Posted in Marketing and Strategy Terms, Total Reads: 1917
Definition: Unique Selling Point (USP)
Unique selling point (USP) or unique selling proposition is a marketing term which highlights the value of a company's offering and how they are different from a competitor in a unique way. A USP is the main positive point which a product or a service has to offer to its customers, which is valuable, unique and which no other brand offers.
A unique selling point can be product quality, product features, service delivery, lower price etc. i.e. anything beneficial for a customer, which is not offered by any competition.
The proposition results in differentiation of the product that creates a competitive advantage for the product in the market. The unique criteria of USP are as follows
The proposition must be unique and must be one that cannot be easily replicated by competitors
The proposition must be strong to influence the consumers to switch brands
The advertisements of the product must be compelling enough and clearly translate the benefit
The steps involved in creating the USP include identifying the target segment, conducting a marketing research to identify the unique needs of the target customers, determining whether the company has the ability to provide the unique benefits that customers need and then developing the unique proposition for the product in the minds of the customers.
Some common examples of USPs of products are
Dominos: 30 minutes or free
Head & Shoulders: You get rid of dandruff
The benefits of USP are as follows
USP enables companies to stand out when drowning in a sea of competition
USP avoids you to please everyone and identifies the target customers for the product
USP lets you to expand your customer base and provides products that your customers want.