Entrepreneurship: Unique Selling Proposition (USP)

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary purpose of a Unique Selling Proposition (USP)?

  • To create a brand name
  • To differentiate a product from competitors (correct)
  • To identify new market trends
  • To increase production costs

A strong USP should focus on addressing emotional needs of customers.

True (A)

What are three essential factors to consider when determining your target market?

Gender, age, and income are three crucial factors to consider when identifying the target market.

The marketing mix, also known as the 7Ps, includes Product, Price, Place, Promotion, People, ____, and Positioning.

<p>Packaging</p> Signup and view all the answers

Match the following marketing mix elements with their appropriate descriptions:

<p>People = The overall image and reputation of your company Positioning = The strategic placement of your product in the market Packaging = The visual design and presentation of your product Promotion = The communication strategies used to reach your target market</p> Signup and view all the answers

Which pricing method is based on the interaction of demand and supply?

<p>Market-Oriented Method (C)</p> Signup and view all the answers

Value for Money Pricing aims to maximize profit on each individual sale.

<p>False (B)</p> Signup and view all the answers

In the context of marketing, what does the term 'Place' refer to?

<p>The location or distribution channel where buyers and sellers exchange goods or services.</p> Signup and view all the answers

The ______ distribution channel involves a producer selling directly to the consumer without intermediaries.

<p>direct</p> Signup and view all the answers

Match the pricing techniques with their descriptions:

<p>Cost-plus Method = Adding a profit margin to the product's cost Market-Oriented Method = Setting prices based on market forces of demand and supply Loss Leader Strategy = Selling products below cost to attract customers Bonus-Pack Pricing = Encouraging customers to purchase more than the required quantity</p> Signup and view all the answers

Which of these is NOT a stage in the distribution channel?

<p>Advertiser (C)</p> Signup and view all the answers

Marked Down Pricing is typically used when demand is high and competition is low.

<p>False (B)</p> Signup and view all the answers

What is the primary goal of Psychological Pricing?

<p>To influence customer perceptions and encourage purchases by making prices seem more appealing.</p> Signup and view all the answers

Flashcards

Unique Selling Proposition (USP)

A factor that differentiates a product from competitors, addressing customer desires.

Determining Your Target Market

Identifying the group most likely to buy your product or service.

Market Targeting

The process of identifying buyers with shared needs and characteristics.

Product

Any goods or services produced to meet consumer preferences.

Signup and view all the flashcards

Promotion

Activities designed to communicate a product or brand to attract buyers.

Signup and view all the flashcards

Pricing

The strategy used to set a product's sale price based on various factors.

Signup and view all the flashcards

Place

The distribution channels used to deliver the product to consumers.

Signup and view all the flashcards

People

Refers to the individuals involved in service delivery and customer interaction.

Signup and view all the flashcards

Cost-plus Method

A pricing strategy where cost is calculated and a profit margin is added.

Signup and view all the flashcards

Market-Oriented Method

A pricing strategy based on demand and supply interaction.

Signup and view all the flashcards

Loss Leader Strategy

Selling products at a loss to attract customers to other items.

Signup and view all the flashcards

Psychological Pricing

Setting prices slightly lower to create a perception of value.

Signup and view all the flashcards

Marked Down Pricing

Temporary price reductions to attract price-sensitive consumers.

Signup and view all the flashcards

Direct Distribution

A distribution method where the producer sells directly to the consumer.

Signup and view all the flashcards

People in Marketing

The staff and audience involved in marketing efforts.

Signup and view all the flashcards

Study Notes

Entrepreneurship: Unique Selling Proposition (USP)

  • A USP is how you sell a product or service to a customer, focusing on their desires and needs.
  • It's crucial for effective selling and advertising.
  • A USP differentiates a product from competitors, highlighting aspects like low cost, high quality, or being the first of its kind.
  • Examples: Revlon emphasizing "hope," airlines offering different services, or stores focusing on luxury or bargains.
  • Determining your USP involves:
    • Listing unique product/service features and benefits.
    • Identifying the emotional needs your product/service fulfills.
    • Highlighting aspects not imitable by competitors.
    • Creating concise, clear phrases about your product/service.
    • Answering the customer's "what's in it for me?" question.

Marketing Mix (7Ps)

  • Product: Goods/services designed to meet consumer wants, tastes, and preferences. How can you make your product more appealing than competitors'?
  • People: Everyone involved in the product or service, from the team to marketers and customers. Consider how this group influences your brand/product.
  • Promotion: Activities to communicate your product or service to customers, attracting them over competitors. How can you get customers to buy this product?
  • Packaging: Protection, containment, information, utility, and promotion aspects of packaging.
  • Pricing: Value of money exchanged for a product/service, often using methods such as cost-plus or market-oriented pricing, loss leader strategies, and psychological pricing.
  • Place: Location of exchange (physical or online). Effective distribution channels.
  • Positioning: How your brand/product is seen by the customer, considering competitor pressures. How does your brand/product differentiate itself?

Target Market

  • The target market includes people most likely to buy your product or service, having similar needs or characteristics.
  • Identifying a target market involves questions like: customer gender/age, location, profession, income level, etc.
  • Research the target market, understanding their needs and characteristics.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

More Like This

Unique Selling Proposition (USP) in Business
15 questions
Marketing Module: USP and VP
10 questions

Marketing Module: USP and VP

IlluminatingPrimrose avatar
IlluminatingPrimrose
Marketing: Unique Selling Proposition Quiz
10 questions
Use Quizgecko on...
Browser
Browser