Pareto Law in Marketing

Marketing strategy has been applied to gain our clients as many as possible. However, have we ever asked whether our existing customers are our ideal customers or not. Do you also know that there is Pareto Law in maketing or 80/20 Law. Pareto Law could be happened in our daily activities.E.g : Check your e-mail last weel. You will notice that 80% of your incoming e-mail has been sent by only 20% of person in your total number of your address e-mail list.

Application of Pareto Law in marketing can be used to identify that 80% of our total revenue has been yielded by 20% of our customer. The effort in marketing whether promotional, advertising, Public relation, salesmanship etc should be concentrated to reach and satisfy the 20% clients. Our clients who will bring 80% of our total revenue.

Hence we should start to identify that particular clients and be focus on them to reach and satisfy their need. Your marketing startegy wil be more focus to achieve and even over the target.