Marketing ManagementMarketing Management

Funeral MerchandisingFuneral Merchandising

Marketing MixMarketing Mix

Marketing ManagementMarketing Management

““the process of planning and executing the the process of planning and executing the development, pricing, promotion, and development, pricing, promotion, and distribution of an organization’s goods distribution of an organization’s goods and/or services”and/or services”

2 basic responsibilities:2 basic responsibilities: 1) Merchandising1) Merchandising 2) Marketing Mix2) Marketing Mix

Funeral MerchandisingFuneral Merchandising

“ “ the purchasing, pricing, display and sale the purchasing, pricing, display and sale of merchandise”of merchandise”Consumers require some product Consumers require some product knowledge in order to perceive value.knowledge in order to perceive value.““The correlation between product The correlation between product ignorance and the sale of the least ignorance and the sale of the least expensive product is probably more expensive product is probably more pronounced in funeral service than in other pronounced in funeral service than in other retail situations.” (DeArmond)retail situations.” (DeArmond)

Merchandising (cont’d)Merchandising (cont’d)

Education of the consumer is a critical Education of the consumer is a critical objective for the funeral director.objective for the funeral director.

““Successful merchandising of funeral Successful merchandising of funeral goods will deliver maximum value to the goods will deliver maximum value to the consuming public while simultaneously consuming public while simultaneously positively impacting funeral home positively impacting funeral home operating revenue.” (DeArmond)operating revenue.” (DeArmond)

PurchasingPurchasing

First Step: Develop sales objectives and a sales First Step: Develop sales objectives and a sales plan.plan. 1) evaluate the market1) evaluate the market 2) scrutinize sale history2) scrutinize sale history 3) specific criteria: product availability3) specific criteria: product availability

priceprice qualityquality eye appealeye appeal supplier recommendationssupplier recommendations

4) integrate proposed product line with existing service 4) integrate proposed product line with existing service offeringsofferings

Purchasing (cont’d)Purchasing (cont’d)

Second Step: Select Product SuppliersSecond Step: Select Product Suppliers

Criteria: 1) quality and type of goodsCriteria: 1) quality and type of goods

2) reliability of the supplier2) reliability of the supplier

3) consistent provision 3) consistent provision

4) competitive prices4) competitive prices

5) customer service5) customer service

6) payment/credit terms6) payment/credit terms

Cash DiscountCash Discount

““reduction of the price given for payment of an reduction of the price given for payment of an account within the time limits established by the account within the time limits established by the sales contract”sales contract”

Quantity DiscountQuantity Discount““the amount by which the bill or invoice will be the amount by which the bill or invoice will be reduced when a minimum quantity of reduced when a minimum quantity of merchandise has been ordered”merchandise has been ordered”Economic Order Quantity (EOQ): “the quantity to Economic Order Quantity (EOQ): “the quantity to be purchased which minimizes total costs”be purchased which minimizes total costs”

RebateRebate

““the return of a portion of a payment”the return of a portion of a payment”

ConsignmentConsignment““to give to an agent to b cared for or sold”to give to an agent to b cared for or sold”

Inventory TurnoverInventory Turnover““the number of times the average inventory has the number of times the average inventory has been sold or used up during a period”been sold or used up during a period”

PricingPricing

Most Expensive/Least Expensive CasketsMost Expensive/Least Expensive Caskets FH’s sales objective is $3495FH’s sales objective is $3495 Its most expensive casket is $8000Its most expensive casket is $8000 Its least expensive casket is $500Its least expensive casket is $500 What will the consumer consider to be the What will the consumer consider to be the

middle range?middle range? Does the FH meet its objective?Does the FH meet its objective?

Vertical and Horizontal Vertical and Horizontal MerchandisingMerchandising

Vertical: steady and obvious value Vertical: steady and obvious value progression at each rung of the price progression at each rung of the price ladderladder

Horizontal: number of choices available at Horizontal: number of choices available at each rung on the price laddereach rung on the price ladder

Price KitePrice Kite

1) List all caskets offered from high to low.1) List all caskets offered from high to low.

