Destination: Marketing

Most distributors will probably tell you that selling is their first love and greatest strength. But many of these same confident and talented salespeople confess that when it comes to marketing their companies, they feel a little lost. "We're a lot better selling company than we are a marketing company," admits Gordon Peterson, president of Document Resources, a distributorship in Minnetonka, Minn. "Traditionally, business forms people have been poor marketers because we haven't been trained. The emphasis has been on one-on-one selling versus marketing."

In the '70s and '80s, selling may have been sufficient for success, says Peterson, but times have changed. "Successful companies into the next decade are all going to have to market," he says. "Everyone's moving away from the traditional forms products and transitioning into new products. It's in those new products where it's going to be important to market ourselves." Marketing not only can help attract new customers for these products, but it also can educate your existing customers about the non-traditional services your company offers.

So how do you get started? The first step is to understand that marketing and sales are not synonymous. "Some people equate marketing with sales," says Tracy Schneider, principal of TLS Marketing, a small business marketing consulting firm in Seattle. "But marketing is really for the long term. You can't say, 'I'm finished marketing; let's go on to something else.' You market in the hopes of making a sale, but you don't expect marketing to give you a sale right off the bat."

The next step is to read on until you find the beginning of FORM's Marketing Guidebook, a comprehensive tool to help distributors and manufacturers plan an effective marketing campaign. You'll find tips on developing a marketing plan, creating successful advertising and direct mail pieces, finding free publicity and tracking the results of your promotions. There's also a section on the newest marketing vehicle-the Internet. A table of contents is listed below to help you find each section easily. "Marketing is a lot of fun," says Schneider. "Have a good time with it."

Marketing Plans: A guide to where your company is going (and how to get there).
People love to talk about vacation plans--what they plan to do, what they plan to see, who they're going with, even how much it's going to cost. Inevitably, another question pops up. How are they going to get there? If a person told you that he hadn't made any arrangements for getting there, you'd probably have one of two reactions: a) Obviously, he's not committed to leaving in the immediate future; or b) If he said he was leaving tomorrow, you'd simply think he was crazy. Yet many industry professionals follow the same path of reasoning when it comes to planning their companies' futures. They envision the white beaches of financial security, the majestic peaks of high profits and the adventure and excitement awaiting them in unexplored customer cultures. But they never actually book a flight or unfold a map to decide which route they're going to take. As a result, efforts to arrive at desired destinations tend to be all over the road.

Some companies consider any marketing outside of a cold call to be a waste of time. Others feel ahead of the game because they conduct random marketing efforts--a direct mail piece here, a press release there, maybe an advertisement thrown in every so often. But companies that employ marketing plans--detailing short-term and long-term goals, target markets and precise steps of action--can realistically build a foundation for future success. "[A marketing plan] gives you a road map as to what direction you want the company to go in and how you're going to support it," says Joe O'Malley, director of marketing for MRM Corp., a manufacturer in Caro, Mich. MRM has had a marketing plan for several years. Its current 5-year plan is broken down into more precise 1-year sub-plans.

Other companies are converts to marketing plans. "We were getting results [without a plan], but we didn't feel like we were working efficiently enough, and we thought we could get sales up," says Larry Reid, who co-owns Kansas City, Mo.-based distributorship Performance Printing Inc. with his wife Cathy. The Reids implemented a 3-year marketing plan in November after working with a free-lance marketing consultant for almost four months. Before the plan, marketing at Performance Printing "was real sporadic," Reid says. The Reids tried one type of marketing, then got busy with other business and never returned to their original effort. With a plan, Performance Printing determined goals, broke goals into "action steps" and put a deadline on completing each step. Just as importantly, Reid says, developing a plan helped him redefine what his business is and what it wants to accomplish, adding clarity to the formerly blurry edges of his business vision.

"In Marketing 101, they tell you about the four Ps-Product, Place, Price and Promotion," says Peggy Carlson, marketing specialist for Special Service Partners, a manufacturer in Neenah, Wis. "Well, you also have to have a Plan. With a plan, you can emphasize your strong points. Otherwise, it's a free-for-all." Chaotic efforts can create unnecessary frustration, stress and cost, says Tracy Schneider, principal of TLS Marketing, a Seattle-based small business marketing consulting firm. "I often ask people if they have a plan or budget for marketing," she says, "and they say, 'No, we didn't spend anything on marketing last year.' When I start asking them more questions, it usually turns out that they've spent quite a bit of money on marketing, but it hasn't been targeted. You need to develop a strategy so you're marketing with a laser as opposed to a shotgun." A plan puts you in the habit of marketing, Schneider says, so that it becomes part of your everyday business instead of an overwhelming, out-of-control endeavor to be dreaded.

