Academic journal article International Journal of Management

The Effect of Strategic Marketing Planning Behaviour on the Performance of Small- to Medium-Sized Firms

Academic journal article International Journal of Management

The Effect of Strategic Marketing Planning Behaviour on the Performance of Small- to Medium-Sized Firms

Article excerpt

According to the literature very few small enterprises survive the long-term. However, despite the continuing interest in the concept of strategic marketing planning, very little research has been done particularly in Singapore to examine whether the level of performance in small to medium sized business organizations is related to the extent to which the components of the strategic marketing planning process are carried out in small to medium sized businesses. This paper aims to present the results of a study that addressed whether there are significant differences in the extent to which small to medium sized business organizations in Singapore with a high level of performance versus those with a low level of performance carried out the various activities of the strategic marketing planning process.

Introduction

Although strategic marketing planning practitioners and theorists have been writing for many years about the importance of strategic marketing and the benefits to be derived by organizations from the utilization of strategic planning process (Armstrong and Kotier 201 1 ; Bergeron and Rivard 2003; Cravens 2008; Cravens and Piercy 2006; David 2009; Greenley 1986; Johnson et al 2008; Kotler and Keller 2009; McCarthy 2009; Morgan, McGuinness and Thorpe 2000; Paley 2006; Parnell 2000; Perreault et al 2008; Pride and Ferrell 2010; Rajaratnam and Chonko 1995; Stanton, 2008) very little research has been done to examine whether the level of performance of small to medium sized business organizations in Singapore is related to the extent to which the components of the strategic marketing planning process are carried out by the small to medium sized businesses in Singapore. This paper presents the result of a study that was designed to address whether there are significant differences in the extent to which small to medium sized business organizations in Singapore with a high level of performance versus those with a low level of performance carried out the various strategic marketing planning activities.

What is a Strategic Marketing Plan?

According to Perreault et al (2008), strategic marketing planning means finding attractive opportunities and developing profitable strategies that specifies a target market and related marketing mix. Kotier and Keller (2009) and Armstrong and Kotier (20 11), stressed that a strategic marketing plan involves laying out the target markets and the value proposition that will be offered, based on the analysis of the best market opportunities. The marketing plan is the central instrument for directing and coordinating the marketing effort of an organization and the content of a marketing plan includes laying out current situation, setting objectives, strategies, action program, budgets, implementation and control. The purpose of a strategic plan, according to Johnson et al (2008), is to specify what business an organization is in and the direction it is going. Cravens (2008), emphasized that the environment and all functional areas of a business, such as finance, marketing, personnel are to be taken into consideration during the strategic marketing planning process.. Cravens (2008) views the strategic marketing planning process as consisting of the following key steps: analysing the environment, designing a marketing strategy, formulating a marketing program, and implementing and controlling the marketing program. David (2009) and Cravens (2008) identify environmental analysis, objective setting, strategy design, and implementation and control in the strategic planning process.

A review of the major prescriptive literature about the strategic marketing planning process (Armstrong and Kotier 20 1 1 ; Cravens 2008; Cravens and Piercy 2006; Cravens, David 2009; Johnson et al 2009; Kotler and Keller 2009; McCarthy 2009; Paley 2006; Parnell 2000; Perreault et al 2008; Pride and Ferrell 2010; Rogers 2001; Stanton 2008) shows that the process contains either implicitly or explicitly, the following components: Environmental Analysis; Setting Goals and Objectives; Formulating Marketing Strategy; Action Programs; Implementation and Control. …

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