80/20 rule is a marketing principle that states 80 percent of sales volumes for a product or service is generated by 20 percent of the target customers.
Further discussion on 80/20 rule:
The 80/20 rule is often identified by industrial marketers selling industrial goods. They concentrate their marketing efforts on targeting the 20 percent of consumers who make repeated purchases of their goods and services.
The concept behind the 80/20 rule says; once target markets are identified, marketers can concentrate their efforts and resources effectively. In other words, marketers can save marketing dollars and time by concentrating on the 20 percent of consumers who repeatedly buy their products.
Consumer marketers have also adopted the 80/20 rule in their marketing efforts; targeting 20 percent of the population who use consumer goods; more specifically, specific brands.
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