Marketing Program Planning, Process Benefits,
and Store Performance: An Initial Study
Among Small Retail Firms
JEFFREY S. CONANT
Texas A&M University
J. CHRIS WHITE
University of Central Florida
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 mixed 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.
Owners of very small businesses often tell me that they don’t have time to prepare a
marketing plan, or that formalized plans are too burdensome, too time-consuming for their
small enterprise. They say it’s OK for the large companies, but unnecessary for them.
—-Goetsch (1993)
Although thinking critically about the future has numerous benefits, many independent
retail firms do not seem to regularly engage in marketing planning (Gable and Topol,
1987; Logan, 1995). Their lack of planning is certainly understandable. Small retail firms
Jeffrey S. Conant is associate professor of marketing and member, Center for Retailing Studies Faculty
Committee, Lowry Mays College & Graduate School of Business, Texas A&M University, College Station, TX
(e-mail: j-conant@tamu.edu). J. Chris White is assistant professor of marketing, College of Business Admin-
istration, University of Central Florida, Orlando, FL (e-mail: chris.white@bus.ucf.edu).
Journal of Retailing, Volume 75(4) pp. 525–541, ISSN: 0022-4359
Copyright (C) 1999 by New York University. All rights of reproduction in any form reserved.
525
and Store Performance: An Initial Study
Among Small Retail Firms
JEFFREY S. CONANT
Texas A&M University
J. CHRIS WHITE
University of Central Florida
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 mixed 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.
Owners of very small businesses often tell me that they don’t have time to prepare a
marketing plan, or that formalized plans are too burdensome, too time-consuming for their
small enterprise. They say it’s OK for the large companies, but unnecessary for them.
—-Goetsch (1993)
Although thinking critically about the future has numerous benefits, many independent
retail firms do not seem to regularly engage in marketing planning (Gable and Topol,
1987; Logan, 1995). Their lack of planning is certainly understandable. Small retail firms
Jeffrey S. Conant is associate professor of marketing and member, Center for Retailing Studies Faculty
Committee, Lowry Mays College & Graduate School of Business, Texas A&M University, College Station, TX
(e-mail: j-conant@tamu.edu). J. Chris White is assistant professor of marketing, College of Business Admin-
istration, University of Central Florida, Orlando, FL (e-mail: chris.white@bus.ucf.edu).
Journal of Retailing, Volume 75(4) pp. 525–541, ISSN: 0022-4359
Copyright (C) 1999 by New York University. All rights of reproduction in any form reserved.
525
