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Frequently Asked Questions
Q: What motivates direct marketing companies to expand outside domestic borders?
A: The American mailbox is increasingly crowded.
Direct marketing in the US has become a zero-sum game and it is expensive to play. My clients find that unit sales, responses on prospective mailings, and print ads are higher outside the United States. This more than
compensates for the additional costs of mailing or advertising in other countries.
Q: IDMC has organized and lead nearly forty Trade Missions specifically for the direct marketing industry since 1991. What is
their purpose, and how can they help direct marketers?
A: The Trade Missions help companies enhance their knowledge, expand their contacts, and increase their sales outside the US by using direct marketing as an
exporting tool. Large, small, and mid-sized companies find the trade missions invaluable. The Trade Missions for Direct Marketing are designed specifically for US companies. (Foreign
companies may participate if they
have a solid record of assisting American companies in exporting.) If a company is using direct marketing in the US, we can show it how to translate its domestic success to Latin America. If a company is a service
supplier to the direct marketing industry (such as printer, telemarketer, lettershop or data service company), we show them how to reach the people in other countries who need its services and expertise.
Q:
What are some of the things learned from the Trade Missions?
A: Companies learn how to sell across borders, how to reach their best response audience, and how to minimize potential mistakes. Participants find out
just how the Spanish-speaking markets compare to the US with regard to lists, postal rates, regulations, fulfillment, printing and mailing services. Plant tours play an important part of the learning process. During the
Mexico Trade Mission, participants toured the Ticketmaster, Dun & Bradstreet, and Promoclave Catalog Company. These are examples of activities that the Trade Missions are privy to that would be difficult for
individuals to obtain. The trips are also designed to have an impact on the direct marketing industry in the countries we visit, and on the commercial officers in our embassies and consulates around the globe.
Q: What kinds of companies participate on Trade Missions?
A: Small and midsized companies participate in the Trade Missions, as well as large and multinational companies. Publishers, service suppliers to the
direct marketing industry, business-to-business mailers, retail chains, and catalog companies like J. Crew, Land's End, and JC Penney. Some of these firms use direct marketing domestically, but many do not. Even if a
company does not do direct marketing domestically, it can be successful in direct marketing in Latin America.
Q: Do companies send one or more executives on the trips?
A: Many companies will
send two executives who have different responsibilities. One might be a marketer and the other from the logisitics side of the business.
Q: What companies have been on the most Trade Missions and why?
A
: LL Bean has been on several, as has JC Penney, American Bankers Insurance Group, and Seton Name Plate. When we started this program, we knew the "new to market" companies would go. We never anticipated that
some of the companies with the most expertise in cross border direct marketing would go over and over again. They do so for three reasons. First, many of the lists you need to grow outside of the United States are not
on the market. By participating on the Trade Mission, you meet list owners and can arrange private list exchanges. Second, it allows these firms to keep their pulse on the changes in the DM industry in different parts
of the globe. Third, it is a terrific way to train new people. In the past, Land's End hired a new Director for Canada for example, and within his first month on the job, sent him with us on the Canadian Trade Mission.
Are your Trade Missions for business to business or business to consumer companies?
They are both. We are spolied in the United States because our market is mature. We can obtain lists of left handed plumbers who live West of the Mississippi River. In
foreign markets, the key is whether or not a prospect is direct mail responsive or not. Will they purchase by internet, print advertising, statement stuffer or not?
Can we really expect to achieve success in all markets?
Probably not, that is why it is so important to prioritize the markets you are considering and choose carefully among your many market entry options. One
size does not fit all. The market entry strategy for Land's End or Viking might not be appropriate for your company. Most U.S. firms do a good job selecting the proper test markets, but do a poor job in researching and
choosing the best market entry strategy.
Are Trade Missions for the "new to market" exporter company, or firms who are already selling outside the United States?
Both. When we first designed
this program in 1990, we knew the "new to market" companies would participate. What we did not anticipate is that many companies with the greatest cross border mail order experience would participate again and
again. LL Bean, for example, has participated more than anyone else. Companies already testing or
established in global markets particpate again and again for the following reasons:
1) To gain access to lists,
customer files and databases that are not on the market.
2) To keep their finger on the pulse of DM activity in a given part of the world.
3) To meet the newest and best service suppliers.
4) To train new
executives who have recently been given international responsibilities.
5) To solve a particular problem
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