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{{Short description|Individual claim that differentiates a product or service}}
{{about|a marketing concept|other uses|USP (disambiguation)}}
⚫ In ], the '''unique selling proposition''' ('''USP'''), also called the '''unique selling point''' or the '''unique value proposition''' ('''UVP''') in the ], is the ] of informing ]s about how one's own ] or ] is superior to its ]s (in addition to its other ]).<ref name="Hindle_Page_197">{{cite book |last1=Hindle |first1=Tim |title=Guide to Management Ideas and Gurus |date=2008 |publisher=Profile Books |location=London |isbn=9781846681080 |page=197 |url=https://books.google.com/books?id=-K_wp74bK3sC&pg=PA197 |access-date=28 January 2023}}</ref>


⚫ This strategy was used in successful ]s of the early 1940s. The term was coined by ], a ] pioneer of ]. ], a professor at ], suggested that, "differentiation is one of the most important strategic and tactical activities in which companies must constantly engage."<ref>{{cite book|last=Levitt|first=Theodore|title=The marketing imagination|year=1986|publisher=Free Press|location=New York|isbn=0029191807|url=https://books.google.com/books?id=GE4PAQAAMAAJ|edition=New, expanded}}</ref> The term has been extended to cover one's "]".<ref>{{cite journal|journal=Harvard Business Review|date=March 2011|url=http://hbr.org/2011/03/reinventing-your-personal-brand/ar/1|title=Reinventing Your Personal Brand|last1=Clark |first1=Dorie }}</ref>
⚫ In ], the '''unique selling proposition''' ('''USP'''), also called the '''unique selling point''', or the '''unique value proposition''' ('''UVP''') in the ], is the ] of informing ]s about how one's own ] or ] is superior to its ]s (in addition to its other ]).

⚫ It was used in successful ]s of the early 1940s. The term was coined by ] pioneer ] of ]. ], a professor at ], suggested that, "Differentiation is one of the most important strategic and tactical activities in which companies must constantly engage."<ref>{{cite book|last=Levitt|first=Theodore|title=The marketing imagination|year=1986|publisher=Free Press|location=New York|isbn=0029191807|url=https://books.google.com/books?id=GE4PAQAAMAAJ|edition=New, expanded}}</ref> The term has been extended to cover one's "]".<ref>{{cite journal|journal=Harvard Business Review|date=March 2011|url=http://hbr.org/2011/03/reinventing-your-personal-brand/ar/1|title=Reinventing Your Personal Brand}}</ref>


==Definition== ==Definition==


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.<ref name=":0" /> The unique selling proposition must be a feature that highlights product benefits that are meaningful to consumers.<ref>Based on Laskey, H. A., Day, E. and Crask, M.R., "Typology of Main Message Strategies," ''Journal of Advertising,'' vol. 18, no. 1, 1989, pp 36–41.</ref> USP focuses on explicit claims of uniqueness involving an objectively verifiable product attribute or benefit-in-use.<ref>{{Citation|last1=Wang|first1=Liyong|title=Message Strategy Typologies: A Review, Integration, and Empirical Validation in China|date=2016|url=https://doi.org/10.1007/978-3-658-10558-7_16|work=Advances in Advertising Research (Vol. VI): The Digital, the Classic, the Subtle, and the Alternative|pages=201–213|editor-last=Verlegh|editor-first=Peeter|series=European Advertising Academy|place=Wiesbaden|publisher=Springer Fachmedien|language=en|doi=10.1007/978-3-658-10558-7_16|isbn=978-3-658-10558-7|access-date=2020-11-13|last2=Praet|first2=Carolus L. C.|editor2-last=Voorveld|editor2-first=Hilde|editor3-last=Eisend|editor3-first=Martin}}</ref> 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.<ref name=":0" /> The unique selling proposition must be a feature that highlights product benefits that are meaningful to consumers.<ref>Based on Laskey, H. A., Day, E. and Crask, M.R., "Typology of Main Message Strategies," ''Journal of Advertising,'' vol. 18, no. 1, 1989, pp 36–41.</ref> USP focuses on explicit claims of uniqueness involving an objectively verifiable product attribute or benefit-in-use.<ref>{{Citation|last1=Wang|first1=Liyong|title=Message Strategy Typologies: A Review, Integration, and Empirical Validation in China|date=2016|url=https://doi.org/10.1007/978-3-658-10558-7_16|work=Advances in Advertising Research (Vol. VI): The Digital, the Classic, the Subtle, and the Alternative|pages=201–213|editor-last=Verlegh|editor-first=Peeter|series=European Advertising Academy|place=Wiesbaden|publisher=Springer Fachmedien|language=en|doi=10.1007/978-3-658-10558-7_16|isbn=978-3-658-10558-7|access-date=2020-11-13|last2=Praet|first2=Carolus L. C.|editor2-last=Voorveld|editor2-first=Hilde|editor3-last=Eisend|editor3-first=Martin}}</ref> In summary:


