The basic reason for the existence of the 80-20 situation in most marketing programs is:
A)The inevitable failure of many new products.
B)The high cost of marketing.
C)Misdirected marketing effort.
D)Too many salespeople.
E)None of these.

Question

Quizplus · Accepted Answer

The 80-20 situation in marketing refers to the Pareto Principle which states that 80% of the effects come from 20% of the causes. This principle applies in marketing as well, where 80% of the sales come from 20% of the customers or products. Misdirected marketing efforts, such as focusing on the wrong target market or using ineffective marketing channels, can lead to a situation where sales are not evenly distributed among all products or customers, resulting in the 80-20 situation. The other options do not directly relate to the 80-20 situation in marketing.

The Basic Reason for the Existence of the 80-20 Situation