You just need to add the newly created picklist values to the record types. To do this follow these steps:
 
1. In CRM, click on Setup at the top.
2. Expand the menu column on the left for Build > Customize > Accounts.
3. Click on "Record Types"
4. Click on Organization
5. Click on Edit next to "Staff for Personalized Mailings"
6. Add the five new available values to the selected values column.
7. Click Save.
This does it for the organizations, we also need to do it for individuals
8. Expand the "Person Accounts" in the menu column on the left
9. Click on the "Record Types" underneath it.
10. Click on Individual
11. Click on Edit next to "Staff for Personalized Mailings"
12. Add the five new available values to the selected values column.
13. Click Save.