Sticking to Your Area of Expertise
Most companies neglect marketing because they lack understanding of it or lack the time to do it. Both reasons are understandable, says Constance Hallinan Lagan. She is executive director of The Entrepreneurial Center for Small Business Development in North Babylon, N.Y., and director of marketing for The Chez-zam Entertainment Group, Deer Park, N.Y., which provides theatrical productions and other entertainment for corporations and associations. Your job as a distributor or manufacturer is to be aware of your customers' needs, have a firm grasp of the products you offer and possess necessary expertise to provide solutions. Although many people dabble at promoting their companies, marketing is an industry-and a full-time job-unto itself. There is no rule that says you can't market effectively by yourself, but the challenge is daunting. "Do you have the motivation and the time to research effectively?" Lagan asks. Even if you want to avoid full-blown relationships with advertising and marketing agencies, she recommends enlisting help for marketing chores you don't enjoy or those that take up large chunks of time.

Before turning to a consultant, Reid tried to handle marketing on his own and without a plan. "I lost track of the fact that I was a printer and not an advertising person," Reid says. The consultant, who Reid found through a commercial printer he works with, helped develop the company's 3-year plan. She also handles direct mail campaigns, does some design for Performance Printing's Web site and oversees other tasks. The consultant provides a fresh perspective that those immersed in the business sometimes lose, Reid says. He learned a valuable lesson while working with the consultant-the business runs much smoother when he lets her handle marketing, and he focuses on sales, solutions and customer service.

MRM works with an ad agency to develop its marketing efforts. O'Malley recommends finding an agency with experience in the industry so account representatives understand the independent distribution channel. MRM occasionally demonstrates equipment and gives plant tours to ad agency employees to help them learn about the business. Agency representatives also talk with some of MRM's distributors periodically to get a sense of what's important to them, O'Malley says.

Developing Your Marketing Plan
A marketing plan will be your guide for promoting and growing your company. When you put a plan together, consider these factors:

• What message are you trying to send? "You have to think out what your objectives are and how you want to be perceived," says Ange Ford, a partner with Robert Corbus in Docu-Systems, a distributorship in Bedford, Ohio. "Hone in on that instead of trying to be all things to all people." Performance Printing's first objective was to create a tag line that it wanted customers to associate with the company. They chose "A Quality Performance Every Time!" and included it along with their logo on all printed materials. "I ran into a new prospect the other day, and he said, 'Oh, I've seen your logo,'" Reid says. "He couldn't remember where he'd seen it, but we'd placed our name in his mind."

• Break your plan into bite-sized pieces. Performance Printing divided its marketing plan into sections that included a mission statement, short-term marketing objectives, short-term sales and profit goals, long-term goals, target markets and action steps. It then developed promotion strategies and time lines for implementing each step. Deadlines for steps such as developing a Web site, re-evaluating its customer base, coming up with a capabilities brochure and advertising in magazines and trade journals are spread throughout the year. "Don't try to bite off too much," Reid says. "Do it in little pieces, or else you'll get discouraged."

• Try different methods. Don't confine yourself to one specific marketing technique. Show liberal amounts of creativity, and reach customers in a variety of ways. Just a few of the possibilities include direct mail, the Internet, advertising (magazines, newspapers, TV and radio), community involvement, press releases, brochures and other promotional pieces.

• Do your homework. Target the customers you want to go after. That may mean researching particular markets, particular geographic areas or even companies of a particular size. Perhaps the most important research, O'Malley says, is finding what your customers want. More than one company has launched an ambitious plan that is well-designed, but doesn't meet the needs of its clients.

• Have faith in your plan. A plan is virtually worthless without a little patience. "Immediate results, they just don't happen," O'Malley says. "Usually a marketing effort will take a good six months before it has good, measurable, noticeable results. If you start doing sporadic things, there's no way to measure your amount of success. You just don't really give it time to develop a life of its own." Patience has its rewards, O'Malley insists. "It will pay big dividends."

• Don't let size fool you. Larger companies certainly have marketing advantages when it comes to financial resources, but smaller companies have other benefits. A small company like Performance Printing has the flexibility to try new marketing ideas and make changes quickly, Reid says. Sometimes it's also simpler for small companies to detect which marketing efforts are effective and which aren't. Personal service is one weapon small companies use against large companies in the battle for customers. If you're a small company, showcase your personal touch. For example, Performance Printing's marketing plan includes sending personal letters to prospects and personal "thank you" notes to clients.

PUBLIC AND COMMUNITY RELATIONS
The best part about this kind of marketing? It's usually free.

When Graphic Resources Corp. celebrated its 10th anniversary this year, a local newspaper wrote a story about the Fort Scott, Kan., distributorship-and put it on the front page of the paper's business section. The article included information about the company's recent management restructuring and contained a large photo of members of the distributorship's new board of directors. Several other small papers in the region also published stories related to the company's anniversary.

