In marketing, the unique selling proposition (USP), also called the unique selling point, or the unique value proposition (UVP) in the business model canvas, is the marketing strategy of informing customers about how one's own brand or product is superior to its competitors (in addition to its other values). [1]
It was used in successful advertising campaigns of the early 1940s. The term was coined 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." [2] The term has been extended to cover one's "personal brand". [3]
A unique selling proposition (USP) refers to the unique benefit exhibited by a company, service, product or brand that enables it to stand out from competitors. [4] The unique selling proposition must be a feature that highlights product benefits that are meaningful to consumers. [5] USP focuses on explicit claims of uniqueness involving an objectively verifiable product attribute or benefit-in-use. [6]
The USP concept is one of the eight broad approaches to creative executions in advertising. [7] [8] [9] The USP approach can be effective where high levels of technological innovation characterise a product category. [7] A clear USP helps consumers to understand differences - even non-existent differences [10] - between brand offerings in a category, and may also help consumers to form a positive attitude towards a brand and may ultimately contribute to increased levels of brand recall. [11]
In order to determine an appropriate USP for any given brand, marketers must undertake extensive research of the category as well as of consumers.[ citation needed ] It is important to be able to locate a space in the market, ensure that the feature is something that is unique, and also something that is valued by potential customers.[ citation needed ] Sellers also need to try selling a brand to themselves; this is so they know they are passionate about a product and confident it can succeed.[ citation needed ] The seller needs a key point to use when trying to sell their product or service,[ citation needed ] and coming up with it prior to selling will benefit.[ citation needed ] Having a point of difference to stand out is a major benefit in markets; customers will be drawn to a business if it offers something no one else has.[ citation needed ] Whether differences are subtle or blatant, they can be the driving force that ensures the end-consumer makes the desired decision in choosing one product over the competition.[ citation needed ]
In markets which contain many similar products, using a USP is one campaign method of differentiating the product from the competition. Products or services without differentiation risk the consumer seeing them as commodities and fungible, thus lowering price potential. Thus having a unique selling point is essential to have a successful business that can handle current competition, as well as possible future comers in similar markets.[ citation needed ]
The desktop personal-computer market provides one example with many manufacturers and the potential for new manufacturers at any time. Apple used the slogan "Beauty outside, Beast inside" [12] for its Mac Pro campaign to differentiate its product as "beautiful" compared with any other desktop computer. Buyers of this product were willing to pay a premium price, compared with technically similar desktop computers.[ citation needed ] Apple differentiates itself with a focus on aesthetics and cutting-edge technologies. Wal-Mart's "Save money, live better" (Waiz, 2013). [13] [ sentence fragment ] Wal-Mart is concerned with being the cheapest department store and with reminding customers that it's not how much one spends on a product that matters. This USP rests on strong, direct and concise messaging that gives consumers a clear picture of exactly what value they will receive for choosing a given brand or product. Something so simple that can attract customers like that and show the unique selling proposition of the business is what people look for. [4] [ need quotation to verify ] Marketing strategies are very important for different companies to establish their identity and increase market share.[ citation needed ]
A good USP should target a specific audience. Furthermore, a USP should not only be unique, but also keep its promises in order to prove trustworthy. [14]
The following are examples of Unique Selling Propositions. What is commonly considered a slogan is enhanced with a differentiating benefit of the product or service. [15] Typically, the uniqueness is delivered by a unique process, ingredient, or system that produces the benefit described.[ citation needed ]
Marketing is the act of satisfying and retaining customers. It is one of the primary components of business management and commerce.
Guerrilla marketing is an advertisement strategy in which a company uses surprise and/or unconventional interactions in order to promote a product or service. It is a type of publicity. The term was popularized by Jay Conrad Levinson's 1984 book Guerrilla Marketing.
Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors. It is different from the concept of brand awareness. In order to position products or brands, companies may emphasize the distinguishing features of their brand or they may try to create a suitable image through the marketing mix. Once a brand has achieved a strong position, it can become difficult to reposition it. To effectively position a brand and create a lasting brand memory, brands need to be able to connect to consumers in an authentic way, creating a brand persona usually helps build this sort of connection.
In marketing, market segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers based on shared characteristics.
Marketing management is the strategic organizational discipline which focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organizations and on the management of a firm's marketing resources and activities.
