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Casino Marketing


Marketing Theory

Upon completion of this session, participants should

gain sufficient knowledge to segment a casino database

for marketing purposes. The session provides a review of

the demographic and behavioral data elements typically

captured in casino transaction systems, discussion of the

challenges faced by marketers regarding both reliability

and barriers to access of transactional data for marketing

purposes. It also covers a brief overview of data warehousing

technology, third party data appending services such as

National Change of Address (NCOA), Targus Information

and the US Census Bureau. In addition to an overview

of the traditional Recency, Frequency, Monetary and

Location (RFML) database marketing segmentation model,

a discussion of player reinvestment strategies derived from

segmentation models, and a brief review of various types

of direct marketing collateral typically offered by casinos

will be discussed.


Database Analysis: Case Studies

Monthly Newsletter

Participants will apply knowledge gained in Marketing Theory

to a case study on monthly newsletter offers provided by a

local market casino. Participants will work with the instructor

to discuss and develop strategies that seek to accomplish

a casino's goal. The case study will conclude with an indepth

review of the actual session of action taken by the

casino, including development of a pro-forma statement

and analysis of results.

Short-Term Promotion

Building on knowledge gained in Marketing Theory,

participants will analyze a case involving a casino's desire

to increase play from their database during a forecasted low

demand period. Participants will work with the instructor

to discuss and develop strategies that seek to accomplish

a casino's goal. The case study will conclude with an indepth

review of the actual session of action taken by the

casino, including development of a pro-forma statement

and analysis of results.


CRM Software Solutions

Casinos are data rich environments, given the depth of

transactional information collected in the various operating

systems. However, transactional system architecture is

typically not conducive for in-depth operations analysis.

Data warehousing technology has enabled casinos to make

better use of their transactional data for both performance

analysis and marketing operations. Components of IGT's

Mariposa CRM software suite will be reviewed, along

with a discussion of how casinos employ this technology

to better analyze and operate data warehousing, online

analytical processing, campaign management systems, and

data mining.


Loyalty Programs

Virtually every type of hospitality service has what they

call a "loyalty program", but whether these programs really

develop customer loyalty is in question. A majority of

customers use loyalty programs to discount price rather

than to create an emotional connection to the company.

This session will cover some in-depth research on loyalty

and casino loyalty programs. The implications for other

hospitality loyalty programs will be discussed.


Cross Cultural Consumer


A major strategic issue is how much to customize versus

standardize a marketing strategy in another culture. Crosscultural

consumer research provides the core insight to

avoid costly cultural blunders while searching for the most

cost-effective approach. The Disney Company will be used

as an illustration. Some cross cultural gambling research

will also be discussed.


The Effect of Drawing-based

Promotions on Slot Business


Lottery-based promotion is very expensive and yet equally

popular in casinos with frequently repeating clientele. No

one, however, has ever empirically analyzed the effectiveness

of these promotions. Since management cannot adequately

capture the necessary data directly, such effects must be

estimated via statistical modeling. This session includes

results from multiple promotions and properties.


Direct Mail Offers

Cash mail and free play offers represent the majority of

reinvestment in slot players. This session reviews the results

of studies across several markets, which were conducted to

estimate the incremental gaming effect produced by such

offers. This session will also help participants to measure

the effectiveness of their respective database analysis and

database marketing efforts.


Dead Chip Programs

With the advent of actual loss discounts, dead chip programs

should be attractive to gaming operators. This in-depth

look into the mechanics of dead chip offers examines how

dead chip programs work, how gaming tax rates affect

their structure, how to compute the costs associated with

such procedures, and how properties could save millions

of dollars. The structure of failed programs, as well as that

of successful ones, is also reviewed. Since all premium

players in Asia are on dead chip (or rolling) programs, a

look at cash chip programs and the structure of Macau's

40/40/20 rooms is also included.


Casino Database Analysis

This session examines the importance of data mining in

casino database analysis. It includes an explanation of

what data mining actually is and how it differs from other

forms of database analysis, with reference to the specific

challenges facing casino marketers. Two examples of data

mining are also explored, the first a description of a data

mining effort in the player database, and the second a look at an instance in the slot machine database.


Slot Marketing in a Repeater


This session reviews the actual slot marketing efforts of

a successful, repeater-market casino operator. It begins

with a look at the casino's marketing framework, followed

by a point-by-point description of their marketing tactics,

including customer acquisition, retention and reactivation

efforts. This session will prove especially interesting for

those who are curious about the marketing practices of

successful Nevada casinos.


Introduction to Slot Clubs

This session begins by covering the evolution of slot clubs,

enrollment data issues, and membership benefit vehicles.

From there, we discuss and compare both theoretical-winbased

awards and coin-in-based awards. Also discussed

are benefit accumulation rates (including examples from

existing clubs), overall investment in members, point

redemption protocol, training issues, card use, and player

tracking limitations. One-card systems and tiered slot clubs

are also reviewed.


Match Play Coupon Offers

Understanding the mechanics of these popular offers can

save casino marketers substantial sums of money. This

session covers the computation of both single and multipledecision

match play offer costs and break-even points,

along with the effect of gaming taxes on costs and some

important redemption recommendations. Also included

is a review of empirical research that examines the ability

of actual match play coupons to accomplish the stated

performance goals. Finally, we look at the mechanics of

voucher programs and promotional chips, citing a critique

of an actual voucher program.


Introduction to Casino Promotion

This review of premium and general marketing tactics

examines a multitude of means and strategies used to pursue

slot and premium players, which kinds of promotions

apply to particular target markets, and their effectiveness

in reaching their goals. Topics include the analyses of the

results of special events, vacation and shopping events,

timing of promotions, and the use of game rules and

betting limits. A review of an actual special event analysis

is included, along with a discussion of issues related to

pro-forma event analysis.


The Marketing Plan: A Property


Hotel casinos face many unique and challenging conditions

with regard to the marketing plan process. This informative

session offers a helpful start in understanding this difficult

but critical endeavor. We examine the need for an effective

marketing plan, the components of a successful plan, and

why measurement science is so vital to a hotel casino's

marketing strategy. This session follows a nine-step outline

designed to cover the essential areas of a well-prepared and

effective marketing plan.