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Commerce · Ch 15 — Recent Trends in Marketing

Telemarketing and Network Marketing

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Telemarketing and Network Marketing

Telemarketing is marketing and selling conducted over the telephone — a salesperson (or an automated system) calls prospective customers to describe a product, answer questions, and try to close a sale or set up a follow-up. It is relatively low-cost per contact and allows immediate two-way conversation, but excessive or poorly targeted telemarketing calls are widely seen as intrusive, which is why many countries (including India, through TRAI's National Customer Preference Register / Do Not Disturb registry) regulate unsolicited commercial calls.

Network marketing, also called multi-level marketing (MLM), is a distribution method in which independent distributors sell a company's products directly to consumers (often through personal contacts) and also earn commission by recruiting and building a network of further distributors under them, whose sales also generate commission upward through the network. It reduces the firm's need for a conventional retail network but must be operated carefully and transparently — a network-marketing structure that pays participants primarily for recruiting new distributors rather than for gen …