No. 1011
Direct Marketing Overview, Part II: Key Resources, Suppliers, and Postal Regulations
This article covers associations, suppliers, trade magazines, trade shows, regulations, and employment resources. See Article 1010 for critical issues, vital statistics, key research, books, and online resources.
ASSOCIATIONS
The Direct Marketing Association (DMA) is the oldest and largest association in this industry. The DMA is broken into different groups, or councils, each serving a special interest. The DMA represents a massive resource for the direct marketing professional. It operates a comprehensive Library and Resource Center. Annual dues begin at $1,250 for direct and interactive marketing companies, $2,750 for suppliers to the industry, and $575 for nonprofits, and go higher depending on the size of the organization. For membership information, call 212-768-7277, ext. 1155; or email DMA at membership@the-dma.org.
There are also a number of regional direct marketing associations (not necessarily associated with the DMA) that can provide resources and networking opportunities:
- Phoenix Direct Marketing Club. Call 602-970-8643. Also in Phoenix is the American Marketing Association Phoenix Chapter. Go to www.amaphoenix.org.
- Direct Marketing Association of Southern California. Call 818-541-1152. Go to www.ladma.org.
- San Francisco Ad Club. Go to www.sfadclub.com.
- Direct Marketing Association of Washington. Call 703-706-0387 or go to www.dmaw.org.
- Chicago Association of Direct Marketing. Call 312-849-2236 or go to www.cadm.org.
- New England Direct Marketing Association. Call 781-237-1366 or go to www.nedma.com. 354 Washington Street, Suite 223, Wellesley Hills, MA 02481.
- The Midwest Direct Marketing Association. Call 952-928-4643 or go to www.mdma.org. 4248 Park Glen Road, Minneapolis, MN 55416.
- Direct Marketing Association of St. Louis. Call 314-644-1100 or go to www.dmastl.org.
- Philadelphia Direct Marketing Association. Call 610-642-2616 or go to www.the-pdma.org. 308 East Lancaster Avenue, Suite 110, Wynnewood, PA 19096.
KEY SUPPLIERS
Consultants. Consultants can save you time and money by filling you in on the basics, helping you design a program, referring you to vendor sources, and helping you track your progress. A list is provided in Direct Marketing Marketplace, published by National Register Publishing. $345. Call 800-473-7020 or go to www.dirmktgplace.com.
Lists. List compilers (who market their own lists), list brokers (who market other company's lists for a fee) and list managers (who maintain and prepare your mailing lists for a fee) are in Direct Marketing List Source, Standard Rate and Data Service (SRDS), $620/yr. (call 800-232-0772, ext. 8020, or go to www.srds.com), and also in Direct Marketing Marketplace, $345 (call 800-473-7020 or go to www.dirmktgplace.com).
Creative. The best way to find copywriters and designers is through referral. Look at companies in your business that have achieved direct-mail success, and find out who they use. Check out any agency or freelancer you consider. Look at samples of work similar to yours and be sure to negotiate pricing in advance. A list of creative sources is available in Direct Marketing Marketplace, $345. Call 800-473-7020 or go to www.dirmktgplpace.com.
Printing/Lettershop. For printers and lettershop (labeling and mailing) services, the rule is the same: get a reliable referral from a company similar to yours. This is important, since it is critical to match the capabilities of these vendors to your needs. A large lettershop that specializes in mailing quantities of 1 million or more is probably not the best choice for the occasional small mailing.
To find a supplier, go to #9520, Supplier Finder.
TRADE MAGAZINES
For a list of relevant publications, go to the Industry Publications page.MAJOR SEMINARS/TRADE SHOWS
For a list of Industry Events, go to #9510, Calendar of Industry Events.
