IMPACTS OF MARKETING STRATEGIES AND PERFORMANCE OF FOUR STAR HOTELS IN ADDIS ABABA

Abstract

The purpose of this study was to found the relationship between selected marketing strategies and performance of four star hotels in Addis Ababa. Specifically, the aim was to determine the effect of internal marketing strategy, evaluate the influence of relationship management strategy, establish the influence of market development strategy and determine the effect of product development on performance of four star hotels in Addis Ababa. The population comprised of all four star hotels in Addis Ababa classified and registered by ministry of culture and tourism of Ethiopia. This made a total of 14 hotels. Descriptive, correlation and regression analysis were used and results presented in tables and figures. The findings obtained revealed that the most adopted relationship management strategy was giving customers free information, the most adopted marketing strategy was establishing a hotel structure in place that enables niche customer centricity in business decision, most adopted product development strategy was hotels offered abroad product line. On the relationship that existed between the study variables, all strategies had a positive relationship implying that the marketing strategies application positively influenced performance of hotels. The regression analysis obtained a positive coefficient of correlation implying that product development strategies, relationship management strategies, market development strategies and internal marketing strategies had a positive effect on organization performance. The study concluded that marketing strategies positively affects performance of four star hotels in Addis Ababa. Product development strategies, Internal marketing strategies, market development strategies and relationship management strategies were adapted to moderate extant by the studied hotels. The study also found that the adoption of marketing strategies was at moderate extent which implies that the studied hotels given less priority for the adoption and implementation of marketing strategies which has a significant positive relation with the performance of four star hotels. The study recommends that the adaption of marketing strategies should be given top priority to enhance performance of four star hotels in Addis Ababa.