What is the top-down vs. bottom-up approach?

Product management involves two primary approaches, top-down and bottom-up, each with distinct strategies for prioritizing features and aligning them with company goals. The top-down approach starts with the company's high-level vision and mission, translating these into specific objectives, initiatives, and eventually a product roadmap, often directed by senior executives. It is typically used in early-stage startups lacking product-market fit and large corporations with extensive product portfolios. Conversely, the bottom-up approach focuses on user needs, involving continuous customer feedback and market research to guide feature development, making it common in startups that have achieved product-market fit and large companies fostering a product-centric culture. A hybrid model combining both approaches can enhance decision-making, ensure alignment between strategic goals and user needs, and improve the agility of product managers. This integration allows product teams to create a comprehensive product vision and strategy that balances business objectives with market demands, ultimately leading to more successful product development.