POSTAL REGULATIONS
The U.S Postal Service's latest round of proposed postal rate adjustments could mean significantly higher costs for commercial mailers and nonprofits. It will still provide greater discounts for automation, but the result is a system so complicated that bulk mailers often have to rely on experts to figure it out. Discounts are based on the degree to which companies pre-sort the mail and prepare it for distribution. The biggest discounts are for mail going in bulk to individual carrier routes put through software that corrects addresses and organizes mail in the order in which the letter carrier will deliver it. Discounts vary by classification of mail, but the proposed new rates could mean substantially higher costs for some categories of mail.
First class mail is the most expensive and promises the fastest delivery time. Discounts can be obtained through proper use of bar coding and other automated systems. First class mail gives you the ability to time your mailing hit more accurately without the anxiety of undelivered pieces. You will be notified of undeliverable mail.
Periodicals class is designed for newspapers, magazines, and other periodical publications whose primary purpose is transmitting information to an established list of subscribers or requesters. Periodicals must be published at least four times per year to a paid or controlled circulation. (For controlled publications, at least 50 percent of subscriptions must be by request.) Publications must feature at least 30 percent editorial content.
Standard mail is the class most commonly used for direct mail. It is inexpensive and relatively unrestricted, but there are some catches that make it somewhat complicated. First, you have to obtain a bulk-rate permit, or use the services of a mailing house that has one. Then there is the problem of undelivered mail. Studies suggest that at least 10 percent of all standard mail goes undelivered. Also, the "junk mail" image associated with it often leads to a quick trip to the circular file. Some suggestions for cost-savings include bar coding and nine-digit presorting, both of which can also help speed up the typical two- to three-week delivery time if you have enough pieces in each zone. Pay attention to proper label and indicia placement. A good online reference source is the USPS "Business Mail 101" website. Other helpful resources can be found on the USPS "Postal Express" website at pe.usps.gov.
If you mail in bulk, use a mailing company that can sort and bar-code. Don't mail in December, unless you sell holiday items.
Postcard rate is even less expensive than bulk rate, but the mailing piece must conform to postcard guidelines (not smaller than 3 1/2 inches by 5 inches; not larger than 4 1/2 inches by 6 inches, on 70-point card stock or thicker). Postcards are most efficient for lead generation when you use an 800 number or website for response.
Nonprofit bulk rate is a way for nonprofit organizations to receive additional cost savings.
Business Reply Envelopes (BREs) and Business Reply Cards (BRCs) are proven response improvers, but you must meet certain criteria to use them. You need a first class permit from the postal service (or a mailing service that has one), and postage money must be kept in a permit account to pay for incoming BRC/BREs. BREs and BRCs must also be prepared according to strict guidelines, which are available through your local post office.
OTHER REGULATIONS
The Federal Trade Commission is the agency that enforces many regulations related to direct marketing. The 30-Day Delivery Rule (Mail Order Merchandise Rule) stipulates that you should not solicit orders that you do not expect to ship within 30 days of receiving payment and a completed order form, or within the time stated in the offer. The law now includes mail, phone, and fax orders.
One important area of legislation to watch for is sales taxes, which many states are trying to collect from direct marketers. If your company has a "nexus" or place of business in a state, chances are it will expect to collect taxes on items sold there.
FTC guidelines on telemarketing limit the hours when companies can call, and require callers to disclose who they are, what they're selling, and complete information on what is being sold. The FTC also manages the federal Do Not Call Registry.
- Complying with the Telemarketing Sales Rule is available at no charge on the Direct Marketing Association website.
- DMA Guidelines for Ethical Business Practice outlines ethical standards companies should follow when using direct mail. It's also available at no change on the Direct Marketing Association website.
EMPLOYMENT RESOURCES
For employment opportunities, check Direct Marketing and Target Marketing magazines. Crandall Associates Inc., 516-767-6800, and Executive Search International, 617-527-8787are specialists in the industry. You might also try such online job search services as CareerBuilders.com and Monster.com. And you'll find job banks at many direct marketing information Web sites, such as the Direct Marketing Association at www.the-dma.org. and Direct Marketing World at www.dmworld.com.