TARGETED MARKETING = RESULTS

Aiming Before You Fire

By Sally J. Schmidt

            For as long as law firms have had marketing programs, they have complained about the lack of "results." By results, of course, most lawyers mean new business. Yet a look at law firm marketing efforts reveals a continued lack of focus.

            Institutional marketing messages (i.e., brochures, advertising, etc.) tout generic descriptions that, even if accurately characterizing a firm, provide little differentiation from competitors. Firms continue to structure, and market, themselves around substantive areas of practice (e.g., litigation and corporate) instead of client needs. And exercises to target or develop new business always seem to end with a wish list of companies for selling or cross selling.

Organizing Around Clients

                        Without question, the most effective marketing efforts, in terms of both positioning and developing business, are those that target a particular niche or clientele. From auto dealers to media, from telecommunications to agribusiness, the more focused the marketing effort, the more effective.

            McKinsey and Company reported that firms that are perceived to be among the top three within a market niche get the opportunity to "sell" 70% of the time. Opportunities for the firm perceived to be fourth drop to 40%. Yet while the concepts of niche marketing, target marketing and segmentation seem obvious to marketers, they still require a great deal of effort to implement in law firms.

            In some firms, lawyers resist creating client-oriented marketing teams because they add another layer of structure to the firm. Marketing teams often do not eliminate the need for substantive practice groups, which continue to handle work allocation, training, identifying staffing needs, etc.

            Some marketing groups are hard to form because of their cross-disciplinary nature. Putting an estate planner together with a litigator in a physician practice group can be challenging because of their different styles and orientations. And, quite frankly, some lawyers still do not "get it."

Getting Started

          Most firms will have at least a few examples of client-oriented teams because of the nature of the practice, such as health care or construction. To expand this process, the lawyers should be challenged to identify other market niches upon which the firm is in a position to capitalize.

            There are many factors to consider in defining your marketing teams. The firm should consider:

· Whether the market represents a realistic target (e.g., building a sports law practice in a community without a professional franchise).

· The perceptions of the target market (i.e., in highly competitive industries, clients may not want their lawyers to work with like companies).

· The strength of the competition (i.e., does anyone "own" the market?).

· The ability to reach the market (e.g., are there publications, organizations, lists or other vehicles that will allow the group to identify and contact the targets?).

· The size of the market. For example, is the niche sufficiently large (e.g., transportation vs. railroads) or, conversely, should there be additional segmentation within the group (e.g., shopping centers vs. commercial real estate)?

Falling Off a Log

A well-conceived group, properly structured and staffed, makes marketing a snap. It organizations), craft messages that resonate with a particular audience, and create marketing forums or vehicles that are enthusiastically received by the targets. The resulting marketing plan will position the team so the firm makes the "short list" for consideration. It will also focus the lawyers on relationships that lead to business, such as clients who can be introduced to a broader range of firm services, potential referral sources for the particular work, and prospects to be developed.

Conclusion
Sometimes the best way to get a good idea implemented is to start small. Instead of reshuffling the entire firm into new marketing teams or creating a dozen target groups, the firm might consider identifying a willing "pilot" group or two. After working with the lawyers who are most interested to shape and implement a focused plan, the enthusiasm generated from the resulting successes will undoubtedly spread to the rest of the firm.

Schmidt Marketing, Inc. works with law firms to identify and research target markets, create a workable infrastructure, and develop results-oriented marketing plans. www.schmidt-marketing.com. This article first appeared in the British-based Professional Marketing, the worldwide journal for marketing professional services. It is reprinted by permission.

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