You will now complete your secondary market research and consider what distinguishes your company from your competitors, their products, and / or the price of their products and services.
The key word in Unique Selling Proposition (USP) is "unique." There are very few products or services that are truly one of a kind. In order to target the demographic for your company, you need to pinpoint what makes your business standout among the competitors (e.g., Charles Revson, founder of Revlon, always used to say he sold hope, not makeup. Neiman Marcus sells luxury and customer service. Wal-Mart sells bargains. Amazon is earth's biggest bookstore.)
Use the Internet to research two (2) of your favorite companies and two (2) companies that are similar to your company. Identify the USPs of these companies, and consider what the USPs mean to you. Next, prepare to create a USP for your company.
Tips on creating a USP for your company:
- Put yourself in your customers' shoes. Consider what your customers really want. Consider what could make them your repeat customers and instead of your competition's.
- Research what motivates your customers' behaviors and buying decisions. You need to know what drives and motivates customers.
- Uncover the real reasons why customers buy your product instead of a competitor's. As owner of a start up, ask people why they buy your future competitors' product. This will help you uncover why they might buy yours. Ask yourself the following questions:
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- What does our product or service do better than anyone else?
- How is our business model different from that of our competition? How could our product or service be different?
- What market category or niche is not being served by our industry?
Write a four to six (4-6) paragraph journal entry in which you:
- Identify the target market and your secondary market for your company. Note: Be as specific as possible (e.g., women 30-45, with a high school education and some college; people working full time and living in the Midwest, etc.).
- Describe your unique selling proposition (USP). Explain the key factors that make your company different than competitors within your industry. Describe the primary way in which the USP for your company targets the two (2) markets you identified in Question 1.