To capture a larger market share and be viable, sustainable and profitable, you absolutely need to differentiate or distinguish your business, products and/or services from your competitors.
In other words, you need to make your business special in the eyes of your customers and/or prospects.
You can do this by creating what's called an Unique Selling Propostion or USP and then effectively convey that USP to your target market via your marketing efforts and business performance.
This is particularly crucial if you're operating in a highly competitive market.
What Is An Unique Selling Propostion?
Your USP is the one thing or idea that sets your business favourably apart from your competitors'. It's a statement of Advantages you bring to your customers that differentiate you from your competitors.
It's the focal point around which the success and profitability of your business is built and so you must be able to state it and fulfill it honourably and effectively. It's always stated in terms of the benefit it delivers to your customers.
Think about this:
"What's the one thing that makes your business unique and distinct? Why should people buy from you and not from your competitors? Do you promise great value, benefits or service?"
Advantages could include factors like a broad range of product selection, superior customer service, highest quality, best prices, and so on.
Effective USP Components
When formulating and implementing your USP, it's crucial that you bear in mind the following components:
1. Your USP must be truly unique
2. It must be strong enough to excite your target market and get them talking about it.
3. It mustn't be easily imitated or copied.
Look, anybody can claim that they provide the best service in town - "We're The Number One Service Provider In America". Do you think this is credible? Of course not, people can see right through it; it's lukewarm and is an empty promise because you can't measure it and you can't hold them accountable. USP such as this can in fact harm your business instead of helping it.
Your USP really needs to pack a punch.
Now, let's take a look at good example:
"Your Parcel Delivered To You The Very Next Day, or It Costs You Nothing!"
The above is a powerful USP. As you can see, you can actually measure it and hold the Company accountable; the company actually guarantees the delivery of your parcle the very next day or it doesn't cost you a cent.
Can you imagine what this will do to the Company? It'll put it head and shoulders above its competition.
Many business owners often wonder why they should be unique. They wonder what's wrong with being a "me too" business.
The fact is that if you're unique, you're almost guaranteed to outperform and outdistance your competition. It's also a fact that a "me too" business will eventually go to the wall.
Let me ask a question:
Do you set up shop before identifying and formulating your USP?
If you do, don't!
Here's an illustration why...
You set up a provision shop in an area where there're already four of them operating in it.
The current market share is being split amongst the four provision shops, and out of the four, three of them are struggling.
By setting shop in that area, it means that the current market share will have to be further split amongst the five of you.
What makes you so sure that you'll be profitable if you're not unique and operate as an "also ran"?
The fact is that the odds is really against you because you're no different from the rest of your competitors.
The days where businesses compete on price and service alone is no longer that effective because the potential customers can always get what you have to offer much cheaper and with a better service somewhere else.
What you really need is to be different and unique in order to outperform your competitors.
By now you can see how powerful a statement of USP is to your business. As I've mentioned in the beginning, it is the focal point around which your business is built. It forces you to be clear and define exactly what advantages your customers can expect from doing business with you.
And as such, it'll drive your marketing efforts and have a profound impact on your operations.
Coming up with a clear statement of your USP doesn't cost you money - just some of your time and thoughts. At the end of the day, it'll be time and thoughts well spent because of the increase in sales and profits that you'll reap.
Just do it today; this step is absolutely crucial.
About the Author
Copyright 2005 by Larry Lim, MarketingSphere
Larry Lim is a practising marketing strategist and tactician who dishes out highly effective marketing strategies and tactics that will enable you to successfully start and grow your business on the Internet.
His Internet Marketing Strategy website is jam-packed with internet marketing secrets and softwares that will skyrocket your sales, and shoot your profits through the roof.
How to Gain your Prospective Clients' Attention and Generate the... Read More
If you have your own small business, it's important to... Read More
What's a small business owner to do if they have... Read More
Every day I talk with professional service providers who do... Read More
There are many ways to reach out and find the... Read More
Have you looked for marketing advice on the internet recently?... Read More
I am a great believer in the keeping to the... Read More
Wake up women (and you men too). I think we... Read More
Have you ever noticed how many times it's the simplest... Read More
Having a strong foundation enables you to build a thriving,... Read More
The toughest job you face as a B2B direct marketer... Read More
To be your own marketing expert you first need to... Read More
Your marketing weak link could be undermining the rest of... Read More
Entering into Global markets is a great way to organically... Read More
Too many business owners believe that marketing their business means... Read More
Forget what you know about your business Your goal is... Read More
Most people mistakenly assume that when you talk about marketing,... Read More
The media is a business's absolute best friend. It is... Read More
Highly effective marketing is accomplished when your marketing materials and... Read More
A little advice about using leads that you purchase from... Read More
One of the keys to creating a successful business is... Read More
Are you looking for a natural way to market your... Read More
Parents are always looking for free and easy ways to... Read More
We are all customers of one product or another. How... Read More
When you take a piece of gold to a pawn... Read More
The "Matures" are the generations that came along between 1909... Read More
Many service professionals tell me that they are uncomfortable with... Read More
Positioning is a powerful concept in marketing. To illustrate, have... Read More
What effect are the baby boomers having on the economy... Read More
December is a month in which many organizations make plans... Read More
Donors read postscripts. This is a sad but important reality... Read More
Business cards and greeting cards almost go hand in hand... Read More
As the American economy emerges from recession, many businesses are... Read More
Starting a business, whether it's retail products or services, must... Read More
When I started my coaching practice I believed that I... Read More
Printed material is just as important today as it was... Read More
The toughest job you face as a B2B direct marketer... Read More
Our business environment has changed dramatically. Companies must now be... Read More
Marketing successfully requires not only insight into how a product... Read More
I'm regularly asked to speak to people, that have either... Read More
Having a strong foundation enables you to build a thriving,... Read More
Cartoons have gone from celluloid to digital. Movies have gone... Read More
When your envelopes aren't opened, you can't make money! Beforeyou... Read More
According to the Center for Exhibition Industry Research (the trade... Read More
Behold! He with the light cometh!He shall light thy darkest... Read More
If you run a small business you should be a... Read More
What effect are the baby boomers having on the economy... Read More
The single biggest, non-renewable asset you have is your time.... Read More
A newsletter can be a wonderful, economical way to communicate... Read More
A case study in online "thinking outside the box" The... Read More
In today' s marketplace, the pressure for immediate bottom-line results... Read More
Rest assured that no matter how smart you are, you... Read More
I enjoy cleavage as much or even more than the... Read More
"Price gouging" is an emotional, inflammatory term. Everyone is against... Read More
No matter how small your marketing budget, your business can... Read More
I've heard a lot of people lament the fact that... Read More
The world of marketing has changed. With increasingly better educated... Read More
Quit spreading those chain letters, nothing is going to happen... Read More
When marketing your practice, as well as designing your brochure,... Read More
A successful marketing plan doesn't have to include an athletic... Read More
Effective marketing for the small business begins with market researchIf... Read More
One rule in direct mail is that your letter sells... Read More
Are you looking to erase your debt, buy that new... Read More
Successful direct mail packages contain three things: an attractive offer,... Read More
As a massage therapist, your income is usually limited by... Read More
Most companies ask themselves this question: "How much will this... Read More
Marketing |