon emblematic of postindustrial society and comply, as they compete for the markets, with the necessary communication functions for a variety of companies based around the world (teleresources.net).

External Factors in the Industry

Corporate profit

The industry is sensitive to changes in corporate profit, which can affect demand and the price that clients are willing to pay for services. As corporate profit rises, clients can increase their spending on telemarketing services, increasing industry revenue. Corporate profit is expected to increase in 2012 and represents a potential opportunity for the industry (www.bls.gov).

Demand from e-commerce and online auctions

Nearly a fifth of industry revenue is derived from the retail segment, with the majority coming from e-commerce (www.bls.gov). Online consumers, who often inquire about shipment details and returns, tend to need more customer service support than shoppers in physical stores (Thamizhchelvan, 2012). Demand from e-commerce and online auctions are expected to increase in 2013.

Outsourcing

Companies in these industry commonly offshore contracts to low labor-cost countries like India to offer lower prices to clients. While this practice may have a positive impact on industry profit margins by decreasing wage costs, the negative impact on US employment and wages overrides potential benefits (www.anythingresearch.com). Outsourcing is expected to remain steady in 2013 but represents a potential threat to the industry.

Private investment in computers and software

Telecommunications, IT and software companies account for a large portion of industry revenue. As such, increasing investment in computer technology will boost industry demand. Private investment in computers and software is expected to increase in 2013. (www.anythingresearch.com)

Total advertising expenditure

The industry is sensitive to general media and other promotional expenditures by corporate and government clients. Therefore, as advertising budgets increase, companies may expand spending on telemarketing services, benefiting industry revenue. Total advertising expenditure is expected to increase in 2013 (www.anythingresearch.com).

Demand from finance and insurance

Finance and insurance industries use call centers for inbound questions, card services and debt collection and represent a key source of demand. Therefore, increasing activity in this sector ...