2) What are the gaps between the casket 2) What are the gaps between the casket prices?prices?

3) What are the price progressions/steps?3) What are the price progressions/steps?

4) Organize the data into a “price kite”.4) Organize the data into a “price kite”.

Presentation and Display of Presentation and Display of Funeral MerchandiseFuneral Merchandise

““consumers really do detest selection consumers really do detest selection rooms. They project themselves and their rooms. They project themselves and their own fear of death into each open casket. own fear of death into each open casket. At the same time, the open caskets also At the same time, the open caskets also intensify the pain consumers already feel intensify the pain consumers already feel at the loss of the loved one.” (A. Doody)at the loss of the loved one.” (A. Doody)““The key to putting a family at ease is to The key to putting a family at ease is to empower them with product knowledge.”empower them with product knowledge.”

(DeArmond)(DeArmond)

Pre-Selection Merchandise Pre-Selection Merchandise PresentationsPresentations

Benefits: 1) consumerBenefits: 1) consumer

2) funeral home2) funeral home

What type of information should be included?What type of information should be included?

Two critical factors: Two critical factors:

1) consumer receives info. needed1) consumer receives info. needed

2) info. “gently” and “patiently” educates2) info. “gently” and “patiently” educates

The FD’s goal should be to reduce the The FD’s goal should be to reduce the consumer’s apprehension.consumer’s apprehension.

Selection Room PresentationSelection Room Presentation

Direct: “the method of selling merchandise Direct: “the method of selling merchandise whereby the FD remains in the selection whereby the FD remains in the selection room throughout the selection process”room throughout the selection process”

Indirect: “the method of selling Indirect: “the method of selling merchandise whereby the FD does not merchandise whereby the FD does not stay in the selection room during the stay in the selection room during the selection process”selection process”

Demonstration Group/Educational Demonstration Group/Educational GroupGroup

3 or 4 caskets utilized to educate the 3 or 4 caskets utilized to educate the consumer regarding the elements of consumer regarding the elements of casket constructioncasket construction

Magnusson-Moss Warranty ActMagnusson-Moss Warranty Act

Covered under the UCC.Covered under the UCC.Federal statute, 1974.Federal statute, 1974.Tangible property valued at $15 or more.Tangible property valued at $15 or more.Governs express and implied warranties.Governs express and implied warranties.FTC definition of warranty: “any written FTC definition of warranty: “any written affirmation or promise made in connection with a affirmation or promise made in connection with a sale of consumer products which promises that sale of consumer products which promises that the material or workmanship is defect free or will the material or workmanship is defect free or will meet a specific level of performance over a meet a specific level of performance over a specified period of time”specified period of time”

Express WarrantiesExpress Warranties

Voluntarily assumed by the seller/manu.Voluntarily assumed by the seller/manu.

What a product will/will not do and What a product will/will not do and recourse if that does not happen.recourse if that does not happen.

Oral or written statements about the Oral or written statements about the product.product.

Terms of warranty/guarantee not required.Terms of warranty/guarantee not required.

Implied WarrantiesImplied Warranties

Matter of public policy.Matter of public policy.

Not a written agreement.Not a written agreement.

Implies that product is safe and in good Implies that product is safe and in good condition.condition.

important for FS due to consumers’ important for FS due to consumers’ general lack of information about FS and general lack of information about FS and reliance on the FDreliance on the FD

Full WarrantyFull Warranty

1) name and address of warrantor1) name and address of warrantor2) person to whom warranty is directed2) person to whom warranty is directed3) what is covered3) what is covered4) beginning and ending4) beginning and ending5) what warrantor will do and when5) what warrantor will do and when6) what consumer must do to activate 6) what consumer must do to activate warrantywarrantyIf not “full” must indicate “limited”.If not “full” must indicate “limited”.

Duties of SellerDuties of Seller

Make manufacturer’s warranties available Make manufacturer’s warranties available before sale.before sale.

