book.chapter Understanding bottom up marketing

The most successful and lucrative business strategies are intricately crafted from a deep understanding and active engagement with the business's operational tactics. It is the tactics that guide a company towards the most effective strategy, not the other way around. In the realm of business, marketing essentially embodies the strategy. It represents the ideological battleground in the minds of potential consumers. Winning this battle means securing another client or customer for your company; losing means that potential business goes to a competitor. A tactic is a unique idea or a competitive mental angle that sets your product apart from all others in the market. It is the perceived benefit that convinces a customer that your product offers a superior solution compared to alternatives. For instance, the U.S. pizza chain Domino’s guarantees free home delivery of pizza within 30 minutes of placing an order. This home delivery promise is Domino’s tactic to boost sales. Similarly, Federal Express promises next-day delivery of packages anywhere in the United States, making dependable next-day delivery its winning tactic. In the real world, tactics are not inherently "good" or "bad"; they are either effective, generating sales, or ineffective, where a different tactic could potentially achieve more sales. A business strategy is a comprehensive marketing direction. It is a plan developed and executed by a company to systematically organize all marketing activities with the goal of maximizing sales. Essentially, the strategy is the overarching plan that incorporates all the individual tactics a company may employ to achieve its objectives. For example, Christopher Columbus's strategy to find a shortcut to India by sailing west from Europe, instead of east, was unrealistic, but his tactic led to the discovery of a new continent. Similarly, Jack O’Neill, a dedicated surfer, developed a wet suit to combat the cold, which became the flagship product of a multimillion-dollar company. A strategy outlines the company's long-term goals, while a tactic details the steps to achieve these goals. Strategies evolve over time; for instance, a sale is a common retail tactic, but a store that runs sales every day becomes known as a discount store, illustrating a strategic positioning based on a specific tactic. Tactics are based on communication, whereas strategies are founded on products, services, or the company itself. Traditionally, companies have adopted a top-down approach to marketing, starting with senior management deciding on a grand strategy, followed by middle managers breaking it down into various tactics, and finally, front-line employees implementing these tactics. However, this approach has several drawbacks, including the isolation of senior management from the consumer's reality, the potential for unexecutable strategies, the dilution of marketing resources, and a lack of flexibility to adapt to market changes or exploit successes. In contrast, the bottom-up approach to marketing begins with identifying the most successful current tactic and then integrating this tactic into the company's strategy by building on its success. This approach recognizes that marketing battles are won at the tactical level and focuses on exploiting successful tactics to develop a long-term strategy. Bottom-up marketing is about finding and exploiting new opportunities, including new markets, and requires spending time at the front lines to understand customer perceptions and actions. Examples of successful bottom-up marketing include Vicks marketing a drowsy-inducing cold remedy as a nighttime product, Volkswagen's introduction of America's first small car, Little Caesar’s two-for-one pizza tactic, Interstate Department Stores' transformation into Toys "R" Us, Avis's "We try harder" campaign, Disney Studios' establishment of Touchstone Pictures for adult films, and the New Zealand Tourism Board's ads to attract U.S. visitors. The difference between top-down and bottom-up marketing is also evident in the concept of line extension, where top-down strategies often lead to a dilution of brand focus, while bottom-up marketers seek to strengthen and build on successful tactics. Companies that remain focused on a specific product or service can often outperform generalists in the minds of consumers. In conclusion, the execution of a strategic plan is contingent upon its tactical feasibility. Familiarity with the details of the marketplace, the capabilities of individuals, and timing are crucial for developing a successful strategy. Emphasizing strategy over tactics can lead to the refusal to accept failure and reluctance to exploit success, both of which stem from top-down thinking. The most significant strategic successes come from those who are deeply engaged with the tactical marketplace, focusing on competitors' strengths and weaknesses and identifying key tactics that can be exploited for strategic gain.