Value Proposition vs Mission Statement: Difference and Comparison

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.

Key Takeaways

1. A value proposition is a concise statement that communicates the unique benefits a company offers its customers, while a mission statement outlines its purpose and overall goals.
2. The value proposition focuses on the customer and differentiates a company from its competitors, while the mission statement is an internal guiding principle for a company’s actions and decision-making.
3. A strong value proposition can drive customer acquisition and retention, while a clear mission statement helps align employees and stakeholders with the company’s vision.

Value Proposition vs Mission Statement

A value proposition should be clear, concise, and focused on solving a specific customer problem or meeting a specific customer need while being relevant, credible, and differentiated from competitors. A mission statement should be inspiring, memorable, and meaningful to both employees and customers.

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 be short, a short paragraph or even one sentence. They will define a company’s values, culture, goals, ethics, and agenda. It will be important to all players’ even employees, investors, and shareholders, along with the whole community.

Comparison Table

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.”

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 tangible and intangible benefits 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 through its website or other marketing or 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 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 fulfil 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 a company’s values intermingle with theirs.

Main Differences Between Value Proposition and Mission Statement

1. 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.
2. 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.
3. 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, and ethics.
4. 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.
5. Value propositions will encompass a consumer’s touchpoint with a brand, while mission statements can sell or even ruin some companies.

References

1. https://link.springer.com/article/10.1007/s11747-017-0523-z