Examples of applying the Pareto principle to marketing
The 80:20 rule, equally well known as the Pareto principle, is widely used and abused in business, but how does it apply to marketing and digital marketing? In this post I review some marketing applications.
Wikipedia tells us that the Pareto principle is named after Italian economist Vilfredo Pareto, who noted in 1906 that 80% of the land in Italy was owned by 20% of the population. Apparently Pareto developed what would later be known as his principle by observing that 20% of the pea pods in his garden contained 80% of the peas! Although there is some doubt whether he mentioned the 80:20 principle as such, it is known formally known as a specific power-law distribution and named as a Pareto distribution based on an analysis in the 1940s of production quality / flaws by…
How to use the power of the 70:20:10 rule as a marketing model to prioritize your digital marketing strategy
With new marketing tools and techniques available to us almost daily, it can be difficult to know where to prioritize your marketing activities to get the most 'bang for your buck'. This is where the 70:20:10 rule can really help, since it's a simple device which helps us think through how we prioritize the time and budget we put into different marketing activities.
As marketers, we need to be agile through reacting to new developments in order to gain an upper hand on competitors, but at the same time, we need to avoid being 'technology magpies' following seductive, shiny new tools which may distract us from working on optimizing the most effective channels. By splitting your spending or output into three differently sized areas, it helps you to identify priority areas, and…
The latest results from the CMO Survey, a special COVID-19 edition, give a fascinating insight into our fellow marketers' business strategy and planning to drive growth this year.
Digital Marketing Strategy during COVID-19
84% of marketers confirm they have ‘improvised to generate new marketing strategies during the pandemic’ according to the CMO Special Covid-19 report in June 2020. So what did they do? And what can we learn about managing business growth right now?
“The measure of intelligence is the ability to change”
- Albert Einstein
So, by Einstein’s prognosis, 2020 has been a very intelligent year for marketers. While for some of us, the changes have been less grand, others have witnessed a complete transformation in less than half a year. Naturally, there are fluctuations by industry, so for more detailed data about your industry, check out this special …
Chart of the Day: CMO survey of investment in alternative strategies for growth
A key part of marketing strategy development is to review the strategic options for growing a business. Here we're sharing a breakdown of actual investment by companies using this classic marketing model that has stood the test of time since it originally dates from the 1960s...
You may recognize Ansoff’s growth model, which is a matrix that can be used to identify alternative growth strategies by looking at present and potential products in current and future markets. The four growth strategies are market penetration, market development, product development, and diversification.
It's no surprise that investment in existing markets is the main focus, followed by new product development. But it's surprising to me that market development and diversification are as high as they are. This breakdown showing the balance between…
