Opinion: Small firms can do international DM

February 5, 1996 by Strategy Staff

Harry Wicken is general manager of Mississauga, Ont.-based Mailfast Canada, a privately owned international mail service.

Globalism and free trade agreements have changed the way Canadian companies do business, and finding a competitive advantage for their products and services beyond their borders has become important to the bottom line.

Canadian export statistics reflect the growing importance of international markets for Canadian products and services, particularly the markets of the developed countries.

In 1995, these countries accounted for about 93% of all Canadian exports totaling C$226 million worldwide, an increase of C$87 million over 1989′s total export dollar figure.

Now, more than ever, companies are employing international direct marketing as a tool to broaden and diversify their international market presence.

To capitalize on international market opportunities via direct marketing, however, requires a comprehensive direct marketing strategy – one that can address the variances between international markets.

While companies of all sizes should consider using direct marketing, small companies are often discouraged by the perceived complexities and costs involved in such a campaign.

Ironically, though, it is these companies that can least afford to neglect the international marketplace and its vast opportunities.

Take, for example, a small Toronto-based educational manual and video marketing company seeking to expand internationally despite its size and limited resources.

Mailfast worked with the company to pre-determine its direct marketing targets by completing a profile of its product, which was subsequently checked against data measuring consumer preferences and purchasing activities in individual markets worldwide.

In regions in which a high correlation between the company’s product and consumer tastes were found, Mailfast acquired mailing lists of consumers.

By pre-determining target markets, Mailfast helped the company establish the size and scope of a focused and cost-effective direct marketing program.

Once a company knows who it is going to target, it must then concentrate on how to reach the audience. This is the point at which companies should devise a strategic mail plan, including a reply component.

A good reply service is essential to direct mail campaigns, as returns may be the only feedback a company gets from its international customers.

A local return mail box can also help foster the perception that the mail originates from a local source, which, based on our experience at Mailfast, typically increases the likelihood of a response.

It also means the customer need only apply local postage or no postage in the case of business reply paid.

Mailfast has a few tips to help firms get started in executing a direct marketing program.

Allocate resources effectively.

- 20% should be concentrated towards direct mail design

- 40% on targeting

- 40% on co-ordinating all direct marketing steps for international implementation and response

Don’t reinvent the wheel when designing an international direct marketing piece.

If you have a direct marketing piece designed for the domestic marketplace, try using it internationally before creating adaptations or an original design.

Mailfast’s experience indicates that if the design works in the home market, it will likely be effective internationally, although adapting copy to local language does depend on the product or service marketed.

For example, research shows that Japanese consumers are accepting of a direct mail piece written in English, provided the reply and order forms are in Japanese.

Start marketing your product in the country with which your company is the most familiar.

For Canadian firms, this probably means the u.s. or the u.k.

In addition to language and culture issues, targeting specific markets in Europe, Asia, and other regions becomes more difficult, as it may require more time for list acquisition, specific mailer design, and knowledge of potentially diverse consumer tastes and expectations.

Use the right tools.

Acquiring the appropriate mailing list and implementing a high response mailing strategy will help maximize direct mail results.

Mailing lists are available for most developed countries through list brokers located in that country and some European brokers have even opened North American offices (mostly in the u.s.)

It is also important to remember that every country has its own Post Office with its own rules and regulations.

For example, some postal authorities may not accept windowed envelopes or stapled mail, but, private companies specializing in international mail can assist the direct marketer in negotiating these types of intricacies.

Ultimately, the results of a successfully designed and implemented international direct marketing program will open new vistas of sales opportunities for Canadian companies, allowing them to compete in the international marketplace into the next century.