What is a unique selling proposition (USP)?

A unique selling proposition (USP) refers to a distinct benefit or feature of a product that clearly differentiates it from competing products in the market. This concept is crucial in marketing and sales because it helps to highlight what makes a product stand out and why consumers should choose it over alternatives. The USP conveys a specific advantage, whether it is a unique product feature, superior quality, or an innovative service aspect that addresses a customer's needs effectively or more efficiently than competitors.

By focusing on the unique attributes that provide value to the customer, a USP serves as a foundation for brand positioning and marketing strategies, allowing businesses to create targeted messaging that resonates with their audience. This differentiation is essential for attracting and retaining customers in competitive markets.

The other options do not accurately define a USP: price reductions and promotional strategies primarily focus on temporary incentives rather than intrinsic product value, and methods for increasing brand loyalty involve broader strategies that may encompass but are not limited to a USP.