Effective Business Strategies: JIT, QR, ECR, and More

Just-in-Time (JIT) and Quick Response (QR)

Just-in-Time (JIT), meaning "at the right time", ensures that raw materials and finished products are available to the production process or the end user precisely in the class, quantity, and time required. The Quick Response (QR) technique is a management system that uses information technology for real-time information about market demand and responds instantly, reducing production costs and maintaining stocks.

Distribution Channel Selection

Choosing the best option among possible distribution alternatives is crucial. Decisions include single or multi-channel, direct or indirect. The most frequent activities in a company are:

• Development of the company's distribution plan.
• Determining the geographic scope of marketing for each product.
• Selecting and configuring the distribution channels.
• Physical distribution (logistics).
• Setting policies on relations with distributors.
• Location and size of retail outlets.

Relationships Between Channel Members

The manufacturer works with the intermediary to develop joint distribution and communication, such as promotions and advertising, to stimulate final demand. This approach allows for resolving conflicts before they arise and achieving a competitive advantage.

Efficient Consumer Response (ECR)

Efficient Consumer Response (ECR) optimizes the cost structure, allowing for lower prices without affecting the margin. It also increases coordination of objectives between manufacturers and dealers to facilitate trading and reduce conflicts. ECR promotes fluency in the communication chain, both business and customer.

Integrated Communication Strategy (ICS)

Integrated Communication Strategy (ICS) uses customer databases to selectively communicate with them and apply retention strategies. Results are analyzed, and the process restarts with the required changes.

Distribution Strategies

• Intensive Distribution

  The company tries to sell its products at the maximum possible number of outlets. It occurs in consumer products and impulsive buying. Often used are long distribution channels. It is applied to products in a growth phase and especially at the maturity stage.

• Selective Distribution

  Distributors are selected for their expertise or sales potential. It occurs in complex products that require technical support. It is suitable for products being introduced.

• Exclusive Distribution

  Dealers do not sell competing products. This is suitable for products requiring high sales effort (like fashion) and service (hardware).

Communication Strategies

• Push Strategy

  The manufacturer directs its efforts towards the distribution channel. Conditions are attractive to the intermediary to pressure other members of the distribution channel and encourage consumers to purchase.

• Pull Strategy

  The manufacturer directs its efforts towards end consumers, intending that they pressure the distribution channel and the latter to the manufacturer.

Business Communication

Internal Communication

Internal communication consists of the set of information flows that occur within the organization and are designed for its personnel. It conveys aims, objectives, and specific issues. Proper internal communication allows members of the company to improve their knowledge, modify criteria and attitudes, improve corporate image, etc.

Types of Internal Communication

1. Vertical: Can be upward, from subordinates to superiors, or downward, from superiors to subordinates.
2. Horizontal: Relates to divisions or individuals of the same hierarchical level.

External Communication

External communication involves integrated information flows that influence bidirectionally between the enterprise and the market.

Types of External Communication

• Personal Communication: Used increasingly and is more common in industrial markets.
• Mass Communication: More suitable for consumer markets and develops through media that convey information to diverse social groups.