#Each advertisement must make a proposition to the consumer—not just words, product ], or show-window advertising. Each advertisement must say to each reader: "Buy this product, for ''this specific benefit''." #Each advertisement must make a proposition to the consumer—not just words, product ], 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 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. #The proposition must be strong enough to move the masses, i.e., attract new customers as well as maintain current customers.


== Importance == == Importance ==
{{See also|Devising the creative strategy}} {{See also|Devising the creative strategy}}


The USP concept has become{{when?|date=March 2020}} one of the eight broad approaches to ]s in ].<ref name="Laskey">Laskey, H. A., Day, E. and Crask, M.R., "Typology of Main Message Strategies," ''Journal of Advertising,'' vol. 18, no. 1, 1989, pp 36–41.</ref>{{qn|date=March 2020}}<ref>Masterson, R, and Pickton, D,. ''Marketing: An Introduction'' Thousand Oaks, California, McGraw-Hill, 2010 pp 288-289</ref><ref>Copley, P. ''Marketing Communications Management: Analysis, Planning, Implementation,'' Sage, 2015</ref> The USP approach is recommended{{by whom?|date=March 2020}} where high levels of ] characterise a ] category.<ref name="Laskey"/> A clear USP helps consumers to understand differences - even non-existent differences<ref> The USP concept is one of the eight broad approaches to ]s in ].<ref name="Laskey">Laskey, H. A., Day, E. and Crask, M.R., "Typology of Main Message Strategies," ''Journal of Advertising,'' vol. 18, no. 1, 1989, pp 36–41.</ref><ref>Masterson, R, and Pickton, D,. ''Marketing: An Introduction'' Thousand Oaks, California, McGraw-Hill, 2010 pp 288-289</ref><ref>Copley, P. ''Marketing Communications Management: Analysis, Planning, Implementation,'' Sage, 2015</ref> The USP approach can be effective where high levels of ] characterise a ] category.<ref name="Laskey"/> A clear USP helps consumers to understand differences - even non-existent differences<ref>
{{cite web {{cite web
|url= http://www.entrepreneur.com/encyclopedia/unique-selling-proposition-usp |url= http://www.entrepreneur.com/encyclopedia/unique-selling-proposition-usp
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</ref> - 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 ].<ref>Reilly, M. and Parkinson, T.L., "Individual and Product Correlates of Evoked Set Size For Consumer Package Goods", in ''Advances in Consumer Research,'' Vol. 12, Elizabeth C. Hirschman and Moris B. Holbrook (eds), Provo, UT: Association for Consumer Research, pp 492-497, Online: http://acrwebsite.org/volumes/6440/volumes/v12/NA-12</ref> </ref> - 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 ].<ref>Reilly, M. and Parkinson, T.L., "Individual and Product Correlates of Evoked Set Size For Consumer Package Goods", in ''Advances in Consumer Research,'' Vol. 12, Elizabeth C. Hirschman and Moris B. Holbrook (eds), Provo, UT: Association for Consumer Research, pp 492-497, Online: http://acrwebsite.org/volumes/6440/volumes/v12/NA-12</ref>


In order to determine an appropriate USP for any given brand, ] must undertake extensive research of the category as well as of consumers.{{cn|date=March 2020}} 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.{{cn|date=March 2020}} 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.{{cn|date=March 2020}} The seller needs a key point to use when trying to sell their product or service,{{cn|date=March 2020}} and coming up with it prior to selling will benefit.{{cn|date=March 2020}} Having a ] to stand out is a major benefit in markets; customers will be drawn to a ] if it offers something no one else has.{{cn|date=March 2020}} 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.{{cn|date=March 2020}} This is exactly what every business should be looking into{{cn|date=March 2020}} whether it is home-delivery service from a store or all-organic food at a restaurant. In order to determine an appropriate USP for any given brand, ] must undertake extensive research of the category as well as of consumers.{{cn|date=March 2020}} 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.{{cn|date=March 2020}} 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.{{cn|date=March 2020}} The seller needs a key point to use when trying to sell their product or service,{{cn|date=March 2020}} and coming up with it prior to selling will benefit.{{cn|date=March 2020}} Having a ] to stand out is a major benefit in markets; customers will be drawn to a ] if it offers something no one else has.{{cn|date=March 2020}} 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.{{cn|date=March 2020}}


