I am looking at implementing a new marketing model and would like to get some thoughts an opinions regarding telephone and email marketing.
Telephone marketing I would be looking at targeting local businesses that do not currently have a website. I would create the contact list from the yellow pages or similar.
As for the email campaign I have a list of 12000 potential customers that would be on the mailing list. I do not want to come across as being a spam merchant.
What are your thoughts on carrying out this type of marketing?

Where did you come by an opt-in list of 12,000 willing recipients for your message? I have no doubt they will be seen as spam, and it's not a good idea.
As for cold calling, your return will probably be low, but there will probably be some result from it depending on how persuasive you are.
Personally, I'd try (postal) mailing first, or flyers and local ads. Get your name out there, then maybe call in a few days.

Sorry that should have been 1200 recipients.
Cold calling I can do spend a few years doing cold outbound sales.

1,200 is certainly less, but did they opt-in to receive these?
I've found that many people, even businesses, no longer take even a single piece of mail as a simple B to B solicitation (used to be ok to contact a business specifically). I've had clients reported for a single solicitation to a business they researched and made sure would be a suitable match for services.
One email, to one specific local business.
Perhaps you'd have better luck.

Telephone marketing I would be looking at targeting local businesses that do not currently have a website. I would create the contact list from the yellow pages or similar.
In many countries thats illegal - you have to check your local laws of course, but UK/EU you have to both check with the TPS lists etc before calling anyone to solicit business.

In many countries thats illegal - you have to check your local laws of course, but UK/EU you have to both check with the TPS lists etc before calling anyone to solicit business.
As said I previously worked for a Telemarketing company as the Head of Operations. I know the ins and outs of telemarketing. Hence one of the reasons I am looking at this as a potential avenue to bring in new business.

Whatever you do, do not use automated telemarketing. That just makes people mad. If you do decide to implement telephone marketing, have a real live person make the calls.
I'd strongly suggest that you stay away from email marketing. It wouldn't be long before your business recieved a reputation for spamming.
Also, consider advertising on popular websites that appeal to the service that you are offering. This may cost more than what is on your budget, but consider it a worth-while investment.

Whatever you do, do not use automated telemarketing. That just makes people mad. If you do decide to implement telephone marketing, have a real live person make the calls.
I would not even consider using an automated system. I would much rather talk to my potential customers.

Cold calling businesses is not illegal in the US. However if they say "Do not call me", and you call them again...then it is illegal.
Cold calling me at home is illegal.

Cold calling businesses is not illegal in the US.
And a good thing too. Can you imagine everyone sitting beside a dead phone, with no one allowed to call anyone else?
And, sending off an email to someone, with a specific business point is fairly harmless. This is specifically about a *personally* typed email directed at a particular party. If a business *publishes* an email address, they ought to be prepared to accept inbound emails.
The "everything is spam" crowd likes to move the goalposts around with the "it takes *my* resources" argument. One would suspect that they need better spam filtering. Email addresses get around. Sometimes they are misused. But misuse should not be attributed to legitimate uses. Again, if the system cannot be legitimately used, then just unplug the cable completely.

I cant even begin to tell you how many phone calls I got from credit card processors, office supplies stores, etc when i signed up for AT&T Business.