This kind of free publicity that every company yearns for didn't happen by accident. Otis Thomas, president, CEO and chairman of Graphic Resources Corp., sent press releases about the firm's anniversary to editors at all the local newspapers in the region. Of course, it helped that Graphic Resources is located in a town of about 8,500 people. But it also helped that Thomas, through his involvement in several community organizations, is on a first-name basis with many of the papers' reporters and editors. "Anybody in business has to be involved in their community," he says. "That's how you meet people and find out what businesses are moving in, what's being built, etc."

When searching for free press, it's also important to read the publications you send press releases to, says Tracy Schneider, principal of TLS Marketing, a small business marketing consulting firm in Seattle. When you read an article about something similar to what your company does, note the name of the person who wrote it, says Schneider. Then call and find out how often that person writes similar articles. Also ask about the policy for submitting press releases. Most publications prefer to receive them by mail, she says.

When writing a press release, be sure to make it "noteworthy and newsworthy," says Schneider. The less overtly promotional and more educational the release is, the better chance it has of being published. For example, if you write a release about your company's 20th anniversary, she suggests including details about how your industry has changed or tips on how to stay in business for so long. Or, if your company specializes in checks, consider writing a press release about check fraud and include tips on how to use security features and other methods to protect against forgeries. "At smaller publications, most reporters and editors will talk to you if you call and follow up," says Schneider. "Let them know they can call you anytime if they need your thoughts on the industry. It's a very inexpensive way to promote yourself. And if your name gets in the paper, that gives you tremendous visibility and credibility."

Another inexpensive way to market your company is to sponsor community organizations and charitable events. Docu-Systems, a distributorship in Bedford, Ohio, participates in charitable events such as golf tournaments and bike rides. The company also has donated door prizes for local events. "What does that generate? Who knows?" says Ange Ford, partner at Docu-Systems. "If nothing else, goodwill." Scott Milne, president of Robert Scott Company Inc., a distributorship in Eau Claire, Wis., says his company has donated golf balls for golf tournaments and coffee mugs for a literacy volunteer group. It also has donated printing for rosters and programs for country clubs and the chamber of commerce. "It's an opportunity to keep our name in front of people," says Milne. "If we call on people that happen to have played in a golf tournament we sponsored, hopefully our name will be familiar to them."

Low-Budget Tip: Talk is Cheap
Attending trade association meetings for all kinds of industries is a great way to network and market your company, says Constance Hallinan Lagan, executive director of The Entrepreneurial Center for Small Business Development in North Babylon, N.Y. Lagan says you shouldn't limit yourself to meetings only in your field of expertise; attend functions for any type of business you might target as a prospect. "Just go to the meetings and introduce yourself," she says. "Network as much as possible." There may be a cost to some of these meetings, but many regional events are affordable.

Lagan says such personal contact is more effective than other types of marketing because once you have a solid relationship with people, they won't take away their business just because someone else offers them a product for a few dollars less. "Meeting people and shaking their hands doesn't mean they're going to become advocates immediately," she says. "But if you continue to pop up in different places, they'll begin to recognize you."

ADVERTISING
Making your ad stand out in a crowd.

Have you ever paid for an ad, then felt you wasted your money when you didn't see a noticeable increase in sales? Your hard-earned dollars didn't necessarily go down the drain, says Peggy Carlson, marketing specialist for Special Service Partners, a manufacturer in Neenah, Wis. "It depends on what you're trying to gain," says Carlson. "Are you trying to gain exposure or write orders? Is an ad going to write an order? It depends. But it will give you exposure. And so much of marketing is exposure, not sales."

The act of placing an ad doesn't mean your customers will see it or remember it was about your company-unless it's well planned, well designed and part of a cohesive plan. Carlson says Special Service Partners comes up with a new advertising theme every one or two years as part of its marketing plan. To develop a meaningful theme, it's important to listen to your customers and figure out what's most important to them, says Carlson.

For example, before deciding this year's advertising theme, Special Service Partners hired a consultant to conduct blind focus groups of customers and prospects, meaning participants were not told which company the information was for. The consultant asked questions, and Carlson and other SSP officials listened in on a speaker phone at their offices. After listening to distributors talk about wanting to diversify and learn about new products, SSP chose the theme "Break Into New Markets" for its ads. The 4-color ads show a hand bursting through an array of tags and labels to shake another hand. The hands symbolize SSP's willingness to develop a relationship with distributors, says Carlson.

Even if you can't afford focus groups or a consultant, there are lots of ways to make the most of your advertising dollars. Consider the following tips when designing and placing ads:

• Follow the 6-second rule. "You really only get about six seconds; after that, you've lost [your audience]," says Carlson. "You either grab them right away or you don't. It's very vital that you think in those terms." Officials hope SSP's theme, printed in large red letters at the top of the ad, will catch distributors' attention. SSP's ad also contains very little text-only two short sentences-so as not to bog down the reader.