In markets which contain many similar products, using a USP is one ] method of differentiating the product from the competition. Products or services without differentiation risk the consumer seeing them as ] and ], 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.{{cn|date=March 2020}} In markets which contain many similar products, using a USP is one ] method of differentiating the product from the competition. Products or services without differentiation risk the consumer seeing them as ] and ], 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.{{cn|date=March 2020}}


The ] market provides one example with many manufacturers and the potential for new manufacturers at any time. ] used{{when?|date=March 2020}} the slogan "Beauty outside, Beast inside"<ref>{{Cite web|url= http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/10672-slogan.html|title= Slogan Definition {{!}} Marketing Dictionary {{!}} MBA Skool-Study.Learn.Share.|last= Zigu|website= MBA Skool-Study.Learn.Share.|access-date= 2016-05-19}}</ref> for its ] 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.{{cn|date=March 2020}} Apple differentiates itself with a focus on aesthetics and cutting-edge technologies.]'s "Save money, live better" (Waiz, 2013).<ref>Waiz, S. (2013, March 22nd). ''40+ Best Advertising Slogans of Modern Brands''. Retrieved March 29th, 2016, from Advergize: <nowiki>http://www.advergize.com/advertising/40-best-advertising-slogans-modern-brands/</nowiki> The ] market provides one example with many manufacturers and the potential for new manufacturers at any time. ] used the slogan "Beauty outside, Beast inside"<ref>{{Cite web|url= http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/10672-slogan.html|title= Slogan Definition {{!}} Marketing Dictionary {{!}} MBA Skool-Study.Learn.Share.|last= Zigu|website= MBA Skool-Study.Learn.Share.|access-date= 2016-05-19}}</ref> for its ] 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.{{cn|date=March 2020}} Apple differentiates itself with a focus on aesthetics and cutting-edge technologies.
On the other hand, ] differentiates itself through its campaign “save money, live better"<ref>Waiz, S. (2013, March 22nd). ''40+ Best Advertising Slogans of Modern Brands''. Retrieved March 29th, 2016, from Advergize: http://www.advergize.com/advertising/40-best-advertising-slogans-modern-brands/
</ref>{{fragment|date=March 2020}} 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.<ref name=":0">Entrepreneur. (No Date). ''Unique Selling Proposition (USP)''. Retrieved March 29th, 2016, from Entrepreneur: <nowiki>http://www.entrepreneur.com/encyclopedia/unique-selling-proposition-usp</nowiki> </ref> by having a focus on being the cheapest department store and 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.<ref name=":0">Entrepreneur. (No Date). ''Unique Selling Proposition (USP)''. Retrieved March 29th, 2016, from Entrepreneur: http://www.entrepreneur.com/encyclopedia/unique-selling-proposition-usp
</ref>

</ref>{{qn|date=March 2020}}
] are very important for different companies to establish their identity and increase ].{{cn|date=March 2020}} ] are very important for different companies to establish their identity and increase ].{{cn|date=March 2020}}


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.<ref>{{Cite web|date=2020-10-05|title=USP: more than a slogan|url=https://blog.presentationload.com/usp-unique-selling-proposition/|url-status=live|access-date=2021-05-23}}</ref> 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.<ref>{{Cite web|date=2020-10-05|title=USP: more than a slogan|url=https://blog.presentationload.com/usp-unique-selling-proposition/|access-date=2021-05-23}}</ref>


