Enterprise Resource Planning, 1st
Edition by Mary Sumner
Chapter 4:
ERP Systems: Sales and Marketing
Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
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Objectives
Examine the sales and marketing
modules
Understand the interrelationships
among business processes
Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
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Case: Atlantic Manufacturing
Manufacturer of small motors
Problems with current order acquisition,
operations, distribution, and accounting
systems
Information supplied to sales force inaccurate
Customers requesting reduced lead times
Credit system inconsistent, producing collection
problems
Service calls lack warranty information
Quality control system not integrated
Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
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Sales and Marketing Processes
Operational-level processes
Daily activities
Prospecting, telemarketing, direct mail
Contact management
Databases, lists
Support
Sales order processing system
POS (point of sales) systems
Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
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Sales Management Control
Processes
Designed to allocate resources to achieve
maximum revenues
Decisions made on analysis of sales
Comparison of sales
Analysis of revenues against benchmarks
Listing of most profitable products, sorted by territory and
salesperson
Software often used
Allows for quicker analysis
Able to identify trends
Analyze salesperson performance
Identifies both strong and weak products
Can signal potential shortfalls or excesses in stock levels
Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
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Additional Sales Management
Applications
Sales forecasting
Advertising
Predicts trends
Determine customers needs in different market
segments
Based on sales history, customer demands,
demographic trend, competitor information
Identifies channels that will be most effective
Product pricing
Decision supported by pricing models
Examines CPI (consumer price index), expected
consumer disposable income, production
volumes, labor costs, costs of raw materials
Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
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Sales and Marketing Modules
ERP systems differ from traditional systems
Allow for integrated marketing support systems
Provide integrated CRM (Customer Relationship Management)
software
Purpose
Identify sales prospects
Process orders
Manage inventory
Arrange deliveries
Handle billing
Process payments
Benefits
Standard codes and documents
Common database
Provides audit trail
Allows for data Integration
Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
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Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
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CRM
Front-end interface with customer to sales and
marketing
Comprehensive approach
Developed from sales force automation software
Provides sales force with management tools
Sales activity
Sales and territory management
Contact databases
Leads generation and monitoring
Product-specific configuration support
Knowledge and information resource management
Needs an underlying Sales and Marketing ERP
module for operational-level data
CRM data accessible through data warehouse
Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
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Integration with Modules
Sales model may be integrated with:
CRM
Financial Accounting
Materials Management
Human Resources
Quality Management
Controlling
Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
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Featured Article: Staples and
Integrated ERP
How is technology helping Staples achieve a
competitive advantage?
Customers want full range of services
Consistent
Seamless
Online kiosk
Connected to e-commerce web site
POS system, order management system, supply chain
Access information about products and services
View inventory
Build PCs to order
Multiple channel shoppers have greatly increased lifetime
value
Acquired Quill
Implemented an integration level to connect two disparate
systems
Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
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Featured Article: Staples and
Integrated ERP, continued
Reduced number of direct linkages
Standardized systems
Web services
Team review of systems, users, needs
Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
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Summary
The sales and marketing modules for ERP
systems are designed to support the sales
order processing systems, control daily
activities like prospecting, and manage
contacts.
This system produces sales forecasting,
identifies advertising channels, and helps to
maintain competitive pricing scales.
The CRM module serves as a front-end
interface between the customer and the
sales and marketing departments.
Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner
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