What is a USP? A Unique Selling Proposition
Rosser Reeves was an advertising executive who believed that an advertisement or commercial should show off the value of a product, not the cleverness of the ad’s copywriter. He crafted his ads around what he called the Unique Selling Proposition, or USP. This is the one reason the product needed to be bought or was better than its competitors.
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Marketing for Managers
This video is part of course module number 8.3.2
Program 8: Managing Customers & Clients
Course 3: Marketing for Managers
Section 2: Marketing Strategy
Other videos in this section include:
🎬 What is Market Research? https://youtu.be/a9wa1-_2R9E
🎬 What is a Marketing Strategy? https://youtu.be/cpPjuKfswOo
🎬 What is Market Segmentation? https://youtu.be/7FtiPAlBdto
🎬 What is a Customer Persona? https://youtu.be/DJWftQwPtAk
🎬 What is Multi Level Marketing (MLM)? https://youtu.be/u7rRVM_eTo4
Rosser Reeves coined the term Unique Selling Proposition in the 1950s. Harvard professor of marketing Theodore Levitt, underlined the importance of the USP:
‘Differentiation is one of the most important strategic and tactical activities in which companies must constantly engage.’
A Unique Selling Proposition sets out clearly how your product or service is different from (and better than) its competitors.
This differs from the idea of positioning, which creates a perception of your product or brand in the minds of potential customers. This does not have to represent either specific features or benefits, or anything that is truly unique. It is often about the balance of quality and value, along with a set of life-style or social associations.
A strong USP helps your product or brand stand out. With a distinct USP, which your customers value highly, you can worry less about what your competition is doing. Your USP will be the cornerstone of your marketing strategy.
How to Create a USP
Stage 1: Market Intelligence
1. Find your ideal customer. What motivates their behaviors and choices?
2. Research your competition
3. Find out why your customers buy your product
Stage 2: Differentiation
4. Explain how your product or service solves your ideal customer’s problems or meets their needs or desires
5. List differentiators from competing products or services
6. Explain why your product or service is the ideal choice for your ideal customer
Stage 3: Crafting the USP
7. Express what you have learned as an elevator pitch. Here is a handy format:
[Your Product] offers [capability] for
[ideal customer] to [value proposition].
Unlike [competing product] it [key differentiator]
So, for example
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8. Use the key differentiator to craft a snappy statement of your USP. For example: Free Management Training Courses
1. Articulate the USP for a product or service your organization provides. Use the format I suggest and then create a tagline. (3 MC CPD Points)
2. Repeat exercise 1 for a product or service you use a lot. (3 MC CPD Points)
00:00 – Rosser Reeves & the Unique Selling Proposition (USP)
00:39 – Rosser Reeves & Theodore Levitt
00:53 – ‘Differentiation’
01:12 – Definition of a USP
01:36 – Difference between a USP & Positioning
02:11 – The value of a strong USP
02:48 – Are USPs still important?
04:08 – How to Create a USP
04:54 – Differentiation
05:36 – Crafting a USP
📖 Very quick overview
Marketing: A Very Short Introduction https://geni.us/ozSJF
📖 Good general overviews
Kotler on Marketing https://geni.us/JNeVHy
Positioning: The Battle for Your Mind https://geni.us/kGj4KCA
The 22 Immutable Laws of Marketing https://geni.us/RVU1
Marketing For Dummies https://geni.us/sZXAw
📖 Small business marketing
The 1-Page Marketing Plan https://geni.us/Xb4wBk
📖 For a textbook, you can’t go wrong with Kotler’s name on it!
Marketing: An Introduction https://geni.us/q4gzVOw
Principles of Marketing https://geni.us/gsFeMT5
Marketing Management https://geni.us/i3FO
⭕️ Links to our book recommendations are affiliated through Amazon
Managers Need a Basic set of kit to do your job well. Here are my top recommendations: https://kit.co/MikeClayton/manager-s-work-kit (the links are affiliated)
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