Harrah's Entertainment

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Question 1: Harrah’s Entertainment had a customer oriented market and they focused on 3 Key phases to maintain a strong customer relation through the use of direct marketing: a) New Business Program: Under this program it made use of the DBM to predict the worth of its customers to make investment decision based on future worth rather than past behavior. b) Loyalty Program: It offered incentives to the customers who were giving only a small share of their total spending to visit Harrah’s more frequently. Through this program it also encouraged customers to visit Harrah’s first on their trip and giving a bigger share of their gaming budget to Harrah’s. c) Retention Program: This program was basically to strengthen the customers who were showing sign of attrition and they helped those declining customers by sending them incentives and which in turn helped them to retain those customers and build a stronger CRM. So looking at all the three programs above, we can say that the marketing strategy of Harrah’s has always been maintaining long term customer relation and they made it possible by use of the Data Base Marketing (DBM). Question 2: The DBM was a very strong marketing communication tool of Harrah’s and was very unique but the competitors could imitate it very easily. That is where Harrah’s had the need to differentiate itself from its competitors. They made it possible by providing a high quality service. Harrah’s had made great efforts to improve service quality and finally it earned the reputation of “Best Service” from Casino Player (a magazine in the casino industry). It also tried positioning themselves very differently from the others by branding very distinctly and through the “Total Reward Program”. The Total Rewards program established some emotional connection with customers, because they believe Harrah’s knew them, rewarded them, and

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