Unique Selling Point (USP)

Published by MBA Skool Team, Last Updated: April 14, 2016

What is 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.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 6 categories.

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