Marketing, Competition, and the Customer Solution ✍🏽
LIT Trendz is a public limited company. It makes a range of clothing products including T-shirts and jeans for the mass market.
Last year LIT Trendz’s revenue fell. The Marketing Director has been looking at some results from its primary market research. 10% more customers bought clothing products online this year. LIT Trendz currently has a large customer base. She believes maintaining customer loyalty is more important than attracting new customers.
(e) Do you think maintaining customer loyalty should be more important to a business than attracting new customers? Justify your answer. [6]
Yes, as customer loyalty means marketing through word-of-mouth, customers might recommend the product to others.
No because customer tastes changes, so it may be easier to find new customers than change existing products.
Attracting new customers is more expensive than keeping existing customers, so maintaining loyalty may be more important, but business still have to always look for new customers to increase market share.
