Week 8 – Post 1 Unique Selling Proposition (USP)

stand-out-from-the-crowd-4-apples

According to The Entrepreneur a Unique Selling Proposition can be described as:

“The factor or consideration presented by a seller as the reason that one product or service is different from and better than that of the competition”

One cannot sell his product or service without first selling it to himself. In the highly competitive world that we live in today, with products being similar to each other, only few products can be described as being one-of-a-kind.
It is imperative that a business will have a unique selling proposition whereby its products are advertised using the correct marketing techniques. This will ensure that the current and future customers will know what makes your product unique and also will help target particular markets resulting in an increase in sales.
Having an effective USP requires a lot of hard work and dedication. The creators need to ensure that a creative method is used; one that ensures that the product’s uniqueness is clearly communicated. One starting point is carefully analysing other competitors’ work. Their ads and marketing messages will give a better insight as to how they distinguish themselves.

The following points will allow a company to uncover their USP and use it to increase sales:

    Put yourself in your customer’s shoes. Entrepreneurs should         ensure that not only their personal needs are met but also those of their future customers. It is pointless to only provide a product without enriching the product and customer experience. For example, a restaurant may have good food however chances are that they will not return if the customer service is poor. It follows that a restaurant is rated on much more than the food it serves but also on the convenience, reliability and friendliness of its staff. Price is never the sole reason for a product that is bought. If a competitor is beating you due to its size and economies of scale that they have, an entrepreneur should ensure that they position themselves as a niche product.

    Know what motivates your customers’ behaviour and their buying decisions. Psychology plays an important role since an effective marketing plan will need to analyse the behaviour of customers. The drives and motivations of customers will ensure that the correct target market is addressed with the ads used. Marketers should make sure that they go beyond the traditional customer demographics, i.e. age, race, gender and income. For example liquor companies provide a good example of how psychological promotion is used. The ads used to target the affluent businessman will surely be different from a beer targeted to university students.

    Uncover the real reasons customers buy your product instead of a competitor’s. Once the ball is rolling, the entrepreneur should ensure that data is obtained from their customers. This data can be turned into information and will allow the entrepreneur to know why customer’s return, anything that may hamper their experience and also whether they advertise a particular product through word of mouth. Customers that enjoy one’s product will be honest when asked on how a particular product can be improved, as it will obviously be in their interest to have a better experience.

    Successful business ownership is not about having a unique product or service; it’s about making your product stand out, even in a market filled with similar items.

    Reference:
    http://www.entrepreneur.com/encyclopedia/unique-selling-proposition-usp

    Image Source
    fastprofits.com.au/blog/wp-content/uploads/2011/03/stand-out-from-the-crowd-4-apples.jpg

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