Evidence on the Value of Strategic Planning in Marketing: How Much Planning Should a Marketing Planner Plan?

Armstrong, J. Scott and Reibstein, David J. (1985): Evidence on the Value of Strategic Planning in Marketing: How Much Planning Should a Marketing Planner Plan?

Abstract

What evidence exists on the value of formal planning for strategic decision-making in marketing? This paper reviews the evidence. This includes two tests of face validity. First, we use the market test: Are formal procedures used for marketing planning? Next, we examine expert prescriptions: What do they say is the best way to plan? More important than face validity, however, are tests of construct or predictive validity: What empirical evidence exists on the relative value of formal and informal approaches to marketing planning? The paper concludes with suggestions on the types of research that would be most useful for measuring the value of formal marketing planning.

• Item Type: MPRA Paper
• Language: English
• Keywords: marketing, strategic planning
• Subjects: A - General Economics and Teaching > A1 - General Economics; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy

References

Abell, Derek K. and John S. Hammond, Strategic Market Planning. Prentice-Hall, Englewood Cliffs, N.J., 1979.

Anderson, Carl R. and Frank T. Paine, ‘PIMS: A reexamination,' Academy of Management Review, 3 (1978), 602 612.

Anderson, Paul F., 'Marketing, strategic planning and the theory of the firm,' Journal of Marketing, 46 (Spring 1982), 15-26.

Ansoff, Igor et al., 'Does planning pay? The effect of planning on success of acquisitions in American firms,' Long Range Planning, 3 (Dec. 1970), 2-7.

Armstrong, J. Scott, 'The value of formal planning for strategic decisions: review of empirical research,' Strategic Management Journal, 3 (1982), 197-211.

Armstrong, J. Scott, 'Strategic planning and forecasting fundamentals,' in Kenneth Albert (ed.), The Strategic Management Handbook . McGraw-Hill, New York, 1983, pp. 2-1 to 2-32.

Boyd, Harper and Jean-Claude Larreche, 'The foundations of marketing strategy,' in Roger A. Kerin and Robert A. Peterson (eds), Perspectives on Strategic Marketing Management. Allyn & Bacon, Boston, 1980, pp. 84 103.

Buijs, Jan, 'Strategic planning and product innovation—some systematic approaches,' Long-Range Planning, 12 (Oct. 1979), 23-34.

Coe, Barbara J., 'Use of strategic planning concepts by industrial marketers,' in Kenneth Bernhardt et al. (eds), The Changing Marketing Environment: New Theories and Applications. American Marketing Association, Chicago, 1981, pp. 13-16.

Day, George S., 'A strategic perspective on product planning,' Journal of Contemporary Business, 4 (Spring 1975), 1-34.

Guiltinan, Joseph P. and Gordon W. Paul, Readings in Marketing Strategies and Programs. McGraw-Hill, New York, 1982.

Hopkins, David S., The Marketing Plan. The Conference Board, New York, 1981.

Jain, Subhash C., Marketing Decision Making. Free Press, New York, 1977. Janis, Irving L. and Leon Mann, Decision Making. Free Press, N.Y. 1977.

Kollat, David T., R. D. Blackwell, and J. F. Robeson, Strategic Marketing. Holt, Rinehart & Winston, New York, 1972.

Lewis , Sinclair, Arrowsmith. Harcourt, Brace & World, New York, 1925.

Luck, David J. and O. C. Ferrell, Marketing Strategy and Plans. Prentice Hall, Englewood Cliffs, N.J., 1979.

Montanari, John R., G. Moorhead and E. O. Montanari, 'A laboratory study of a strategic decision making methodology,' Proceedings of the American Institute for Decision Sciences, Nov. 1980, pp. 472 474.

Murray, John A., 'Strategic Marketing,' Long Range Planning, 12 (Apr. 1979), 76-83.

Nutt, Paul C., 'An experimental comparison of the effectiveness of three planning methods,' Management Science, 23 (1977), 499-511.

Schanck, J. Thomas, 'Strategic planning for industrial markets,' Industrial Marketing Management, 8 (Spring 1979), 257-263.

Stasch, Stanley F., and Patricia Lanktree, 'Can your marketing planning procedures be improved?' Journal of Marketing, 44 (Summer 1980), 79 90.

Van de Ven, Andrew H., 'Problem solving, planning, and innovation, Part I. Test of the program planning model,' Human Relations, 33 (1980), 711-740.

Webster, Frederick W., Jr. Industrial Marketing Strategy. John Wiley, New York, 1979.

Wilson, Ian H., William R. George and Paul J. Solomon, 'Strategic planning for marketers,' Business Horizons, 21 (1978), 65-73.