In business, a competitive advantage is an attribute that allows an organization to outperform its competitors.
An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC). An IMC is a platform in which a group of people can group their ideas, beliefs, and concepts into one large media base. Advertising campaigns utilize diverse media channels over a particular time frame and target identified audiences.
Green brands are those brands that consumers associate with environmental conservation and sustainable business practices.
The target audience is the intended audience or readership of a publication, advertisement, or other message catered specifically to the previously intended audience. In marketing and advertising, the target audience is a particular group of consumer within the predetermined target market, identified as the targets or recipients for a particular advertisement or message.
Engagement marketing, sometimes called "experiential marketing", "Brand Activation", "on-ground marketing", "live marketing", "participation marketing", "Loyalty Marketing", or "special events", is a marketing strategy that directly engages consumers and invites and encourages them to participate in the evolution of a brand or a brand experience. Rather than looking at consumers as passive receivers of messages, engagement marketers believe that consumers should be actively involved in the production and co-creation of marketing programs, developing a relationship with the brand.
A point of difference is a factor of products or services that establishes differentiation. Differentiation is the way in which the goods or services of a company differ from its competitors. Indicators of the point of difference's success would be increased customer benefit and brand loyalty. However, an excessive degree of differentiation could cause the goods or services to lose their standard within a given industry, leading to a subsequent loss of consumers. Hence, a balance of differentiation and association is required, and a point of parity has to be adopted in order to allow a business to remain or further enhance its competitiveness.
Loyalty marketing is a marketing strategy in which a company focuses on growing and retaining existing customers through incentives. Branding, product marketing, and loyalty marketing all form part of the customer proposition – the subjective assessment by the customer of whether to purchase a brand or not based on the integrated combination of the value they receive from each of these marketing disciplines.
In marketing, a customer value proposition (CVP) consists of the sum total of benefits which a vendor promises a customer will receive in return for the customer's associated payment.
Value-based price is a market-driven pricing strategy which sets the price of a good or service according to its perceived or estimated value. The value that a consumer gives to a good or service, can then be defined as their willingness to pay for it or the amount of time and resources they would be willing to give up for it. For example, a painting may be priced at a higher cost than the price of a canvas and paints. If set using the value-based approach, its price will reflect factors such as age, cultural significance, and, most importantly, how much benefit the buyer is deriving. Owning an original Dalí or Picasso painting elevates the self-esteem of the buyer and hence elevates the perceived benefits of ownership.
The following outline is provided as an overview of and topical guide to marketing:
In marketing, a company’s value proposition is the full mix of benefits or economic value which it promises to deliver to the current and future customers who will buy their products and/or services. It is part of a company's overall marketing strategy which differentiates its brand and fully positions it in the market. A value proposition can apply to an entire organization, parts thereof, customer accounts, or products and services.
A target market, also known as serviceable obtainable market (SOM), is a group of customers within a business's serviceable available market at which a business aims its marketing efforts and resources. A target market is a subset of the total market for a product or service.
A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create and store value as brand equity for the object identified, to the benefit of the brand's customers, its owners and shareholders. Brand names are sometimes distinguished from generic or store brands.
Sometimes referred as Advertising Exposure, Marketing Exposure is the degree to which a company’s target market is exposed to the company’s communications about its product/ services, initiatives, etc. Exposure is the product of a marketing strategy, and once the strategy is implemented it is only a matter of time before exposure is put into action. Consumers recognize "marketing exposure" when the company creates and promotes a campaign. There are three types of marketing exposure: intensive, selective, and exclusive.
Product strategy defines the high-level plan for developing and marketing a product, how the product supports the business strategy and goals, and is brought to life through product roadmaps. A product strategy describes a vision of the future with this product, the ideal customer profile and market to serve, go-to-market and positioning (marketing), thematic areas of investment, and measures of success. A product strategy sets the direction for new product development. Companies utilize the product strategy in strategic planning and marketing to set the direction of the company's activities. The product strategy is composed of a variety of sequential processes in order for the vision to be effectively achieved. The strategy must be clear in terms of the target customer and market of the product in order to plan the roadmap needed to achieve strategic goals and give customers better value.
Successful business ownership is not about having a unique product or service; it's about making your product stand out--even in a market filled with similar items.