Basic objective of running a business is value addition, value addition can be monetary as well as non monetary. Monetary value addition is the prime focus of any business organization for which it formulates many strategies. These strategies are made in the field of finance, production, marketing, etc. Here in this article we are going to discuss how to add value to the company and marketing plan by creating a mission statement.
First of all we need to understand about mission statement. Mission statement of a company defines its culture, ethics, goals and values. Prospective stakeholders of a company may also refer a mission statement to know whether the value system of the company aligns with theirs or does it need some improvement. Mission statements are not limited to only large companies but most of the successful entrepreneurs have a clear mission and vision statement for their business.
Now let’s focus on how an appropriate mission statement can help in value addition of the business as a whole. There are 3 main elements in a mission statement which are explained below:
Purpose: Purpose here means purpose of business. Different business houses have different purposes, for some it may be shareholder’s wealth maximization while for others it may be growth and development of the industry. Purpose should be clearly stated in the mission statement because all other aspects should be aligned with main objective of the business.
Strategy and scope: A mission statement defines two things –
Products or services that the organization is offering to its customers
Competencies of the company i.e., it defines the extent of operations of the company so that business leaders should have a clear idea regarding their business targets.
Values: Values also includes culture that leaders want to incorporate in their organization. It may be stated in the form of business principles, commitment level required from the employees, expected behavior, etc.
Business houses today work in a dynamic environment where things are changing every moment. To cope with these momentary changes, every business needs to update and upgrade its strategies and plans regularly in which marketing plan plays a significant role. A marketing plan is a written document which describes the efforts and that company is going to put in the area of advertising and marketing in the coming financial year. Marketing plan assignment gives an organized approach of developing and implementation of marketing goals.
Formulating a marketing plan will help a company to accurately estimate fund requirement, feasible sources to raise funds and effective allocation of funds. For this, company needs to prepare a mission statement for marketing plan which should state the purpose of marketing, strategies it wants to follow and values which should be kept in mind while implementation. To have a separate mission statement for marketing plan helps the company attaining following advantages:
- It helps people in the organization to know what is going to happen, when is it going to happen and how is it going to happen. This in turn helps to avoid any conflict or chaos in the organization.
- Mission statement gives a clear description of the target market for the company so that all the marketing efforts are put only to acquire the target market. However, target market is not restricted to a geographical region or area, it may extend as much as the company wants. For example: target market of Google is the world which it has been able to achieve with the help of a good mission statement and several other factors.
- It also prepares the business to cope with any unforeseen actions or events because company will have its mission handy which will help to take actions in situation of emergency without deviating from the goals of the company.
Mission statement also helps to provide methods of screening the marketing plan and to check whether marketing decisions taken are consistent with the mission or not. It also provides methods for evaluation of the extent of implementation of marketing plan.
- Mission statement also helps each and every employee to know their individual role in marketing planning and in the success of the organization. This also creates a motivation in the employees as they know their roles and importance very well and are able to work for it.
- Also a good mission statement is prepared from long term point of view which widens the perspective of conducting operations and also increases the chances of survival and growth of the business.
- Mission statement also deals with the advantages that the business provides to its customers and stakeholders. This helps to build a long term relationship with the customers and which proves to be the most effective marketing strategy.
- A good mission statement enhances the effectiveness of marketing planning and overall operations of the business. So, company should not overlook the formulation of mission statement and also its importance in the success of the company at a global level
To conclude, company should create a mission statement carefully to make sure it has the characteristics like market oriented, motivation, clear, realistic, easy to understand, etc. Mission statement guides the marketing planning by stating the purpose of planning, reviewing the business goals and objectives. It also provides a framework of how the marketing plan should be to achieve the objectives of the organization. And hence,we can say that creating a Mission Statement helps in value addition to the company and marketing plan.