Ultra-Competitive Marketing Strategies for
Professional Services Firms
Richard Nelson, BSc (Hons), CPSM
Director of Business Development & Marketing
Watkins Gray International LLP
© Richard A. Nelson

We would fall over without Marketing
• Marketing is one of the
three legs of a successful
business, along with
Finance and Operations
• Businesses of any size
need to continually Marketing
develop and refine their Finance
plans to address how Operations
they will attract and keep
clients

Effective marketing strategy is client-focused
ID VALUABLE
CLIENTS
ID NEW
SEGMENT
VALUABLE
CLIENTS
CLIENTS
CLIENTS
UP-SELL & MANAGE
CROSS-SELL RELATIONSHIPS
CLIENT
EXPERIENCE
© Richard A. Nelson

AIDAR – Turning Prospects into Advocates
RETENTION Brand Insistent
ACTION
DESIRE
INTEREST
ATTENTION
No Knowledge
© Richard A. Nelson

Services Marketing Mix – The 7 P’s
PRODUCT
(SERVICE)
PROCESSES PRICE
CLIENTS
PHYSICAL
PROMOTION
EVIDENCE
PEOPLE PLACE
© Richard A. Nelson

Professional Services Sales & Marketing
Client relationship/projecct management plan References
Proactive, constant communication
CLIENT CLIENT Call backs
Understand expectations – exceed them Satisfaction surveys / client care
Delivery, quality, innovation, schedule, budget, etc. SERVICE RELATIONS
Communications (mailers, Xmas cards)
Put yourself in client’s shoes Hospitality
Pre-planning
Fee proposal NEGOTIATIONS STRATEGIC Mission / vision
Basis for payment & APPOINTMENT PLANNING Goals / objectives
Letter of intent SWOT
Contract Short & long-term strategies
Review w/Com’l Dir/G&A Action plans
MARKETING
SALES
Differentiaion / USP’s
Analyse client needs PROPOSALS / BRAND MARKET
Market conditions / forecasts
PESTLE Issues
Competition
Response to key issues
Team
PRESENTATIONS
ASSETS RESEARCH
Targeting / segmenting
Client needs assessments
Approach
Trends
Consistency w/Mission/Vision
Potential of project Identify changing client needs
Go/No Go evalulation QUALIFY SERVICE Evaluate capabilities
Special issues PROSPECTS DEVELOPMENT Develop / acquire capabilities
Viability Launch services
MH Blue Sheet analysis
Networking
Repeat business Direct / E-Marketing
AWARENESS Public Relations / Articles / Presentations
Referrals (reputation / awareness mktg) IDENTIFY LEADS
MARKETING Conferences & Seminars
Passive leads (OJEUs)
Direct sales (calls, visits, proactive proposals) Exhibitions & Sponsorships
Networking Hospitality

Market Life-Cycle Curve
Development Growth Maturity Decline
Volume Chasm
Time
© Richard A. Nelson Adapted from Crossing the Chasm, by Geoffrey A. Moore

Competitive Positioning
Supporters
CO
M
E
C
PA
VI
NY
R
SE Visionaries Conservatives
(Chasm / (Decline)
Growth)
Specialist Generalist
Enthusiasts Pragmatists
IN
NO (Development) (Maturity)
T
KE
VA
AR
TI
M
O
N Sceptics
© Richard A. Nelson Adapted from The Chasm Companion, by Paul Weifels

Positioning on Life-Cycle Curve
Development Growth Maturity Decline
Pragmatists Conservatives
MARKET COMPANY
Visionaries
SERVICE
Volume Chasm
Enthusiasts
INNOVATION
Time
© Richard A. Nelson Adapted from The Chasm Companion, by Paul Weifels

“Early Market” Model
• Developing market
strategy
• Create and validate the
innovation
• Enthusiast buyers
• Define innovation
‘category’ and benefits
it delivers
• Define our place as
leader in category
• Show that category
provides a competitive
advantage
© Richard A. Nelson Adapted from The Chasm Companion, by Paul Weifels

“Bowling Alley” Model
• Chasm / Growth market
strategy M1
S1
• Niche domination
• Service leadership
M2 M1
• Segment focus S1 S2
Whole product leverage Word-of-mouth leverage
-same service -same segment
-new segments M3 M2 M1 -new services
S1 S2 S3
M4 M3 M2 M1
S1 S2 S3 S4
M5 M4
S1 S2
© Richard A. Nelson Adapted from The Chasm Companion, by Paul Weifels

“Tornado” Model
• Growth / Mature market X+4
strategy
• Horizontal growth
• Channels and X+3
geographies
• Company vs. company
focus X+2
• Communicate position:
– King / Gorilla X+1
– Prince / Chimp X
– Serf / Monkey
© Richard A. Nelson Adapted from The Chasm Companion, by Paul Weifels

“High Street” Model
MS
2
• Mature / Declining
S2
market strategy S1
• Profitable revenue from
existing base
S5
• Niche expansion
Market
• 1-to-1 marketing
4
MS
S4
– New offers to existing base
S4 S3
– Offers deeper in niche
4
MS
S4
– Offers that develop new
markets
© Richard A. Nelson Adapted from The Chasm Companion, by Paul Weifels

Developing New Markets
Volume
Time
© Richard A. Nelson Adapted from The Chasm Companion, by Paul Weifels

Strategies Mapped to Life-Cycle Curve
Development Growth Maturity Decline
MS
2
S1 S2
X+4
X+3 S5
Market
S4 MS4
X+2 S4 S3
S4 MS4
X+1
T1
X
E1
Volume
T2 T1
E1 E2
Chasm T3
E1
T2
E2
T1
E3
T4 T3 T2 T1
E1 E2 E3 E4
T5 T4
E1 E2
Time
© Richard A. Nelson Adapted from The Chasm Companion, by Paul Weifels

