MISSION
STATEMENT
THEORY
AND
PRACTICE:
A
CONTENT
ANALYSIS
AND
NEW
DIRECTION
Meredith
E.
David
Baylor
University
Forest
R.
David
Strategic
Management
Textbook
Author
Fred
R.
David
Francis
Marion
University
ABSTRACT
This
study
provides
a
theoretical
foundation
for
researchers
to
examine
mission
statements
from
a
customer
perspective,
although
historically
these
statements
have
been
used
almost
exclusively
in
a
management
context.
A
content
analysis
of
nine
mission
statements
provides direction for researchers to examine statements, and practitioners to create and modify
statements,
from
a
customer
perspective.
This
study
contributes
to
the
marketing
literature
by
“initiating
a
new
direction
for
mission
statement
theory
and
practice,
whereby
statements
are
examined and written in a way to attract and keep customers externally, rather than solely being
used
internally
in
strategic
planning
and
to
motivate
employees/managers.”
This
study
marries
the
mission
statement
and
customer
satisfaction
literatures,
creating
a
fruitful
new
area
for
marketing research and practice. The new approach will hopefully enable mission statements to
finally,
after
thirty
years
of
management
research,
accomplish
their
mission
as
a
core
part
of
marketing strategy.
Keywords:
Mission statements, strategic planning, marketing strategy, customer satisfaction
INTRODUCTION
The natural role and importance of mission statements have been examined for over three
decades
in
the
management
literature
(Pearce,
1982;
Pearce
&
David,
1987;
Powers,
2012).
However,
mission
statements
have
received
much
less
attention
in
the
marketing
literature,
despite
their
perceived
importance
in
marketing
strategy
(Amato
&
Amato,
2002;
Sashittal
&
Tankersley, 1997).
This void in the marketing literature is surprising given mission statements
could be used in formulating and implementing marketing strategy.
In this article, we propose
mission
statement
content,
research,
and
practice
be
realigned
from
an
internal,
management
focus
to
an
external,
marketing
focus
in
order
to
enhance
customer
satisfaction
(Amato
&
Amato, 2002; Braun et al., 2012).
A new direction for mission statement theory and practice is
suggested,
whereby
statements
are
examined
and
written
in
a
manner
to
attract
and
keep
customers
(Amato
&
Amato,
2002).
Specifically,
this
study
offers
a
theoretical
and
practical
foundation
for
mission
statements
to
be
examined,
developed,
and
written
from
a
customer
perspective. A foundation for mission statements to be used to create and nurture an emotional
bond with customers is provided. The customer-focused perspective offered herein is new to the
mission
statement
literature,
and
is
vastly
different
than
the
typical
manager
and
employee-
focused perspective evident in prior research and practice.
International Journal of Business, Marketing, and Decision Sciences Volume 7, Number 1, Summer 2014 95
The content analysis of real mission statements provided herein yields both research and
practical
guidelines
for
firms
to
create,
modify,
and
use
their
mission
statement
to
improve
customer satisfaction.
Toward this end, actual mission statements are critiqued from a customer
perspective, and new, exemplary statements are proposed for several firms.
It is anticipated that
reveal how future raters (researchers) could examine the extent that statements are written from a
customer
perspective.
In
total,
we
anticipate
the
new,
customer-focused,
rather
than
manager/employee-focused,
approach
to
mission
statement
research
and
practice
will
enable
these statements to finally fulfill their potential as a core part of marketing strategy (Smith et al.,
2001).
This study marries the mission statement and customer satisfaction literatures, creating a
fruitful new area for marketing research
and practice. The new approach
will hopefully enable
mission
statements
to
finally,
after
thirty
years
of
management
research,
accomplish
their
mission as a core part of marketing strategy.
LITERATURE
REVIEW
Mission
Statements
in
Management
Current thought on mission statements is based largely on guidelines set forth in the mid-
1970s by Peter Drucker (1974, p. 61), who is often called “the father of modern management.”
Drucker
says
asking
the
question
“What
is
our
business?”
is
synonymous
with
asking
the
question
“What
is
our
mission?”
A
mission
statement
is
a
declaration
of
an
organization’s
“reason for being” and distinguishes one organization from other similar enterprises (Campbell
& Yeung, 1991; Pearce, 1982; Pearce & David, 1987).
Various
benefits
of
having
a
clear
mission
statement
are
provided
in
the
management
literature (Analoui & Karami, 2002; Atrill, Omran, & Pointon, 2005; Bart & Baetz, 1996; Braun,
et.
al.,
2012).
For
example,
King
and
Cleland
(1979,
p.
88)
recommend
that
organizations
carefully develop
a
written
mission
statement
in
order
to
reap
the
following
benefits:
1)
make
sure all employees and managers understand the firm’s purpose or reason for being; 2) provide a
basis
for
prioritization
of
key
internal
and
external
factors
utilized
to
formulate
feasible
strategies; 3) provide a basis for the allocation of resources; and 4) provide a basis for organizing
work,
departments,
activities,
and
segments
around
a
common
purpose. Overall,
the
management literature suggests that carefully prepared mission statements are widely recognized
by both practitioners and academicians as the first step in strategic management, such that a clear
mission
statement
is
essential
for
effectively
establishing
objectives
and
formulating
strategies
(Collins & Rukstad, 2008; David, 1989; Powers, 2012).
