Transcript CHAPTER 14 PROMOTIONS

Chapter 14
PROMOTIONS
Kathryn Hashimoto
East Carolina University
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Introduction
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There are four major promotional techniques:
Personal sales
Sales promotion
Public relations or publicity
Advertising
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The best campaigns integrate and coordinate
each of these so there is one clear, consistent
message about the organization and its products.
This is referred to as integrated marketing
communications (IMC).
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
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In the IMC strategy, there are several
factors that determine which of these
promotional elements to use and when:
First, the nature of the offering is important.
Second, the type of strategy should be
determined – either a push or a pull strategy.
Third, it is important to understand where in the
buyer readiness stage the potential client is.
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Personal Sales
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A one-on-one interaction where a trained
salesperson communicates with a single client.
Requires a person who knows the product and is
sensitive to the buyer’s needs.
Personal sales are frequently used in the casino
environment.
Casino hosts are employees who are hired to
anticipate and expedite a high roller’s needs.
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Group Sales
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Selling to an individual or small group of people
who represent a larger association.
The individual does not make purchase decision
but rather gathers information to pass on to the
larger group who makes a consensus decision.
Influencing the purchase is harder because there
are so many people who are in the decision
process.
Destinations may offer a “fam” or familiarization
trip to a small group of influencers.
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Sales Promotion
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A reminder designed to quickly get the
casino’s name out to groups of people.
Short-term strategy can draw traffic into
the casino for a specified period.
There are several objectives for a sales
promotion:
- To create immediate foot traffic in the casino
- To get a gambler to stay longer
- To get customers to play
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Public Relations or Publicity
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Techniques that attempt to inform people of
activities or create perceptions without
controlling the message or media.
The goals can be to highlight individual
properties, create images for owners/operators,
emphasize possible locations, or remind people
about products or services.
These can be in the form of press releases
announcing new games, jackpot winners, or
changes in leadership – anything that goes
through the media.
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Advertising
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The Three Objectives of Advertising
Inform: Tell people about a new offer or
product, or make new people aware of your
casino.
Persuade: Perhaps visitors know about your
casino; now you need to persuade them to
come again or come more often.
Remind: Casinos that cater to the local crowd
carefully place billboards along the travel routes
of their known players.
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
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Aspects of Creating Advertising
Consider the Acronym AIDA – Attention, Interest,
Desire, Action when creating advertisements.
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An advertisement should gain attention.
To effectively pique interest once you gain
attention, use “KISS” (Keep It Simple, Stupid).
You have about 5 seconds before a person
moves on. In that time, you have to let them
know why they should desire your product.
This should result in an action being taken; a
call for more information, or make a purchase.
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Direct Marketing
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Direct marketing develops interactive
communications with the casino’s best
customers.
It begins by building and maintaining a
collection of personal information about
players who enter the casino, as well as
potential players.
Direct response advertising asks a reader,
viewer, or listener to provide feedback directly
to the casino.
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
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Direct mail is an inexpensive method of
attracting the attention of a target audience.
There are three elements to a direct mail
campaign:
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Database: 60% of the success of a direct mail piece
is the quality of the database and the selection of
criteria to target the appropriate audience.
Offer: Important, but it needs to be matched to the
specific interests of the targeted person.
Packaging: How do you pique someone’s curiosity
enough to even open an envelope and read the
offer rather than immediately throw it in the
trashcan?
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
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Some pointers that have worked:
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Pretest the offer using a sample clientele.
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Remember AIDA.
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Direct marketing relies on using a good database
and segmenting the population of gamblers into
smaller units that have some aspect in common.
Personalizing offers is critical with gamblers who
spend a lot of time and money at the casino.
Designing the message, selecting the appropriate
media, and paying attention to details are
important.
The best sales are done face to face.
Hashimoto: Casino Management: A
Strategic Approach
© 2008 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.