Predatory Pricing

A foundational model in marketing, the 4Ps framework classifies the key elements a business uses to promote its brand or product. It consists of Product (the item or service), Price (the cost to the consumer), Place (where it's sold), and Promotion (the advertising and sales activities). These four variables are controlled by the company to influence consumer demand.

The Ideal Final Result (IFR) is a core concept in TRIZ that defines the ultimate, perfect solution to a problem, independent of current constraints or resources. It is typically formulated as "the system (or element) itself performs the required function without its own existence." This mental tool helps problem-solvers overcome psychological inertia and focus on function rather than form.

The product life cycle (PLC) model describes the stages a product goes through from its launch to its withdrawal from the market. These four key stages are: Introduction (low sales, high costs), Growth (rapidly rising sales and profits), Maturity (peak sales, declining profit margins), and Decline (falling sales and profits). This framework helps in strategic marketing and management decisions. IMPORTANT NOTE: in more modern approaches, and less Sales or Marketing oriented, the Product Life Cycle must include its Manufacturing, so as its Recycling stages. An even more complete approach, such as the one we strongly advocate on innovation.world, it shall even include a Market Study and an Ideation stage, and depending on the field, Post Market Surveillance also.

5S is a workplace organization method that uses a list of five Japanese words: Seiri (Sort), Seiton (Set in Order), Seisō (Shine), Seiketsu (Standardize), and Shitsuke (Sustain). This system aims to improve efficiency and eliminate waste by organizing a workspace for effectiveness. It is a foundational component of Kaizen and lean manufacturing, creating the stable environment necessary for improvement.

The classic four-box Ansoff Matrix has been extended into a nine-box grid to provide a more granular view of strategic options. This version subdivides the 'new product' and 'new market' axes into stages, such as 'modified product' or 'expanded market'. This allows for intermediate strategies that sit between the four original quadrants, offering a more nuanced approach to risk and growth.

Relationship marketing is a strategic approach that shifts the focus from individual transactions to building long-term customer loyalty and engagement. It emphasizes customer retention, satisfaction, and lifetime value over short-term sales goals. Key tactics include customer relationship management (CRM) systems, loyalty programs, and personalized communication, aiming to create a strong, emotional connection between the brand and the customer.

The Ansoff Matrix is a strategic planning tool that provides a framework to help executives, senior managers, and marketers devise strategies for future growth. It presents four growth alternatives by analyzing new versus existing products in new versus existing markets. The matrix helps to systematically consider the inherent risks associated with different growth strategies.

SWOT analysis is a strategic planning technique structured as a 2x2 matrix. It evaluates four elements: Strengths (internal, helpful), Weaknesses (internal, harmful), Opportunities (external, helpful), and Threats (external, harmful). The framework aims to identify these internal and external factors to facilitate the development of a strategic plan that aligns an organization's capabilities with its environment.

The Project Management Triangle, also known as the Triple Constraint or Iron Triangle, is a model of the constraints inherent in managing a project. It states that the quality of work is constrained by the project's budget (cost), deadlines (time), and scope. A change in one constraint necessitates changes in the others to maintain quality and equilibrium.

Kaizen is a Japanese term meaning "change for the better" or "continuous improvement." It is a core philosophy of lean manufacturing that focuses on making small, ongoing, positive changes to improve processes and eliminate waste. Kaizen involves all employees, from senior management to assembly line workers, fostering a culture where everyone is empowered to suggest and implement improvements.

A "blockbuster drug" is a pharmaceutical product that generates more than $1 billion in annual sales for its manufacturer. This business model has historically driven the pharmaceutical industry, focusing research and development (R&D) on common, chronic conditions to maximize patent-protected revenue. This revenue funds further R&D for new drugs, creating a cycle of innovation and high profits.

The TOWS Matrix is an extension of SWOT analysis that focuses on creating actionable strategies by matching internal and external factors. It uses the same inputs but organizes them to generate four distinct strategic options: SO (Maxi-Maxi), WO (Mini-Maxi), ST (Maxi-Mini), and WT (Mini-Mini). This moves beyond simple identification to active strategy formulation.

Gemba (現場) is the Japanese term for 'the actual place.' In management, it refers to the place where value is created, such as the factory floor. Gemba Kaizen is the principle of going to the Gemba to observe the process, engage with workers, and identify opportunities for improvement directly at the source, rather than from a remote office.