The Pareto Principle, which is also known as the 80-20 Rule or the Law of the Vital Few, states that 80% of the effects come from 20% of the causes. In marketing-speak, the Pareto Principle means that, very often, 80% of sales come from 20% of consumers.
Should marketers focus on only the most highly motivated target consumers? Or is there a benefit to aiming programs at other segments as well?