Mission statements have been examined as a key indicator of organizational performance
(Atrill,
Omran,
&
Pointon,
2005;
Bart
&
Baetz,
1998;
Desmidt,
Prinzie,
&
Decramer,
2011;
Palmer & Short, 2008; Rarick & Vitton, 1995). However, research results are mixed regarding
their
impact
on
firm
performance
(Atrill,
Omran,
&
Pointon,
2005;
Collins
&
Rukstad,
2008;
Palmer
&
Short,
2008). A
meta-analysis
of
20
years
of
empirical
research
on
mission
statements,
concluded
“there
is
a
small
positive
relation
between
mission
statements
and
measures of financial organizational performance,” but the exact magnitude of the relationship is
influenced
by
operationalization
decisions
(Desmidt,
Prinzie,
&
Decramer,
2011,
p.
468).
Overall, the management literature suggests that the relationship between mission statements and
96 International Journal of Business, Marketing, and Decision Sciences Volume 7, Number 1, Summer 2014
organizational
performance
is
quite
weak
(Desmidt,
Prinzie,
&
Decramer,
2011).
However,
extant
literature
in
marketing
explains
that
customer
satisfaction
has
a
strong
positive
relationship
with
organizational
performance
(Devasagayarm,
Stark,
&
Valestin,
2013;
Lundberg,
1984;
Luo,
Wieseke,
&
Homburg,
2012). Indeed,
researchers
have
noted
that
“managers increasingly tend to see customer satisfaction as a valuable intangible asset and thus
as an important corporate target” (Luo, Wieseke, & Homburg, 2012, p. 745).
Similarly, Valentin
(1996,
p.
16)
said:
“entire
business
organizations,
not
just
marketing
departments,
should
be
customer oriented.”
Extant literature suggests that mission statement can and should be used to
create an “emotional bond” and “sense of mission” between an organization and its employees
(Campbell
&
Yeung,
1991). Thus,
and
as
discussed
next,
we
infer
that
customer-centered
mission
statements,
designed
from
a
customer
perspective,
could
positively
impact
organizational performance by enhancing customer satisfaction (Rarick & Vitton, 1995).
Marketing
Considerations
Although examined and researched predominantly in the management literature, mission
statements
are
considered
to
be
important
in
marketing
strategy
and
planning
(Sashittal
&
Tankersley,
1997;
Valentin,
1996).
The
American
Marketing
Association
(AMA)
defines
mission
statement
as
“an
expression
of
a
company’s
history,
managerial
preferences,
environmental
concerns,
available
resources,
and
distinctive
competencies
to
serve
selected
publics used to guide a firm’s decision-making and strategic planning.”
Largely because mission
statements have historically lacked a customer perspective, customers of many firms often do not
know
whether
the
firm
has
a
statement
(Bart
&
Baetz,
1996;
Bartkus,
Glassman,
&
McAfee,
2000; Collins & Rukstad, 2008); the present paper aims to change this business reality.
All
marketing
activities
involving
direct
or
indirect
contact
with
customers
can
be
enhanced when those endeavors
are based on
a firm’s basic mission (Amato & Amato, 2002).
Since consumer needs and desires are at the core of marketing strategy, the authors of this study
anticipate
that
mission
statements
written
from
a
customer
perspective
could
help
with
the
implementation of marketing strategy.
Effective marketing hinges on a firm communicating its
overarching purpose and competitive advantage; mission statements can be helpful in this regard.
A clear sense of business mission is arguably the foundation for communication with customers.
Mission statements could be an important basis for marketing communication with outside-the-
firm
constituencies,
especially
customers
(Amato
&
Amato,
2002;
Desmidt,
Prinzie,
&
Decramer, 2011; Sidhu, 2003).
For example, a customer-centered mission statement may enable
a
firm
to
more
effectively
engage
in
advertising,
promoting,
publicity,
selling,
and
other
marketing activities to induce customers to develop an attachment, connection, or bond with the
firm (Dagger & David, 2012; Sashittah & Tankersley, 1997).
Managers
from
various
functional
areas
and
levels
of
the
firm
should
be
included
in
development and modification of a corporate mission statement (Braun et al., 2012).
Marketing
sales representatives and managers should have input into devising and writing the statement to
best
assure
that
marketing
goals,
such
as
enhancing
customer
satisfaction
and
providing
exemplary
customer
service,
are
included
(Rego,
Morgan,
&
Fornell,
2013).
Historically,
however, marketers are most often not involved, partly because the statements (and prior related
research) lack a customer perspective.
The process by which mission statements are developed and the exact language/wording
included
in
the
statement
can
significantly
impact
their
effectiveness
as
a
tool
for
strategic
International Journal of Business, Marketing, and Decision Sciences Volume 7, Number 1, Summer 2014 97
management
and
marketing
strategy
(Kemp
&
Dyer,
2003). Ideally,
firms
strive
to
have
customers exhibit an emotional bond with the firm’s products/services and be “on a mission” to
use and promote those offerings (Rego, Morgan, & Fornell, 2013). For example, many of Avon
and
L’Oreal’s
customers
today
portray
an
emotional
bond
or
attachment
with
the
firm.
(Proposed
mission
statements
for
these
two
firms
are
examined
later
in
this
paper).
