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The Pareto Principle and Marketing Strategy

By 18/10/2021January 24th, 2022No Comments

Let’s imagine for a moment that we can divide our working day into specific parts, to which we then would devote unhindered time. How much time would you devote to the development of your company’s marketing strategy?

If we talk about strategies, then strategically correct planning and redistribution of work are the first steps towards effective and productive marketing activities (and not only).

The 80/20 principle was created by the Italian economist Vilfredo Pareto in the 19th century. For this reason, this efficiency formula is often also called the Pareto principle. In ancient times, academician Pareto discovered that 80% of Italian land belongs to only 20% of the country’s population.

You may be wondering, what does this fact have in common with marketing strategies? The most direct, because there is an 80:20 principle between the consequences and their causes. This is a regularity that can be applied in different business sectors. In fact, Pareto further developed the study by observing that 20% of the pea pods in his garden contained 80% peas.

Are you starting to notice similarities in your work, too? You may notice similar trends in your marketing and sales results. In the world of marketing, the Pareto principle has many applications. For instance:

👉 80% of your sales come from 20% of your marketing messages;

👉 80% of your profit comes from 20% of your customers;

👉 80% of visits from Google come from 20% of your keywords.

Of course, many more applications and regularities can help define where it is worth paying attention to your company’s marketing development strategy.

After all, the strategy is also worth approaching from the 80/20 principle. How to? We summarized it as follows:

1️⃣ 20% of work on the strategy produces 80% of results;

2️⃣ 20% effort in creating content leads to 80% success;

3️⃣ 20% of causes lead to 80% of consequences.

When planning a strategy, it is good to know which of your products are the most popular, and then base most of the communication and sales plans on them. For example, you can:

✅ ensure a well-distributed offer;

✅ plan marketing using only these products.

We recommend that you make sure that the most sought-after products are the ones that appear the most – on social networks, advertisements, websites, various programs, or points of sale.