formation is developed through internal company records, marketing intelligence ac-
tivities, marketing research, and marketing decision support analysis.
NTERNAL RECORDS SYSTEM
Marketing managers rely on internal reports on orders, sales, prices, costs, inventory
levels, receivables, payables, and so on. By analyzing this information, they can spot
important opportunities and problems.
THE ORDER-TO-PAYMENT CYCLE
The heart of the internal records system is the order-to-payment cycle. Sales represen-
tatives, dealers, and customers dispatch orders to the firm. The sales department pre-
pares invoices and transmits copies to various departments. Out-of-stock items are
back ordered. Shipped items are accompanied by shipping and billing documents that
are sent to various departments.
Today’s companies need to perform these steps quickly and accurately. Customers
favor those firms that can promise timely delivery. Customers and sales representa-
tives fax or e-mail their orders. Computerized warehouses fulfill these orders quickly.
The billing department sends out invoices as quickly as possible. An increasing num-
ber of companies are using electronic data interchange (EDI)orintranetsto improve the
speed, accuracy, and efficiency of the order-to-payment cycle. Retail giant Wal-Mart
tracks the stock levels of its products and its computers send automatic replenishment
orders to its vendors.^4
SALES INFORMATION SYSTEMS
Marketing managers need up-to-the-minute reports on current sales. Armed with lap-
top computers, sales reps can access information about prospects and customers and
provide immediate feedback and sales reports. An ad for SalesCTRL, a sales force au-
tomation software package, boasts, “Your salesperson in St. Louis knows what Cus-
tomer Service in Chicago told their customer in Atlanta this morning. Sales managers
can monitor everything in their territories and get current sales forecasts anytime.”
Sales force automation (SFA) software has come a long way. Earlier versions mainly
helped managers track sales and marketing results or acted as glorified datebooks. Re-
cent editions have put even more knowledge at marketers’ fingertips, often through
internal “push” or Web technology, so they can give prospective customers more in-
formation and keep more detailed notes. Here are three companies that are using com-
puter technology to design fast and comprehensive sales reporting systems:
■ Ascom Timeplex, Inc. Before heading out on a call, sales reps at this telecom-
munications equipment company use their laptop computers to dial into the
company’s worldwide data network. They can retrieve the latest price lists,
engineering and configuration notes, status reports on previous orders, and
e-mail from anywhere in the company. And when deals are struck, the lap-
top computers record each order, double-check the order for errors, and send
it electronically to Timeplex headquarters in Woodcliff Lake, New Jersey.^5
■ Alliance Health Care Formerly called Baxter, Alliance supplies hospital pur-
chasing departments with computers so that the hospitals can electronically
transmit orders directly to Alliance. The timely arrival of orders enables Al-
liance to cut inventories, improve customer service, and obtain better terms
from suppliers for higher volumes. Alliance has achieved a great advantage
over competitors, and its market share has soared.
■ Montgomery Security In 1996, San Francisco–based Montgomery Security
was in a bind. To remain competitive in the financial sector, this Nations
Banks subsidiary had to find a way for more than 400 finance, research, and
Gathering Information
and Measuring
Market Demand^101I