Marketing's Role in the World of Business Development

Clarity is a key to building business in a strategic and effective way. One distinction that is important to understand at the outset is the difference between the business discipline of marketing, and the activities associated with business development.

Marketing has its roots as a business discipline following World War II, when corporations’ surplus capacity for manufacturing products met consumers’ increased disposable income. Business owners sought to maximize that confluence by understanding or even creating consumer needs and wants. Over time, marketing concepts that were formerly applied only to products were expanded to include the marketing of services, including the services provided by lawyers and their firms.

Marketing is technically defined as a system of business practices that promote the mutually beneficial exchange of value between a buyer and a seller. The buyer or buyers are referred to as the “target market.” A key concept related to marketing strategy is to determine the proper marketing mix, or combination of strategies for product, pricing, place and promotion—traditionally referred to as the four Ps of marketing. Effective marketing strategy brings together the right combination of the four Ps of marketing . The theory is that when the mix of product (or services, in the case of law firms), pricing strategy, the place or location of the product or service delivery, and promotional efforts are properly calibrated to address the needs of a specific target market, then the mutually beneficial exchange of value is facilitated in a strategic and cost effective way. In most firms, marketing activities—with one notable exception discussed below—are the focus of administrative professionals and firm leadership. It is their high-level task to determine organizational target markets (i.e., key industries or businesses that the firm is best positioned to target for business opportunities). They also identify key product or service offerings that connect well with the needs of defined target markets. Deciding on pricing strategies, whether to bill by the hour or to offer alternative fee arrangements are also within the purview of management. The physical location for offices relative to the needs of the target market is also typically

decided at the leadership level. The one component of the marketing mix that is the responsibility of each lawyer in the firm is promotion, an aspect of which is person-to-person business development.

Promotion strategy includes identifying and converting contacts into clients and then continuing to strengthen the relationship to cause the client to re-engage services when needed. The activity is also referred to as sales or business development.

Every attorney who wants to have a sustaining book of business has to perform the marketing mix analysis, and then move to the promotional activity known as business development. What you do to promote yourself and your practice must be relevant to the purchasing habits of your target market. Typically it involves regular outreach to specific individuals in your target market who have the authority to purchase your services, or who may positively influence the purchasing process.

Let’s be clear regarding another important factor that impacts an individual attorney’s involvement in business development.

It’s difficult to be motivated to do something you find to be uncomfortable or distasteful, and unfortunately that’s how many lawyers view the prospect of developing business. So the first step in the business-building process is to approach it with the right mindset.

There are two important considerations to keep in mind. First consider business development not just as a way to generate revenue or to obtain work to keep you busy, but most importantly as a conduit to obtaining more of the work you enjoy from clients who appreciate your services. Those two objectives should be the ultimate goal of your efforts.

Second, rather than defining business development as trying to sell someone a service they may or may not need or want, view it as being helpful to others by offering your talent and expertise to solve

their important problems. In other words, business development promotes a mutually beneficial exchange of value between you and your target clients, a positive experience for both of you.

The “elephant in the room” that may impede your interest in and motivation for business development is the concept that “non-billable time” is “a waste of time.” Only lawyers and law firms talk about “non-billable time” in a way that implies it is not valuable. To build a sustaining practice, an attorney must invest non-billable time in strategic business-building efforts. Your career is an important asset that you have earned through study, expense and perhaps some blood, sweat and tears to boot. An asset - think of your house, car, health, most important relationships, etc. - must be protected and improved to obtain the best return on investment. Investing non-billable time in strategic business development initiatives will pay dividends for the life of your career.