Benefits of a Products Unique Selling Point for Businesses

Analyse benefits to a business of having a product with a unique selling point (USP). AO1 Knowledge and understanding · Clear differentiation · Defeat competition · Consumers attracted · Command premium prices · Brand loyalty · Increased sales · One benefit of USP is that it gives a product a distinctive position in a marketplace (1 mark ´ 1) · Another benefit is that a USP allows a business to command premium prices in the marketplace. (1 mark ´ 1) AO2 Application The benefits include: · Clear differentiation – separates the product from the competition · Consumers attracted – value the unique proposition · Customers – will likely resist alternative offers · May command premium prices, charging more than competitors · Easier to market and sell due to customer loyalty. · A USP presents a unique proposition to the customer in the marketplace superior to the competition. (1 mark ´ 1) · It can give a product added value in the eyes of the customer. (1 mark ´ 1) AO3 Analysis · A USP product – customers compelled to give the product attention – the differentiating factor(s) may move competitors to compete with lower price · Consumers value the USP product – unique product features quality, style, service – convince customers to select the product · Consumers – view the USP as evidence of quality and reputation of the business and become repeat loyal customers. · Consumers convinced by the USP – may be willing to pay a premium price – increases business profits · USP products – easier to market and may enrich the brand and support other products in the business. 9609/12 Cambridge International AS & A Level – Mark Scheme PUBLISHED May/June 2023 © UCLES 2023 Page 28 of 32 Question Answer Marks 6(a) There are 4 marks for Analysis in this question. Possible 2 analysis marks for an identified and applied first benefit and 2 marks for 2 possible analysis marks for an identified and applied second benefit. The examples below indicate how the 2 analysis marks should be allocated to each benefit. Benefit 1 – assuming that this benefit is ‘A USP presents a unique proposition to the customer.’ The application might be ‘It gives a product a distinctive position in a marketplace.’ . Then the 2 analysis marks should be allocated in the following way: If the analysis of this benefit is developed analysis, e.g. – ‘The USP offers something special that attracts customers and consequently boosts sales, which may lead to the business increasing its market share and likely increasing its level of profitability.’ then 2 analysis marks should be awarded. If the analysis of this benefit is limited analysis, – ‘‘‘The USP offers something special that attracts customers and consequently boosts sales.’ then 1 analysis mark should be awarded. Benefit 2 – assuming that this benefit is ‘A USP allows a business to command premium prices in the marketplace. . The application might be ‘It can give a product added value in the eyes of the customer,’ . Then the 2 analysis marks should be allocated in the following way: If the analysis of this benefit is developed analysis – ‘therefore the customer will be prepared to pay more for this USP product than a similar one provided by the competition,’ ‘and this willingness to pay a premium price is likely to increase the profitability of the business.’ then 2 analysis marks should be awarded. If the analysis of this benefit is limited analysis – ‘therefore the customer will be prepared to pay more for this USP product than a similar one provided by the competition,’ then 1 analysis mark should be awarded.