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

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. Before reviewing the evidence, we present a framework for the formal planning process.strategic planning, marketing

Summary: Economic Return of Nation Brands

It is generally considered good business practice for a company to invest in its brand. A positive brand image typically results in a more loyal customer base and an overall increase in profit. Likewise, nations have brands, and the reputation of a country has an economic impact on its gross domestic product (GDP).https://repository.upenn.edu/pennwhartonppi_bschool/1011/thumbnail.jp

Closing the Gap between Marketing and Finance: The Link to Driving Wise Marketing Investment

The true value of marketing investments /// What do companies with products as diverse as Apple, Red Bull, McDonald\u27s or Ikea have in common? They have good products, right. But another even more important characteristic is their excellent marketing. For most companies, it is not the tangibles that make up their overall market value but the intangible assets, such as the brand, loyal customers or a strong network of distributors. If the market value of a company exceeds its book value, the difference arises from the value of the intangible assets. Global top-performing companies have significantly higher market-to-book ratios than less successful companies, and their value stems from a strong brand, better customer management, and/or superior distribution

Evidence on the value of strategic planning in marketing: how much planning should a marketing planner plan?

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. Before reviewing the evidence, we present a framework for the formal planning process

Market Share and Distribution: A Generalization, a Speculation, and Some Implications

In this paper we review evidence of a generalized convex cross-sectional relationship between retail distribution and unit market share, i.e., large-share brands have more share points per percentage of distribution than small-share brands. The dynamics and structure of distribution and share can help explain many phenomena in marketing, including this convex shape: (1) market share is both a cause and an effect of distribution, and (2) in the typical convenience goods distribution system there are a few large outlets that stock many brands and numerous smaller outlets that stock the leading brands only. Generally, the observed cross-sectional “curve” relating distribution and share will reflect the retailers\u27 stocking decisions, not the incremental effect of distribution on share. However, a logically consistent model of share based on (1) and (2), when combined with the assumption of low search loyalty, results in customers being willing to switch from preferred to available brands. A further consequence is that the marginal effect of weighted distribution on share is likely to be increasing, i.e., result in convex curves relating distribution and share for a given brand. In some cases, and for some measures of distribution, these convex curves have been observed in time-series data for brands that failed and lost distribution over a relatively short period of time. The implication is that marketers should monitor distribution carefully, as it is the result of combined effects of brand preference, loyalty, and “push” programs. With a better understanding of the market share/distribution relationship, managers should be in a better position to forecast marketplace results for a given level of distribution

Evidence on the value of strategic planning in marketing: how much planning should a marketing planner plan?

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. Before reviewing the evidence, we present a framework for the formal planning process

An analysis of interdependent decisions

A conditional analytic technique for evaluating interdependent decisions, based on Bellman's 'Principle of Optimality' is proposed. The procedure computes both the present and future impacts of a decision and permits: (1) each decision to be evaluated independently; (2) an accurate and more informative evaluation of such decisions relative to existing evaluative schemes; and (3) important insights regarding the decision process, such as the employed planning horizon, the degree of choice conservatism, and whether and to what degree learning occurs. A nontime-staged assignment problem and time-staged production planning problem are used to illustrate its potential utility and generalizeability. The implications of the technique for evaluating non-programmable (e.g. managers) and programmable (e.g. heuristic) decisions as well as for designing organizational planning and control systems are discussed.