Q.
(a) Explain the significance of Unique Selling Proposition ( USP ) in the marketing of a product ( 10 marks )
(b) By focusing on a certain segment of the residential market, explain how the companies could differentiate and position their product for maximum competitive advantage in the market place. (15 marks)
(25 marks, 2022 Q7)
A.
(a) Unique Selling Proposition (USP) in marketing of a product.
In marketing, the unique selling proposition (USP), also called the unique selling point, or the unique value proposition (UVP) in the business model canvas, is the marketing strategy of informing customers about how one's own brand or product is superior to its competitors (in addition to its other values).
The definition:
A unique selling proposition (USP) refers to the unique benefit exhibited by a company, service, product or brand that enables it to stand out from competitors. The unique selling proposition must be a feature that highlights product benefits that are meaningful to consumers. USP focuses on explicit claims of uniqueness involving an objectively verifiable product attribute or benefit-in-use.
Ref:
Wikipedia: https://en.wikipedia.org/wiki/Unique_selling_proposition
Example of USP in the marketing of a product in REAL ESTATE BUSINESS
XYZ is a powerful listings of office spaces at and surrounding Kuala Lumpur City Center, providing up-to-date database of office space for rent/lease or acquisition, capturing more than 20,000 visitors in our platform every month at a fraction of your cost and time.
Other Examples of USPs are:
- Serving over 20 years as your Real Estate Agent of the greater Kuala Lumpur, we know the deals you want.
- An integrated agency with own platforms to showcase your properties to the target specialist groups.
This question is new and not found in past years. It is unique in the sense that you probably would want to use Developer USP to show how you could answer the question. Below I suggest some USP for developers.
- We will develop Affordable Bespoke Luxurious Property with a touch of uniqueness, in that, all our buildings might look the same on the outside, however the interior will be built to the specification of each resident.
- Our purpose is to ensure practical use and safety in a home that you house your family.
(b) Differentiate and position product for maximum competitive advantage in a residential market.
Differentiation and positioning was asked in below past years:
Differentiation and positioning is used in segmentation of the market. For example, you have various ways to segment the market - demographic, geographical, pyschological, psychographic and behavioural. After having done the segmentation, the rightful segment is identified. This segment that the product is targeted will need to be conveyed the features and benefits of this product.
Insodoing, the product is fitted to this segment who is ready to buy it. There is the unique selling points how the chosen product benefits could satisfy the needs of the segment of the market. Overall, this is differentiated product features and benefits. Hence, this is how the product is positioned to sell to this segment of the market.
For example:
In real estate, transport is very crucial for the success of a project. Hence, a housing project with transit oriented development surrounding it will be its selling point. The target market would be the working adults who commute to work. Therefore, the positioning of the housing project would be for example:
An affordable home to professionals and business start-ups within 20 minute of travel to work.
This positioning will put the focus group of ready to buy purchasers (professionals and business people) who fit into their lifestyle of commuting to work place within short span of time. This ready-to-buy customer group will be the 'low-hanging fruit" to the housing project.
Ref:
Earlier posts.