Every day, new businesses emerge across the globe, selling products or services already offered by hundreds of existing businesses. Yet, a select few of these new businesses manage to leave a substantial impact on the market, despite going against already established companies. This leaves many new founders wondering how to replicate success in already saturated markets.
This piece will examine the concept of unique selling proposition and competitive advantage, and how developing strategies around them can help new businesses thrive in saturated markets.
Let’s jump right in with the first big question:
What is A Unique Selling Proposition (USP)?
The key to effective selling in a saturated market is what advertising and marketing professionals call a unique selling proposition (USP). A unique selling proposition is a critical factor that makes your business better than the competition. It’s that particular feature that helps your business stand out in comparison to other companies in your market.
Unless you can pinpoint what makes your business unique in a world of hom*ogeneous competitors, you cannot target your sales efforts successfully. Your USP highlights your strengths and should stand on what makes your brand or product notably valuable to your customers.
Being “different” is rarely a solid USP in itself. You have to be exceptional in an area that impresses your target audience. Otherwise, your brand message wouldn’t have the right effect.
Creating a foundationally strong USP influences your marketing strategy, message, brand, and other marketing choices. Fundamentally, a USP should answer a prospective customer’s primary question:
“What makes you different from the competition?”
An example of a unique selling proposition for an innovative TV with an anti-crack screen might be, “The only device with the finesse of a smart television and the durability of a brick.”
By sticking to just one prominent feature or benefit to promote, the consumer’s attention is entirely focused on that particular benefit and will leave a lasting impression.
Learn more about making your business stand out in our article about branding basics that sheds more light on the impact of having a solid brand story on business growth.
Attributes of a Good USP
- Bold and justifiable: A position of certainty that forces you to compete against rival products is more impressive than a generic statement, like “our products are high-quality.”
- Targeted at what customers value: Your product must be something that your target customers genuinely care about.
- More significant than a cliche: While a cliche is a way of communicating your USP, it’s also something that you can symbolize in other areas of your business, from your return policy to your supply chain. You should be able to talk the talk and walk the walk.
Now that we better understand what a unique selling proposition is, let’s examine competitive advantage by exploring the question:
What is A Competitive Advantage?
Competitive advantages allow a company to produce goods or services better or more cheaply than the competition. These factors enable the production facility to generate more sales or superior margins compared to its market rivals.
Primarily, competitive advantages rest on various variables, including cost structure, branding, the quality of product offerings, the distribution network, intellectual property, and customer service.
Also, competitive advantages generate extra value for a firm and its shareholders because of specific strengths or conditions. The more the competitive advantage is sustained, the more difficult it is for competitors to counteract it.
A brand can also be a competitive advantage. Explore two types of branding with notable examples of using them to your advantage in this article.
Consumers get overwhelmed when shown more than one competitive advantage. Hence, for a competitive advantage to have an effect, it must stand out in the consumer’s mind.
Many top companies have established that a single, well-advertised competitive advantage is more effective than hundreds of varying competitive advantages.
Attributes of a Good Competitive Advantage
An excellent competitive advantage must be:
- Distinguished: Brand delivers peculiar, high-value benefits to target customers. What is the actual use a product or service provides? It must be something that customers need, and it must offer real value.
- Distinct: Company offers something not readily available elsewhere or unique.
- Dominant: Product offers superior benefits to similar competitors. Competitors aren’t just identical companies or products. They also include anything else your customer could do to meet the need you can fulfill.
- Recognized: Brand is recognized and publicly relevant. A business needs to be closely attuned to its target market to create demand, the driver of all economic growth. They need to know who their customers are and how to make their lives better.
- Copy-proof: Product or service cannot be duplicated or imitated. Business owners need to stay up to date on the new trends that affect the product, including any new technology that may oust the product.
- Affordable: Consumers will be willing to pay for the difference.
- Profitable: The value brought to the customer is beneficial for the company.
Is There A Difference Between Unique Selling Proposition And Competitive Advantage?
Not really.
A USP is a subset of a company’s competitive advantage. This peculiar competitive advantage, known as the unique selling proposition, is a single feature that a brand decides to identify with. A unique selling proposition leaves a strong image in the consumer’s mind and effectively positions a product as representing that particular quality.
Now that you understand the unique selling proposition and competitive advantage, it is time to tell your business’s story.
With the help of our seasoned professionals at Top Content Marketing Agency, your business can draw more attention through a brand story that highlights the unique benefits of your product or service. We do this in a way that connects emotionally with your audience, using the principles and standard practices of compelling content marketing and storytelling.
Discover your competitive advantage with expert assistance.
Resources:
https://www.shopify.com.ng/blog/unique-selling-proposition
https://www.thebalance.com/what-is-competitive-advantage-3-strategies-that-work-3305828
https://www.entrepreneur.com/encyclopedia/unique-selling-proposition-usp
https://www.thebalance.com/what-is-competitive-advantage-3-strategies-that-work-3305828
