BUSN QUESTIONS (5F)

situatiOn 2

Aspen Funeral Alternatives, a funeral home in Albuquerque,

New Mexico, recognizes that families are more cost

conscious than ever. As the company’s website states,

“Outlet malls and discount stores off er convenience and

value—why pay more?” The strategy of the owners is to

off er lower-priced funeral products with the same personalized,

high-quality services, just fewer options. Aspen goes

to great lengths to control costs and passes the savings

along to its clients. For example, its operating hours are

limited to Monday through Friday between 8:00 a.m. and

5:00 p.m. to minimize overtime pay to employees. (Essential

staff are still available 24/7.)

Aspen’s website says that the company’s low-cost service

alternatives off er no fancy facilities, no limousines, and

no hearses. A general price list, covering Aspen’s professional

services, use of its facilities, and caskets, is posted on

the site.

Question 1 What psychological concepts of consumer

behavior are relevant to marketing this service? Be specifi c.

Question 2 How can the stages of consumer decision

making be applied to a person’s decision to use a particular

funeral home?

Question 3 Which CRM techniques could be used by this

type of business?

SituAtiOn 1

How do you get retailers to stock your product when their

shelves are already full? For Brian Levin, founder of Perky

Jerky, it meant talking store managers into letting him

give his product away. Perky Jerky is a meat snack with

a caff eine kick, described on the company’s website as

“the new high-protein, ultra-premium, functional food for

active lifestyles. . . .” Perky Jerky “brand ambassadors” give

out trinkets and off er customers tastes of the product in

stores. They fi nd that those who try the snack ask the stores

to carry Perky Jerky. One year into the business, Levin

reported nearly a million dollars in sales.

Sources: http://www.perkyjerky.com/index.php/, accessed April 4, 2011; and Jason Fell, “Building a

(Nearly) Million-Dollar Brand on a Startup Budget,” http://www.entrepreneur.com/article/219395#,

accessed April 4, 2011.

Question 1 What do you think about giving away a product?

Does it build sales, or does it suggest desperation?

Question 2 How would you budget for marketing

expenses if you had hired sales representatives to give

products away?

Question 3 What are some of the ways you might compensate

your “brand ambassadors”? Which method do you

think would work best and why?