Unique selling proposition (USP)

Unique selling proposition (USP) is a marketing concept relating to a single theme or idea that separates one company or product from all of its competitors. A successful USP should build consumer interest and support to generate more sales and increased profits for the company. Marketers may create USPs that focus on a new product's features, the company's mission or accomplishments, or even the story of how or why a brand was created. Creating a USP may be a challenging task, but marketers often find inspiration in examining competitors’ marketing, getting into the minds of consumers, or simply using their own free-flowing imaginations.

Background

Marketing is a vital part of business. Marketing is the process by which a business promotes its goods or services to consumers. The most well-known and visible aspect of marketing is advertising, which involves media and messages describing a product and motivating people to purchase the product when successful. In contemporary times, some of the most common forms of advertisement include television and Internet ads, catchphrases and slogans, eye-catching packaging, or celebrity endorsement.

Marketing is a major industry that employs hundreds of thousands of highly trained professionals. Marketers accept great responsibility for the success or failure of a company and its products since their main task is to match products to the most likely groups of consumers. To do this, marketers may employ numerous techniques; however, these techniques are based on only a few factors. In the 1950s, marketing professor Neil Borden categorized these primary factors as the “Four P” system.

The first “P” is for “product,” an essential aspect of any marketing campaign. A product should be of value to consumers and meet their current or future demands. Marketers must learn about the product themselves to educate consumers about it and entice them to purchase and use the product. The second “P” is for “price,” the cost of the good or service being marketed. Marketers may work with established prices or help to determine what the company should ask for a good or service. The price must cover all the associated costs of producing and distributing the good or service and marketing it.

The third “P” is for “place,” or the location at which the product will be offered. This can be an online marketplace or a brick-and-mortar storefront. Each place will offer certain advantages and challenges to the marketing mind. The fourth “P” stands for “promotion,” which encompasses all the activities marketers do to bring the product to the attention of consumers and promote the product. This may include all forms of advertising and sales promotions. It can also involve public relations, dealing with clients and consumers directly, and sponsorships. To the marketer, these factors are essential elements of designing an effective marketing strategy.

Overview

In the twenty-first century, the economy is larger, busier, more diverse, and more complex than at any other time in history. Millions of companies offer billions of goods and services across the globe. While this presents unprecedented opportunities for consumers, it also vastly increases the challenge faced by marketers. In a globalized economy, where most shoppers have access to online shopping, it is harder than ever for businesses and products to stand out from the crowd.

Marketers must hone their skills and develop new techniques to help their clients succeed. One of the main techniques is to develop a unique selling proposition, or USP. This refers to the most significant and special quality of a company or product that will connect with its customers. As implied by its name, it should be unique, differentiating the company or product from all others in a way that shows that it is exceptional, beneficial, and important.

Although the USP will likely form the foundation of a marketing campaign, designing it is seldom an easy task. Even choosing a form for a USP can be a daunting undertaking. USPs can take almost any size, shape, or focus. USPs for products may highlight some special feature of the product that sets it apart from similar offerings—for example, a new smartphone with a battery that lasts twice as long as the competitors’ batteries. A marketer might focus on such a product feature with advertising suggesting short battery life makes phones unreliable, and sometimes batteries die at very inconvenient times. This particular product, with its enhanced battery charge, will save people from the hassle, confusion, or even possible danger of having their battery power die prematurely.

Other times, a USP may not focus on the product at all. It may be more about the company offering the product. In these cases, a USP might highlight some noteworthy fact about the company, such as its high ratings in customer service or its ethical-minded mission statement. Sometimes, the USP comes in the form of a brand story, or a narrative about how, when, or why the venture began. For instance, a person who was ill due to poor eating habits may start a health-food company; the story of this turnaround, and the founder’s determination to help others avoid illness, may be a strong USP for attracting consumer attention and support. A company may also offer a USP that focuses on making consumers feel good about their purchase. Tom’s Shoes promises to donate a pair of shoes to a child in need for every pair purchased. Other factors marketers consider when developing a USP include a product’s superior quality, low price, unique features, innovative technology, and customization options. A USP could also focus on a company’s commitment to sustainability or exceptional customer service. 

Marketing experts develop USPs in many ways. Many learn from the successes and failures of other ventures in a similar market. Others examine the most likely customer demographics and attempt to imagine the wants and interests of those people. Still others draw ideas from their own minds or experiences through techniques such as brainstorming, in which they may create a web of free-flowing ideas, any one of which may prove to be valuable. Some of the most effective USPs in the modern global economy were created by a combination of these techniques.

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