List Rules, Distribution, and Fulfillment

Promoters wishing to reach reporters and consumers by direct mail often develop material in-house, however such work can also be done by graphic design firms that specialize in advertising mail. These companies can write copy, select paper, and provide layout services to produce the look, tone and pitch most in tune with potential recipients.

Once the brochure has been developed, the next step is to target the proper market.

Mailing list brokers have lists that can pinpoint media outlets, reporters, and free-lance writers. Before using such lists, promoters should understand the various terms and conditions that may apply.

• Cost -- Lists are generally rented on the basis of a charge per name with an order minimum. The better the list, the higher the cost.

• Restrictions -- Many lists are restricted so they cannot be used by those who compete with their owners, or by organizations and individuals offering items inconsistent with the goals of the list owner. A health magazine, for example, would be unlikely to rent its list to a firm that wants to market chewing tobacco.

• Terms -- Since lists are rented for limited periods of time and for a given number of mailings, it's important to know how long and how often a list can be used.

The list development process is crucially important to direct mailers. Every time a duplicate name is removed, or an unlikely contact is eliminated, the mailer pays less for printing, postage and handling. Equally important, waste and inefficiency are reduced.

To this point, there is a promotion, a mailer and a list. Now it's time to insert materials into an envelope, label each envelope, and then apply the proper postage.

For small jobs, say several hundred to a thousand names, the work can be done by hand -- often through a small firm or a non-profit, sheltered workshop.

Inserting by hand is often impractical, however, especially when large volumes of mail are involved or a quick turn-around is important. Jobs of all sizes can be handled by full-service direct mail firms and direct response organizations that use automated equipment.

In addition to automation, larger firms sometimes offer another advantage as well: a full-time postal representative on site. In such cases, by having a postal employee at the mailer's facility the Postal Service saves money and speeds processing because the delivery of millions of letters is streamlined.

Not all mailing firms are full-service operations, however. Some limit their activities to insertions, labeling and postage and in such cases customers will often hire a lettershop.

A lettershop is a specialized company that navigates through the postal system to find the best possible rates for clients. As an example, a lettershop might arrange direct transportation from a printer to the particular post office which offers the best rate. Direct delivery to an individual post office can eliminate many distribution layers as well as excess postal costs.

If a promoter sends out materials which will produce a direct consumer response, promoters must be prepared to complete orders. Mailers can fill their own orders, but many prefer a fulfillment service which takes the orders, assembles the ordered goods for shipment and then sends the merchandise to the customer. Fulfillment services are so effective that a company can sell by mail and never handle its own products. Instead, products are sometimes sent from manufacturers directly to fulfillment firms and then from fulfillment companies to individual consumers.

And if a promoter is really savvy, he or she will realize that a new asset has been created. The individuals who responded to the promotion might also want other information, products and services, names that a promoter's list manager may be able to market to other firms.

Peter G. Miller is an image, marketing, and public relations consultant whose clients include selected national corporations, associations, and web sites. Mr. Miller can be reached atpeter@boardroomarts.com