Top market strategy [electronic resource] : applying the 80/20 rule / Elizabeth Rush Kruger.

ISBN:

9781606493113

Title:

Author:

Kruger, Elizabeth Rush.

Personal Author:

Kruger, Elizabeth Rush.

Edition:

1st ed.

Publication Information:

[New York, N.Y.] (222 East 46th Street, New York, NY 10017) : Business Expert Press, 2011.

Physical Description:

1 online resource (x, 113 pages) : illustrations, digital file.

Series:

Marketing strategy collection,

General Note:

Title from PDF title page (viewed Aug. 24, 2011).

Contents:

Lists of illustrations -- List of tables -- Foreword -- Preface -- Part I. Marketing fundamentals -- 1. Essentials of marketing -- 2. Decisions about customer surveys -- Part II. The 80/20 rule -- 3. The Pareto distribution -- 4. Applications of the 80/20 rule -- Part III. Application to profit from customers -- 5. Segmentation by profit from customers -- 6. Steps of profitability segmentation -- Part IV. How to increase profit from customers -- 7. Interview diverse customers -- 8. Create the customer survey -- 9. Survey customers and analyze responses -- 10. Define the profitability segments -- 11. Distinguish the top market segment -- 12. Evaluate and target the top market segment -- 13. Create research-driven marketing strategies -- 14. Quadruple profit from customers -- Appendix 1. Report on overall JetSpray customers -- Appendix 2. Report on JetSpray's top market segment -- Appendix 3. How to analyze overall customers -- Appendix 4. How to segment customers by profitability -- Appendix 5. How to profile a target market -- Appendix 6. Data worksheet in Microsoft Excel -- Notes -- References -- Index.

Local Note:

eBooks on EBSCOhost

Subject Term:

Customer relations -- Management.

Marketing -- Management.

Profit.

Added Corporate Author:

Business Expert Press.

Format:

Electronic Resources

Electronic Access:

Click here to view

Publication Date:

2011

Publication Information:

[New York, N.Y.] (222 East 46th Street, New York, NY 10017) : Business Expert Press, 2011.

Available:*

Shelf Number	Material Type	Copy	Shelf Location	Status
658.8 22	1:E-BOOK	1	1:ONLINE	Searching... Unknown

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Summary

Virtually every business seeks to increase its profit from customers, but few business executives realize that a universal principle governs their customer profitability. They may be applying the 80/20 rule to sales, quality control, investing, production, or other business functions without realizing that the 80:20 ratio actually summarizes the Pareto distribution of inputs to outputs. According to his equilibrium theory of relationships, stability is reached when inputs in the top 20% generate 80% of the outputs while inputs in the bottom 80% generate 20% of the outputs. Recently mathematicians confirmed that the Pareto distribution is as universal as the normal "bell-shaped" distribution, but is log linear and predicts results, rather than probabilities. Applying this universal principle to customer profitability, a typical business can predict that customers in the top 20% generate 80% of customer profitability (four times more profit than expected), whereas customers in the bottom 80% generate only 20% (one-fourth as much as expected). This means the 20% most profitable customers tend to be 16 times more profitable than the 80% least profitable customers. In order to capitalize on the Pareto principle, a business should 1. segment its customers by their profitability, 2. distinguish the top 20% of its customers in top market segment from the bottom 80% of the customers in the bottom market segment, and 3. target the top market segment with its marketing strategies. The purpose of this book is to show business students and executives how to implement this process and thereby achieve the predicted results.