Advantage and Disadvantage of Sales Force Automation

Topics: Marketing, Sales, Customer relationship management Pages: 5 (1978 words) Published: May 2, 2013
Advantage and Disadvantage of Sales Force Automation.
SFA is one of the applications of information technology to support the process in sale functions (Buttle. 2006). Managers and salespeople were require to use SFA technology in marketing actions such as use computer and telecommunication technology in their sale or promotion actions (Morgan et al. 2001). Some organizations believe the SFA means adding fax machines, automate the sales process by prepare the salesperson with a laptop, cell phones, and pagers, or sell products or services using the Internet. Many companies have incorporated one or more of these methods (Robert C. 2001). For example, five top ten global companies have been used high-tech firms such as Microsoft, IBM, GE, Intel, and Nokia. (others five global brands were Coca-Cola, Disney, McDonald's, Marlboro, and Mercedes) such as those in computer hardware and software, telecommunications, consumer electronics, and information technology, other firms across a wide range of industries are increasingly relying and innovation on technology to deliver their value propositions (Mohr, Jakki. 2003). The purpose of this essay are willing to discuss how Sales Force Automation have a good impact for business in the marketing process, as we know there are some good arising from the use of the SFA as a sales tool and try to describe the disadvantages of the use of SFA in an organization business.

It has been argue that, Sales Force Automation (SFA) is the implementation of use sales force with high technology, and operated by salespeople or sales managers to work more effectively and efficiency (Hair, J. F. 2009. P.17). In order to improve sales productivity in sales process, SFA can provide automated collection, absorption, analysis, and distribution of information with hardware and software (Morgan and Inks. 2001). Therefore, Managers can dramatically increase their salesperson’s productivity to be more successful in selling and would reduce the sales and marketing cost with SFA (Hair, J. F. 2009. p.17). In fact, London-based consultancy data monitor was found that 60 percent of SFA system has impacted to the increasing of organizations efficiencies in sales cost (Voelker, 2000). For instance, Salespeople from Marriott, Marriott’s have more than one hotel brands like Ritz-Carlton, Courtyard, and Fairfield Inn and they have to selling the information about each brand and receive booking order for of all the brands. To increase the capability in receiving the booking order from different customer and different needs, company provide the technology that enable customer to book directly by using the internet or calling for one of the canters are managed by Marriott sales people inside company without visiting the salespeople, and salespeople does not necessary to send the booking paper for the customers, because customers have to print it out by them self (Ingram, 2006 p.6). Its mean with the internet and telecommunication can help the Marriott salespeople to work more effective and efficient in selling time and it also able to reduce the printing cost for booking paper. By work effective and efficient salespeople can raise the value of communication, and improves the quality of all sales efforts by fast access to the relevant information in a timely manner (Jelinek et al. 2006). The second advantage is SFA can improve Communication Relationship Management (CRM) performance in order to develop a long-term relationship with customers and ensure their satisfaction with the purchases (Cooper, Marjorie J, 2005). Many organizations apply the collaboration between SFA and CRM tools in them activities. For example, service companies should have technology infrastructure like e-card members to track customer relationships, and to compete effectively in the retail market they must have an e-commerce infrastructure, and if traditional manufacturing want to stay abreast of market trends they must rely on technological...

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