Unit 5: Product Propositions 
Lesson 1: Unique Selling Proposition 
 
 
Contents 
Engage 1 
Introduction 1 
Objectives 1 

Explore 2 

Explain and Elaborate 3 

Unique Selling Proposition 3 
Purpose of the Unique Selling Proposition 4 
Advantages of the Unique Selling Proposition 5 
Steps in Writing Unique Selling Proposition 6 

Extend 7 
Activity 7 

Evaluate 8 

Wrap Up 11 

Photo Credit 11 

Bibliography 12 
 
 
 
 
 
 
 
 
 
 
 

 
  
Unit 5.1: Unique Selling Proposition  
 

Engage   
 

  Introduction 

 
Fig. 1. Eat Sandwiches Store Front Signage  
 
Look  at  the  picture  above.  The owner describes his product as charcoal-broiled sandwiches. 
As  a  customer,  does  it  sound  attractive  to  you?  Why  do  businesses  need  to  describe  their 
product uniquely? Learn more about it as you read this lesson.  
 

  Objectives  
In this lesson, you should be able to do the following: 
● Recognize and understand the market. 
● Describe  the  unique  selling  proposition  that  differentiates  one’s  product  or  service 
from existing products or services.   
 
DepEd Competency 
Describe  the  unique  selling  proposition  that  differentiates  one’s  product/service  from 
existing products/services. ​(CS_EP11/12ENTREP-0d-7) 

 
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Unit 5.1: Unique Selling Proposition  
 
 

Explore   
 

       10 minutes 
Guide Questions 
Choose a partner and answer the following questions:   
 
1. Did  you  see  a  business  wherein  they  describe  their  product  differently,  such  as  using 
attractive words? Can you give an example of these businesses?  

 
2. What  may  be  the  reasons  why  businesses  highlight  these  special  features  of  their 
product? 
 

 
 
3. Why do these businesses use this kind of strategy?  
 

 
 
 

 
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Unit 5.1: Unique Selling Proposition  
 

Explain and Elaborate   

 
Unique Selling Proposition 
Unique  selling  proposition  (USP)​,  also  known  as  ​unique  selling  points​,  is  a  marketing 
strategy  that  focuses  on  special  features  of  a  product  or  services  which  enable  them  to 
stand  out  from  the  competition  and  attract  customers.  These  features  might  include  the 
quality  of  design,  style  or  service,  and  cost  or  the  reliability  of  the  product.  It  could  be 
described as what you have and what your competitors don’t have.  

Example 

Below are the well-known unique selling propositions of some businesses. 

 
Table 1. Example of real-life unique selling propositions 

Business/Product  USP 

Starbucks Coffee  Premium Coffee 

Domino’s Pizza  You  get  fresh,  hot  pizza  delivered  to  your 
door in 30 minutes or less or it’s free. 

M&Ms  The  milk  chocolate  melts  in  your  mouth, 

not in your hand. 

 
 

​ emember 
R
A  unique  selling  proposition  is  a  statement  created  by 
entrepreneurs  to  highlight  distinct  characteristics  of  products  or 
services from competitors.   

 
 
 
 

 
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Unit 5.1: Unique Selling Proposition  
 

Why  do  entrepreneurs  need  to  use  a  unique 

  selling proposition?  
 
Purpose of the Unique Selling Proposition 
A  clearly  stated  unique  selling  proposition  can  be  an  effective  tool  to  focus  on  goals  in 
business. The following are the general purposes of having a unique selling proposition.  
 
1. Sympathize with customer needs  
Some  entrepreneurs  focus  only  on  their  product  or  services,  and they tend to forget 
customer  needs  considering  they  must  be  satisfied.  Since  customers  are  the  source 
of  sales  and  income,  entrepreneurs  should  prioritize  their  needs.  In  creating  unique 
selling  propositions,  they  put  themselves  in  customer’s  shoes  so  that  they 
understand what the customers really need.  
 
