What doesUSP stand for and how to create a unique selling proposition?
You have to sell yourself on your product before you can sell it to anyone else.It's important that your product or service is similar to others.Most businesses are not one-of-a-kind.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".It's not possible to target your sales efforts successfully if you don't know what makes your business unique.
It takes a lot of soul-searching and creativity to point out your USP.It is possible to analyze how other companies use theirUSPs to their advantage.This requires careful analysis of other companies' ads.You can learn a lot about how companies distinguish themselves from their competitors if you analyze what they say they sell, not just their product or service characteristics.
Charles Revson used to say he sold hope, not makeup.Friendly service is sold by some airlines, while others sell on-time service.Wal-Mart sells bargains while Neiman Marcus sells luxury.
Each of these are examples of a company that has found a "USP" peg on which to hang its marketing strategy.Product characteristics, price structure, placement strategy, and promotional strategy are some of the factors that can be used to peg a business's reputation.The four P's are what marketers call marketing.They are used to give a business a market position that makes it stand out.
Sometimes a company focuses on onepeg, which also drives the strategy in other areas.Hanes L-Egg's hosiery is a classic example.When hosiery was sold primarily in department stores, Hanes opened a new distribution channel.Since hosiery was a consumer staple, why not sell it in grocery stores?
The pantyhose didn't seem right in the supermarket because of the placement strategy.Because the product didn't have to be wrapped in tissue or boxes, it could be cheaper than other brands.
Price isn't 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.
The value of psychologically oriented promotion can be seen in the industries of cosmetics and liquor.People buy these products because they are what they want, not because of their needs.
If you're just starting out, you won't have a lot of customers to ask, so "shop" your competitors.Retailers visit their competitors' stores to see what they are selling.If you're really brave, ask a few of the customers what they like and dislike about the competitors' products and services after they leave the premises.