Communications Planning
• Communication tools
Supporters CO
M
E
C
PA
VI
Business press Business press
NY
R
Service ‘advertising’ Brand identity
SE
Case studies Critical reviews
Seminars & trade shows Annual reports
Virtual tours Corporate backgrounder
In-person tours Recognition by 3rd parties
Specialist Generalist
Trade press Vertical market press
White papers Sector backgrounders
Innovation notes Expertise ‘advertising’
IN Speaking engagements Reference clients/projects
NO Advisory councils Industry rankings
T
VA
KE
TI
AR
O
N Sceptics
M
© Richard A. Nelson Adapted from The Chasm Companion, by Paul Weifels

Communications Planning
• Evidence matched with media
Supporters CO
M
E
C
Performance benchmarks Revenue and profits PA
VI
Reviews Strategic partners NY
R
SE
Wins Top-tier customers
Initial sales volume Full service line
Visionary endorsements Critic endorsements
Business press coverage Business press coverage
Specialist Generalist
Innovation details Market share
Trials Third-party support
Guru endorsements Standards certification
Applications proliferation
IN
NO Trade press coverage Vertical analyst endorsements
T
VA
KE
TI Vertical press coverage
AR
O
N Sceptics
M
© Richard A. Nelson Adapted from The Chasm Companion, by Paul Weifels

Business Development Engagement Strategy
Client Goal: Competitive advantage Solve problem Adopt paradigm Extend paradigm
Client Need: Potential of service Complete solution Make safe choice Better value
Our Goal: Validate service Segment share Market share Profitability
Strategy: Demonstrate svc. Show ROI Domination Segment focus
Skills: Service proficiency Client intimacy Closing deals Relationship mgmt.
Style: Evangelism Consultative Authoritative Transactional
© Richard A. Nelson Adapted from The Chasm Companion, by Paul Weifels

The Value Chain
• Early Market (Development)
Expert Technical Buyer
Bus. Dev. End User
£
Staff Economic Buyer
Service Provider Client
© Richard A. Nelson Adapted from The Chasm Companion, by Paul Weifels

The Value Chain
• Bowling Alley (Chasm/Growth)
Expert Technical Buyer
Bus. Dev. End User
£
Staff Economic Buyer
Service Provider Client
© Richard A. Nelson Adapted from The Chasm Companion, by Paul Weifels

The Value Chain
• Tornado Market (Growth/Maturity)
Expert Technical Buyer
Bus. Dev. End User
£
Staff Economic Buyer
Service Provider Client
© Richard A. Nelson Adapted from The Chasm Companion, by Paul Weifels

The Value Chain
• High Street Market (Maturity/Decline)
Expert Technical Buyer
Bus. Dev. End User
£
Staff Economic Buyer
Service Provider Client
© Richard A. Nelson Adapted from The Chasm Companion, by Paul Weifels

Determine the right Strategies
Introduction Growth Maturity Decline
MS
2
S1 S2
S5
Market
S4 MS4
X+4 S4 S3
S4 MS4
X+3
X+2
Volume
X+1
T1 X
E1
T2 T1
E1 E2
T3 T2 T1
E1 E2 E3
T4 T3 T2 T1
E1 E2 E3 E4
T5 T4
E1 E2
Time
© Richard A. Nelson Adapted from The Chasm Companion, by Paul Weifels

Deploy appropriate strategies/tactics
Life Cycle Stage Development Growth Maturity Decline
Strategic Approach Early Market & Bowling Alley Tornado Strategy High Street Strategy MS
2
Exit Strategy
S1 S2
T1
X+4
E1 S5
T2
E1
T1
E2
X+3 Market
T3 T2 T1 S4 S4
M
E1 E2 E3 X+2 S4 S3
T4 T3 T2 T1 S4 S4
M
T5
E1
T4
E2 E3 E4 X+1
E1 E2 X
Who we’re selling to Enthusiasts Visionaries Pragmatists Conservatives
What their Goal is Competitive advantage Solve their problem Adopt the paradigm Extend the paradigm
What they Need Potential of the A complete solution that works Make a safe choice Gain better value
service/innovation
Our Goal Validate the innovation Sector share Market share Profitability
Our Strategy Demonstrate the innovation Show ROI / results Market domination Sector focus
Skills we need Service proficiency Client intimacy Closing deals Relationship management
Business Development Chain Experts > Financial Buyers BizDev > End Users BizDev > Technical Buyers Staff > End Users
Business Development Style Push Push Pull Pull
Message style Evangelism Consultative Authoritative Transactional
Target media Trade press (EG, Prop Week, Business press Vertical market press Business press
BD, Buildings, etc.) Vertical market press (HSJ, PPF)
Message types White papers, Speaking, Case studies, Speaking & Tours, Org sponsorships, Reference Rankings / awards, Critical review,
Advisory councils Org sponsorships clients, Rankings / awards Brand identity
Evidence Design competition wins, Benchmarks, wins, Reviews, Market share, 3rd party support, Revenue & profits, Strategic
Guru endorsements Endorsements Proliferation, references partners, Loyal blue chip clients,
Complete services
© Richard A. Nelson Adapted from The Chasm Companion, by Paul Weifels

Ultra-Competitive Marketing Strategies for
Professional Services Firms
Richard Nelson, BSc (Hons), CPSM
Director of Business Development & Marketing
Watkins Gray International LLP
© Richard A. Nelson