As
an
extension of prior research, we propose that mission statements be developed and used to foster
customer satisfaction and create a bond between a firm and its customers.
Involving marketers
and sales representatives in the mission statement development process, coupled with including
the
appropriate
content,
could
enable
firms
to
create
an
emotional
bond
with
customers,
and
enhance the likelihood that salespersons would be “on a mission” to provide excellent customer
service.
Appropriately written,
mission
statements
could
reassure
constituencies
that
the
firm
is
customer
focused
and
driven
(Devasagayam,
Stark,
&
Valestin,
2013).
If
written
from
a
customer perspective, mission statements could spur employees, salespersons, and managers to
provide
exemplary
customer
service,
which
arguably
would
enhance
customer
loyalty,
and
translate into customers being “on a mission” to seek out, use, and promote the firm’s products
and services (Luo, Wieseke, & Homburg, 2012; Bart & Baetz, 1996).
If written from a customer
perspective, mission statements perhaps may accomplish their mission (Smith, et. al. 2001), be
more
than
smoke
and
mirrors
(Bartkus,
Glassman,
&
McAfee,
2000),
contribute
to
customer
satisfaction
(Devasagayam,
Stark,
&
Valestin,
2013),
and
positively
impact
organizational
performance (Peyrefitte & David, 2006).
Characteristics
and
Components
Mission statements can and do vary in length, content, format, and specificity (Kemp &
Dwyer, 2003; Palmer & Short, 2008; Smith et al., 2001). However, mission statements should be
informative, inspiring, enduring, concise, clear, and conducive to both employees and customers
forming
an
emotional
bond
with
the
firm.
Specifically,
prior
research
suggests
that
a
mission
statement
is
most
effective
when
it
is
approximately
100
words
in
length,
and
when
it
avoids
inclusion
of
monetary
amounts,
numbers,
percentages,
ratios,
or
objectives
(David
&
David,
2003; Davies & Glaister, 1997; Kemp & Dwyer, 2003).
Most
practitioners
and
academicians
of
strategic
management
assert
that
an
effective
mission
statement
should
include
nine
components:
1)
customers,
2)
products
or
services,
3)
markets, 4) technology, 5) concern for survival, growth, and profitability, 6) philosophy, 7) self-
concept,
8)
concern
for
public
image,
and
9)
concern
for
employees
(Baetz
&
Bart,
1996;
O’Gorman & Doran, 1999; Pearce & David, 1987).
However, our review of the extant literature
reveals
that
prior
research
has
not
examined
whether
the
nine
components
are
written
from
a
customer
perspective.
No
prior
findings
address
the
potential
positive
aspects
of
customer-
oriented statements (McGinnis, 1981; Powers, 2012). Despite this specific void in the literature,
we
extrapolate
from
prior
research
that
the
nine
components,
written
from
a
customer
perspective, could individually and collectively enable mission statements to be used as a basis
for
marketing
communication
with
customers
(Amato
&
Amato,
2002;
Powers,
2012;
Rego,
Morgan,
&
Fornell,
2013).
The
content
of
a
firm’s
mission
statement
does
matter
and
could
represent a competitive advantage or disadvantage for a firm (Peyrefitte & David, 2006; Smith et
al., 2001).
98 International Journal of Business, Marketing, and Decision Sciences Volume 7, Number 1, Summer 2014
A
CONTENT
ANALYSIS
To
exemplify
how
the
literature-derived
nine
mission
statement
components
could
be
written
from
a
customer
perspective,
a
mission
statement
“customer
perspective”
content
analysis for a hypothetical charter boat fishing company is provided in Table 1.
For example, the
company’s customers are “outdoor enthusiasts.”
“Customers” is a key component to include in a
mission
statement
(Pearce
&
David,
1987;
Powers,
2012),
but
simply
including
the
word
“customer” or “consumer,” as recorded in prior research, should not qualify that component to be
considered as “written from a customer perspective.”
The authors contend the statement needs
to identify more precisely the target groups of customers. Examples provided in Table 1 for all
nine
components
are
couched
from
a
customer
perspective
in
order
to
provide
guidance
for
“raters”
(researchers)
to
effectively
rate
in
future
research,
and
writers
(practitioners)
to
effectively write mission statements.
Table
1
M
ission Statement Components Defined and Exemplified From A Customer Perspective
1.
Customers—Who
are
the
firm’s
customers?
Example:
Our
customers
are
outdoor
enthusiasts seeking fishing excitement and adventure.
2.
Products
or
services—What
are
the
firm’s
major
products
or
services?
Example:
We
provide fast, clean boats, all the bait and tackle needed, and friendly first mates to create
memories for a lifetime.
3.
Markets—Geographically,
where
does
the
firm
compete?
Example:
Our
fleet
of
fast,
clean vessels operate all along the Florida Gulf Coast.
4.
Technology—Is
the
firm
technologically
current?
Example:
Our
vessels
are
equipped
with
the
very
latest
safety
and
fish
finding
equipment
to
insure
that
customers
comfortably are “catching rather than just fishing.”
5.
Concern
for
survival,
growth,
and
profitability—Is
the
firm
committed
to
growth
and
financial
soundness?
Excellent:
Our
prices
are
as
low
as
possible to
provide
customers
great
value
in
conjunction
with
high
employee
morale
and
a
reasonable
return
for
our
owners.
