Should all companies consider reducing their sales forces in favor of telemarketing? Discuss the pros and cons of this action. Many companies are realizing the efficiency of telemarketing in the face of soaring sales force costs. Whereas the average cost of a B-to-B sales call by an outside salesperson costs more than $300, the cost of a telemarketing sales call can be as little as $5 to $20. In addition, telemarketers can make up to 33 decision maker contacts per day compared to a salesperson’s four per day. This has gotten the attention of many B-to-B marketers, where telemarketing can be very effective.

Transcribed Image Text:

Company A Company (sales force (telemarketing only) $2,000,000 Net sales Cost of goods sold Sales expenses only) $1,000,000 $500,000 200,000 $800,000 $700,000