Formal marketing planning and performance - the case of transitional economy

This paper was inspired from the necessity to identify the weaknesses in the marketing planning process in companies in a transitional economy and it analyses the connection between continuous formal marketing planning and business performance (profitability and market orientation). The data was obtained with primary and secondary research executed in the companies from the food, i.e. confectionery industry (38% of the registered companies). The research was based on the techniques of survey and interview. The descriptive statistics presents multiple weaknesses in the marketing planning process: rare use of continuous formal marketing planning; lack of knowledge about the planning process; tendency of misuse of analytical tools. The deductive statistics shows a direct link and dependence of profitability and market orientation degree from implementation of continuous formal marketing planning. Some limitations rise from the sample size and the (one) chosen industry sector. This paper offers some practical and social implications. It explains how a correction of current practices and views about the marketing planning process can lead to better business results. On a national level, this is one of a few papers that analyses this subject through primary data and offers results from existing companies, operating in a transitional economy