When a firm's financial difficulties are caused by the loss of a major piece of work or a major client or a predominance of the wrong sort of work -- eg lots of small, late paying and unprofitable clients -- then marketing must be part of the solution.Marketing does not, contrary to popular belief, require the expenditure of large amounts of cash, but it does require a significant amount of fee-earner time.

If the firm's problems are due to a lack of work then directing time to marketing activities is a sound decision.Marketing covers a number of areas: product, price, place and promotion.

Financial difficulties can arise from an inappropriate mix of these elements.

If the fee-earners have inadequate skills or experience, or if what they can contribute is not what is needed by the market, then effort should be directed at developing or acquiring the fee-earners or skills that are needed.

Although marketing can assist in identifying needs and 'packaging' existing skills, these 'product' issues are more likely to require human resources or training assistance.Product issues extend to the mix of services being offered.

Think about what type of work will generate financial results fast.

Scrutiny of your services and past fee income may indicate, for example , that legal aid, personal injury and conditional fee arrangements take time to generate cash, carry a high degree of risk and fail to generate profit.Price is the biggest determinant of profitability.

If the firm offers only generally available, undifferentiated services then it will experience heavy price competition.

This is demoralising; everyone works very hard to win each piece of work that then generates little or no profit.

Marketing analysis can help to identify services where there is less price sensitivity, and can help to 'package' services to contain the vital differences that will justify a reasonable price.

Moving the marketing and selling effort away from price comparisons is a major marketing function.The market-place may be the cause of financial difficulties.

If there is insufficient demand or too much competition then marketing can help identify new markets that might be ripe for development.

A careful review of the local market potential and dynamics may help identify a path towards better fee income and profitability.Some firms throw money at 'marketing' in a desperate bid to generate work in the short term.

They take ad hoc advertising opportunities in order to feel that they are doing something positive but fail to consider the target audience; whether there is a need for their offering; the messages they convey; why the firm's offering is different or better; how to prompt immediate action; or how to follow up any enquiries.Attracting private clients can be achieved in other ways than by advertising.

For example, contact the proprietors of places where potential clients go -- such as doctors' surgeries, libraries, sports centres, physiotherapists, garages, CABx, community centres, schools, police stations etc -- to see if they will allow you to display leaflets, information sheets or posters.

Such materials should focus on specific needs and be written from the client's point of view.Glossy brochures cost money if you involve designers and printers.

However, briefing notes, advice sheets and simple leaflets can be produced using word-processing facilities.

A few hundred pounds will purchase publishing software and you can obtain pre-printed stationery to add colour and visual impact to make your 'DIY' publications more eye-catching and interesting.It takes time to build a profile and firms in financial difficulties rarely have this luxury.

However, media coverage is an inexpensive way to start raising the firm's profile and to generate interest.

Writing and placing a series of articles in papers and magazines requires time and skill but combines profile raising with direct marketing if copies of the published articles are then mailed to referrers, existing and potential clients.Sometimes a firm's financial difficulties are caused by its inability to convert enquiries into profitable instructions.

In this case, a small investment in selling skills training might deliver results.

It is cheaper and quicker to generate work from existing clients than from new ones.

A firm in financial difficulty should first focus on its existing clients.

Firms that have a commercial client base have an advantage as direct mail is an inexpensive and effective way to generate additional work.Mentioning your desire for additional work to existing clients might generate referrals or introductions.

Informal discussions of this kind strengthen the lawyer-client relationship and usually provide clues as to what the clients' future needs might be.

These can then be explored and exploited.There should be a concerted effo rt across the firm to develop a particular type of client or work.

By creating a focus for everyone's attention your human and financial resources can be pooled, making it easier to generate results.A financial crisis can be an excellent catalyst for a firm to take a detailed and serious look at its staff, clients, past performance, expertise, services, markets and opportunities.

For some firms, a financial crisis drives the development of marketing expertise and the implementation of successful marketing initiatives.