Marketing for Lawyers Basic Principle of Marketing, Goals of Marketing Lesson 1 Eva Tomášková eva.tomaskova@law.muni.cz ? lWhy did you choose this course? lWhat is your idea about this course? lDid you have any knowledge or experience with marketing? l Course syllabus 1.Basic principle of marketing, goals of marketing 2.Ways of client segmentation, specification of clients, determination of perspective clients 3.Expectation of clients, communication with clients 4.Measuring of clients satisfaction, strengthen client loyalty 5.Determination position in the market 6.Building promotion and building image 7.Marketing strategies to attract new clients 8.Ways how to get competitive advantage 9.Customer services offered by lawyers 10.Building of effective marketing plan and its implementation 11.Determination of marketing costs 12.Presentation and discussion of semester paper l Credit Requirements 1.Attendance (min. 6 lessons) 2.Solution of individual and team tasks 3.Presentation and discussion on semester paper 4.Oral exam Course timetable lregular lessons: l every Thursday (5.40 – 6.10 pm) - 031 l Essay (Semester Paper) lTopic: lMeasuring of clients satisfaction, ways to increase this satisfaction lCustomer services offered by lawyers lAdvertising and lawyers l? your theme l l Paper should include part of theory and part of application l (for example – comparison between your country and CZ) l lFormat: lLength: min. 1 500 words lDeadline: (May, 8) lSend: by e-mail Literature lKotler, P. Marketing, Management. l lother books about marketing l lCzech Bar Association, Available at: http://www.cak.cz/en l lRepresenting Europe’s Lawyers l lACT No. 85/1996 Sb. of 13th March 1996 on the Legal Profession Marketing lMarketing can be categorized as a branch of business as well as a social science. l lThe marketing concept is based on the idea that firms should analyze needs and wants of consumers and use the outcomes to make decisions. l lMarketing involves a range of processes concerned with finding out what consumers want, and then providing it for them. Subjects of marketing lproduct lservice lfirm (company) loccasion – sport actions ladventure - bungee jumping, balloons flying lperson – stars, politicians lplace – regions, cities lproperty – banks, real estate agencies linformation – schools, universities, journals l Development of Marketing lIt was first put forward by economist Adam Smith in The Wealth of Nations in 1776. The concept was only adopted on a wide scale from around the 1950s. l lThe production concept dominated from the start of the industrial revolution until the 1920s. This is where firms produced the outputs they could make most efficiently, and this would create product demand. l lThe sales concept became dominant by the 1930s when strong competition and little unmet demand meant firms had to crank up their sales efforts through personal selling and advertising. l lAfter World War II firms analyzed what consumers needed or wanted. The marketing concept took over. Firms analyzed the market, segmented it, conducted market research, developed products, and came up with strategies to sell them. The principles of marketing stem from the marketing concept. Production concept l viz. CIMA materiál úvod – str. 2 - 4 Sales concept l l l Shopping lDo you like shopping? lHow often do you go shopping? lWhat is the main reason to buy something? Shopping lThe act of shopping is more often emotional than logical. l lMarketing experts teach that after showing the prospects the features of a product and the benefits of each feature, is necessary to give customers an emotional push. l lThe buying decision starts with the head and ends with the heart. l lImpulse for buying does not happen sometimes, it happens more often than customers think. l lIt is necessary to make the product unique and different. But, in the end suppliers must make the buyer feel good about it. l lPride of owning a Mercedes, or a Jaguar feeds the human ego. A person who owns a prestigious object feels that he is a cut above the rest. Marketing Principles lMarketing principles include: lan environmental or situation analysis of the firm's internal and external environments, lsegmentation of the market, lconsumer and market research, lproduct development, lpricing, ldistribution, lpromotional strategy, lmarketing planning, land measuring the progress of marketing strategies and actions. Internal and External Environment lA firm needs to understand its internal and external environments. lInternal environment lThe company must know its capabilities, products, image, strengths and weaknesses, and culture. l lExternal environment lAn environmental or situation analysis, its collaborators, its customers, its competitors, and the business climate. l lIt should look at its suppliers, consultants and distributors, and their respective capabilities, strengths, and weaknesses. It analyzes its existing and potential customers, the market such as its size and growth, what consumers want, what motivates them to buy, where and how they buy, and trends in consumer behavior. l lThe firm examines each main competitor in terms of size, products, strategies, market share, and strengths and weaknesses. l lIt also analyzes climate including aspects of the political and regulatory environment that will impact on the firm and the market; the economic situation such as growth rates, cycles, inflation, and employment levels; technology; and the international environment. Main Goal of Marketing lMain goal of marketing is: lcoordination all activities with a focus on building value for the customer and the organization lachieving greater customer satisfaction lachieving greater customer loyalty l= increasing of business performance (profit) l lCreating real value for customers requires that all marketing and sales initiatives converge at the customer with a true understanding his/her needs. Task lCreate 2 groups l lChose a product for a group l(you like to go shopping or you often go shopping, e. g. notebook, perfume, coffee etc.) l lWrite all required features of an product by all members of the group Basic Principle of Marketing lBasic Principle of Marketing = The Marketing Mix or the "4 P's " are: lProduct lPrice lPromotion lPlace (or distribution) l l"5 P's" + People l"7 P's" + Processes, Physical evidence l"9 P's„ + Packaging, Payment l Product lProduct issues can include: la brand name, ltrademarks, lfunctionality of the product, ldifferentiation, lquality, lsafety, lpackaging, lrepairs and lcustomer services. Price lis determined by: lcosts, lmarket share, lconsumer demand, lsubstitutes, lprice elasticity of demand, ltype of market (e.g. monopoly, or perfect competition), land the objectives of the firm. l lThe object might be to: lincrease profits (higher price) or lgain market share (lower price). l Place lPlace or distribution includes: ldistribution channels, lbranch network, linventory management, lwarehousing, ltransport, land use of wholesalers and retailers. Promotion lPromotion is about: l advertising, e.g.: ltelevision, loutdoor, lnewspaper, lmagazine, lradio, linternet, land direct lword of mouth, lpoint of sale, lpublic relations, and lpublicity. Task for the next lesson (March, 6) lFind out usually price paid for lawyers (legal act) in your country and make comparison with the Czech Republic.