Question

Explain the concept of the 80/20 rule and why it is important to marketer.

Answer 1

80/20 rule is known as Pareto principle and according to this rule the 80 percent of the output came from the 20 percent of the input or we can say that 80 percent of the benefits came from the 20 percent of the input given in the form of work.

It is important because firm can focus on 20 percent input and give priority that will give best results.

Firm should use best input and use very efficiently so that maximum output can be achieved.

Firm can focus on those points which cause the problems and then can easily solve that problem and so can achieve maximum output.