Faculty of Business

Faculty of Business

Title: Acquiring and Retaining Customers through Traditional- and Relationship Marketing - Case- Study on the Quality Hotel Burke & Wills Author: Malin Hammer

Supervisor: Akmal Hyder

15 Credits

Thesis

Bachelor of Business

Abstract

The hotel industry is highly competitive and the right knowledge about customer values and demands is essential to differentiate from competitors and gain sustainable competitive advantage. Implementing traditional marketing strategies is often no longer enough to achieve this goal. Relationship marketing has increasingly become more important, as this concept suggests more focus on retaining the customer and creating a win- win situation with a longterm perspective. In traditional marketing there is more focus on acquisition. Most importantly a good balance between acquisition and retention directed to the right segments is essential for future success. This thesis is a case- study of a single business in the hospitality industry and the company of interest is the Burke & Wills, a hotel situated in Toowoomba, a regional city in Queensland, Australia. The purpose is to explore how well Burke & Wills markets itself, looking closely at the strategies used and how these are implemented. I also wanted to investigate whether the hotel’s present acquisition- and retention efforts are suitably divided between the various segments. The final objective with this thesis is to identify any opportunities for improvements. The case- study consists of both a qualitative- and a quantitative approach. Two staff interviews were carried out and a survey in the form of a questionnaire was handed out to the customers of the hotel. The intention with this was to explore whether present marketing strategies are effective or not. I found that the management of Burke & Wills has little knowledge about how to best market the hotel both when it comes to acquisition- and retention efforts and to direct these to suitable...