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- October 5, 2023
- By Jon Crain
Classic Marketing Models Free Ebook PDF Download
Classic marketing is mostly geared towards the idea that 80% of sales come
from 20% of top customers. That's called the 80/20 rule. That's why when
you walk into two different stores in a mall, they may have slightly different
merchandise, but often it is very similar. They are trying to market to the
mass of people whose tastes are mainstream and easy to predict, leaving
less room for variety and innovation.
In a recession, the 80/20 rule becomes so overwhelming that stores reduce
their inventory into very narrow niches in order to market to the customers
who are going to buy the more popular items and trends. Anything other
than that is seen as a waste of display footage and an increase in rental
space costs. This works well for them to keep costs down and sales up.
However, that strategy also leaves a very big opportunity for online
marketers to exploit the lack of diversity and novelty in mainstream retail
stores by just doing the opposite: marketing to the “long tail.”