2. Motivate the customer 
Entrepreneurs  must  know  what  motivates  and  drives  the  customer  to  buy  the 
product.  ​If  businesses  use  a  unique  selling  proposition,  entrepreneurs  identify  what 
will motivate them to purchase the product.  
 
3. Uncover the real reason why the customer buys the product 
As  the  business  grows,  the  best  source  of  information  is  the  customers. 
Entrepreneurs  may  ask  customers  why  they  are  patronizing  the  product.  For 
example,  the  entrepreneur  who  sells  pizza  may  ask  what  features  of  the  product he 
offers  they  would  like  the  most  such  as  taste,  size  or  ingredients.  Then,  answers  to 
these can be a good source of the business’ unique selling proposition. 
 

​ ​Tip 
The  ​unique  selling  proposition  describes  only  the  features  of  the 
product or service that are different from others.  

 
 
 
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Unit 5.1: Unique Selling Proposition  
 

Is  having  a  unique  selling  proposition  a  required 

  factor in a business? Why do you think so?   
 
Advantages of the Unique Selling Proposition 
Businesses  use  a  unique  selling  proposition  for  the advantage of their organization. It helps 
to attain the company’s goals. Some of these advantages are the following:  
 
Table 2. The advantages of a unique selling proposition to business 

Advantages  Description 

Clear Differentiation  Using  a  unique  selling  proposition  will  provide  your 

customers  with  a  clear  differentiation  of  your  product 
from  competitors.  Differentiation  is  the  unique  product 
attribute  that  separates  the  business  from  other 
businesses with the same nature.  

Improved Revenue  The  revenue  improves  or  exceeds  expectations  if  the 
business  offers  a  product  with  the  use  of  a  unique  selling 
proposition.  People  will  buy  the  product  or  services 
because it matches their needs.  

Loyal Customers  When  the  business  provides  a  product  that  meets 

customer  needs  through  a  unique  selling  proposition,  the 
buyers  are  likely  to  return  for  a  future  need.  Customers 
tend  to  repeat  the  purchase.  The  repeat  purchases evolve 
into feelings of loyalty to the business.  

Simpler Selling  Sales  staff  benefits  when  companies  develop  and  use  an 
effective  unique  selling  proposition.  It  gives  the  sales 
representatives  the  opportunity  to  discuss  the  value  and 
benefits  of  the  product  to  the  customers  more  easily  and 
convincingly.  

Sales Strategy  A  good  unique  selling  proposition  allows  the  business  to 
communicate to its target market. It will serve as a strategy 
to boost the sales of the company.  

 
 
 
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Unit 5.1: Unique Selling Proposition  
 

Why  is  it  important  that  you  are  able  to  craft  a 
  good unique selling proposition?  
 
Steps in Writing Unique Selling Proposition 
An  entrepreneur  should  not  proceed  to  the  creation of a unique selling proposition without 
planning  it.  In  planning,  a  few  steps  that  may  serve  as  a  guide  can  be  followed  and 
considered:  
 
Step 1. Review the planning process.  
The  entrepreneur  must  review  the  whole  planning  process.  It  includes  the  mission 
statement, business plan, and business goals.  
Step 2.​ ​Identify the target audience’s problem. 
The  entrepreneur  must  identify  the  target  market’s  problem  and  explain  how  the 
product or service solves the problem.  
Step 3. Focus on the solution.  
Focus  on  finding  a  solution  to  the  customer’s  problem.  It  should  be  better  than the 
competitor’s solution offering.  
Step 4.​ ​Combine it into a concise statement.  
Combine  the  important  elements  of  the  previous  step  into  a  clear,  concise,  and 
unique statement. 
 
Example 
 
Situationer: 
An  entrepreneur  who  has  a  restaurant  offering  fried  chicken  will  create  a  unique  selling 
proposition  in  order  to  increase  the  sales  of  the  business.  He  follows  the  step  in  writing  a 
unique selling proposition as follows: 
 

Steps  Answer 

Step  1.  Review  the  planning  The  mission  of  the  business  is  to  offer  fried  chicken  to 
process.  customers  at  a  cheaper  price  but  with  high  quality.  The 
goal of the business is to expand into multiple branches.  