6.
Philosophy—What are the basic beliefs, values, aspirations, and ethical priorities of the
firm? Example: We assure customers the upmost courtesy and care as our motto on every
vessel is to follow the Golden Rule.
7.
Self-concept—What
is
the
firm’s
distinctive
competence
or
major
competitive
advantage?
Example:
For
customer
enjoyment
and
safety,
we
provide
the
most
experienced staff in the industry.
8.
Concern
for
public
image—Is
the
firm
responsive
to
social,
community,
and
environmental concerns? Excellent: Our vessels use emission-friendly engines; we strive
to bring repeat tourists to all communities where we operate.
9.
Concern for employees—Are employees a valuable asset of the firm? Example: Our on-
the-water and off-the-water employees are “on a mission” to help customers have a great
time.
Focusing on the “product/service” component, a mission statement should reveal the “intrinsic
value”
or
“utility”
that
the
firm’s
products/services
provide
to
customers,
and
do
so
in
a
thoughtful
manner.
The
charter
fishing
company,
for
example,
provides
“memories
for
a
International Journal of Business, Marketing, and Decision Sciences Volume 7, Number 1, Summer 2014 99
lifetime.” Similarly, a cosmetics firm, such as Avon and L’Oreal’s, mission statement could say
the company sells “beauty” – not simply fragrances and perfumes. We anticipate future empirical
research to determine that product/service, and indeed all nine components, when written from a
customer perspective, will be positively associated with high customer satisfaction scores.
Another important component among the nine examined in previous research is “self concept,”
or “distinctive competence,” whereby the firm reveals the major competitive advantage that its
products/services
provide
to
customers
(Pearce
&
David,
1987;
Powers,
2012).
For
the
hypothetical charter company, “self-concept” is written from a customer perspective, we suggest
as
an
example,
by
the
phrase:
“for
customer
enjoyment
and
safety,
we
provide
the
most
experienced staff in the industry.”
A
Critique
of
Existing
Statements
To
provide
further
guidance
for
researchers
rating
and
practitioners
writing
mission
statements, we collected, read, and analyzed four mission statements randomly selected from a
list
of
Fortune
500
companies.
The
sample
included
statements
from
Fleetwood
Enterprises,
PepsiCo,
Royal
Caribbean,
and
Dell,
as
given
in
Table
2,
along
with
our
component-by-
component
content
analysis
of
the
statements.
In
performing
this
analysis,
three
researchers
jointly read,
discussed,
and
decided
for
each
sample
statement
what
components
were
present
and
written
from
a
customer
perspective.
We
used
the
definitions
and
examples
provided
in
Table 1,
coupled
with
guidelines
used
in
prior studies
(Kemp
&
Dyer,
2003,
Pearce
& David,
1987; Powers, 2012), as the guide for our content analysis reported in Table 2 - even though no
prior studies specifically used a customer perspective approach for examining mission statement
content.
In
Table
2,
Dell’s
statement
was
deemed
best
among
the
sample
because
it
includes
seven of the nine components, and does so in only 56 words.
The Royal
Caribbean statement
lacks inclusion of six
of the nine components, comprises 86 words total,
and lacks
a customer
perspective.
The
Fleetwood,
Royal
Caribbean,
and
Dell
statements
merely
include
the
word
customer
or
customers;
we
deemed
that
insufficient
for
adequate
“inclusion
of
the
customer
component written from a customer perspective.” Rather, in assessing or devising the “customer”
component,
we
required,
and
suggest
for
future
writers,
that
the
statement
reveal
the
core
group(s) of customers targeted in the firm’s marketing efforts. For example, for banks, the target
groups
may
be
residential
customers,
large
corporations,
small
businesses,
and
not-for-
profit/governmental
organizations
–
rather
than
a
bank
mission
statement
simply
saying
“we
have customers.”
100 International Journal of Business, Marketing, and Decision Sciences Volume 7, Number 1, Summer 2014
Table
2
Four
Actual
Mission
Statements
Critiqued
Fleetwood
Enterprises
-
Fleetwood
Enterprises
will
lead
the
recreational
vehicle
and
manufactured housing industries (2) in providing quality products, with a passion for customer-
driven
innovation
(7).
We
will
emphasize
training,
embrace
diversity
and
provide
growth
opportunities for our associates and our dealers (9). We will lead our industries in the application
of appropriate technologies (4). We will operate at the highest levels of ethics and compliance
with a focus on exemplary corporate governance (6). We will deliver value to our shareholders,
positive operating
results
and
industry-leading earnings
(5).
(Author
comment: Statement
lacks
three components: Customers (1), Markets (3) and Concern for Public Image (8); 80 words)
PepsiCo
-
We
aspire
to
make
PepsiCo
the
world’s
(3)
premier
consumer
products
company,
focused
on
convenient
foods
and
beverages
(2).
We seek
to
produce healthy financial
rewards
for investors (5) as weprovide opportunities for growth and enrichment to our employees, (9)
our business partners and the communities (8) in which we operate. And in everything we do, we
strive to act with honesty, openness, fairness and integrity (6). (Author comment: Statement lacks
three components: Customers (1), Technology (4), and Self-Concept (7); 62 words)
Royal
Caribbean
-
We
are
loyal
to
Royal
Caribbean
and
Celebrity
and
strive
for
continuous
improvement
in
everything
we
do.
