Core Customers


I n my work and research into strategic positioning of casino resorts,

I repeatedly hear the same message that casinos are not selling the opportunity to play a game or stay in a resort—they are selling “an experience” to the customer.

Las Vegas had 43 million visitors last year, with hundreds of millions of “experiences” sold. Not all of these were created or curated by.

The casino resort operators, but it is clear that aspects of “the Las Vegas experience” work very well. The late management guru Peter Drucker once claimed that the aim of marketing is to know and understand.

At the core of strategic marketing is the customer.

Core Customers Our businesses must place customer centrality at the core of all that we do.

The proportion of first-time visitors to Las Vegas has ranged from 14 percent to 19 percent in recent years, thus implying over 80 percent of visitors each year are repeat visitors.

estimate that this imbalance between new and repeat customers will reflect casino visitation across the U.S. Of the new visitors, most or all will have a perception of what Las Vegas is through external media or general consciousness;

the brand of Las Vegas and what a casino is, is universal.

Yet, with so many return customers and so many businesses selling what is effectively the same product, to the same customers, at the same price, the marketing strategies need to be more sophisticated.

There are drivers of differentiation, but fewer than in many industries. So, how can the operators achieve strategic competitive advantage?

Disregarding the Established Rules to Find Transactional Loyalty Classical competitive strategy theory, advanced by

positioning Core Customers After a period where resorts closed,

There was a concerted drive to increase rates across Las Vegas, but today operators with excess inventory are continuing to discount room product.

The net effect will be a diminution of the value of their brands and products.

Why differentiate when imitation is equally effective? Hence, the proliferation of lobby bars, steakhouses and buffets within the casino context.

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