Lesson 5: Unique Selling

Proposition and Value

Proposition
 Unique Selling Proposition

a method to market your product or service

in a way that is different than other
competitor’s marketing strategies
Unique - clearly sets you apart
from your competition, positioning
you the more logical choice.
Selling - It persuades another to
exchange money for a product or
service.
Proposition - It is a proposal or
offer suggested for acceptance
Example #1 - Package Shipping Industry

Pain - I have to get this package delivered

quick!
USP - "When it absolutely, positively has to
be there overnight."
 Example #2 - Food Industry
Pain - The kids are starving, but Mom and
Dad are too tired to cook!

USP - "Pizza delivered in 30 minutes or it's

free."
Example #3 - Real Estate Industry
Pain - People want to sell their house fast
without losing money on the deal.

USP - "Our 20 Step Marketing System Will

Sell Your House In Less Than 45 Days At
Full Market Value"
7 step process in constructing your Unique
Selling Proposition

Step 1: Use Your Biggest Benefits

- Clearly describe the 3 biggest
benefits of owning your product or service.

Step 2: Be Unique
- your USP separates you from the
competition, sets up a "buying criteria"
• PRODUCT: "A unique baseball swing that
will instantly force you to hit like a pro."

• OFFER: "You can learn this simple

technique that makes you hit like a pro in
just 10 minutes of batting practice."

• GUARANTEE: "If you don't hit like a pro

baseball player the first time you use this
new swing, we'll refund your money."
Step 3: Solve An Industry "Pain Point" Or
“Performance Gap”
-Identify which needs are going
unfulfilled within either your industry or
your local market.

Step 4: Be Specific and Offer Proof

-Consumers are skeptical of
advertising claims companies make.
Step 5: Condense into One Clear And
Concise Sentence
- The most powerful USPs are so
perfectly written, you cannot change or
move even a single word.

Step 6: Integrate Your USP Into ALL

Marketing Materials
- Variations of your USP will be
included in the ALL your marketing materials
Step 7: Deliver on Your USP's
Promise
– Be bold when developing your USP but
be careful to ensure that you can
deliver.
 Value Proposition
An analysis or statement of the
combination of good and services
offered by a company to its customer in
exchange for payment.
Step 1: Know your customer

• Who is he or she? What does s/he do and

need?
• What problems does s/he need to solve?
• What improvements does s/he look for?
• What does s/he value?
Step 2: Know your product, service
or idea
• How does the product, service or idea
solve the problem or offer improvement?
• What value and hard results does it offer
the customer?
 Step 3: Know your competitors

• How does your product or idea create

more value than competing ones?
Step 4: Distill the customer-
oriented proposition
• "Why should I buy this specific product or
idea?"
 Step 5: Pull it all together
turn around your customers' answer' from
step 4 into a value proposition statement.
Best Value Proposition Example

• One tap and a car comes directly to you

• Your driver knows exactly where to go
• Payment is completely cashless
A value proposition is a
s t a t e m e n t of t h e unique benefits
delivered by y o u r offering to t h e
target customer
A value proposition is a
hypothesis t h a t y o u r offering will
bring c e r t a i n values to a t a r g e t
customer. *

* Like a n y hypothesis, it needs to be

rigorously t es ted in t h e lab (read:
m a r k et p l ace) before m o n e y is p u t into
scaling.
Value Proposition is Not:

An elevator pitch: a 3 0 second

conversation s t a r t e r
“I buy dead magazines…”
“We un-think marketing…”
Value Proposition is Not:

A tag-line: a n a d compliment
“We know mo n ey ”
“What Happens Here, S tay s Here ”
“The City That Never Sleeps”
“Built for t h e r o a d a h e a d ”
 Value Proposition is Not:

A mission s t at e m e n t : a s t a t e m e n t
of t h e purpose of y o u r business.
“The University of Toronto is committed to being a n
internationally significant r e s e a r c h university, with
u n d erg r ad u at e, g r a d u a t e a n d professional p r o g r a ms of
excellent quality.”
“Google's mission is to organize t h e world's information a n d
m a k e it universally accessible a n d useful”
The value proposition s t a t e m e n t
should consist of t h e s e components:

1. What y o u r product/service is

2. The ta rg e t c u s t o m e r

3. The value you provide t h e m

Emerg ent property : why y o u r

product is unique
 What is i t ?
Examples: For w h o m?
Values?

Good: “Winners is a Bad: “Winners is a n

d e p a r t m e n t st or e t h a t off-price d e p a r t m e n t
offers fashion conscious st or e owned by T J X
c o n s u me r s t h e latest t h a t employs
b r a n d n a m e s for u p to i nt er national
6 0 p e r c e nt sourcing a n d buying
off.” (Winners) power.”
 What is i t ?
Examples: For w h o m?
Values?

Good: “Winners is a Bad: “Winners is a n

d e p a r t m e n t st or e t h a t off-price d e p a r t m e n t
offers fashion conscious st or e owned by T J X
c o n s u me r s t h e latest t h a t employs
b r a n d n a m e s for u p to i nt er national
6 0 p e r c e nt sourcing a n d buying
off.” (Winners) power.”
 What is i t ?

Examples: For w h o m?
Values?

Good: “A1 I ndust r i es h a s Bad: “A1 I ndust r i es

developed a n economical h a s discovered a
a n d easy-to-use chemical chemical isomer
additive t h a t allows pai nt additive t h a t allows
ma nufa c t ur i ng companies for a reduction of VOC
to r e duc e t h e emissions.”
e nvi r onme nt al i mpact of
t h e i r pr oduct s
 What is i t ?

Examples: For w h o m?
Values?

Good: “A1 I ndust r i es h a s Bad: “A1 I ndust r i es

developed a n economical h a s discovered a
a n d easy-to-use chemical chemical isomer
additive t h a t allows pai nt additive t h a t allows
ma nufa c t ur i ng companies for a reduction of VOC
to r e duc e t h e emissions.”
e nvi r onme nt al i mpact of
t h e i r pr oduct s
 What is i t ?

Examples: For w h o m?
Values?

Good: “Google is t h e Bad: “Google uses a

worldʼs largest s e a r c h p a t e n t e d page-
engine t h a t allows r a n k i n g algorithm to
i n t e r n e t u s e r s to find m a k e money t h r o u g h
r e l e v a n t information a d placement.”
quickly a n d easily.”
 What is i t ?

Examples: For w h o m?
Values?

Good: “Google is t h e Bad: “Google uses a

worldʼs largest s e a r c h p a t e n t e d page-
engine t h a t allows r a n k i n g algorithm to
i n t e r n e t u s e r s to find m a k e money t h r o u g h
r e l e v a n t information a d placement.”
quickly a n d easily.”

Are I n t e r n e t Users really Googleʼs c u s t o m e r s ?

 What is i t ?

Examples: For w h o m?
Values?

Good: “Google is t h e Bad: “Google uses a

worldʼs largest s e a r c h p a t e n t e d page-
engine t h a t r a n k i n g algorithm to
automatically provides m a k e money t h r o u g h
a d v e r t i s e r s with a d placement.”
potential c u s t o me r s
tailored to t h e a d
content, increasing
click-through r a t e s a n d
conversion rates.”