We
always
provide
service
with
a
friendly
greeting
and
a
smile
(7).
We
anticipate
the
needs
of
our
customers
and
make
all
efforts
to
exceed
our
customers’ expectations. We take ownership of any problem that is brought to our attention. We
engage
in
conduct
that
enhances
our
corporate
reputation
and
employee
morale
(9).
We
are
committed to act in the highest ethical manner and respect the rights and dignity of others. (6).
(Author
comment:
Statement
lacks
six
components: Customers
(1)
Products/Services
(2),
Markets (3), Technology (4), Concern for Survival/Growth/Profits (5), Concern for Public Image
(8); 86 words)
Dell, Inc. - Dell’s mission is to be the most successful computer company (2) in the world (3) at
delivering
the
best
customer
experience
in
markets
we
serve.
In
doing
so,
Dell
will
meet
customer expectations of highest quality; leading technology (4); competitive pricing; individual
and
company
accountability
(6);
best-in-class
service
and
support
(7);
flexible
customization
capability
(7);
superior
corporate
citizenship
(8);
financial
stability
(5).
(Author
comment:
Statement lacks two components:
Customers (1), Concern for Employees (9); 56 words)
Source:
Mission statements found at the various corporate websites.
Actual
Mission
Statements
Improved
To
provide
some
exemplary
statements,
three
researchers
randomly
selected
five
companies from a list of 100 manufacturing and service firms, located the firms’ actual mission
statement,
and
together
rewrote
the
statements
from
a
customer
perspective.
The
statements,
rewritten
from
a
customer
perspective,
are
presented
in
Table
3.
We
used
the
guidelines
from
prior
research,
coupled
with
our
proposed
customer-perspective
approach. The
improved
statements
include
all
nine
components
written
from
a
customer
perspective,
and
additionally,
are
inspiring,
concise,
and
comprise
fewer
than
90
words
each.
Regarding
the
“customer”
component, the new Best Buy statement refers to “individuals and businesses;” the new Lowes
International Journal of Business, Marketing, and Decision Sciences Volume 7, Number 1, Summer 2014 101
statement refers to “homebuilders and homeowners;” the improved Crocs statement refers to
“men, women, and children.” In contrast, the Crocs, Best Buy, Rite Aid, and Lowes actual
statements merely include (or not) the word customer or consumer.
Table
3
Five
Mission
Statements
Revised
to
Exhibit
Nine
Customer
Perspective
Components
Rite Aid - We are on a mission to offer the best possible drugstore experience for people of all
ages (1) around the United States (3). We have a state-of-the-art information system (4) that
provides our pharmacists (9) with warnings of any possible drug interactions to help better
ensure customer safety (8). We are determined to improve our customers’ overall health through
our wellness programs (5). We offer an extensive line of other beauty, food, drink, cosmetic, and
vitamin products through our alliance with GNC (2). We believe in treating our customers like
family (6) and strive to maintain our reputation as the most personable drugstore (7). (88 words
total)
Best
Buy
-
We
are
committed
to
providing
individuals
and
businesses
(1)
the
latest
high-tech
products (2) at the lowest prices of any retail store (7). Serving North America, China and other
markets (3), all Best Buy employees (9) are exceptionally knowledgeable about the products we
offer.
We
believe
good
ethics
is
good
business
(6)
and
use
business
analytics
(4)
to
better
understand customer trends. We strive to make a profit for our shareholders (5) and be a good
community citizen everywhere we operate (8). (72 words)
Lowes - We are committed to exceeding the expectations of our homebuilder, homeowner, and
other customers (1). We offer superior home improvement products (2) and expert advice (7) at
nearly
2,000
Lowe’s
stores
in
the
USA,
Canada,
and
Mexico
(3).
We
have
a
best-in-class
electronic in-store tracking system
(4) to
help
customers.
We continue to
create jobs
(8) in
all
communities where we operate. Up to 80 percent of our employees work are on a full-time basis
(9) and have high ethical standards (6). We put the customer first as we strive to grow profitably
for our shareholders (8). (88 words)
United Parcel Service (UPS) - We strive to be the most timely and dependable parcel and freight
forwarding delivery service (2) in the world (3). By implementing the latest tracking technology
(4), we are able to profitably grow (5) by offering individuals and businesses (1) dependable and
accurate delivery times
(7).
We promote from
within
to
improve morale
among
all
employees
(9).
Our
philosophy
(6)
is
to
responsibly
balance
the
needs
of
our
customers,
employees,
shareholders, and communities (8) in an exemplary manner. (68 words)
Crocs,
Inc.
-
Crocs
is
committed
to
providing
profound
comfort,
fun
and
innovation
in
all
the
shoe
models
(2)
we
produce.
