DRIVING VALUE
Just as no two snowflakes are exactly alike, neither are the needs of any two segments of the Direct Marketing Association’s diverse membership.
The Segment Services department was created last year to meet the needs of the association’s various vertical industry segments. Michael Faulkner, senior vice president, segments and affiliates, oversees the new department, which works closely with other divisions of the DMA such as public relations, conferences, seminars, councils and government affairs.
“We want to keep them focused on driving content and resources toward the segments,” says Faulkner. “Our marching orders are clear: Drive value to the segments.”
Faulkner says the most active segments at the moment include teleservices, catalogs, consumer mail order, Internet marketing and nonprofit. One important thing the department strives to do is recognize how some segments’ needs may vary greatly from the rest of the direct marketing community. For example, nonprofits have specialized concerns, such as the fact that many states now require nonprofits to register — a costly and sometimes complicated process, since each state has different regulations.
Members in all segments are concerned about “unnecessary and excessive” regulation, says Faulkner, which can get passed without people understanding the scope of what the laws mean. He and Jerry Cerasale, DMA senior vice president of government affairs, testified at the three-day hearings on the Telephone Sales Rule Guidelines.
They also met with the FTC to help regulators understand the impact the pending changes would have on the DM industry. “I think we’ve been pretty successful on that front,” says Faulkner.
In the aftermath of September 11, Segment Services played a crucial role in keeping DMA members informed about everything from information on potential anthrax threats to helping telemarketers respond to law enforcement and consumer concerns about fundraising appeals, particularly in the New York area.
There was a great deal of consumer outreach during this period as well. Faulkner and DMA CEO and president H. Robert Wientzen spent close to a month doing interviews with consumer radio, television and print reporters, both domestically and internationally, informing the public about how to recognize legitimate marketing mailing pieces and protect themselves from the threat of anthrax.
To aid relief organizations after the terrorist attacks, Segment Services helped raise nearly $4 million in goods and services in about 40 days. The department filled requests from nonprofits for things that DMA members could provide, like printing and lists.
“We got a huge and quick response,” says Faulkner.
Segment Services also played a key role in generating donations from DMA members valued at over $1 million to fund the Advertising Council’s “Campaign for Freedom” public awareness effort.
The ads — which are running now and are expected to continue for the next 18 to 24 months — are designed to remind Americans of the importance of freedom.
“Direct marketers played a big role in getting that campaign launched,” says Faulkner.
He notes that there are two key factors the Direct Marketing Association’s various member segments will have learn how to adapt to in the coming years. One is the changing of American demographics, and the opportunities presented by expanding marketplaces such the Hispanic community.
The other is the cultural shift in how direct marketing itself is viewed. Direct marketing now compromises 57% of all advertising, he says, pointing out that DM is now accepting some of the premises of general advertising, while direct is being integrated into the multimedia approach of many companies, both large and small.
“Direct marketing is no longer seen as a separate entity,” explains Faulkner. “It is a huge part of advertising.”
