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

4-1

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

4-4

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

4-5

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

4-6

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

4-7

 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

4-9

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

4-10

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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