• Create a visual identity for your company. Take out your company's most recent ad, then cover up your company name. Would people still recognize that the ad is about your company? If the answer is no, you need a new ad, says Tracy Schneider, principal of TLS Marketing, a small business marketing consulting firm in Seattle. Schneider says all your ads should have some common visual effect that customers instantly recognize as belonging to your company. For example, one of her small business clients always uses a decorative border around every ad. The border changes depending on the season or the theme of the ad, but it's always there. "It gives you continuity," says Schneider. And it means your customers will be less likely to confuse your ads with those of your competitors.

• Patience is a necessity. Ads can sometimes be expensive, and it's natural to want an immediate response to justify the investment. However, to truly test the effectiveness of an ad, it needs to run six to eight times, says Constance Hallinan Lagan, executive director of The Entrepreneurial Center for Small Business Development in North Babylon, N.Y. "It's a long-term investment, and it builds," says Lagan.

• Think beyond print. Otis Thomas, president of Graphic Resources Corp., a distributorship in Fort Scott, Kan., uses the radio to get his message to customers and prospects. For example, when Graphic Resources Corp. recently celebrated its 10th anniversary, it ran ads for two weeks on local radio stations. Each ad consisted of a 30-second "interview" with a customer, who explained why the company used Graphic Resources as a vendor. Thomas acknowledges that radio ads probably aren't an option for distributors in large metropolitan areas. But in small towns such as Fort Scott, which only has two radio stations, it's an affordable and effective way for distributors to get their names out to the public, he says.

• Target the right audience. Gordon Peterson, president of Document Resources, a distributorship in Minnetonka, Minn., recommends distributors place ads in trade publications and association newsletters for different industries. The audience is more specific, and the rates are usually more affordable than those of general publications, Peterson says. Know where your customers look for sources. For example, Peterson doesn't purchase display ads in the Yellow Pages. "We're not in a consumer business," he says. "It's very rare that a business will go to the Yellow Pages to find a vendor near them for printing. It almost never happens."

• Focus on one message. While it's tempting to want to tell your customers everything about your company in one ad, resist this temptation. Thomas says he focuses his newspaper ads on one particular product, and he usually offers a limited time discount. If the ad isn't product-specific, it's important to concentrate on a theme, he says. "You have to focus in on one thing and go for it," Thomas says. "You have to pick something you think will be of interest. You can't be too general."

• Integrate advertising with other marketing efforts. Special Service Partners uses the same theme in ads, trade shows and direct mail pieces. This reinforces the company's theme in customers' minds, says Carlson. "Consistency is absolutely major," she says.

Low-Budget Tip: Finding Creative Help at a Low Price
Need help designing an ad? If you don't have the budget to work with an ad agency or professional graphic artist, consider hiring a student, says Tracy Schneider, principal of TLS Marketing, a small business marketing consulting firm in Seattle. "Most schools have design majors, and you can probably find seniors who are looking for someone to do work for," says Schneider. "And they usually will take very small amounts of money. Or, work with a class and see if they'll make your advertising and marketing problems a class project."

THE INTERNET
Is your Web site a shining beacon, or is it lost in cyberspace?

Mentioning the Internet's role in business is a sure-fire way to spark debate throughout the industry. In that way, the Internet is like a much-heralded rookie just beginning to play in a professional sports league. One fan raves that the phenom will undoubtedly revolutionize the way the game is played. The next fan regards the player as unproven, over-hyped, a flash in the pan. Another group sits back and watches, hesitating to jump on the bandwagon until the player's obvious potential transforms itself into consistent, quality results. Like that ball player, the Internet has everyone, boosters and detractors alike, making pronouncements and watching intently to see what happens next. Regardless of your views on the Internet, it's undeniable that Web sites offer another alternative for marketing. And like other marketing tactics, the results received are likely to be on par with the effort exerted.

"I think [the Internet] will be a major player as our industry becomes more computerized," says Joe O'Malley, director of marketing for MRM Corp., a manufacturer in Caro, Mich., that recently launched a Web site. "Right now, it remains fairly cutting edge. We've gotten a fair amount of action on it, but we couldn't close down our phone lines." MRM's Web site is produced and maintained by an advertising agency. It includes a brief history of the company, a list of contacts and their positions, capabilities and features of MRM's products and services, and "Profit Tips," an on-line copy of a newsletter the company sends to customers.

Alfonso Guerra Sr., president of Printech Inc., a distributorship in Miami, is an enthusiastic supporter of the Internet. Printech's Web site has almost 15 pages describing its products. "The Internet is unstoppable," Guerra says. "It has been successful for us. We don't use it for sales. We use it for marketing and advertising." Internet marketing has played a role in transforming the company from a basic business forms distributor serving Florida to an international company with 70 percent of its business related to providing software for check printing solutions. According to Guerra, a majority of business now comes from Latin America and the Caribbean, and the Internet has led Printech to business from as far away as Lebanon and Kuwait.

