Marketing program planning, process benefits, and store performance: An initial study among small retail firms

Despite the importance of thinking strategically when adapting to environmental change, independent retail firms often find that day-to-day operational demands inhibit their ability to participate in the marketing planning process. Further, the marketing and retailing literature provides few insights to retailers interested in better understanding how to plan most effectively. Past research has emphasized the formal aspects of planning and the empirical evidence is mired regarding the relationship between planning and performance. This study develops new measures of both marketing program planning (MPP) and the intermediate process benefits that result from planning. We then assess their impact on performance using data collected from independent computer store retailers. Results indicate 1) the planning dimension strategic clarity is significantly related to the process benefits market knowledge and marketing program effectiveness, 2) process benefits mediate the relationship between planning and performance, and 3) process benefits are positively related to financial performance