Which is the best method to send a mass email to a marketing list?

I'm using Dynamics CRM 2011.

I'm going to set up a campaign and use a number of my marketing lists

I need to send an email containing marketing material and a festive greeting card to around 800 contacts.

What is the best method to go about this? My first thoughts were setting up a campaign activity in the form of a mail merge.

Also im using the web version but have set it up to work with my Outlook client, therefore when I send the email will it go through my outlook?

Thanks in advance.