Answer to Question #320091 in Management for Nandi

Question

Information systems can be classified by 1) the specific organizational function they serve as well as by 2) the organizational level. Discuss about systems in both instances using examples to exemplify your answer. 

Answer 1

SYSTEMS FROM A FUNCTIONAL PERSPECTIVE

Information systems can be classified by the specific organizational function they serve as well as by organizational level. We now describe typical information systems that support each of the major business functions and provide examples of functional applications for each organizational level.

Sales and Marketing Systems.

The sales and marketing function is responsible for selling the organization’s products or services. Marketing is concerned with identifying the customers for the firm’s products or services, determining what customers need or want, planning and developing products and services to meet their needs, and advertising and promoting these products and services. Sales is concerned with contacting customers, selling the products and services, taking orders, and following up on sales. Sales and marketing information systems support these activities.

The table shows that information systems are used in sales and marketing in a number of ways. At the strategic level, sales and marketing systems monitor trends affecting new products and sales opportunities, support planning for new products and services, and monitor the performance of competitors. At the management level, sales and marketing systems support market research, advertising and promotional campaigns, and pricing decisions. They analyze sales performance and the performance of the sales staff. At the operational level, sales and marketing systems assist in locating and contacting prospective customers, tracking sales, processing orders, and providing customer service support.

Examples of Sales and Marketing Information Systems

The table shows the output of a typical sales information system at the management level. The system consolidates data about each item sold (such as the product code, product description, and amount sold) for further management analysis. Company managers examine these sales data to monitor sales activity and buying trends.