Through
our
Croslite
technology
(4)
(7),
we
are
able
to
provide
men, women, and children (1) dependable and lasting comfort all day. We strive to expand our
brand
throughout
the
world
(3)
and
are
able
to
save
on
costs
(5),
while
protecting
the
environment (8) with our package-less shoes. We adhere to the belief that good
ethics is good
business (6) in all that we do as we strive to take care of our employees and shareholders. (85
words)
102 International Journal of Business, Marketing, and Decision Sciences Volume 7, Number 1, Summer 2014
In developing the improved mission statements in Table 3, our goal was to exemplify
how the nine components could be stated to potentially enhance customer satisfaction, especially
if communicated to customers by marketers and backed by company commitment to, and
implementation of the mission message (Devasagayam, Stark, & Valestin, 2013; Luo, Wieseke,
& Homburg, 2012; Rego, Morgan, & Fornell, 2013). The Crocs (footwear company) proposed
statement, for example, talks about “dependable and lasting comfort all day” and the UPS
proposed statement talks about “the most timely, dependable, and accurate delivery times in the
world.”
MANAGERIAL
IMPLICATIONS
The
essence
of
marketing
planning
is
to
change
the
marketing
mix
in
a
manner
that
allows
the
firm
to
continually
adapt
to
changing
consumer
preferences
and
competitive
conditions (Rego, Morgan, & Fornell, 2013). Mission statements can be helpful in this endeavor.
Customers of too few firms are “on a mission” to use and promote products/services consistent
with their “emotional bond” with the firm (Amato & Amato, 2002; Campbell & Yeung, 1991;
Sidhu, 2003). A mission statement, written from a customer perspective, could potentially help
create or reinforce this bond, compared to the existing practice of writing statements that include
(or not) nine components with no consideration for a customer perspective.
Two
Exemplary
Statements
Created
In the cosmetics industry, Avon and L’Oreal are two major rival firms that have uniquely
different
competitive
advantages.
As
indicated
in
the
two
proposed,
exemplary
mission
statements
in
Table
4,
Avon
utilizes
door-to-door
sales
representatives
to
gain
competitive
advantage, whereas L’Oreal markets products in thousands of retail outlets. The proposed Avon
and
L’Oreal statements
have the characteristics
described
above,
include the nine components,
and are written from a customer perspective. We offer the two statements as exemplary examples
of
the
new
customer
perspective
direction
we
propose
for
mission
statement
researchers
and
marketing strategy.
Table
4
Proposed
Mission
Statements
for
Avon
and
L’Oreal
Avon - To provide women (1) quality fragrances, cosmetics, and jewelry (2) at
reasonable prices backed by outstanding customer service provided by our thousands of door-to-
door
sales
representatives
(7,
9)
operating
globally
(3).
We
use
the
latest
technology
(4)
to
profitably
develop
and
market
products
desired
by
women
all
over
the
world
(5).
Avon
representatives
put
integrity
first
(6)
in
setting
a
good
example
in
every
community
(8)
they
operate -
as they sell beauty. (58 words)
L’Oreal - Our mission is to design, produce, and distribute the world’s best fragrances, perfumes,
and
personal
care
products
(2)
to
women,
men,
and
children
(1)
by
utilizing
the
latest
technological improvements (4). We empower our highly creative team of researchers to develop
safe, eco-friendly (7) products that will enable our firm to profitably grow (5) through thousands
of retail outlets. We strive to be one of the most socially responsible (8) firms on the planet (3)
and appreciate our employees (9) making that happen, while following the “golden rule” in all
that we do (6). (85 words)
International Journal of Business, Marketing, and Decision Sciences Volume 7, Number 1, Summer 2014 103
In
Table
4,
the
proposed
Avon
mission
statement
includes
the
nine
components
in
58
words,
and,
we
suggest,
provides
a
basis
for
an
emotional
bond
to
be
established
between
the
firm
and
its
customers.
For
example,
the
Avon
statement
reveals
that
if
you
purchase
Avon
products, you will be rewarded with “outstanding customer service” provided by a personal sales
representative
who
adheres
to
the
highest
ethical
standards,
while
providing
fragrances,
cosmetics, and jewelry that exhibit the highest technological advancements. There is quite a lot
in
that
brief
statement
that
an
Avon
customer
can
become
loyal
to,
especially when
the
Avon
marketing
representative
reinforces
the
statement
with
her
actions.
Synergy
among
the
nine
components is excellent in the Avon statement. Similarly, written from a customer perspective,
the proposed L’Oreal mission statement also provides a basis for an emotional bond to be formed
between the firm and its
customers. Potential customers are reassured in
the statement that the
company’s
fragrances,
perfumes,
and
personal
care
products
are
“organic”
and
developed
by
excellent
teams
of
researchers.
In
addition,
the
statement
reveals
that
the
company
does
great
philanthropy work and follows the “golden rule” in all endeavors. Customers may become more
dedicated
to
L’Oreal
when
they
see
the
company’s
marketing
communications
reinforce
the
basic
content
given
in
the
proposed
mission
statement. Loyal
customers
are
a
competitive
advantage for any firm.
Gaining
Competitive
Advantages
Developing
and
communicating
an
effective
mission
statement
could
aid
a
firm
in
gaining and maintaining competitive advantages
(O’Gorman
& Doran,
1999; Rarick
& Vitton,
1995).
Businesses
succeed
by attracting and
keeping customers,
and
they do
this
by providing
better
value
for
customers
than
rival
firms
(Valetin,
1996).
Marketers
continually
assess
customers’
changing
needs
and
wants
and
make
appropriate
adjustments
in
the
design
and
delivery
of
products
and
services
to
sustain
competitive
advantage
(Devasagyam,
Stark,
&
Valestin, 2013).
