Oct 14, 2010

Unique Selling Proposition (USP)

Positioning is about making offering different from, and more valuable than, competitors' offerings and placing that idea in the minds of a target group of customers. Positioning attracts customers by creating a positive and unique identity for a company and its offerings. Positioning is vital for distinguishing offering from everybody else's.
Pinpointing product or service USP requires some hard soul-searching and creativity. One way to start is to analyze how other companies use their USPs to their advantage. This requires careful analysis of other companies' ads and marketing messages. If analysis says about what they say they sell, not just their product or service characteristics, one can learn a great deal about how companies distinguish themselves from competitors. For example, Charles Revson, founder of Revlon, always used to say he sold hope, not makeup. Some airlines sell friendly service, while others sell on-time service.Neiman Marcus sells luxury, while Wal-Mart sells bargains.
Here's how to develop a Unique Selling Proposition (USP) and use it to power up product sales:
  • Put yourself in your customer's shoes
Too often, entrepreneurs fall in love with their product or service and forget that it is the customer's needs, not their own, that they must satisfy. Step back from business daily operations and carefully scrutinize what customers really want.
  • Know what motivates your customers' behavior and buying decisions
Effective marketing requires to business be an amateur psychologist. One need to know what drives and motivates customers. Go beyond the traditional Customer Demographic, such as age, gender, race, income and geographic location that most businesses collect to analyze their sales trends.
  • Uncover the real reasons customers buy your product instead of a competitor's
As ones’ business grows, he will be able to ask best source of information. Many retailers routinely drop into their competitors' stores to see what and how they are selling.
Finally, Brand Positioning affects every aspect of a product Communication. Positioning is the basis for all business communications such as packaging, product design, sales promotions, advertising, and public relations. Everything one for its business do must reinforce that position otherwise it just undermine all marketing efforts and sow confusion instead of confidence. One must choose the right position, for now and down the road. 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.

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