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Enterprise Resource Planning, 1 st Edition by Mary Sumner. Chapter 4: ERP Systems: Sales and Marketing. Objectives. Examine the sales and marketing modules Understand the interrelationships among business processes. Case: Atlantic Manufacturing. Manufacturer of small motors

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enterprise resource planning 1 st edition by mary sumner

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

objectives
Objectives
  • Examine the sales and marketing modules
  • Understand the interrelationships among business processes

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

case atlantic manufacturing
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

sales and marketing processes
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

sales management control processes
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

additional sales management applications
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

sales and marketing modules
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

slide9
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

integration with modules
Sales model may be integrated with:Integration with Modules
  • Human Resources
  • Quality Management
  • Controlling
  • CRM
  • Financial Accounting
  • Materials Management

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

featured article staples and integrated erp
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

featured article staples and integrated erp continued
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

summary
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