Formal Marketing Planning in Small and Medium-Sized Enterprises vs. Large Companies and its Impact on Performance: The Case of Macedonia

Abstract

Numerous theories and practices show that with strategic planning, enterprises can resolve many problems and barriers that arise in their work, as well as lay the foundation for innovation in the market. Yet practice indicates that strategic planning, especially strategic marketing planning is not always the rule, particularly in small and medium sized enterprises (SMEs). Despite of the numerous examples that affirm the importance of marketing planning, this paper does not claim that the operation and survival of an enterprise are impossible in the absence of marketing planning. Rather, it provides evidence that marketing planning is positively related to and largely determines the success of the business performance of companies that offer consumer products and work in a highly competitive environment. In addition, the analysis is aimed at challenging and rejecting the hypothesis that arises from the research "Profitability of enterprises doesn’t depend on the continued preparation of a written marketing plan", given that the analyzed literature suggests that a logical output of formal planning should be practice of continuous preparation of a written plan.

Key Words: formal marketing planning, small and medium – sized enterprises, large companies, company performance