Nowadays brands try to survive in the competitive market. This depends on the services and products they give and how they package these.
Brands can communicate their offerings to potential consumers through a value proposition along with a mission statement. Both terms however are different.
Value Proposition vs Mission Statement
The difference between a value proposition and a mission statement is that a value proposition is a declaration that communicates what the value of some product is to consumers and why they should buy it.
On the other hand, the mission statement is how a brand explains its purpose for existing.
The value proposition will summarize the way that brands will deliver the promise along with the value that they claim consumers can benefit from.
It shows the reasons why a particular brand is unique and one to choose in today’s market. Value propositions will not be indirect, vague, etc.
A mission statement must be clear and catchy. These will generally be short and are usually a short paragraph or even one sentence. They will define what a company’s value is, its culture, goals, ethics along with agenda. It will be important to all players’ even employees, investors, and shareholders, along with the whole community.
|Parameters of Comparison||Value Proposition||Mission Statement|
|Definition||A declaration that will communicate the value of some product to consumers and why they should buy it||A phrase that will explain a brand’s purpose for existing, in simple terms|
|Importance||Shows why some brand is unique and the best amongst competitors||Will define a company’s value, agenda, culture, ethics, plus goals|
|Components||Answers the who, why, how, questions about products and customers||Answers what a company pursues, how it carries out its work, and why it does the certain work|
|Main feature||Is more product along with service-oriented||Is more goal-oriented|
|Example||“A simple-to-use CRM.”||“To aid businesses to expand better.”|
Want to save this article for later? Click the heart in the bottom right corner to save to your own articles box!
What is Value Proposition?
A value proposition in the marketing field tends to be a concise statement of the advantages that some company is providing to consumers who purchase its products and services. It behaves like a declaration of intent. This will be inside the company and even in the marketplace.
It can be said to be a clear and simple statement of benefits, tangible and intangible, that a particular company will give, and the approximate cost it aims to charge every customer segment for the benefits.
In other words, a company’s value proposition will let a customer know the main reason why a certain product or service is perfect for that specific customer.
A value proposition must be communicated to a customer directly, either through its website or through some other marketing or even advertising materials.
A successful value proposition will be persuasive and aids in transforming a prospect into a paying customer.
It can follow different formats, but it should be “on brand” and unique as well as specific to the company that is being taken into consideration here.
The value proposition will be like a promise that a company gives to its customer or market segmentation.
What is Mission Statement?
A mission statement will be employed by a company to explain, in simple terms, what its purpose or purposes are of being. The statement will often be short, such as a single sentence or some short paragraph.
Mission statements tend to serve some purposes, like motivating employees as well as reassuring investors of a company’s future.
When making a mission statement, one can think about how the company impacts customers, donors, investors, and the community. You should state why you aim to help these parties out.
Mission statements aid employees in remaining focused on the activities at hand. It encourages them to look for innovative methods of moving toward increasing productivity to fulfill company goals.
A mission statement will define a company’s culture, values, ethics, main goals, and agenda. It will define how each of these can apply to a company’s stakeholders like its employees, distributors, shareholders, etc.
These entities may utilize this statement to align their own goals with that of the specific company.
The statement tells what a company does, the way it does it, and the reasons for doing it. A prospective investor can even refer to the mission statement to know if the values of a company intermingle with theirs.
Main Differences Between Value Proposition and Mission Statement
- Value proposition deals with the emotional, self-expressive as well as functional advantages that a consumer gets from the brand while the mission statement will define the way that a brand is different.
- A value proposition will be a declaration that lets consumers know the value of the product while a mission statement will be a phrase that will explain the brand’s purpose for existing.
- Value propositions let people know why a certain brand is unique from the competition while mission statements can define the company’s values, culture, goals, agenda, as well as ethics, are.
- Value proposition deals with the who, what, how, and also why questions about products and even consumers while mission statements answer what some company does, how it carries this out, and why it does this work.
- Value propositions will encompass a consumer’s touchpoint with a brand while mission statements can sell or even ruin some companies.
I’ve put so much effort writing this blog post to provide value to you. It’ll be very helpful for me, if you consider sharing it on social media or with your friends/family. SHARING IS ♥️
Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.