Strategic Marketing Planning

Strategic Marketing Planning: Theory and Practice1
Malcolm McDonald 2, Cranfield University School of Management
In order to explore the complexities of developing a strategic marketing plan, this article is written in three parts. The first describes the strategic marketing planning process itself and the key steps within it. It also deals with implementation issues and barriers to marketing planning. The second part provides guidelines for the marketer which will ensure that the input to the marketing plan is customer focused and considers the strategic dimension of all of the relationships the organization has with its business environment. The third part provides a brief overview of a process for assessing whether the strategic marketing plan creates or destroys shareholder value, having taken account of the risks associated with the plan, the time value of money and the cost of capital. It also outlines other metrics for measuring the effectiveness of the marketing strategy. Keywords: strategic marketing, planning, world class, success factor, marketing accountability

Introduction Research into the efficacy of formalised marketing planning (Thompson 1962; Leighton 1966; Kollatt et al. 1972; Ansoff 1977; McDonald 1984; Greenley 1984; Piercy 1997; Smith 2003) has shown that marketing planning can make a significant contribution to commercial success. The main effects within organizations are: the systematic identification of emerging opportunities and threats preparedness to meet change the specification of sustainable competitive advantage improved communication among executives reduction of conflicts between individuals and departments the involvement of all levels of management in the planning process more appropriate allocation of scarce resources consistency of approach across the organization a more market-focused orientation across the organization
This article is © Malcolm McDonald, 2006, and is used under licence. It also appears as a chapter in

References: Ansoff, H.I. (1977), “The state and practice of planning systems”, Sloan Management Review, 18 (2), pp. 1-24. (Article on planning systems by a leading writer on strategy). Bailey A, Joshua, G. and Daniel, K. (2000), “Validation of a MultiDimensional Measure of Strategic Development Process”, BJM, 2(22), pp.151-162. Burns, P. (1994) Growth in the 1990s: winner and losers, Special Report 12, 31 European Enterprise Centre, Cranfield School of Management, UK. Buzzell, R. D. and Gale, B. T. (1987), The PIMS Principles: Linking Strategy to Performance, New York: Free Press. Caulkin, S, (2005), “Escape from the budget straightjackets”, Management Today, January, pp.47-49. Greenley, G. (1984) “An exposition into empirical research into marketing planning”, Journal of Marketing Management, 3(1), pp.83-102. (This paper reviews all recent empirical research into the process of marketing planning, conclusion that it remains one of the most difficult domains in the whole field of marketing). Kelly, S. (2005),“Customer Intelligence“, Wiley Kollatt, D.J., Blackwell, R.D. and Robeson, J.F. (1972) Strategic Marketing, New York: Holt, Rinehart & Winston. (standard textbook on strategic marketing, including sections on planning.) Lubatkin, M. and Pitts, M. (1985) “The PIMS and the Policy Perspective: a Rebutta”, Journal of Business Strategy, Summer, pp.85–92. Leighton, D.S.R. (1966), International Marketing: Text and Cases, New York: McGraw-Hill. (This textbook includes a useful section on planning in international marketing). McDonald, M. (1982), “The Theory and Practice of Industrial Marketing Planning”, Cranfield PHD thesis. McDonald, M.H.B. (1984), “The Theory and Practice of Marketing Planning for Industrial Goods in International Markets”, PhD thesis, Cranfield: Cranfield Institute of Technology. (This thesis investigated marketing Strategic Marketing Planning: Theory and Practice 417 planning with special reference to industrial goods.) McDonald, M. (1994), Marketing – the Challenge of Change, Chartered Institute of Marketing Study. McGovern, G.J. Court, D, Quelch, J.A. and Crawford, B. (2004), “Bringing Customers into the Boardroom”, Harvard Business Review, November 2004, 82(11), pp. 70-80. Piercy, N.F. (1997), Market-led Strategic Change – Transforming the Process of Going to Market, 3rd edn, Oxford: Butterworth-Heinemann. Piercy, N.F. (2000), Market-Led Strategic Change: Transforming the Process of Going to Market, 2nd edn, Oxford: Butterworth-Heinemann. (Back to basics book which forces the reader to confront critical questions in the organization of marketing and asks how the processes of marketing, planning and budgeting are managed). Porter, M. (1980), Competitive Strategy: Techniques for Analysing Industries and Competitors, New York: Free Press. Saunders, J. and Wong, V. (1993), “Business Orientations and Corporate Success”, Journal of Strategic Marketing, 1(1), pp. 20–40. Smith, B.D. (2003), “The Effectiveness of Marketing Strategy Making in Medical Markets”, Cranfield University PhD, 2003. Thompson, S. (1962) How Companies Plan, AMA Research Study no.54, Chicago, IL: AMA. (Report on research study conducted on behalf of the American Marketing Association). Further Reading Brown, S. (1996) “Art or Science?: Fifty Years of Marketing Debate”, Journal of Marketing Management, 12, pp. 243–267. This fascinating and highly readable paper discusses the eternal debate about whether marketing is more art than science. It is recommended here because readers should never lose sight of the need for strategic marketing plans and the process that produces them to be creative as well as diagnostic. Leppard, J. and McDonald, M. (1987) “A Reappraisal of the Role of Marketing Planning”, Journal of Marketing Management, 3(2). This paper throws quite a considerable amount of light onto why marketing planning is rarely done. It examines the organization’s context in which marketing planning takes place and gives a fascinating insight into how corporate culture and politics often prevent the marketing concept from taking hold. McDonald, M. (1996) “Strategic Marketing Planning: Theory; Practice; and Research Agendas”, Journal of Marketing Management, 12(1–3), pp. 5–27. This paper summarizes the whole domain of marketing planning, from its early days to the current debate taking place about its contribution. It also explores forms of marketing planning other than the more rational/scientific one described in this chapter. 418 The Marketing Review, 2006, 4, 375-418 McDonald, M. (1999), Marketing Plans: How to Prepare Them; How to Use Them, 4th edn, Oxford: Butterworth-Heinemann This book is the standard text on marketing planning in universities and organizations around the world. It is practical, as well as being based on sound theoretical concepts. About the Author Malcolm McDonald was, until recently, Professor of Marketing and Deputy Director, Cranfield School of Management with special responsibility for E-Business. He is Chairman of six companies and spends much of his time working with the operating boards of the world’s biggest multinational companies, such as IBM, Xerox, BP and the like, in most countries in the world, including Japan, USA, Europe, South America, ASEAN and Australasia. He has written forty books, including the best seller “Marketing Plans; how to prepare them; how to use them” and many of his papers have been published. His current interests centre around the use of information technology in advanced marketing processes and global best practice key account management.