Mission
statements
are
not
just
words
that
look
nice
framed
or
engraved,
but
theoretically, and we propose practically as well, should provide a basis for marketing strategy
and action (Collins & Rukstad, 2008). A mission statement should reveal the reason a business
opens
its
doors
everyday,
the
reason
salespersons
sell,
and
the
reason
customers
buy.
The
statement
ideally is
the passion
behind
the company,
the foundation
for
employee morale,
and
the basis for customer loyalty (Amato & Amato, 2002). Written from a customer perspective as
described,
and
included
in
both
oral
and
written communication
with
customers,
the statement
could attract and comfort customers and thus enable marketers to help the firm gain and sustain
its competitive advantage (Desmidt, Prinzie, & Decramer, 2011).
DIRECTION
FOR
FUTURE
RESEARCH
The
authors
develop
and
present
propositions
for
future
research
to
investigate
the
correlation
and
association
of
customer-focused
mission
statements
with
a
key
consumer
outcome
variable,
namely
customer
satisfaction.
The
authors
surmise
from
the
extant
mission
statement literature
going back many years that
mission statements could provide a reasonable
and
potentially
fruitful
approach
to
enhance
customer
satisfaction
(Devasagayam,
Stark,
&
Valestin,
2013;
Jyoti
&
Sharma,
2012;
Lou,
Wieseke,
&
Homburg,
2012;
Valentin,
1996).
Specifically, we posit that a mission statement, inclusive of the nine components written from a
104 International Journal of Business, Marketing, and Decision Sciences Volume 7, Number 1, Summer 2014
customer perspective, will be positively associated with customer satisfaction. Such a statement
may help mobilize sales representatives to provide exemplary customer service, and be used in
advertisements and promotion literature to reassure customers of the firm’s commitment to them.
Thus,
the authors
call
for future
research
to
empirically examine the potentially important
and
significant association between customer-centered mission statements components and customer
satisfaction.
Variables
Regarding
the
dependent
variable,
we
suggest
future
researchers
consider
using
the
reputable American Customer Satisfaction Index (ACSI) that has provided customer satisfaction
benchmarks
since
the
Index’s
launch
in
1994
(www.theacsi.org). Specifically,
customer
satisfaction benchmarks are released annually for over 230 large companies in 43 industries and
more than 100 federal and local government services.
Future research could use data from ACSI
to
identify
high
versus
low
customer
satisfaction
firms
across
various
industries.
A
random
sampling of firms from the ACSI website that have mission statements should be selected.
Then,
a comparative analysis of mission statements from the top customer satisfaction firm in a random
sample of fifty industries could be compared with mission statements from the bottom customer
satisfaction firm in those same fifty industries. Additionally, future researchers could perform a
comparative analysis of mission statements from the top fifty customer satisfaction firms versus
statements
from
the
bottom
fifty
customer-satisfaction
firms
included
in
the
ACSI
Index.
Analogous comparative analyses could be performed for federal and local governmental services
organizations since those customer satisfaction scores are also available at the ACSI website.
To
operationalize
the
independent
variables
(i.e.,
the
nine
components
written
from
a
customer perspective), we suggest researchers consider coding the nine components using a 1 to
3 scale, where 1 = the component is not included, 2 = the component is present but not written
from a customer perspective, and 3 = the component is present and is written from a customer
perspective.
Researchers
could
use
the
content
analysis
provided
in
this
article
as
a
guide
for
their ratings; this should enhance inter-rater reliability scores.
Statements could additionally be given a “Composite Score” to indicate the overall extent
components
exhibit
a
customer-perspective.
On
a
9
to
27
scale,
with
9
being
bad
(all
nine
components score a 1) and 27 being superior (all nine components receive a 3), the “Composite
Score” for each statement could reveal the statements’ overall inclusion of the nine components
written from a customer perspective. A correlation matrix and multiple regression equation for
example
could
reveal
the
strength
of
the
association
between
mission
statement
content
(components) and ACSI scores.
Both individual
component and synergistic (Composite Score)
effects would be interesting to examine in this manner to ultimately enhance marketing strategy
and practice.
Propositions
Mission
statements
obtained
from
firms
with
high
customer satisfaction
(ACSI) scores,
would,
we
anticipate,
more
often
include
the
nine
components
written
from
a
customer
perspective, compared with statements obtained from firms with low ACSI scores. Certain of the
nine
components,
such
as
“customers”
and
“self-concept,”
could
be
expected,
based
on
prior
research,
to
be
more
important
than
other
components
in
contributing
to
higher
customer
International Journal of Business, Marketing, and Decision Sciences Volume 7, Number 1, Summer 2014 105
satisfaction. Thus, the following propositions (P1 to P6) should be examined in future research:
P1:
Firms
with
high
customer
satisfaction
(ACSI)
scores
will
have
high
“composite
score” mission statements.
P2: Firms with low customer satisfaction (ACSI) scores will have low “composite score”
mission statements.
P3: Governmental organizations with high customer satisfaction (ACSI) scores will have
high “composite score” mission statements.
P4: Governmental organizations with low customer satisfaction (ACSI) scores will have
low “composite score” mission statements.
P5:
The
“customer”
component
is
most
highly
associated,
among
the
nine
independent
variables, with company customer satisfaction (ACSI) scores.
P6:
The
“self-concept”
component
is
second-most
highly
associated,
among
the
nine
independent variables, with company customer satisfaction (ACSI) scores.
