Download Marketing Management

Marketing Management
Funeral Merchandising
Marketing Mix
Marketing Management
“the process of planning and executing the
development, pricing, promotion, and
distribution of an organization’s goods
and/or services”
2 basic responsibilities:
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1) Merchandising
2) Marketing Mix
Funeral Merchandising
“ the purchasing, pricing, display and sale
of merchandise”
Consumers require some product
knowledge in order to perceive value.
“The correlation between product
ignorance and the sale of the least
expensive product is probably more
pronounced in funeral service than in other
retail situations.” (DeArmond)
Merchandising (cont’d)
Education of the consumer is a critical
objective for the funeral director.
“Successful merchandising of funeral
goods will deliver maximum value to the
consuming public while simultaneously
positively impacting funeral home
operating revenue.” (DeArmond)
Purchasing
First Step: Develop sales objectives and a sales
plan.
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1) evaluate the market
2) scrutinize sale history
3) specific criteria: product availability
price
quality
eye appeal
supplier recommendations
4) integrate proposed product line with existing
service offerings
Purchasing (cont’d)
Second Step: Select Product Suppliers
Criteria: 1) quality and type of goods
2) reliability of the supplier
3) consistent provision
4) competitive prices
5) customer service
6) payment/credit terms
Cash Discount
“reduction of the price given for payment of an
account within the time limits established by the
sales contract”
Quantity Discount
“the amount by which the bill or invoice will be
reduced when a minimum quantity of
merchandise has been ordered”
Economic Order Quantity (EOQ): “the quantity to
be purchased which minimizes total costs”
Rebate
“the return of a portion of a payment”
Consignment
“to give to an agent to b cared for or sold”
Inventory Turnover
“the number of times the average inventory has
been sold or used up during a period”
Pricing
Most Expensive/Least Expensive Caskets
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FH’s sales objective is $3495
Its most expensive casket is $8000
Its least expensive casket is $500
What will the consumer consider to be the
middle range?
Does the FH meet its objective?
Vertical and Horizontal
Merchandising
Vertical: steady and obvious value
progression at each rung of the price
ladder
Horizontal: number of choices available at
each rung on the price ladder
Price Kite
1) List all caskets offered from high to low.
2) What are the gaps between the casket
prices?
3) What are the price progressions/steps?
4) Organize the data into a “price kite”.
Presentation and Display of
Funeral Merchandise
“consumers really do detest selection
rooms. They project themselves and their
own fear of death into each open casket.
At the same time, the open caskets also
intensify the pain consumers already feel
at the loss of the loved one.” (A. Doody)
“The key to putting a family at ease is to
empower them with product knowledge.”
(DeArmond)
Pre-Selection Merchandise
Presentations
Benefits: 1) consumer
2) funeral home
What type of information should be included?
Two critical factors:
1) consumer receives info. needed
2) info. “gently” and “patiently” educates
The FD’s goal should be to reduce the
consumer’s apprehension.
Selection Room Presentation
Direct: “the method of selling merchandise
whereby the FD remains in the selection
room throughout the selection process”
Indirect: “the method of selling
merchandise whereby the FD does not
stay in the selection room during the
selection process”
Demonstration Group/Educational
Group
3 or 4 caskets utilized to educate the
consumer regarding the elements of
casket construction
Magnusson-Moss Warranty Act
Covered under the UCC.
Federal statute, 1974.
Tangible property valued at $15 or more.
Governs express and implied warranties.
FTC definition of warranty: “any written
affirmation or promise made in connection with a
sale of consumer products which promises that
the material or workmanship is defect free or will
meet a specific level of performance over a
specified period of time”
Express Warranties
Voluntarily assumed by the seller/manu.
What a product will/will not do and
recourse if that does not happen.
Oral or written statements about the
product.
Terms of warranty/guarantee not required.
Implied Warranties
Matter of public policy.
Not a written agreement.
Implies that product is safe and in good
condition.
important for FS due to consumers’
general lack of information about FS and
reliance on the FD
Full Warranty
1) name and address of warrantor
2) person to whom warranty is directed
3) what is covered
4) beginning and ending
5) what warrantor will do and when
6) what consumer must do to activate
warranty
If not “full” must indicate “limited”.
Duties of Seller
Make manufacturer’s warranties available
before sale.
Display warranty in close conjunction with
product.
Disclaimer of Warranties
Clear, specific language.
Clear and conspicuous manner.
Bold face print on CPL. OBCPL, and
SFG&SS.
Sample Disclaimer
ABC Funeral Home makes no warranties
of fitness or merchantability, expressed or
implied, written or oral. The only
warranties available in connection with the
goods sold with this funeral are the
express written warranties, if any extended
by the manufacturer. The undersigned
acknowledge the availability of the express
written warranty and the contents thereof.”
FD Responsibilities
Present manufacturer claims exactly as
they are.
FD cannot change or alter contents of the
warranty.
Consumers must be able to get copies of
warranties by telephone or mail.
Warranty cannot be conditioned upon
return of a warranty card.
Display of Merchandise
types
The way that merchandise is displayed
can have a serious impact on the
consumer’s comfort level and their
perceived value of the merchandise.
important elements for effective display
contemporary ideas
ideal location for the selection room
Traditional Selection Room
recommended number of caskets
space per casket
“furniture grouping”: purpose
“traffic control”
Arrangement of Merchandise
1) Demonstrational/Education Grouping
“3 or 4 caskets utilized to educate the selecting
party regarding the elements of casket
construction”
2) Consecutive Method
“placing caskets for selection in their order of
increasing or decreasing value”
3) Group Methods
caskets may be grouped according to a variety of
factors such as material, style, appearance and
price
Casket Display Equipment
Distance from floor to bottom of casket
should be 26-30 inches.
Church Truck: “wheeled collapsible
support for the casket, used in the funeral
home, church or home”
Casket Stand: (Casket Standard) “the
stand or support upon which a casket
rests in the selection room”
Casket Display Equip. (cont’d)
Casket Rack: “a device upon which
caskets are placed, one on top of the
other, for display or storage”
Casket should be clearly identified by
name and price.
Casket should be cross-referenced on the
Casket Price List
Placards on each casket.
Lighting
Post-selection Merchandise
Procedures
1) verification of selections
2) required state and federal disclosures
3) compute total expenses
4) complete SFGSS
5) verify method of payment