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Value Proposition & USP
USP
• A unique selling proposition (USP) is a
description of the qualities that are
unique to a particular product or serv...
USP
 Unique - It clearly sets you apart from your
competition, positioning you the more logical
choice.
 Selling - It pe...
The Value Proposition
Your Prospect
The Value Proposition
Tailored
Features
& Benefits
The Value Proposition
Tailored
Features
& Benefits
Proof
The Value Proposition
Tailored
Features
& Benefits
Proof
You
(as the
solutions
provider)
• The Unique Selling Proposition (also Unique Selling
Point) is a marketing concept that was first proposed
as a theory to...
3 parts of the definition
• Each advertisement must make a proposition to
the consumer. Not just words, not just
product p...
• Communicating a Specific Benefit to the Customer
• As many products are identical in offering the main
benefit, you must...
Identifying Your USP
• Five Question You Should Ask Yourself:
• Will my perspective customers perceive this as
an advantag...
• Before you can begin to sell your product or service
to anyone else, you have to sell yourself on it.
• This is especial...
• Pinpointing your USP requires some hard soul-
searching and creativity.
• One way to start is to analyze how other
compa...
• For example, Charles Revson, founder of
Revlon, always used to say he sold hope, not
makeup.
• Some airlines sell friend...
Steps to develop the USP for a brand
• Put yourself in your customer's shoes. Too often,
entrepreneurs fall in love with t...
Steps to develop the USP for a brand
• Remember, price is never the only reason
people buy.
• If your competition is beati...
• Know what motivates your customers'
behavior and buying decisions.
• Effective marketing requires you to be a
psychologi...
• For our pizza shop example, it is not enough
to know that 75 percent of your customers
are in the 18-to-25 age range.
• ...
• Uncover the real reasons customers buy your
product instead of a competitor's.
• As your business grows, you'll be able ...
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Value proposition & usp

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Value proposition & usp

  1. 1. Value Proposition & USP
  2. 2. USP • A unique selling proposition (USP) is a description of the qualities that are unique to a particular product or service and that differentiate it in a way which will make customers purchase it rather than its rivals.
  3. 3. USP  Unique - It clearly sets you apart from your competition, positioning you the more logical choice.  Selling - It persuades another to exchange money for a product or service.  Proposition - It is a proposal or offer suggested for acceptance.
  4. 4. The Value Proposition Your Prospect
  5. 5. The Value Proposition Tailored Features & Benefits
  6. 6. The Value Proposition Tailored Features & Benefits Proof
  7. 7. The Value Proposition Tailored Features & Benefits Proof You (as the solutions provider)
  8. 8. • The Unique Selling Proposition (also Unique Selling Point) is a marketing concept that was first proposed as a theory to explain a pattern among successful advertising campaigns of the early 1940s. • It states that such campaigns made unique propositions to the customer and that this convinced them to switch brands. • The term was invented by Rosser Reeves. • 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. • A unique selling proposition (USP) defines your competitive advantage Your must identify what makes you different from your competitors and emphasize these advantages in your marketing.
  9. 9. 3 parts of the definition • Each advertisement must make a proposition to the consumer. Not just words, not just product puffery, not just show-window advertising. Each advertisement must say to each reader: "Buy this product, and you will get this specific benefit." • The proposition must be one that the competition either cannot, or does not, offer. It must be unique—either a uniqueness of the brand or a claim not otherwise made in that particular field of advertising. • The proposition must be so strong that it can move the mass millions, i.e., pull over new customers to your product.
  10. 10. • Communicating a Specific Benefit to the Customer • As many products are identical in offering the main benefit, you must identify the main advantage your product offers over the competition. • In order to make your advertising message attractive, you must find an important benefit unique to your product or service in one of three ways. • Product feature. This USP may be based on product features associated with the product, ranging from what it does to the quality of your support services. • Emotion. The USP may be based of an emotional appeal, such as love, humor, or fear. • Association. The USP may be communicated by association with a well-known personality.
  11. 11. Identifying Your USP • Five Question You Should Ask Yourself: • Will my perspective customers perceive this as an advantage? • Is it significantly different from what my competitors are offering? • Why my prospective customers actually believe in this USP? • How will my customers benefit from this USP? • Will this USP motivate customers sufficiently to actually make a purchase?
  12. 12. • Before you can begin to sell your product or service to anyone else, you have to sell yourself on it. • This is especially important when your product or service is similar to those around you. • Just look around you: How many clothing retailers, hardware stores, air conditioning installers and electricians are truly unique? • The key to effective selling in this situation is what advertising and marketing professionals call a "unique selling proposition" (USP). • Unless you can pinpoint what makes your business unique in a world of homogeneous competitors, you cannot target your sales efforts successfully.
  13. 13. • Pinpointing your USP requires some hard soul- searching and creativity. • One way to start is to analyze how other companies use their USPs to their advantage. • This requires careful analysis of other companies' ads and marketing messages. • If you analyze what they say they sell, not just their product or service characteristics, you can learn a great deal about how companies distinguish themselves from competitors.
  14. 14. • For example, Charles Revson, founder of Revlon, always used to say he sold hope, not makeup. • Some airlines sell friendly service, while others sell on-time service. • Each of these is an example of a company that has found a USP on which to hang its marketing strategy. • A business can base its USP on product characteristics, price structure, placement strategy (location and distribution) or promotional strategy. • These are what marketers call the "four P's" of marketing.
  15. 15. Steps to develop the USP for a brand • Put yourself in your customer's shoes. Too often, entrepreneurs fall in love with their product or service and forget that it is the customer's needs, not their own, that they must satisfy. • Step back from your daily operations and carefully scrutinize what your customers really want. • Suppose you own a pizza parlor. Sure, customers come into your pizza place for food. • But is food all they want? • What could make them come back again and again and ignore your competition? • The answer might be quality, convenience, reliability, friendliness, cleanliness, courtesy or customer service.
  16. 16. Steps to develop the USP for a brand • Remember, price is never the only reason people buy. • If your competition is beating you on pricing because they are larger, you have to find another sales feature that addresses the customer's needs and then build your sales and promotional efforts around that feature.
  17. 17. • Know what motivates your customers' behavior and buying decisions. • Effective marketing requires you to be a psychologist. • You need to know what drives and motivates customers. • Go beyond the traditional customer demographics, such as age, gender, race, income and geographic location, that most businesses collect to analyze their sales trends. Steps to develop the USP for a brand
  18. 18. • For our pizza shop example, it is not enough to know that 75 percent of your customers are in the 18-to-25 age range. • You need to look at their motives for buying pizza-taste, peer pressure, convenience and so on. • Cosmetics and liquor companies are great examples of industries that know the value of psychologically oriented promotion. • People buy these products based on their desires (for pretty women, luxury, glamour and so on), not on their needs. Steps to develop the USP for a brand
  19. 19. • Uncover the real reasons customers buy your product instead of a competitor's. • As your business grows, you'll be able to ask your best source of information: your customers. • For example, the pizza entrepreneur could ask them why they like his pizza over others, plus ask them to rate the importance of the features he offers, such as taste, size, ingredients, atmosphere and service. • You will be surprised how honest people are when you ask how you can improve your service. Steps to develop the USP for a brand

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