Casino Marketing Topics - Bottom-line Justification
Another extension of the measurement challenge is a phenomenon referred to as bottomline
justification. For example, when the effectiveness of marketing activities is
questioned, casino executives will often point to the overall financial success of the
department or property to justify these activities. Unfortunately, marketing failures are
often obscured by the success of other areas of the operation, which are also reported at
this level. This pooling of results has led to the continuation of many damaging
promotions and programs, several of which are discussed in subsequent chapters. Again,
one of the great challenges facing casino marketers is analysis of the results produced by
their actions.
The ability to conduct meaningful analyses is of tremendous value to any casino marketer.
Unfortunately, the monthly financial statements are often used to measure the
effectiveness of casino marketing activities. While these statements are certainly valuable,
they are often insufficient in the analysis of a specific marketing activity.
The positive and powerful effect of favorable supply-demand conditions has been
previously noted. Under such conditions, the genius of casino marketers will appear
undeniable. As a result, these conditions often foster the continued employment of
marginal marketing activities. The success of these activities is justified by the profitable
bottom line of the property. Operators in such jurisdictions must endeavor to isolate the
incremental effects of casino marketing activities if they wish to optimize cash flows.
Such analyses offer casino executives a legitimate opportunity to highlight their
incremental value to the company, regardless of the economic conditions.