Larry Reid, co-owner of Performance Printing Inc., a distributorship in Kansas City, Mo., has had a different, but satisfying, experience with the Internet. "What we found out is that [our Web site] doesn't necessarily help us get business all over the United States," Reid says, "but it does help us develop business here in Kansas City." Performance Printing launched its site in February with design help from a free-lance marketing consultant. It's too early to determine what impact the Internet will have on generating business in the long run, Reid says. But he thinks starting a Web site is important for the company because it shows that Performance Printing stays up-to-date on technology.

Staying current also led Docu-Systems, a distributorship in Bedford, Ohio, to develop a Web site about a year ago. "We were moved into it by a client of ours," says Ange Ford, a partner in the company. "The jury is still out as to how beneficial this is in hard core results to a distributor in our industry. Have we gotten some orders that we would have never received otherwise? Yes." For example, Ford points to a customer who needed unique sized labels. "They couldn't find a source," Ford says, "and they were frustrated." While researching on the Internet, the customer came across Docu-Systems' Web site and sent e-mail to the company. From there, Docu-Systems took care of the order.

Back to Basics
While the Internet is a potentially effective marketing tool, consider that first, you have to market your Web site. The Internet provides access to millions of people, but without smart marketing, your Web site is the proverbial needle in a high-tech haystack. "It's basically just a matter of publicizing it," O'Malley says. MRM put the word out about its Web site through press releases, by including information about it in direct mail campaigns and by including the Web address in advertisements. Tracy Schneider, principal of TLS Marketing, a Seattle-based small business marketing consulting firm, suggests sending formal announcements inviting customers to test your Web site. She says it's also a good idea to add your Web address to voice mail messages.

Reid says everything that Performance Printing sends out has its Web address printed on it. "If you don't have it on there," he says, "I think you're losing an opportunity." That point was driven home to him when he sat down to talk with an employee of a computer company. Reid gave the employee some literature on Performance Printing, and the employee noticed that the company had a Web site. It piqued the computer company employee's interest because "it was something that tied us together." That conversation led to new business for Performance Printing.

It's relatively simple to inform your existing customer base about your Web site, but how do you control the current so Web surfers locate your home page? Guerra says registering with search engines such as AltaVista, Excite or Yahoo! is effective. When someone doing Internet research types in key words pertaining to a particular subject, search engines guide them to Web sites containing information on that subject. Another way to get extra exposure is to be linked to other Web sites. Performance Printing is linked to the sites of The Kansas City Star, the Kansas City Yellow Pages and the Kansas City Chamber of Commerce.

Tips for Internet Marketing

• Don't panic if you're not Web-wise. "In the next couple of years, I think everyone will have a Web site," Schneider says, "but right now you don't have to have one. It's not the first thing I recommend that you do. Work on your more traditional marketing methods first, then worry about a Web site, unless you have clients in high-tech industries."

• Take small steps. If you're overwhelmed by the Internet buzz, begin by getting e-mail. "You absolutely should have e-mail," Schneider says. "What businesses do is communicate with prospects. E-mail is one more way your business can communicate." She also recommends getting your own domain name, which is the name between the @ and the dot in an e-mail or Internet address (for example: jkf@greatformsinc.com). If your business name is your domain name "it's easier for customers to remember," she says, "and it places further emphasis on your company. It really adds to your business identity." The cost to register a domain name with Internic (www.internic.com) is about $100 for two years, Schneider says. People use the Internet and e-mail because they want information quickly and easily. Schneider urges users to check e-mail at least once a day and respond promptly.

• Don't be afraid to ask for help. "There's a certain expense and time you have to invest to develop a Web site," Schneider says, "and there's a certain amount of maintenance involved." Unless you have the time and expertise, the best bet is to hire a consultant or company that designs Web pages. How do you find the right Web site designer? Guerra did research on the Internet and uncovered a Web page developer close to Printech. Printech provides text and photographs for the Web site while the developer maintains it. This allows Printech to remain focused on "basically being a sales and marketing organization," Guerra says.

• Use the Internet as a research resource. Remember, Internet marketing isn't limited to having your own Web site. Use search engines to find new prospects. "If you don't know anything about the industry a client is in," Schneider says, "you can find out about it on the Internet. It gives you wonderful information to use in a presentation to a company."

• Participate in on-line forums and newsgroups. Newsgroups and forums are good ways to stay informed about industry trends and customer attitudes, or meet people with similar interests. Many professional associations play host to their own newsgroups, Schneider says. A good strategy, she says, is to simply listen (or watch) responses in a newsgroup at first. Then, when you feel comfortable, ask your own questions. Finally, start answering questions other participants ask. People may eventually send business to you. However, respect the norms of these groups. Most outlaw blatant sales pitches.

• Keep track of visitors. MRM's Web site contains a "guest book" for users to sign. It asks for a company's name and address and leaves space so visitors can write comments, ask questions or request product samples and literature for pending projects.

