Marketing Theory – 40/40/20 Rule

By | Last Updated: 29th May 2019 | This post may contain Affiliate Links

The 40/40/20 rule is a marketing principle which was developed by marketing executive Ed Mayer in the 1960s. The 40/40/20 rule highlights that 40% of the success of your marketing campaign would depend on the target audience selected, 40% on your offer, and only 20% of your success will be credited to your creative implementation.

As you may have guessed the majority of people spend the most time on the final 20% which is the creative implementation, of course this means the remaining 80% is hardly focused on.

Let’s take a closer look at each stage in more detail:

The First 40% – This is where you select the audience, you’re going to market your product or service too. Typically, you should be marketing to prospective customers who have a high chance of purchasing your items. Normally, the customers will be segmented on the basis of demographics, meaning you can pin-point niche markets much easier.

The Middle 40% – Companies throughout the world use offers to tempt and intrigued their target audience, offers are used to lure customers in and to keep existing customers who make repeat purchases. You should find that increasing sale conversions can be achieved by offering incentives to your customers.

The Last 20% – This section focuses on how you’re going to implement your marketing strategy, once you have your target audience select and have decided which offers, you’re going to use, you have to think about how you’re going to communicate the message to them. This is where you’ll consider the general design of your ads, the wording in which you use and other elements such as the photos. Remember this applies to both online and offline marketing, so carefully planning is recommended to attract your audience to your products.

As you may have worked out, each step depends on the previous step, this means great offers can only be decided once you know what your target audience is. Equally, the communication and design elements can only be done, once you know what offers you’re using and what audience – so you can create a message which appeals to them.

Professional Marketing Expert with extensive experience within traditional and digital marketing, business and e-commerce. Also proficient with several coding languages, web development and more. Equally this is re-enforced through over ten years of experience plus a UK university degree - educational accomplishments include being awarded prestigious accolades such as Best Dissertation Award and Citation Awards.