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How can you use a SWOT analysis to identify your unique selling proposition?

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A unique selling proposition (USP) is a statement that summarizes what makes your product or service different from and better than your competitors. It helps you stand out in a crowded market and attract your ideal customers. But how can you craft a compelling USP that reflects your strengths and opportunities? One way is to use a SWOT analysis, a tool that helps you evaluate your internal and external factors. Here's how you can use a SWOT analysis to identify your USP in four steps.

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Harshit K.

Digital Marketing? Can AI offer You Ease or Help You Sell More in Just 60 Seconds (Quick videos ??)
Kam Phullar

?? Brand Strategy Director | Miami Ad School Teacher ??
?? Pollyanna Ward

Creative Director of Brand Partnerships @ FlightStory Studio | Curator | Sparring Partner | Marketing Week Mini MBA |…

1 Step 1: Conduct a SWOT analysis

A SWOT analysis is a matrix that lists your strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors that you can control, such as your skills, resources, reputation, or capabilities. Opportunities and threats are external factors that you cannot control, such as market trends, customer needs, competitors, or regulations. To conduct a SWOT analysis, you need to do some research and brainstorming. You can use surveys, interviews, feedback, data, or industry reports to gather information. Then, you can fill in the four quadrants of the SWOT matrix with relevant points.

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Harshit K.

Digital Marketing? Can AI offer You Ease or Help You Sell More in Just 60 Seconds (Quick videos ??)
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A SWOT analysis helps identify your unique selling proposition (USP) by evaluating strengths, weaknesses, opportunities, and threats. For instance, in a crowded Indian street food market, a vendor analyzes their strengths (authentic recipes), weaknesses (limited seating), opportunities (growing demand for quick snacks), and threats (competition). Discover your USP with a SWOT analysis! For digital marketing services, contact +918860220103 to boost your business presence!

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?? Pollyanna Ward

Creative Director of Brand Partnerships @ FlightStory Studio | Curator | Sparring Partner | Marketing Week Mini MBA | IPA Foundations Contributor | The Drum Columnist
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Just doing a SWOT on its own is meh. Flip it on its head and do a TOWS matrix. Use your strengths to maximise opportunities and reduce threats. (Lots of examples of this are available with a quick Google search)

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2 Step 2: Analyze your SWOT results

Once you have completed your SWOT analysis, it is important to analyze the results and look for patterns, connections, or gaps. Ask yourself how you can leverage your strengths to take advantage of opportunities, while overcoming weaknesses to avoid or minimize threats. Also consider how your strengths and weaknesses compare to those of your competitors. Moreover, consider the unique benefits or features that you offer to customers as well as the pain points or problems that you solve for them. The answers to these questions can help you identify the key elements of your USP.

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Kam Phullar

?? Brand Strategy Director | Miami Ad School Teacher ??
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In my experience, a misguided principle is to try and solve your weaknesses. In fact, weaknesses are critical to strategy and positioning. They inform you who you are NOT solving for. For example, when Blackberry dominated in the mobile market, what would have happened if Apple tried to enter the market solving their perceived weaknesses; like price (being more expensive) or interface (having a touch screen instead of buttons) etc. ? Flip the output of the SWOT for an even clearer assessment of what your brand or business is NOT. Doing this will help you realise that strategy doesn't have to be a battle of the brands for the same market or share, you can instead simply position in your own ownable space.

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3 Step 3: Write your USP statement

Based on your SWOT analysis, you can craft your USP statement in one or two sentences. This statement should concisely communicate who your target audience is, what their main challenge or goal is, what your product or service is, how it solves their challenge or helps them achieve their goal, the main benefit you provide to customers, and what makes you different from and better than your competitors. As an example, for busy professionals who want to improve their health and fitness, Fitbit is a wearable device that tracks activity, sleep, and heart rate. What sets Fitbit apart from other fitness trackers is that it offers personalized insights and coaching to help users reach their goals and improve their well-being.

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?? Pollyanna Ward

Creative Director of Brand Partnerships @ FlightStory Studio | Curator | Sparring Partner | Marketing Week Mini MBA | IPA Foundations Contributor | The Drum Columnist
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USPs work for challenger / start ups who genuinely have a unique proposition (what got them to start a business in the first place!) As your brand scales, it becomes more important to find your competitive advantage. What’s something in the way you conduct business that others cannot replicate? Oreo can provide whacky flavours. This gives it a lift over other sandwich biscuits that can only offer vanilla. IKEA provides affordable furniture but its advantage is its ability to turn a design into flatpack and get it distributed fast in line with design trends. Nationwide in the UK is currently leaning on the fact it has physical stores vs internet-only banks.

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4 Step 4: Test and refine your USP

After you have written your USP statement, you should test and refine it to ensure its effectiveness and resonance with customers. You can ask for feedback from existing or potential customers, partners, or mentors. Additionally, A/B testing or split testing your website, landing pages, or ads can help you measure the results of your marketing campaigns or conversions. Comparing your USP to your competitors' USPs can also be beneficial in updating it if needed. With the feedback and data collected, you can adjust your USP to make it clearer, more concise, catchy, or relevant.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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?? Pollyanna Ward

Creative Director of Brand Partnerships @ FlightStory Studio | Curator | Sparring Partner | Marketing Week Mini MBA | IPA Foundations Contributor | The Drum Columnist
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Your direct competitors on paper, may not be your actual competitors in real life. Take a healthy popcorn snack brand. They might put down other healthy popcorn / corn / crisps as competitors. But you might also be competing with fruit / veg snacks, healthy drinks, low calorie chocolate etc. This is where it’s important to know the need that you are satisfying, and therefore what are the choices the consumer is then making / what products are coming to mind in that moment of need…

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Krista White

D2C & B2B Data-Driven Chief Marketing Officer | Certified Professional Coach | Demand Generation | SaaS | Tech | Service | Product | CPG | Pets | Startups | Marketing & Strategy with a Passion
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I have found SWOT analysis to be the perfect place to start when trying to identify your USP. I've seen some companies struggle to pin down what makes them unique, but the better you understand your competitors, the better you will be able to understand what you can offer the market that your competitors aren't. Find your angle. There is always an angle!

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How can you use a SWOT analysis to identify your unique selling proposition?

1

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3

4

5

1 Step 1: Conduct a SWOT analysis

2 Step 2: Analyze your SWOT results

3 Step 3: Write your USP statement

4 Step 4: Test and refine your USP

5 Here’s what else to consider

Marketing

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How can you use a SWOT analysis to identify your unique selling proposition?

1

2

3

4

5

1 Step 1: Conduct a SWOT analysis

2 Step 2: Analyze your SWOT results

3 Step 3: Write your USP statement

4 Step 4: Test and refine your USP

5 Here’s what else to consider

Marketing

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