Top down marketing
DESCRIPTION
An approach to market analysis, market definition, and marketing strategy development that tends to specify markets interms of competitive capabilities and resource transferability.
An approach to market analysis, market definition, and marketing strategy development that tends to specify markets interms of competitive capabilities and resource transferability.
KEY INSIGHTS
The top-down marketing approach reflects the need of corporate and business level management to understand the capacity of a business unit to compete and apply resources to secure a sustainable competitive advantage (Day 1981). The other approach to market analysis is a bottomup approach emphasizing customer requirements or usage patterns when defining markets (see bottom-up marketing). While the latter is employed by marketing planners and programme managers within the framework of a chosen product market, the top-down approach is more at a corporate strategic planning level.
The top-down marketing approach reflects the need of corporate and business level management to understand the capacity of a business unit to compete and apply resources to secure a sustainable competitive advantage (Day 1981). The other approach to market analysis is a bottomup approach emphasizing customer requirements or usage patterns when defining markets (see bottom-up marketing). While the latter is employed by marketing planners and programme managers within the framework of a chosen product market, the top-down approach is more at a corporate strategic planning level.
KEYWORDS Capabilities, resources
IMPLICATIONS
The top-down approach involves viewing markets as arenas of profitable competition where corporate resources can be utilized to achieve differential advantage (Day 1981). Using this approach involves defining the scope of the business, the broad strategic thrust of each strategic business unit, its opportunities in new markets as well as current and forecasted performance within served markets. Achieving a clearer, deeper, and more comprehensive market definition and understanding, however, often calls for integrating the top-down and the bottom-up approaches to market analysis and marketing strategy development.
The top-down approach involves viewing markets as arenas of profitable competition where corporate resources can be utilized to achieve differential advantage (Day 1981). Using this approach involves defining the scope of the business, the broad strategic thrust of each strategic business unit, its opportunities in new markets as well as current and forecasted performance within served markets. Achieving a clearer, deeper, and more comprehensive market definition and understanding, however, often calls for integrating the top-down and the bottom-up approaches to market analysis and marketing strategy development.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Jaworski, B. J., and Kohli, A. K. (1996). ‘Market Orientation: Review, Refinement, and Roadmap,’ Journal of Market Focused Management, 1(2), 119–136.
Jaworski, B. J., and Kohli, A. K. (1996). ‘Market Orientation: Review, Refinement, and Roadmap,’ Journal of Market Focused Management, 1(2), 119–136.
Hutt, Michael D., Reingen, Peter H., and Ronchetto, John R., Jr. (1988). ‘Tracing Emergent Processes in Marketing Strategy Formation,’ Journal of Marketing, 52(1), January, 4–19.
Marketing Management
McDonald, Malcolm, and Morris, Peter (2000). The Marketing Plan in Colour: A Pictorial Guide for Managers. Oxford: Butterworth-Heinemann.
McDonald, Malcolm, and Morris, Peter (2000). The Marketing Plan in Colour: A Pictorial Guide for Managers. Oxford: Butterworth-Heinemann.
Mantrala, Murali K., Sinha, Prabhakant, and Zoltners, Andris A. (1992). ‘Impact of Resource Allocation Rules on Marketing Investment-Level Decisions and Profitability,’ Journal of Marketing Research, 29(2), May, 162–175.
Ambler, T. (2000). ‘Marketing Metrics,’ Business Strategy Review, 11(2), 59–66.
BIBLIOGRAPHY
Day, George S. (1981). ‘The Product Life Cycle: Analysis and Applications Issues,’ Journal of Marketing, 45(4), Autumn, 60–67.
Day, George S. (1981). ‘The Product Life Cycle: Analysis and Applications Issues,’ Journal of Marketing, 45(4), Autumn, 60–67.
Park, C. Whan, and Smith, Daniel C. (1989). ‘Product-Level Choice: A Top-Down or Bottom-Up Process?’ Journal of Consumer Research, 16, December, 289–299.