Survey shows that more than 70% of Brazilian and Mexican law firms consider marketing activities important or very important but only one third employ dedicated marketing personnel
LONDON - Thursday, April 7th 2011 [ME NewsWire]
(BUSINESS WIRE)-- A recent study of legal marketing in Brazilian and Mexican law firms shows that whilst firms have embraced the concept of marketing, it has yet to become an integral part of the business.
Focusing on Brazil and Mexico, which are generally regarded as the most sophisticated legal markets and the trendsetters for the Latin American region, the survey takes into account the views of over 130 firms, mainly practices with up to 50 lawyers.
Around a third of firms employ at least one marketing person - 37% in Brazil and 31% in Mexico. In both countries, marketing expenditure is in line with industry norms, representing up to 3% of a firm’s gross revenue, yet 41% of Mexican firms have a formal budget compared to only 27% in Brazil.
“The State of Legal Marketing: Brazil and Mexico”, commissioned by LexisNexis® Martindale-Hubbell®, covers: the structure of the marketing department; planning/budget allocation; types of activities and outsourcing; decision making and budget responsibility and lawyer perceptions/involvement in marketing. The study was conducted by Brazilian consulting firm Gonçalves & Gonçalves Marketing Jurídico and Mexican consulting firm Hernández Romano Consultores, between March and May 2010.
Resourcing
Whilst firms have invested in dedicated marketing personnel, these are often stand-alone roles which are usually resource stretched. This is perhaps why 55% of Brazilian and 69% of Mexican firms outsource. Marketing/promotional materials and events are most likely to be outsourced, though Brazilian firms are twice as likely to outsource promotional materials (80%).
Lack of other specialist skills in-house also drives firms in both countries to outsource web presence, press consultancy and advert creation. These are all specialist activities that the 43% of Brazilian and 53% of Mexican lawyers, who are involved in marketing, are not capable of handling. Website creation and maintenance has equal importance in both countries, outsourced by 65% of firms.
Marketing tactics
When considering the tactics that Brazilian and Mexican law firms consider to be most effective, different “traditional” routes are used, but are used in preference to social media. Brazilian firms favour websites, press exposure and articles/alerts, whereas their Mexican counterparts showed a significant preference for legal directories. Alerts and informational materials targeted at both clients and the wider market were also regarded to deliver a good return on investment in Mexico.
As websites were rated so highly in Brazil, it is difficult to see why the effectiveness of newer digital methods e.g. online advertising and podcasts did not score highly with respondents. It may be due in part to the perceived return that these activities generate. Whilst Mexican firms considered websites, online advertising and podcasts less effective – perhaps due to their limited use – they were nevertheless viewed positively.
In both countries, “two-way” marketing methods were considered more effective than traditional ones. Brazilian and Mexican respondents showed resistance to the use of social media methods such as joining a social network or blogging – perhaps a reflection of cultural barriers in online participation or a lack of understanding of how they can be used to help generate new business. Mexican firms also showed a strong preference to develop face-to-face relationships through presentations and networking and also pro bono work.
Lawyer involvement
Alongside cultural norms, the high level of lawyer involvement in marketing may explain some of the resistance to trying the newer two way and social media methods.
“Many lawyers participating in the study believe marketing is an essential function that helps to promote their firm, but some still see it as an expense, not an investment, says Derek Benton, Director of International Operations at Martindale-Hubbell.
“Despite the employment of specialist marketing personnel, the buying power also rests very much with lawyers – specifically partners”.
In 82% of Brazilian firms, the Managing Partner made the final buying decision, compared to 55% of Managing/Senior Partners or Executive Committees (28%) in Mexico.
Challenges ahead
Whilst law firms in both countries have begun to embrace legal marketing, many challenges remain. Here, Brazilian firms were more focused on client acquisition and retention and marketing planning, whereas Mexican firms were addressing more practical challenges such as the availability of specialist marketing professionals, delivering a marketing plan and calculating a return on investment. Current regulatory restrictions are a common challenge for both countries to find “a balance between client prospecting and the ethical restrictions imposed by the Legal Profession Regulation.”
“There is still plenty of room for legal marketing to develop in Brazil and Mexico”, said Benton.
“As both countries are considered to be the most advanced in Latin America, they are likely to be indicative of the Latin American legal market as a whole. Where Mexican and Brazilian law firms lead in relation to legal marketing, others will surely follow.”
To obtain a free copy of the summary or full report: “The State of Legal Marketing: Brazil and Mexico”, visit: www.martindale-hubbell.co.uk/legalmarketing
About LexisNexis
LexisNexis® (www.lexisnexis.com) is a leading global provider of content-enabled workflow solutions designed specifically for professionals in the legal, risk management, corporate, government, law enforcement, accounting, and academic markets. LexisNexis originally pioneered online information with its Lexis® and Nexis® services. A member of Reed Elsevier [NYSE: ENL; NYSE: RUK] (www.reedelsevier.com), LexisNexis serves customers in more than 100 countries with 15,000 employees worldwide.
About LexisNexis® Martindale-Hubbell®
High quality buyers of international legal services trust LexisNexis® Martindale-Hubbell® to help them identify, validate and select a law firm or lawyer every day. Martindale.com® is a leading international law directory connecting law firms and buyers of legal services worldwide. With over 8 million unique visitors per year, it provides global visibility for law firms, helping them to be found by prospective new buyers of legal services who are searching the internet.
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