Unique selling proposition

The unique selling proposition (USP) or unique selling point is a marketing concept first proposed as a theory to explain a pattern in successful advertising campaigns of the early 1940s. The USP states that such campaigns made unique propositions to customers that convinced them to switch brands. The term was developed by television advertising pioneer Rosser Reeves of Ted Bates & Company. Theodore Levitt, a professor at Harvard Business School, suggested that, "Differentiation is one of the most important strategic and tactical activities in which companies must constantly engage."[1] The term has been used to describe one's "personal brand" in the marketplace.[2] Today, the term is used in other fields or just casually to refer to any aspect of an object that differentiates it from similar objects.

Definition

A unique selling proposition or otherwise known as USP (unique selling point), is a factor that a business has that makes it different and or better than others out there. It makes a business stand out from the rest in a market.(Entrepreneur, No Date)[3]

In Reality in Advertising[4] Reeves laments that the USP is widely misunderstood and defines it in three parts, summarized here:

  1. Each advertisement must make a proposition to the consumer—not just words, product puffery, or show-window advertising. Each advertisement must say to each reader: "Buy this product, for this specific benefit."
  2. The proposition must be one the competition cannot or does not offer. It must be unique—either in the brand or a claim the rest of that particular advertising area does not make.
  3. The proposition must be strong enough to move the masses, i.e., attract new customers as well as potential customers.

USP Importance

The importance of having a unique selling point is obviously to stand out from the crowd and be different, however it’s not always easy to do so when new ideas and products are coming out all the time. [5]

The main thing is to find a space in the market, make sure it's going to be something that can stand out on its own first, and make sure its something possible customers need. The sellers also need to try selling it to themselves, this is so they know they are passionate about that business and confident it can succeed. The seller needs a key point to use when trying to sell their product or service, and coming up with it prior to selling will benefit. Having a point of difference to stand out is a major benefit in the markets; customers will be drawn to the business as it offers something no one else has. This is exactly what every business should be looking into whether it is home delivery service from the store or all organic food at the restaurant.

Nowadays there are so many types of businesses all doing the same thing in competition with each other it’s so hard to come into the market with similar ideas that are out there already. That’s why having a unique selling point is essential to have a successful business that can handle competition and possible future comers in similar markets. People need to get creative and start thinking outside the box as its not easy coming up with innovative ways to sell the same product; it can be as small as a slogan. For example Apples slogan is “Beauty outside, Beast inside” or Wal-Mart “Save money, live better” (Waiz,2013),[6] these all have the unique selling point in their slogan.

Apple is all about aesthetics as well as being the best technological products on the market; they take pride in their clean and simple design yet highly powerful technology used inside.

Wal-Mart is concerned with being the cheapest department store and reminding their customers that it's not how much you spend on a product that matters. Something so simple that can attract customers like that and show the unique selling proposition of the business is what people look for.(Entrepreneur, No Date).[3]

Examples

Some good current examples of products with a clear USP are:

Unique propositions that were pioneers when introduced include:

Evolution

The term USP has been largely replaced by the concept of a positioning statement, popularized by the publication of Al Ries and Jack Trout's Positioning:Battle For Your Mind.[9] The positioning statement determines what place a brand (tangible good or service) should occupy in the consumer's mind compared to the competition. The model directs managers to determine the cognitive gap, locating "which functional benefit in a given category is most valued by consumers and least dominated by other brands."[9] Positioning is also commonly known as mindshare marketing; the aim is to stake a claim to the cognitive association in consumers' minds, connecting the brand's trademark with the benefit claim as "simply, consistently and frequently as possible."[9]

See also

References

  1. ↑ Levitt, Theodore (1986). The marketing imagination (New, expanded ed.). New York: Free Press. ISBN 0029191807.
  2. ↑ "Reinventing Your Personal Brand". Harvard Business Review. March 2011.
  3. 1 2 Entrepreneur. (No Date). Unique Selling Proposition (USP). Retrieved March 29th, 2016, from Entrepreneur: http://www.entrepreneur.com/encyclopedia/unique-selling-proposition-usp
  4. ↑ Reeves, Rosser (1961). Reality in Advertising. Macgibbon and Kee. pp. 46–48. ISBN 0394442288.
  5. ↑ "Unique Selling Propositions". Marketing Results. Retrieved 2016-04-22.
  6. ↑ Waiz , S. (2013, March 22nd). 40+ Best Advertising Slogans of Modern Brands. Retrieved March 29th, 2016, from Advergize: http://www.advergize.com/advertising/40-best-advertising-slogans-modern-brands/
  7. ↑ Butler (2006). Television Critical Methods and Applications. (3rd ed.). Hoboken: Taylor & Francis Ltd. p. 420. ISBN 1410614743.
  8. ↑ Goodwin, Bryan (2011). Simply better : doing what matters most to change the odds for student success. Alexandria, Va.: ASCD. p. 11. ISBN 1416612955.
  9. 1 2 3 Holt, Douglas; Cameron, Douglas (2010). Cultural Strategy. Oxford University Press. ISBN 978-0-19-958740-7.
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