Marketing91

  • HOME
  • Categories
    • Marketing Management
      • Marketing basics
      • Marketing Articles
      • Careers in Marketing
      • Market Research
      • Retail Marketing
      • Services Marketing
    • Strategy
      • Marketing Strategies
    • Management
    • Branding
    • Small Business
    • Sales & Selling
    • Advertising
  • Online Marketing
    • Blogging
    • Social Media Marketing
    • Search Engine Optimization
    • Internet Marketing
    • Ecommerce
  • Brands
    • Marketing Mix of all Brands
    • SWOT of Brands
    • Brand Competitors
    • Marketing Strategy of Brands
    • Business Models of Brands
  • Videos
Home » Marketing management articles » The relation between USP and Value proposition

The relation between USP and Value proposition

December 24, 2017 By Hitesh Bhasin Tagged With: Marketing management articles

Many a times, readers get confused between value proposition and USP which stands for unique selling proposition. They generally ask the difference between the same. This article tells you how USP and value proposition are different and yet the similarities between them.

A unique selling point is 1 or maximum 2 things which differentiates the product from its competitors. For example – Volvo is known to have the safest buses and cars. Apple is known to be a solid brand and has a fantastic brand equity. McDonalds is known have fantastic burgers and quality across its all outlets.

USP and value proposition

So each of the above brands has a unique selling point. Now, to understand the relation between USP and value proposition, lets understand what value proposition is.

Value is built in a product right from its concept stage up to the last point of delivery to the customer as well as its after sales service. To know more about how value is built in a product, read about the value chain by porter. In essence, the more you build a product keeping the customer in mind, there more are the chances of your product’s value being higher.

Naturally, a product will have the highest value when it has a USP or a unique selling point. The reason Volvo is a favoured brand is because it provides security to its travellers. The reason apple has such a fantastic brand equity is because its Laptops are awesome.

So basically, USP is a part of Value proposition. When you want to provide value to your customers, you need to have a unique selling point to sell to the customers. This USP is the main point on which your value stands.

USP and value proposition

Volvo is just an automobile manufacturer like Audi, BMW, Volkswagen, Toyota and others. However, it delivers more in value because its USP is safety. A Lamborghini has the USP of its design and speed. A Ferrari has its USP in it being a major status symbol. So, each of them deliver value to the end customer, and each of them has a USP.

Also Read  What is Product Strategy? How to develop a product strategy?

Does USP exist only in branded product to deliver value? Absolutely not.

A USP can be anything. If I introduce an ergonomic keyboard, the keyboard being ergonomic is my USP. It can sell better than normal keyboards. But if i am not advertising the product, and i am not distributing it in the right channel, then i am not building value for the product. So my USP is in place, but the value proposition is poor.

Alternatively, if the USP is not in place, then too the value proposition will be poor. If you have built value but you don’t have an USP, then it means you have not differentiated the product enough for it to have an USP.

So bottom line – Both USP and value proposition go hand in hand and neither can exist without the other. But for the sake of consideration, USP is always a part of value proposition. A company cannot sell just on the basis of USP. It has to have a value proposition along with it.

Related posts:

BCG Matrix - 3Above 30 Marketing and strategy models and concepts USP Analysis - 3What is USP Analysis? Understanding Customer value propositionUnderstanding Customer value proposition brand colors - 310 different brand colors and what they stand for Core benefit propositionCore benefit proposition and its role in Marketing Variable PricingVariable Pricing: Definition, Examples, Model and Advantages Cost ControlCost Control: Definition, Role, Standards and Advantages What is Product Lines ExtensionWhat is Product Line Extension? Product Development Process8 Steps of the Right Product Development Process Types of Value Stream mappingValue Stream Mapping – Definition, Types, Importance
Also Read  What is Customer Experience Management and its Importance?

All Knowledge Banks (Hub Pages)

  1. Marketing Hub
  2. Management Hub
  3. Marketing Strategy
  4. Advertising Hub
  5. Branding Hub
  6. Market Research
  7. Small Business Marketing
  8. Sales and Selling
  9. Marketing Careers
  10. Customer Management
  11. Top 10 Lists
  1. Internet Marketing
  2. Blogging
  3. Search Engine optimization
  4. E-commerce
  5. Facebook Marketing
  6. Social Media Marketing
  7. Business Model of Brands
  8. Marketing Mix of Brands
  9. Brand Competitors
  10. Strategy of Brands
  11. SWOT of Brands
GET DAILY MARKETING UPDATES

About Hitesh Bhasin

I love writing about the latest in marketing & advertising. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. You can follow me on Facebook. Let's stay in touch :)

Comments

  1. Leonard Masiyanise says

    I would like to do a value proposition for Volvo how do I go about?

    Reply
  2. Leonard Masiyanise says

    Value proposition analysis for Volvo

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts
  • What is Benefits Administration? Definition and Steps
  • What is coaching? Different coaching styles
  • What is Corporate Training? Types and benefits
Advertisement

Marketing91

MORE INFO

  • About Marketing91
  • Privacy Policy
  • Cookie Policy
  • Disclaimer
  • Terms of Use
  • Advertise
  • Contact us
  • Sitemap
  • ISO 9001:2015 Certified

LEARN WITH US

  • Course on Market Segmentation
  • Course on Marketing Strategory Models

WE WRITE ON

  • Marketing
  • Small Business
  • Management
  • Internet Marketing
[email protected]

Copyright © 2020 Marketing91 All Rights Reserved