HOUSTON, TX - This holiday season, I thought I'd give my readers a gift: Marketing guru David Frey has graciously agreed to let me publish his fantastic primer on the most important marketing concept ever: The Unique Selling Proposition. All marketers should understand this concept. No exceptions! I will run David's piece in three installments, and I encourage you to visit David's website, MarketingBestPractices.com
PART I: Differentiate or Die
- Avis Rent a Car -- We're number two. We try harder.
- Federal Express -- When it absolutely, positively has to be there overnight.
- Dominos Pizza -- Fresh, hot pizza in 30 minutes or less.
What do all three of these slogans have in common? They are powerful statements of uniqueness that helped to propel their respective companies to success.
- Avis Car Rental knew that Hertz, the number one car rental company, was so much bigger than them that they couldn't compete head on so they positioned themselves as the number two car company that worked harder for the customer.
- Federal Express based their slogan on a promise of delivery reliability.
- Dominos based their slogan on the fact that most pizza eaters don't car how much stuff is on it but that it was hot, fresh, and delivered fast.
Your Unique Selling Proposition
Each of these slogans is their respective company's unique selling proposition (USP). A USP is something that differentiates you from all your competitors both local and industry-wide. It's what makes you so unique that people will choose to do business with you over any of your competitors. Your USP states your distinct advantage.
One of the deadliest mistakes small businesses make is not being unique. Now more than ever you must differentiate your small business.
Explosion of Consumer Choice
Today there is an explosion of choices for consumers. During slow times the same amount of small businesses will be vying for a diminishing amount of prospects. When this happens the competitive landscape gets tougher and choices for consumers gets more difficult. If you want to survive during the slow economy you must differentiate yourself in the eyes of your prospect. Your USP is what states to the world why you are different.
Factoid: The origin of USP comes from a man named Rosser Reeves, considered the 'high priest of hard sell.' An advertising agency chairman back in the 60's, Reeves wrote a book titled, 'Reality in Advertising' which was translated into 28 languages. It was Reeves who introduced and defined the concept called Unique Selling Proposition. In fact, one of Mr. Reeves most successful USP's was "Melts in your mouth -- not in your hands."
Why is Your USP so Important
To be successful in business you don't have to be the best, you just have to be unique. Identifying, developing, and incorporating your USP into everything you do is challenging. But the reward is worth every effort. It will differentiate you, distinguish you, and give you an advantage over everyone in your marketplace.
'Me too' businesses rarely survive. They usually end up in price wars because they don't have anything unique about them to establish value in the minds of their prospects. They are left with only one weapon with which to compete, price. And unless you have a significant cost advantage over your other small business competitors, you will lose.
Make Your USP Crystal Clear
The more clearly you announce your USP, the more often they'll choose you over your competition. You must use your USP to dominate your local market. When a consumer thinks of buying a product in your industry, your name must be the first one that pops into their mind.
Your USP must create a real and perceived advantage in your prospect's mind. For example, Dominos made a very bold guarantee that if they didn't deliver your pizza within 30 minutes of ordering, it would be free of charge. Dominos put their USP into action.
COMING SOON: Part II of this article.
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