Introduction to USP
An innovative offer made to consumers that persuaded them to switch brands is known as a unique selling proposition (USP) or unique selling point. Early 1940s advertising efforts that were successful made use of it. Rosser Reeves of Ted Bates & Company, a pioneer in television advertising, came up with the phrase. “Differentiation is one of the most critical strategic and tactical tasks in which organisations must continually participate,” according to Theodore Levitt, a professor at Harvard Business School. One’s “personal brand” is now included in the scope of the phrase.
A business, service, product, or brand’s distinctive value that makes it stand out from rivals is referred to as its unique selling proposition (USP). A feature emphasising consumer-relevant product advantages must be the unique selling proposition.
The USP “contains the one element of the product that most stands out as distinct from the competitors, and is generally a trait that transmits unique advantages to the buyer,” according to Dr. James Blythe. The USP must be communicated as a fundamental component of branding.
In Reality in Advertising, Reeves laments that the USP is widely misunderstood. He outlined three basic rules for an advertisement that encapsulated his ideas about the USP:
- 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.”
- 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.
- The proposition must be strong enough to move the masses, i.e., attract new customers as well as potential customers.
Importance
In essence, your USP must communicate to your audience that your product has superior value, and that this value is only attainable if they buy from your brand.
A well-developed USP is vital when you’re setting out any marketing strategy. It gives you clarity around the content you want to develop for any online or offline marketing. Its benefits to your marketing strategy include:
A Clear Benefit
When your product or service’s benefit is well-defined by its USP, your target audience learns to appreciate it for that particular aspect e.g 24/7 support or calls returned in 1 hour. Otherwise, your customers will simply gravitate towards others that offer the lowest price, regardless of what other product benefits you may have to offer.
Improved Revenue
A strong product USP improves your marketing as a whole and helps bolster revenue because it gives your market a specific reason to buy. Combined with your product’s intrinsic benefits and a competitive price, your USP will help cement your product’s position in the market, so that your customers will want to keep paying for it.
Loyal Market
When you build a strong and positive product identity via a significant USP, it tells your market where they stand with you. You don’t want your product to be an option amongst other brands, after all. With a powerful USP, you can easily corner the market segment that needs and wants exactly what you’re offering, increasing their loyalty to your brand.
Streamlined Sales Strategy
Because it is more difficult to showcase the benefits of your product via a generic marketing and sales effort, the results may be hit or miss. A strong unique selling proposition (USP) simplifies your approach by enabling you to communicate with your target audience how you want them to view your product and brand, and to concentrate on the advantages that are unique to it.
The unique selling proposition (USP) idea has evolved into one of advertising’s eight primary strategic approaches to creative executions. When a product category is characterised by high levels of technical innovation, the USP strategy is the one that is suggested to use. A distinct unique selling proposition (USP) assists consumers in comprehending differences – even those that do not exist – between brand offerings within a category. It also has the potential to assist consumers in developing a favourable attitude toward a brand and, ultimately, in contributing to increased levels of brand recall.
Marketers need to do in-depth research not just on the products in their category but also on the people who buy those products in order to come up with an acceptable USP for any specific brand. It is essential to have the ability to find a spot in the industry, make certain that the characteristic is something that is distinctive, and also make certain that it is something that is appreciated by prospective clients.
It is also important for sellers to practise selling a brand to themselves; this ensures that they are enthusiastic about a product and confident in its potential to be successful. When attempting to sell their product or service, the seller needs a crucial point to employ, and it is to the seller’s advantage to think of this point before they begin selling.
Customers will be attracted to a company if it provides something that no other company does, therefore having a point of distinction to set yourself apart from competitors is a key advantage in marketplaces. Whether the distinctions are subtle or glaring, they have the potential to be the driving force that guarantees the final customer makes the desired choice in selecting one product over the other products that are available. This is precisely what each and every company need to be investigating, regardless of whether it is an organic food menu at a restaurant or a home-delivery service from a retail shop.
The use of a unique selling proposition (USP) is one marketing strategy that may be used in markets that are saturated with items that are functionally equivalent to one another. Products or services that lack distinction run the danger of the customer seeing them as commodities and fungible, which will result in a reduction in their price potential. Therefore, it is vital to have a unique selling feature in order to have a successful firm that can manage the competition that is already present as well as prospective future entrants in markets that are comparable.