 
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Unit 5.1: Unique Selling Proposition  
 

Steps  Answer 

Step  2.  Identify  the  target  There  is  no  other  store  offering  fried  chicken  in the place 
audience’s problem.  where the business is located.  

Step  3.  Focus  on  the  The  business  will  offer  a  product  that  will  meet  the 
solution.  customer’s needs and satisfaction.  

Step  4.  Combine  it  into  a  The  entrepreneur  will  come up with a unique and concise 

concise statement.  statement.  
 
USP:  Affordable  homestyle  fried  chicken  made with 10 herbs 
and spices right next to your door.  

 
 

Extend   
 
Activity  
An  entrepreneur  who  owns  a  store  of  fruit  shake  would  like to ask your help in creating a 
unique  selling  proposition  for  his  business.  Write  your  steps  and  the  constructed  USP  in 
the box provided.  
 

Steps  Answer 

1.   
 
 
 

2.   
 
 
 

 
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Unit 5.1: Unique Selling Proposition  
 

3.   
 
 
 

4.   
   
 
 
 
   

 
 

​ uide 
G
● Read the questions carefully.  
● Answer only what is asked for every item.  
● Avoid overlapping answers to several questions/ items. 
 

Evaluate   
 

 
A. Explain the meaning of the following concepts as discussed in the lesson.   
 
1. Unique selling proposition 

 
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Unit 5.1: Unique Selling Proposition  
 
2. Improved revenue 

 
3. Loyal customers 

 
4. Sales strategy 

 
5. Clear differentiation 

 
 
 
 
 
 
 

 
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Unit 5.1: Unique Selling Proposition  
 
B. Analyze and answer the following questions.  
 
1. Why is it important for entrepreneurs to have a unique selling proposition?  
 

 
2.  What  will  be  the  main  advantage  of  a  business  which  uses  a  unique  selling  proposition 
versus a business that doesn’t?  
 

 
3.  What  will  happen  if  an  entrepreneur  decided not to use a unique selling proposition? Will 
it achieve success?  
 

 
 
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Unit 5.1: Unique Selling Proposition  
 

Wrap Up 
___________________________________________________________________________________________ 
 
● Unique  selling  proposition  (USP)  is  a  marketing  strategy  that  focuses  on  special 
features  of  a  product  or services which enable it to stand out from the competition 
and attract customers.  
● Clear  differentiation,  improved  revenue,  loyal  customers,  simpler selling, and sales 
strategy are the advantages of using a unique selling proposition to the business.  
 

 
___________________________________________________________________________________________ 
 

  Photo Credit 
Eat Sandwiches Store Front Signage​ by J​ en Theodore​ is licensed under ​Unsplash License​ via 
Unsplash​. 
 

 
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Unit 5.1: Unique Selling Proposition  
 
 

  Bibliography 
 
Entrepreneur Asia Pacific. “Unique selling proposition”. Accessed March 20,2020.  
https://www.entrepreneur.com/encyclopedia/unique-selling-proposition-usp​.  
 
Kokemuller, Neil. “Why is it important for a firm to gain competitive advantage in a  
marketplace?” Bizfluent. Accessed March 20, 2020. 
https://bizfluent.com/info-8651871-important-gain-competitive-advantage-market
place.html​. 
 
Kotler, Philip & Gordon McDougall.​ Marketing Essentials​. Prentice-Hall Canada Inc., 1985. 
 
Miranda, Gregorio. B
​ asic Marketing Revised Edition​. L & G Business House, 1997. 
 
Singtel myBusiness. “The advantages of a unique selling proposition on marketing”.  
Accessed March 20, 2020. 
https://mybusiness.singtel.com/techblog/advantages-unique-selling-proposition-m
arketing?fbclid=IwAR1RcLZ7dKatXGsKC1zg0c6gnk7aHHKBdnXWNPrFM1fE5KoXsYy
GwaFgyAY​. 
 
 
 
 
 
 
 

 
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