DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : A. Srinivas Kumar
Designation : Senior lecturer
Branch : Commercial and computer
practice
Institution : Government polytechnic
for women, Nandigama.
Year/ semester : 1st year
Subject code : CCP -104
Topic : Distribution network
Duration : 50 Mts.
Sub topic : Definition of Tele-business,
Uses of Tele-business,
Misuses of Tele-business
CCP104.98 1
Objectives

On completion of period, you would be

able to

 Define Tele-business

 Explain the Advantages of Tele-business

 Explain the Disadvantages of Tele-business

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Definition and Meaning of Tele Business
 Tele business is also called telephone selling.
 It is a new marketing discipline that utilizes
telecommunication technology
 Selling without face-to-face contacts.

CCP104.98 3
Definition and Meaning of Tele
Business

 Highly suitable to such products that can be

bought without being seen are sold over
telephone without going personally
 Examples: Pest control services
 Magazine subscriptions
 Credit card membership
 Athletic club membership

CCP104.98 4
Definition and Meaning of Tele Business
 Consumers also appreciate the convenience of
making a purchase by telephone
 An ongoing process by which buyers and sellers
are linked in a personal dialogue on a ‘real time’
basis
 Can be used solely or in combination with
 Media advertising
 Direct mail
 Catalogue selling
 Face to face selling
CCP104.98 5
Definition and Meaning of Tele Business

 The computer systems today can automatically

dial a telephone number
 Or play a taped message
 Then record information that the consumer gives
to complete the sale
 Reduces the high labour costs associated with
tele- business

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Advantages of Tele Business

1. Less costly substitute for personal selling

2. Very useful substitute for direct mail and media
advertising
3. Renders instant and cost effective personal
service to customers when they need it

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Disadvantages of Tele Business

1. Tele marketing companies call at almost

any hour of the day or night.
2. Telemarketing companies call all the
members on phone whose numbers are
found in the telephone directory only.
Hence, companies are advised to
prepare a list of consumers who do not
want to be called to avoid inconvenience to
non-desirous persons.
CCP104.98 8
Disadvantages of Tele Business

Another disputed telemarketing method is that the

computers are used to dial the phone
numbers which automatically deliver the pre-
recorded messages and even accept the
orders.
Thus, it violates the consumers right of
privacy.

CCP104.98 9
Summary
 It is a new marketing discipline that utilizes
tele communication technology personal
selling using non face-to-face contacts.
 It is highly suitable to pest control services,
magazine subscriptions, credit card
membership.
 Advantages
 Disadvantages

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Frequently Asked Questions

1. Define the Tele business.

2. What are the advantages and
disadvantages of Tele business?
3. Give any four advantages and
disadvantages of Tele business?

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Quiz
1. What do you call a business done over
telephone or television
a) T.V. business
b) Phone business
c) Telebusiness
d) None
2. Advantages of Telebusiness
a) Convenient
b) Less costly
c) Both
d) None CCP104.98 12
Assignment
1. List the products which can be purchased
through Tele business

CCP104.98 13