==Examples== ==Examples==
The following are examples of Unique Selling Propositions. What is commonly considered a ] is enhanced with a differentiating benefit of the product or service.<ref>{{cite web|last1=Douglas|first1=Laura Clampitt|title=Marketing Features Vs. Benefits|url=https://www.entrepreneur.com/article/34942|website=Entrepreneur|access-date=23 March 2017}}</ref> Typically, the uniqueness is delivered by a unique process, ingredient, or system that produces the benefit described. The following are examples of Unique Selling Propositions. What is commonly considered a ] is enhanced with a differentiating benefit of the product or service.<ref>{{cite web|last1=Douglas|first1=Laura Clampitt|title=Marketing Features Vs. Benefits|url=https://www.entrepreneur.com/article/34942|website=Entrepreneur|date=December 2000 |access-date=23 March 2017}}</ref> Typically, the uniqueness is delivered by a unique process, ingredient, or system that produces the benefit described.{{fact|date=September 2023}}
*] "Fast, incredibly fast relief." In 1952, Rosser Reeves created a TV commercial that capitalized on Anacin's "special ingredient," caffeine, by suggesting limitations of other aspirin and repeating, three times, the differentiation proposition: ''fast''.<ref>{{cite book|last=Butler|title=Television Critical Methods and Applications.|year=2006|publisher=Taylor & Francis Ltd.|location=Hoboken|isbn=1410614743|page=420|url=https://books.google.com/books?id=7rWFRLVyvY0C&q=rosser+reeves+anacin+ad&pg=PA420|edition=3rd}}</ref> *] "Fast, incredibly fast relief." In 1952, Rosser Reeves created a TV commercial that capitalized on Anacin's "special ingredient", ], by suggesting limitations of other aspirin and repeating, three times, the differentiation proposition: ''fast''.<ref>{{cite book|last=Butler|title=Television Critical Methods and Applications.|year=2006|publisher=Taylor & Francis Ltd.|location=Hoboken|isbn=1410614743|page=420|url=https://books.google.com/books?id=7rWFRLVyvY0C&q=rosser+reeves+anacin+ad&pg=PA420|edition=3rd}}</ref>
*]: "Melts in your mouth, not in your hand." 1954<ref>{{Cite news|url=https://www.washingtonpost.com/news/morning-mix/wp/2014/06/24/the-most-liked-advertising-slogan-mms-melts-in-your-mouth-not-in-your-hand/|title=The most-liked advertising slogan: M&M's 'Melts in your mouth, not in your hand'|newspaper=Washington Post|access-date=2016-05-11}}</ref> M&Ms use a patented hard sugar coating that keeps chocolate from melting in one's hands, thus a chocolate soldiers could carry, compared to other brands. *]: "Melts in your mouth, not in your hand."<ref>{{Cite news|url=https://www.washingtonpost.com/news/morning-mix/wp/2014/06/24/the-most-liked-advertising-slogan-mms-melts-in-your-mouth-not-in-your-hand/|title=The most-liked advertising slogan: M&M's 'Melts in your mouth, not in your hand'|newspaper=Washington Post|access-date=2016-05-11}}</ref> M&Ms use a patented hard sugar coating that keeps chocolate from melting in one's hands.
*]: "Clinically proven to reduce dandruff." 1961<ref>{{Cite web|title=History {{!}} Head and Shoulders News l P&G.com|url=http://news.headandshoulders.com/about/history|url-status=dead|archive-url=https://web.archive.org/web/20161115200034/http://news.headandshoulders.com/about/history|archive-date=2016-11-15|access-date=2021-05-23|website=news.headandshoulders.com}}</ref> ] was found, after 10 years of research, to be an ingredient that was actually effective in eliminating dandruff where other products were not effective. Adding the name "Shoulders" to the product name also indicated that the product eliminated the tell-tale white marks on clothing caused by dandruff flakes falling from the hair. *]: "Clinically proven to reduce dandruff."<ref>{{Cite web|title=History {{!}} Head and Shoulders News l P&G.com|url=http://news.headandshoulders.com/about/history|url-status=dead|archive-url=https://web.archive.org/web/20161115200034/http://news.headandshoulders.com/about/history|archive-date=2016-11-15|access-date=2021-05-23|website=news.headandshoulders.com}}</ref> ] was found, after 10 years of research, to be an ingredient that was actually effective in eliminating dandruff where other products were not effective. Adding the name "Shoulders" to the product name also indicated that the product eliminated the tell-tale white marks on clothing caused by dandruff flakes falling from the hair.{{fact|date=September 2023}}
*]: "You get fresh, hot pizza delivered to your door in 30 minutes or less—or it's free." 1973-1993 "You Got 30 Minutes" 2007-<ref>{{Cite web|url=http://www.prnewswire.com/news-releases/dominos-pizza-builds-on-heritage-with-launch-of-you-got-30-minutes-58768412.html|title=Domino's Pizza Builds on Heritage with Launch of 'You Got 30 Minutes'|last=Pizza|first=Domino's|website=www.prnewswire.com|access-date=2016-05-11}}</ref> Domino's uses what it calls the "make line" and other systems to make pizzas quickly. *]: "You get fresh, hot pizza delivered to your door in 30 minutes or less—or it's free." 1973-1993 "You Got 30 Minutes" 2007-<ref>{{Cite web|url=http://www.prnewswire.com/news-releases/dominos-pizza-builds-on-heritage-with-launch-of-you-got-30-minutes-58768412.html|title=Domino's Pizza Builds on Heritage with Launch of 'You Got 30 Minutes'|last=Pizza|first=Domino's|website=www.prnewswire.com|access-date=2016-05-11}}</ref> Domino's uses what it calls the "make line" and other systems to make pizzas quickly.{{fact|date=September 2023}}
