what is usp in marketing

A Unique Selling Proposition (USP) is a marketing strategy that informs customers about how a brand or product is superior to its competitors. It is the essence of what makes a product or service better than competitors and defines a companys unique position in the marketplace. A USP helps consumers understand differences between brand offerings in a category, and may also help consumers form a positive attitude towards a brand, ultimately contributing to increased levels of brand recall. A successful USP promises a clearly articulated benefit to consumers, offering them something that competitive products cant or dont offer. A clear USP helps differentiate a product from the competition, and products or services without differentiation risk the consumer seeing them as commodities and fungible, thus lowering price potential. A USP is not just the header copy on a homepage, but a position a small business takes as a whole that can be incorporated into products, brand, and the experience provided to customers. To create a strong USP, businesses must examine the profile of their perfect customer and market their products in a way that shows how they can meet their needs and solve their problems.