Additionally,
future
empirical
research
could
examine
propositions
relating
mission
statement
characteristics
(#
of
words,
readability,
specificity,
etc.)
with
ASCI
customer
satisfaction scores. In this regard, the following propositions (P7 to P8) should be examined:
P7:
Mission
statements
comprising
less
than
100
words
are
positively
associated
with
higher ACSI scores.
P8: Mission statements that avoid specificity ($’s, #’s, %’s, ratios, objectives, goals) are
positively associated with higher ACSI scores.
Also of importance in future research is the need to further examine the process by which
mission
statements
are
developed,
especially
to
assess
the
role
and
benefits
of
including
marketing managers in that process (Analoui & Karami, 2002; Bart & Baetz, 1996; Campbell &
Yeung, 1991). Sashittal and Tankersley (1997, p. 77) concluded: “promoting closer interactions
between
market
planners
and
implementers
improves
the
likelihood
of
strategic
marketing
success.” Thus, the following proposition (P9), however, could be examined:
P9:
Higher
involvement
of
marketing
managers
in
the
mission
statement
development
process is positively associated with higher ACSI scores.”
A
variety
of
other
propositions
could
be
examined
in
future
empirical
research.
For
example,
based
on
ACSI
scores
and
mission
statements
from
those
firms,
researchers
could
explore differences between manufacturing versus service firms, and differences between large
versus small firms, and differences between consumer products versus industrial products firms.
Also, propositions related to the importance of mission statements to customers across various
types
of
business,
as
well
as
the
helpfulness
of
mission
statements
for
marketers
in
gaining
customer
loyalty
across
industries,
could
yield
valuable
information
for
both
researchers
and
practitioners (Davies
&
Glaister, 1997; Kemp
& Dwyer,
2003; van
Dijk, Desmidt, & Buelens,
2007).
To
the
extent
that
propositions
in
this
article
are
supported,
mission
statements
may
become increasingly helpful for firms striving to gain competitive advantage through enhanced
customer satisfaction.
The theoretical foundation provided and research agenda proposed here represents a new
106 International Journal of Business, Marketing, and Decision Sciences Volume 7, Number 1, Summer 2014
direction.
We propose that empirical studies examine the nature and role of mission statement
content
in
relation
to
customer
satisfaction
scores,
across
industries
-
perhaps
controlling
for
industry,
size
of
firm,
and/or
type
of
business,
to
gain
a
better
understanding
of
how
these
statements can best be written and used to enhance customer satisfaction.
CONCLUSION
Developing
and
communicating
a
clear
business
mission
is
arguably
important
in
both
strategic
planning
and
marketing
strategy
(Collins
&
Rukstad,
2008). Without
an
effective
mission statement, a firm’s short-term actions may be counterproductive to long-term interests.
As
a
first
step
in
strategic
planning,
a
mission
statement
provides
direction
for
all
subsequent
activities, including communication with perhaps the most important constituency, customers.
The authors anticipate that future empirical research will confirm that mission statements
do matter, and are best when they include nine components written from a customer perspective.
Marketers pursue projects and make expenditures and decisions everyday mindful of the firm’s
basic
mission
and
resources.
Written
from
a
customer
perspective,
mission
statements
may
enable
marketers
to
better
gain,
sustain,
and
grow
the
firm’s
customer
base.
The
theoretical
foundation
and
content
analysis
provided
in
this
article
could
guide
for
researchers
and
practitioners going forward.
The authors anticipate that future research will determine that customer-centered mission
statements are positively associated with measures of customer satisfaction. Such a finding could
significantly alter, for the better, how mission statements are used, perceived, and examined in
both
management
and
marketing.
We
anticipate
the
new
direction
offered
may
shift
mission
statement
research
and
practice
from
an
internal
employee/manager
focus,
to
an
external
customer/marketer
focus,
thus
enabling
the
statements
to
“accomplish
their
mission”
for
the
betterment of business.
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About
the
Authors:
Meredith
E.
David
is an Assistant Professor of Marketing at Baylor University in Waco, Texas.
Meredith holds a
PhD in
Business
Administration (in
Marketing)
from the
University of South
Carolina,
and
an MBA from Wake
Forest University.
She has presented at national marketing and management conferences and serves as a reviewer
for several annual conferences.
Meredith has published in the Journal of Business Research, European Journal of
Marketing, Journal of Services Marketing, and others.
Meredith_David@baylor.edu
Forest
R.
David
holds an MBA from Francis Marion University and is co-author of a leading strategic management
textbook published by Prentice-Hall.
Forest is sole author of more than 40 strategic management cases published.
Forest has articles published in the Advanced Management Journal, International Journal of Management, Business
Horizons, Journal of Business Strategy, and others.
ForestDavid5@gmail.com
Fred
R.
David
has a PhD in Business Administration from the University of South Carolina (USC) and an MBA
from Wake Forest University.
Fred is the TranSouth Professor of Strategic Planning at Francis Marion University in
Florence,
South
Carolina. Fred
is
author
of
more
than
30
journal
articles
and
30
strategic
management
cases
published. Fred has articles published in the Academy of Management Review, Academy of Management Executive,
Journal of Applied Psychology, Long Range Planning, and others.
FredDavid9@gmail.com