*]: "When it absolutely, positively has to be there overnight." 1978–1983. FedEx was the first company to specialize in overnight air freight and first to implement package tracking.<ref name=":1">{{Cite web|url=http://about.van.fedex.com/our-story/history-timeline/timeline/|title=Timeline - About FedEx|website=About FedEx|language=en-US|access-date=2016-05-11}}</ref> This pioneering advantage was made possible by a new system outlined in the founder's 1965 ] paper.<ref name=":1" /> *]: "When it absolutely, positively has to be there overnight." 1978–1983. FedEx was the first company to specialize in overnight air freight and first to implement package tracking.<ref name=":1">{{Cite web|url=http://about.van.fedex.com/our-story/history-timeline/timeline/|title=Timeline - About FedEx|website=About FedEx|language=en-US|access-date=2016-05-11}}</ref> This pioneering advantage was made possible by a new system outlined in the founder's 1965 ] paper.<ref name=":1" />
*]: "Get Met. It Pays." 1984<ref>{{Cite web|url=http://www.referenceforbusiness.com/history2/45/Metropolitan-Life-Insurance-Company.html|title=Metropolitan Life Insurance Company - Company Profile, Information, Business Description, History, Background Information on Metropolitan Life Insurance Company|website=www.referenceforbusiness.com|access-date=2016-05-11}}</ref> Met's newer "Whole Life Policy" was a sales success for the company. The policy offered one-third more coverage, for the same price, and grew in cash value for a bigger "pay out" over time. In advertisements, Met compared buying the policy to buying a home.<ref>{{Cite book|url=https://books.google.com/books?id=RgYEAAAAMBAJ|title=Kiplinger's Personal Finance|last=Inc|first=Kiplinger Washington Editors|date=1981-10-01|publisher=Kiplinger Washington Editors, Inc.|language=en}}</ref> *]: "Get Met. It Pays."<ref>{{Cite web|url=http://www.referenceforbusiness.com/history2/45/Metropolitan-Life-Insurance-Company.html|title=Metropolitan Life Insurance Company - Company Profile, Information, Business Description, History, Background Information on Metropolitan Life Insurance Company|website=www.referenceforbusiness.com|access-date=2016-05-11}}</ref> Met "Whole Life Policy" introduced in 1984 was a sales success for the company. The policy offered one-third more coverage, for the same price, and grew in cash value for a bigger "pay out" over time. In advertisements, Met compared buying the policy to buying a home.<ref>{{Cite book|url=https://books.google.com/books?id=RgYEAAAAMBAJ|title=Kiplinger's Personal Finance|date=1981-10-01|publisher=Kiplinger Washington Editors, Inc.|language=en}}</ref>
*]: "We are THE low-fare airline."<ref>{{cite book|last=Goodwin|first=Bryan|title=Simply better : doing what matters most to change the odds for student success|year=2011|publisher=ASCD|location=Alexandria, Va.|isbn=978-1416612957|pages=11|url=https://books.google.com/books?id=WfrtYZ1HcG8C&q=kelleher+%22I+can+teach+you+the+secret+to+running%22&pg=PA11}}</ref><ref>{{Cite web|url=http://www.fastcompany.com/1404456/effective-internal-marketing-strategies-all-businesses|title=Effective Internal Marketing Strategies for All Businesses|date=2009-10-14|website=Fast Company|language=en-US|access-date=2016-05-11}}</ref><ref>{{Cite book|url=https://archive.org/details/madetostickwhyso00heat|url-access=registration|title=Made to Stick: Why Some Ideas Survive and Others Die|last1=Heath|first1=Chip|last2=Heath|first2=Dan|date=2007-01-02|publisher=Random House Publishing Group|isbn=9781588365965|language=en}}</ref> *]: "We are THE low-fare airline."<ref>{{cite book|last=Goodwin|first=Bryan|title=Simply better : doing what matters most to change the odds for student success|year=2011|publisher=ASCD|location=Alexandria, Va.|isbn=978-1416612957|pages=11|url=https://books.google.com/books?id=WfrtYZ1HcG8C&q=kelleher+%22I+can+teach+you+the+secret+to+running%22&pg=PA11}}</ref><ref>{{Cite web|url=http://www.fastcompany.com/1404456/effective-internal-marketing-strategies-all-businesses|title=Effective Internal Marketing Strategies for All Businesses|date=2009-10-14|website=Fast Company|language=en-US|access-date=2016-05-11}}</ref><ref>{{Cite book|url=https://archive.org/details/madetostickwhyso00heat|url-access=registration|title=Made to Stick: Why Some Ideas Survive and Others Die|last1=Heath|first1=Chip|last2=Heath|first2=Dan|date=2007-01-02|publisher=Random House Publishing Group|isbn=9781588365965|language=en}}</ref>