• Coordinate your Web site with other marketing efforts. MRM has a traditional newsletter that it sends to customers, an on-line version for Web site visitors and a Web site guest book that allows prospects to be put on MRM's mailing list. Performance Printing's Web site features a different "spotlighted" product each month. It coincides with a direct mail piece that also features those products.

• Keep your Web site fresh. Update your Web site regularly and add features that make users want to return. An outdated site may leave potential customers with a poor impression of your company.

• Consider the cost. Marketing on the Internet can actually help you trim marketing costs, Schneider says. On-line brochures and catalogs are popular with customers, she says, and may mean you can cut back on traditional printing and mailing costs. You also can update on-line marketing materials quickly without paying for reprinting costs. Guerra points out that sending company-related announcements via e-mail also reduces printing and mailing costs. And, unlike direct mail, which sometimes gets thrown out without being opened, people usually read e-mail before deleting it.

DIRECT MAIL
Keep your promotions out of the trash can and in your customers' hands.

Radio, television and the Internet are great options for promoting your company. However, you can't control which station your audience listens to, which channel your audience watches or which Web sites your audience browses. Direct mail may offer the best opportunity for your message to at least reach its intended audience. And successful direct mail marketers know that creative opportunities abound for promoting a business.

When Document Resources, a distributorship in Minnetonka, Minn., changed its name from Hart Forms & Systems last year, it mailed customers a 2-color announcement proclaiming, "There's been a change of Hart." Inside, the company explained why it was relocating and changing its name, when the change would take place and how it would affect customers. Document Resources also used direct mail to invite customers to an open house celebrating the completion of its new facility.

Viking Business Forms Inc., a distributorship in Fort Wayne, Ind., began sending its 4-color trifold brochure about a year ago to selected prospects. The brochure, which the company also hands out as part of sales calls, describes Viking and the main benefits of dealing with the company. It includes pictures of Viking's building and warehouse facility. Jack Sandstrom, the company's CEO, promotes the facilities because he believes they help set Viking apart from competitors. Viking orders 500 to 1,000 brochures at a time.

One of the most popular uses for direct mail is promoting products. Special Service Partners, a manufacturer in Neenah, Wis., mails customers "The Sales Source," a 1-sided sheet focusing on a particular product each month. "It's an educational tool for distributors," says Peggy Carlson, marketing specialist for the company. The sheet includes lists of specifications, applications, benefits and suggested markets. The mailing also includes a sample of each product. Most promotions are in black and white, but the company has used some color depending on the product.

A Target for Success
Some distributors and manufacturers disparage direct mail marketing as virtually useless for them. But successful marketers say that most critics have taken pot shots with direct mail instead of carefully setting their sights on a bull's eye. "The best success we've had has been in targeted direct mail," says Gordon Peterson, president of Document Resources. "The more targeted, the better. Direct mail is ineffective if it's a general broadcast." The company targeted one direct mail piece by obtaining, from a software company, a list of companies that used that particular software. The piece emphasized that Document Resources was an expert in providing forms compatible with the software. The company also has targeted mailings to medical clinics of a certain size. Some of its salespeople coordinate their own small mailings, sending out 100 to 200 pieces and following them up with a phone call.

MRM Corp., a manufacturer in Caro, Mich., mails out 400 to 500 pieces every two weeks. "We start with our customer base because they're already doing business with us," says MRM's Director of Marketing Joe O'Malley, "and they may not realize we're [offering a particular product]." In fact, ignoring existing customers is a huge oversight. Performance Printing Inc., a distributorship in Kansas City, Mo., sends about 500 pieces per month spotlighting a different product each time. The direct mail pieces correspond with products highlighted on the company's Web site. "We send the mailers, and customers say, 'I didn't know you guys did this,'" says co-owner Larry Reid. You might tell a customer what you offer, he says, but they can forget. Direct mail "reinforces it on a monthly basis."

However, Performance Printing doesn't stop with current customers. It also sends mail to prospects that employees learn about through personal contacts. First, the company tries to schedule a personal visit, but if a prospect isn't interested, Performance Printing always asks if it's alright to add the prospect to the mailing list. This way, Reid says, if the company becomes dissatisfied with its current service, it might decide to give Performance a try. Reid says it's also important to make sure that mail is addressed to someone with purchasing authority. Viking Business Forms uses referrals from other customers to build its mailing list. Sandstrom also suggests sending direct mail to more than one person in the same company so you get exposure in different departments and divisions.

Some companies buy customer lists from other organizations to conduct direct mail campaigns. If you choose that route, says Constance Hallinan Lagan, executive director of The Entrepreneurial Center for Small Business Development in North Babylon, N.Y., conduct research before you buy the list and after you use it. Find out how often the list is updated, she says, and get the names of others in the industry who have used the list so you can ask about their results. After the mailing, keep track of the response rate and the number of respondents who become actual customers. A common mistake, Lagan says, is to expect results immediately, become dissatisfied and move on to another list without getting numbers to support your discontent. Randomly buying lists can cost a lot of money, she says, because customer names often overlap.

