The failure to take advantage of modern marketing strategies is costing law firms work in beauty parades and widening the gap between the most successful practices and the rest of the field, a report published this month has found.The report, by research company Policy Publications, surveyed 47 firms turning over between 5 million and 500 million.

It found that the most successful firms when bidding for work - those which won more than half of all work bid for - were using direct marketing, business-to-business clubs and the Internet alongside more traditional methods such as business lunches.Specific marketing activity was cited as a regular source of business by 42% of more successful firms in contrast with 23% in less successful firms.While all firms rated growth in profit as the most important reason for developing new business, more successful firms gave greater weight to increasing market penetration, better staff utilisation and development of staff skills for seeking new work.

These reasons were seen as less important by less successful firms, which rated a desire to build market share more highly.

The report concluded that such reasoning might show a 'less focused' approach.

More successful firms also cited a greater amount of work coming from existing clients, through client referrals and previous clients.

'Less successful firms should address the question of why they generate fewer instances of new business from their client base,' the report concluded.According to the report's editor, Peter Bartram, more successful firms also showed themselves to be better at communicating with and understanding potential clients.

Although only between 10% and 25% of successful firms professed to be 'very satisfied' with their understanding of key issues to clients - for example, the business context of the work being bid for, the potential benefits for the client and the criteria being applied in the choosing of consultants - this was still shown to be far higher than in less successful firms.One-third of more successful firms also showed a more focused approach to the bidding process.

They were more likely to field partners when bidding, to train team members in presentation techniques and to have a designated 'pitch' budget.Mr Bartram said firms which were most effective in winning new business used a wider range of marketing techniques than rivals.

'While small firms may have less resources, successful business development is more about focus and that is what comes through from this report,' he said.

For more details, tel: 01234 328448.See FocusSue Allen