Latest revision as of 18:45, 15 November 2024

Individual claim that differentiates a product or service

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).

This strategy was used in successful advertising campaigns of the early 1940s. The term was coined by Rosser Reeves, a television advertising pioneer 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." The term has been extended to cover one's "personal brand".

Definition

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. The unique selling proposition must be a feature that highlights product benefits that are meaningful to consumers. USP focuses on explicit claims of uniqueness involving an objectively verifiable product attribute or benefit-in-use. In summary:

  1. 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."
  2. 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.
  3. The proposition must be strong enough to move the masses, i.e., attract new customers as well as maintain current customers.

Importance

See also: Devising the creative strategy

The USP concept is one of the eight broad approaches to creative executions in advertising. The USP approach can be effective where high levels of technological innovation characterise a product category. A clear USP helps consumers to understand differences - even non-existent differences - 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.

In order to determine an appropriate USP for any given brand, marketers must undertake extensive research of the category as well as of consumers. 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. 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. The seller needs a key point to use when trying to sell their product or service, and coming up with it prior to selling will benefit. 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. 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.

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.

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" 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. Apple differentiates itself with a focus on aesthetics and cutting-edge technologies.

On the other hand, Wal-Mart differentiates itself through its campaign “save money, live better" by having a focus on being the cheapest department store and 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.

Marketing strategies are very important for different companies to establish their identity and increase market share.

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.

Examples

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. Typically, the uniqueness is delivered by a unique process, ingredient, or system that produces the benefit described.

  • Anacin "Fast, incredibly fast relief." In 1952, Rosser Reeves created a TV commercial that capitalized on Anacin's "special ingredient", caffeine, by suggesting limitations of other aspirin and repeating, three times, the differentiation proposition: fast.
  • M&M's: "Melts in your mouth, not in your hand." M&Ms use a patented hard sugar coating that keeps chocolate from melting in one's hands.
  • Head & Shoulders: "Clinically proven to reduce dandruff." Pyrithione Zinc was found, after 10 years of research, to be an ingredient that was actually effective in eliminating dandruff where other products were not effective. Adding the name "Shoulders" to the product name also indicated that the product eliminated the tell-tale white marks on clothing caused by dandruff flakes falling from the hair.
  • Domino's Pizza: "You get fresh, hot pizza delivered to your door in 30 minutes or less—or it's free." 1973-1993 "You Got 30 Minutes" 2007- Domino's uses what it calls the "make line" and other systems to make pizzas quickly.
  • FedEx: "When it absolutely, positively has to be there overnight." 1978–1983. FedEx was the first company to specialize in overnight air freight and first to implement package tracking. This pioneering advantage was made possible by a new system outlined in the founder's 1965 Yale paper.
  • Metropolitan Life: "Get Met. It Pays." Met "Whole Life Policy" introduced in 1984 was a sales success for the company. The policy offered one-third more coverage, for the same price, and grew in cash value for a bigger "pay out" over time. In advertisements, Met compared buying the policy to buying a home.
  • Southwest Airlines: "We are THE low-fare airline."

See also

References

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