Tips on Direct Mail Marketing
Here are some guidelines to follow for marketing success:

• Be steady and patient. "The key is consistency with mailers," Reid says. You can't use direct mail once or twice a year and expect to see a big payoff. Reid says it takes about a year before you really start seeing results. But the wait is worth it. "I can tell that we have more name recognition," he says, "and we're a small company."

• Hire a helping hand. Some companies are inconsistent with direct mail efforts for an obvious reason-it takes time, a commodity that many businesses have precious little of already. If your focus needs to be exclusively on selling, get some help. A free-lance marketing consultant takes care of Performance Printing's direct mail needs monthly. MRM handles the mailing, assembly and printing aspects of its direct mail campaigns, but an advertising agency helps the company with concepts and artwork.

• Skip the envelope. Post cards are an effective way to make sure customers read your information, says Tracy Schneider, principal of TLS Marketing, a small business marketing consulting firm based in Seattle. "[It's] very inexpensive," she says, "and it's a great way to stay in touch with your clients because you're not asking anyone to open an envelope. Even if they toss it in the trash, they're going to see what you have to say. They're going to see your logo and your information." Special Service Partners sends post cards to distributors. They promote the company's exhibitions at trade shows. The post cards integrate the same picture and theme as the company's print ads, and include the date, time and place of the show.

• Try this on for size. Send out irregular sized pieces of mail so they stand out. Performance Printing's monthly spotlighted products mailings are printed on oversized 5-1/2 x 8-1/2-inch cards. Check with the post office to make sure your direct mail pieces meet current postal regulations.

• Make your mail worth their time. Look for ways to move direct mail beyond simple self-promotion. By providing a service to customers, your piece is not only more likely to be read, but it also can help customers associate your company with successful solutions. Include a brief tip related to your business that clients will value, Schneider says. For example, if your company prints promotional pieces for customers, include a tip about which colors are the most appealing to certain groups such as teen-agers, senior citizens, men, women, etc.

• Employ some follow-up. When MRM sends direct mail pieces, a telemarketing team follows up within two weeks. The telemarketers ask prospects about their businesses, then transfer the prospect to a sales service representative if needed. Follow-up also means keeping track of which direct mail campaigns are working well. Reid is working to put out direct mail pieces with codes on them so he can track responses using ACT! contact management software.

Low-Budget Tip: Promote with Voice Mail
Voice mail is a cheap and easy vehicle for marketing your business-and it doesn't have to be annoying, says Tracy Schneider, principal of TLS Marketing, a small business marketing consulting firm in Seattle. Schneider suggests leaving a brief tidbit of new information about your company at the end of your message. For example, a message might conclude with, "The next time you go to the symphony, take a look at the programs. We donated the printing." That lets people know you're supportive of the arts, and it gives you something to talk about with the symphony-goers in your client base, she says. Or, if you recently acquired a new piece of equipment or a press, mention that in a short one-sentence statement. Brevity is imperative; otherwise, people might get irritated at listening to a long message, Schneider says. "It's not a sales pitch," she says. "You're just keeping people abreast of what you're doing."

TRACKING AND BUDGETING
How to tell if your marketing money is paying off.

Many distributors say they have little idea whether their marketing efforts have led to more business. And that's one of the toughest parts about marketing-figuring out if it's working. "Marketing is part art, part science," says Tracy Schneider, principal of TLS Marketing, a small business marketing consulting firm in Seattle. You can never completely track the results of marketing because so many of them are intangible, says Schneider.

For example, even if you ask people who call how they heard about you, you may not get a complete answer, she says. People may tell you a friend recommended you but neglect to mention that before that they also saw your ad and read an article about you-all of which contributed to their decision to call, says Schneider. Often, prospects aren't even aware that your other marketing efforts influenced them, she says. "Sometimes a lot of marketing is working for you, but you might not hear about all of it," Schneider says.

It's even harder to determine how marketing helps you penetrate existing accounts. For example, Gordon Peterson, president of Document Resources, a distributorship in Minnetonka, Minn., says his company had limited success in attracting new business when exhibiting at trade shows. It seemed the expense and time involved with exhibiting was wasted. "But you can't measure the amount of public relations and goodwill it creates with our existing customers when they see us at the show," Peterson says. "It shows that we're a formidable force in the market and are here to stay. It reinforces their decision to buy from us. It's hard to quantify that in dollars."

