1. 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

2. Objectives Examine the sales and marketing modules
Understand the interrelationships among business processes
© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

3. 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
Competition has eliminated these problems
© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

4. Sales and Marketing Processes
Operational-level processes
Daily activities
Prospecting, telemarketing, direct mail
Contact management
Databases, lists
Support
Sales order processing system
POS systems
© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

5. 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

6. Additional Sales Management Applications
Sales forecasting
Predicts trends
Determine customers’ needs in different market segments
Based on sales history, customer demands, demographic trend, competitor information
Advertising
Identifies channels that will be most effective
Product pricing
Decision supported by pricing models
Examines CPI, expected consumer disposable income, production volumes, labor costs, costs of raw materials
© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition by Mary Sumner

7. Sales and Marketing Modules
ERP systems differ from traditional systems
Allow for integrated marketing support systems
Provide integrated CRM 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

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

9. 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

10. 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

11. 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

12. 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

13. 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