Pareto’s law

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The Pareto law or principle refers to a theory put forward by the Italian economist and sociologist Vilfredo Pareto. This principle states that 80% of the consequences are the product of 20% of the causes. This explains why this law is also called the 80/20 principle or 80/20 law. For example, 80% of the time, we mainly wear only 20% of our clothes.

This theory is now applied in various fields, including marketing. According to Pareto’s law, 80% of a company’s revenue is the result of selling 20% of its products. For the company, it will be a question of defining the most interesting products on the economic level to concentrate its marketing and communication efforts. Nevertheless, it is essential not to neglect other products, as there may be other promising products in these lines that need the attention of marketing departments.