. A marketing research company found that 6 percent of its clients generated 30 percent of...

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. A marketing research company found that 6 percent of its clients generated 30 percent of sales and nearly all of its profits. At the other end of the contin- uum, 70 percent of its clients provided annual billings (revenue) that were below break-even levels, because these customers required an extensive amount of ser- vice from research employees. The company took immediate action to terminate relationships with clients who would not give them a higher share of their mar- keting research expenditures. Evaluate this decision and suggest a set of criteria that the firm might use to screen new clients. . A marketing research company found that 6 percent of its clients generated 30 percent of sales and nearly all of its profits. At the other end of the contin- uum, 70 percent of its clients provided annual billings (revenue) that were below break-even levels, because these customers required an extensive amount of ser- vice from research employees. The company took immediate action to terminate relationships with clients who would not give them a higher share of their mar- keting research expenditures. Evaluate this decision and suggest a set of criteria that the firm might use to screen new clients.

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