Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner4-*Enterprise Resource Planning, 1st Edition by Mary SumnerChapter 4:ERP Systems: Sales and Marketing

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner4-*ObjectivesExamine the sales and marketing modulesUnderstand the interrelationships among business processes

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner4-*Case: Atlantic ManufacturingManufacturer of small motorsProblems with current order acquisition, operations, distribution, and accounting systemsInformation supplied to sales force inaccurateCustomers requesting reduced lead timesCredit system inconsistent, producing collection problemsService calls lack warranty informationQuality control system not integratedCompetition has eliminated these problems

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner4-*Sales and Marketing ProcessesOperational-level processesDaily activitiesProspecting, telemarketing, direct mailContact managementDatabases, listsSales representatives need to create and maintain a contact management system, which tracks customer preferences, sales history data.Support operational functions are supported by Sales order processing system : captures order dataPOS systems : capture data at the point of saleThese systems are linked to inventory management systems, which update inventory levels for stock items based upon sales date.

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner4-*Sales Management Control ProcessesDesigned to allocate resources to achieve maximum revenuesDecisions made on analysis of salesComparison of sales Analysis of revenues against benchmarksListing of most profitable products, sorted by territory and salespersonSales management Software often usedAllows for quicker analysisAble to identify trends Analyze salesperson performanceIdentifies both strong and weak productsCan signal potential shortfalls or excesses in stock levels

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner4-*Additional Sales Management ApplicationsSales forecastingPredicts trendsDetermine customers needs in different market segmentsBased on sales history, customer demands, demographic trend, competitor informationAdvertising and PromotionIdentifies channels that will be most effectiveProduct pricingDecision supported by pricing modelsExamines CPI, expected consumer disposable income, production volumes, labor costs, costs of raw materials

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner4-*Sales and Marketing ModulesERP systems differ from traditional systems

Provide integrated marketing support systems - including contact files, order entry files, and sales history files.

Provide integrated CRM software provides information about the previous experiences of customers, including purchases, product preferences and payment history.

With an ERP module, a customer places an order, and a sales order is recorded. The system schedules shipping and works backward from the shipping date to reserve the materials, to order parts from the suppliers, and to schedule manufacturing.The module checks for customers credit limits, updates sales forecasts, and creates a bill of materials. The salespersons commission is updated. Product costs and profitability are calculated.Finally, accounting data is updated, including balance sheets, accounts payables, ledgers and other financial informations.

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner4-*Sales and Marketing ModulesERP systems differ from traditional systemsProvide integrated marketing support systems - including contact files, order entry files, and sales history files. Provide integrated CRM software provides information about the previous experiences of customers, including purchases, product preferences and payment history. PurposeIdentify sales prospectsProcess ordersManage inventoryArrange deliveriesHandle billingProcess paymentsBenefitsStandard codes and documentsCommon databaseProvides audit trail Allows for data Integration

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner4-*

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner4-*CRM Customer Relationship ManagementFront-end interface with customer to sales and marketingComprehensive sales & marketing approach to build long-term customer relationships.Developed from sales force automation softwareProvides sales force with management toolsSales activitySales and territory managementContact databasesLeads generation and monitoring Product-specific configuration supportKnowledge and information resource managementThe major functions of a CRM system includes one-to-one marketing, telemarketing, call centre automation, e-Selling, data warehousing and customer service. CRM data accessible through data warehouse. A data warehouse is a repository of integrated data, which enables sales representatives to make queries and to generate reports on customer-specific trends.

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner4-*Integration with ModulesHuman ResourcesQuality ManagementControlling

CRMFinancial AccountingMaterials ManagementSales model may be integrated with:

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner4-*Featured Article: Staples and Integrated ERPHow is technology helping Staples achieve a competitive advantage?Customers want full range of servicesConsistentSeamless Online kioskConnected to e-commerce web sitePOS system, order management system, supply chainAccess information about products and servicesView inventoryBuild PCs to orderMultiple channel shoppers have greatly increased lifetime valueAcquired QuillImplemented an integration level to connect two disparate systems

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner4-*Featured Article: Staples and Integrated ERP, continuedReduced number of direct linkagesStandardized systemsWeb servicesTeam review of systems, users, needs

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner4-*SummaryThe 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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