You've just been hired as the marketing director for a company whose products are sold through both inside and field sales representatives. You've spent the first week on the job analyzing the numbers, and you've determined that about 80% of your sales are coming from only 20% of the thousands of products the company distributes. The CEO has asked for product recommendations. What will you suggest?

Question

Quizplus · Accepted Answer

This scenario is an example of the Pareto Principle, which suggests that 80% of effects come from 20% of causes. In this case, focusing resources on the best-selling products (which are generating the majority of sales) is a strategic move to optimize sales and marketing efforts.

You've Just Been Hired as the Marketing Director for a Company