The intangibility of marketing makes it tough when budgeting. If you can't measure the benefits, it's tempting to skimp on marketing programs. But if you neglect to budget for marketing at the beginning of the year, you may end up spending more money than you wanted as marketing opportunities pop up. To avoid this, Larry Reid, co-owner of Performance Printing Inc., a distributorship in Kansas City, Mo., says he examines overall sales and profits each year and then decides on a certain percentage he can afford to put back into the business through marketing. Joe O'Malley, director of marketing for MRM Corp., a manufacturer in Caro, Mich., says MRM estimates the cost of each of its marketing programs at the beginning of the year. This includes the cost of printing, mailing, creative help, advertising, trade show fees and travel expenses, and developing and maintaining a Web site.

When budgeting, be realistic about what you can accomplish and what you can afford, says Jack Sandstrom, CEO of Viking Business Forms Inc., a distributorship in Fort Wayne, Ind. Sandstrom recommends that you ask yourself, "Can I afford to lose this money, because [any marketing effort] is a gamble." However, you also have to consider the cost of not marketing, including potential business not gained and the potential loss of current customers.

Despite all the ambiguity, there are some ways to track your marketing efforts. The good news is, the smaller the company you have, the easier this is. "Marketing is pretty easy to track because we're not that large," says Otis Thomas, president of Graphic Resources Corp., a distributorship in Fort Scott, Kan. "We don't have that much money to spend in the first place." The following tips can help you get a handle on which marketing efforts are flying and which ones are flopping:

• Ask people. You should ask everyone who calls how they heard about your company, says Schneider. Although this isn't a foolproof method, it's a start. Write down their answers, or enter them into a data base or contact management software program. Make sure you also track whether a person eventually places an order or becomes a long-term customer.

• Enlist your sales reps' help. Along the same lines, make sure your sales reps are asking people how they've heard about your company, says Peggy Carlson, marketing specialist for Special Service Partners, a manufacturer in Neenah, Wis.

• Use technology. Reid of Performance Printing Inc. is working on a direct mail piece to send to customers and prospects. Each piece will have a code on it. He plans to enter those codes in his ACT! contact management software and then track the responses he gets from each piece. Carlson says Special Service Partners recently created a data base to track all its promotions. Each piece that's sent out is assigned a code, and every person who receives the piece has that code entered next to their names. If the person calls or places an order, the company notes that in the computer system. SSP can generate reports from the data base to learn how many people called or placed an order from a particular promotion.

• Put a time limit on promotions. Schneider suggests sending out a letter or brochure containing a coupon offering a discount on particular products for a limited time. You can easily track how many people take advantage of the discount. Again, keep in mind that other people could receive the promotion, not order during the discount period, but remember your company six months later, she says. "Marketing is putting your name out in front of people so that the moment they're ready to order, they think of you first," says Schneider.

• Track reader response cards. Obviously, you can't measure the effectiveness of a magazine ad solely by the number of reader response cards you receive, but it's a start. Cherie Nichols, marketing coordinator for Atlas Tag & Label, a manufacturer in Neenah, Wis., says she uses ACT! software to track the RSC cards for each ad she places.

Remember, marketing is a long-term effort. "It's going to be six months to a year to a year and a half before you see some big results from the marketing you're doing," says Schneider. "You need to give it the time it deserves."

Jonathan Rollins and Katie Sweeney are assistant editors of FORM Magazine.

Thanks to Bradley Business Forms Inc., Bensalem, Pa.; Datatel Resources Corp., Monaca, Pa.; and Ward/Kraft Inc., Fort Scott, Kan., for assistance.

More Marketing Help
DMIA offers the following publications to help you market your company. To order, call DMIA's sales service specialist at (703) 836-6224, ext. 148. Please have the item codes in parentheses ready when you call.

Power Marketing for Small Business. This 299-page book walks you through marketing plans, budgets, ad agency relationships, public relations fundamentals and more. Cost: $17.95 for DMIA members, $18.95 for co-op association members and $19.98 for non-members. (Item Code: PM67)

How to Market Through Direct Mail. Six audiocassettes give you a step-by-step look at the design and structure of a direct mail campaign. Includes tips on writing copy and measuring responses. Cost: $59.95 for DMIA members, $65.95 for co-op association members and $69.95 for non-members. (Item Code: AC17)

How to Make Your Advertising Twice as Effective at Half the Cost. This 278-page reference book offers tips on creating small ads that grab attention, stretching your advertising budget and more. Cost: $18.50 for DMIA members, $19 for co-op association members and $19.95 for non-members. (Item Code: PM39)

TargetSmart! This colorful book provides the fundamentals of data base marketing for small businesses. Cost: $15.95 for DMIA members, $17.95 for co-op association members and $19.95 for non-members. (Item Code: PM151)

Direct Marketing Strategies and Tactics. This 360-page book is a handbook of direct mail information and includes tips on selecting mailing lists, saving money on production and evaluating responses. Cost: $42.46 for DMIA members, $45.95 for co-op association members and $49.95 for non-members. (Item Code: PM38)