Marketing 13th Edition by Gary Armstrong, Philip Kotler

Exercise 10

Many companies are realizing the efficiency of telemarketing in the face of soaring sales force costs. Whereas a business-to-business sales call by an outside salesperson on average costs $600, the cost of a telemarketing sales call can be as little as $20 to $30. And telemarketers can make 20 to 33 decision-maker contacts per day to a salesperson's four per day. This has gotten the attention of many business-to-business marketers, where telemarketing can be very effective.
Should all companies consider reducing their sales forces in favor of telemarketing? Discuss the pros and cons of this action. (AACSB: Communication; Reflective Thinking)