Developing A Focused Marketing Strategy

by John W. Olmstead, Jr., MBA
Copyright 1995 by Olmstead & Associates. All Rights Reserved.


For the past several years the computer has been the popular topic in legal management circles. However, "marketing" is now beginning to take over the popularity contest. Law firms are beginning to embrace marketing and are forging ahead with a variety of promotional programs. Many lawyers still feel that marketing is repugnant to the legal profession and that lawyers must resist the temptation to market their services at all costs.

Based upon our observations drawn from working with numerous client law firms we have concluded that the majority of the practicing lawyers do not understand the marketing concept. Both the marketing "supporters" and "non supporters" focus primarily on the promotional element of marketing rather than upon all elements of the marketing mix. Viewing the promotional element in isolation, neglecting the other three elements of the marketing mix, and failing to integrate the other administrative concerns of the firm can cause grave problems for the marketing "supporter". Failing to engage in the marketing process can also cause grave problems for the marketing "non supporter".

Marketing must be considered a part of the firm's long term strategic plan. A comprehensive marketing plan must deal with all elements of the marketing mix and be blended with the other managerial functions within the firm.

PITFALLS

Law firms either engaging in isolated promotional campaigns or avoiding the issue of marketing altogether are running the risk of ending up at the end of the road and wishing they had gone a different direction. Focused marketing provides a road map and plots the appropriate turns. Many law firms have fallen into the following pitfalls:

• Dissolution of the law firm due to lack of diversification and the loss of a major client.
• Failure to anticipate lost opportunities and possible required client replacements.
• Failure to identify new opportunities in the market.
• Failure to anticipate the effect of an aggressive advertising program upon the firm's ability to deliver legal services.
• No control or follow-up system.
• Partner discontentment with firm changes resulting from advertising campaigns which were not tied to a focused marketing plan.
• Offering the wrong service in the wrong market at the wrong time.
• Losing clients from incompatible client mixes.

ELEMENTS OF MARKETING

Marketing is not advertising. A marketing plan can exist without television advertisements, radio spots, or direct mail. Marketing is the development and delivery of legal services and is part of the firm's long range planning process. The final result is the marketing plan. The process of marketing involves all of the following elements:

SERVICE MIX

• What services will the firm offer?
• What specialties will be offered?
• What market niches can the firm penetrate?
• Who are the firm's clients?

PRICING STRATEGIES

• How will the services be priced?

PROMOTION STRATEGIES

• How will the services be promoted?
• How will the services be packaged?
• How will the firm differentiate itself and it's service from the competition?
• What promotional vehicles will be utilized?
• How will new clients be targeted?

DELIVERY STRATEGIES/PRACTICE MANAGEMENT

• Case acceptance criteria.
• Organizational/staffing structures.
• Case management and quality control.
• Utilization of systems.
• Training.
• Office location.

An effective marketing plan incorporates all four of the above elements. Promotion can involve any of the following broad categories:

• Personal one on one selling.
• Advertising.
• Sales Promotion.
• Public Relations.

COMPONENTS OF AN INTEGRATED PLAN

An integrated plan must address and include the following components:

FIRM'S MISSION, SCOPE AND GOAL

• Why is the firm in business?
• What services does the firm and should the firm provide?
• What is the firm trying to achieve?

WHO SHOULD DO THE PLANNING AND HOW SHOULD THE WORK BE DIVIDED?

PERFORM SITUATION ANALYSIS

• Where is the firm now and where is the firm going with it's business development program?
• What is the firm's image in town?
• What is the nature of the firm's existing business?
• Is the client environment changing or static?
• What is the firm's strengths and weaknesses?
• Local market analysis?
• The firm's client base?
• The firm's recent fee history?
• What new business is pending?
• What new business was lost?
• What are the firm's sources of referrals?
• Who is the firm's competition?
• What problems does the firm have to overcome?

ESTABLISH MARKETING OBJECTIVES
Objectives are those things the firm wants to achieve for the money and time invested in the marketing program. Objectives should be formulated using:

               Time
               Billings or fees
               Service areas or specialties
               People and capabilities
               The marketplace

DEVELOP MARKETING STRATEGIES, POLICIES, AND PROCEDURES
Marketing strategies concern those things the firm must do to achieve their objectives - the how, who, when and where of the plan. A set of strategies should be developed to fit each objective.

ESTABLISH MARKETING PROGRAM

• Organize it.
• Staff it.
• Schedule it.
• Budget for it.
• Measure results and make adjustments.

WRITE THE MARKETING PLAN

COMMUNICATE THE PLAN

DEVELOP THE CONTROL SYSTEM

UPDATE AND CONTINGENCY PLAN
Just as the basic marketing elements and components must be balanced in the overall plan so must the other managerial concerns of the firm. Managerial functions such as administration, personnel, organizational structure, practice management, finance and accounting, automation, facilities, and attorney compensation should be blended and balanced within the marketing plan. Each functional area should dovetail and support the overall plan.

THE NEXT STEP

Marketing, as opposed to advertising, is necessary for everyone. It is an essential process for practicing law successfully in today's competitive environment. However, since the process involves numerous sub tasks and requires a long range focus - it is difficult to get started and virtually impossible to accomplish during the typical distracting normal workday. Firm Retreats are often suggested for projects requiring such a degree of concentrated focus. If a firm retreat is not feasible the firm should plan several Saturday sessions at a local location other than the law firm. An agenda should be formulated and the components of the integrated marketing plan should be divided into appropriate sub tasks.

An appropriate focused marketing strategy will provide the firm with a road map for the future.

John W. Olmstead, Jr., MBA, CPCM is a legal management consultant and president of Olmstead & Associates, a legal management consulting firm based in St. Louis, Missouri with offices also in Lexington, Kentucky and Des Moines, Iowa. The firm provides management advise and assistance as well as computer system implementation assistance and training to law firms and corporate and governmental law departments and is presently serving clients across the United States.

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