Marketing Management

1. Marketing Management Funeral Merchandising Marketing Mix

2. 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: • 1) Merchandising • 2) Marketing Mix

3. 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)

4. 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)

5. Purchasing • First Step: Develop sales objectives and a sales plan. • 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

6. 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

7. 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”

8. 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”

9. Pricing • Most Expensive/Least Expensive Caskets • 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?

10. 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

11. 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”.

12. 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)

13. 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.

14. 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”

15. Demonstration Group/Educational Group • 3 or 4 caskets utilized to educate the consumer regarding the elements of casket construction

16. 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”

17. 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.

18. 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

19. 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”.

20. Duties of Seller • Make manufacturer’s warranties available before sale. • Display warranty in close conjunction with product.

21. Disclaimer of Warranties • Clear, specific language. • Clear and conspicuous manner. • Bold face print on CPL. OBCPL, and SFG&SS.

22. 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.”

23. 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.

24. 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

25. Traditional Selection Room • recommended number of caskets • space per casket • “furniture grouping”: purpose • “traffic control”

26. 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

27. 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”

28. 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.

29. 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