Display warranty in close conjunction with Display warranty in close conjunction with product.product.

Disclaimer of WarrantiesDisclaimer of Warranties

Clear, specific language.Clear, specific language.

Clear and conspicuous manner.Clear and conspicuous manner.

Bold face print on CPL. OBCPL, and Bold face print on CPL. OBCPL, and SFG&SS.SFG&SS.

Sample DisclaimerSample Disclaimer

ABC Funeral Home makes no warranties ABC Funeral Home makes no warranties of fitness or merchantability, expressed or of fitness or merchantability, expressed or implied, written or oral. The only implied, written or oral. The only warranties available in connection with the warranties available in connection with the goods sold with this funeral are the goods sold with this funeral are the express written warranties, if any extended express written warranties, if any extended by the manufacturer. The undersigned by the manufacturer. The undersigned acknowledge the availability of the express acknowledge the availability of the express written warranty and the contents thereof.”written warranty and the contents thereof.”

FD ResponsibilitiesFD Responsibilities

Present manufacturer claims exactly as Present manufacturer claims exactly as they are.they are.

FD cannot change or alter contents of the FD cannot change or alter contents of the warranty.warranty.

Consumers must be able to get copies of Consumers must be able to get copies of warranties by telephone or mail.warranties by telephone or mail.

Warranty cannot be conditioned upon Warranty cannot be conditioned upon return of a warranty card.return of a warranty card.

Display of MerchandiseDisplay of Merchandise

typestypes

The way that merchandise is displayed The way that merchandise is displayed can have a serious impact on the can have a serious impact on the consumer’s comfort level and their consumer’s comfort level and their perceived value of the merchandise.perceived value of the merchandise.

important elements for effective displayimportant elements for effective display

contemporary ideascontemporary ideas

ideal location for the selection roomideal location for the selection room

Traditional Selection RoomTraditional Selection Room

recommended number of casketsrecommended number of caskets

space per casketspace per casket

““furniture grouping”: purposefurniture grouping”: purpose

““traffic control”traffic control”

Arrangement of MerchandiseArrangement of Merchandise

1) Demonstrational/Education Grouping1) Demonstrational/Education Grouping““3 or 4 caskets utilized to educate the selecting 3 or 4 caskets utilized to educate the selecting party regarding the elements of casket party regarding the elements of casket construction”construction”

2) Consecutive Method2) Consecutive Method““placing caskets for selection in their order of placing caskets for selection in their order of increasing or decreasing value”increasing or decreasing value”

3) Group Methods3) Group Methodscaskets may be grouped according to a variety of caskets may be grouped according to a variety of factors such as material, style, appearance and factors such as material, style, appearance and priceprice

Casket Display EquipmentCasket Display Equipment

Distance from floor to bottom of casket Distance from floor to bottom of casket should be 26-30 inches.should be 26-30 inches.

Church Truck: “wheeled collapsible Church Truck: “wheeled collapsible support for the casket, used in the funeral support for the casket, used in the funeral home, church or home”home, church or home”

Casket Stand: (Casket Standard) “the Casket Stand: (Casket Standard) “the stand or support upon which a casket stand or support upon which a casket rests in the selection room”rests in the selection room”

Casket Display Equip. (cont’d)Casket Display Equip. (cont’d)

Casket Rack: “a device upon which Casket Rack: “a device upon which caskets are placed, one on top of the caskets are placed, one on top of the other, for display or storage”other, for display or storage”

Casket should be clearly identified by Casket should be clearly identified by name and price.name and price.

Casket should be cross-referenced on the Casket should be cross-referenced on the Casket Price ListCasket Price List

Placards on each casket.Placards on each casket.

LightingLighting

Post-selection Merchandise Post-selection Merchandise ProceduresProcedures

1) verification of selections1) verification of selections

2) required state and federal disclosures2) required state and federal disclosures

3) compute total expenses3) compute total expenses

4) complete SFGSS4) complete SFGSS

5) verify method of payment5) verify method of payment