USPs are not just for large multinationals. As an SME, you, too, must know and think about how to position yourself well in the market. And your USP, because it says precisely why someone should choose you over your competitor. This is your ultimate selling point, the one that allows you, as a small business, to differentiate yourself from the big players in the market and to be able to stay in competition with them.
What exactly is a USP?
A usp full form in marketing is a Unique Selling Proposition, and it stands for the quality of your service, product, brand or company that sets you apart from (and makes you better than) your competitors. USP’s key message is delivered continuously through your communications and ideally through your company tagline as well. This way, your proposition is always put forward, and it is clear to your client.
The concept of USP was invented by Rosser Reeves, a pioneer in television advertising and employed by one of the largest advertising companies in the world: Ted Bates & Company. Even today, a USP must respect its three fundamental rules:
- Your proposal should be apparent: “If you buy X, you will get such an advantage.”
- The advantage is ideally unique, with your competition not offering the same.
- And it is salable: many people must want to take advantage of this advantage.
For Reeves, the USP was the critical element of an advertising campaign. It had to spell out why your product or service was worth buying while still being honest. Don’t advertise an offer that isn’t what you promise, and don’t claim properties that aren’t truly unique. It will only cause you to lose customers in the long run while damaging your reputation.
In his time, Reeves contributed to the development of many brands around the world. However, his ads were primarily based on logic and concrete arguments, not creativity. They have therefore been the subject of numerous criticisms. From the 1960s on, his down-to-earth advertising was increasingly overtaken by the creative revolution sweeping through the advertising world. But even today, the principles of Reeves’ USP are the same.
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For a Unique Selling Proposition to deliver continuing success, you must meet three essential characteristics:
- Target group orientation: USPs should be aimed at a target group and meet their needs.
- Profitability: USPs should not involve significant costs to be profitable over time.
- Resilience: USPs must be able to compete in the market.
How to Generate a Unique Selling Point?
A Unique Selling Proposition is typically conceived in four steps:
Determine the target group: the pool of potential customers must be accurately defined. It is suggested to segment the target group according to age, occupation and preferences to understand their specific needs.
Understand the problems: It is crucial to put yourself in likely customers’ shoes to determine more about their issues and expectations. If need be, it may be appropriate to question existing consumers on this point.
Define the variances between the offers: the services of the request are first listed. We then separate the services that adequately meet the needs of the specified target group. The recommendations of the competition are then analyzed. On this basis, it is likely to determine which essential characteristics are present in your request and not in the competitor’s.
Define the promise to sell: The commitment to sell should be as short and understandable as possible.
What is the difference between a Unique selling proposition and a slogan?
Many people confuse a concept, a slogan and a USP. The difference is easy to see. All three are short statements related to your business and easily communicated to your customers to remember.
However, that’s all they have in common!
Even though a slogan sounds like usp full form that is unique selling proposition, the latter provides more specifics that define the business with minor flowery language.
Below are the essential differences between a slogan and a USP:
A slogan should only contain a few words. It must mark the mind of your prospects, therefore be well turned out, attractive (rather musical, pretty, or funny depending on the image you want to give) and use clever language.
A USP is more geared towards benefiting your customer. What benefit should your client expect when working with you?
The unique value proposition is rather descriptive. It touches the heart of the uniqueness of your business that sets it apart from other competitors instead of focusing on puns and attractiveness.
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USPs can provide a higher demand for your services or products: to do this; nevertheless, your unique sales guarantee must meet the prevailing needs of your target group. This is why a detailed target group analysis is essential for the success of the company. Then, it would help if you guaranteed that the Unique Selling Point of your proposal is the spearhead of your marketing campaigns. Otherwise, you will be dependent on consumers finding out about the unique sell promise for themselves and promoting it for you.
The most dependable way is to highlight the unique benefit of your offer in your advertisement. For a success that is as sustainable as possible, it is also necessary to constantly keep an eye on the reaction of the competitors. You will be able to react quickly and adapt or reorient your offer as soon as competing companies start to offer similar products and services. USP has many other full forms in other departments for example, usp full form in computer is Universal Serial Port.