Here are some clues to help you respond to this question effectively
1. Know your unique selling proposition (USP). Everyone has it- one or more characteristics that make each of us stand out of the ballpark. Quite naturally your USP would have to be related to the position you are applying for. In your case it may be a list of successfully executed projects or positive attitude. You have an area where you feel 100% confident that you have the skill, knowledge or experience to carry out a particular task better than everyone else. Get hold of this area and communicate it effectively. It does not matter if there is another applicant that is better suited than you, everyone has a hot spot where our performance is optimum.
2. Address the employer's undisclosed fear. Yes, you are not the only one that is nervous. Much more than hiring the right person for the job, the recruiter wants to avoid hiring the wrong person. So the non-verbal question the recruiter is really asking you is "demonstrate to me that I will not be making a mistake by hiring you". In my opinion, the best way to approach this sort of question is to go beyond 'why you are the right candidate for the job to' 'why they will be making a mistake not to hire you'. The success of your answer will depend on your ability to show the employer what problem you can solve for them.
3. Refuse to sit at the receiving end of the table. You are not a beggar; you are a problem solver. You are not just coming to the employer to receive a job offer, you are coming to offer something as well. So, it is better to respond to this question from a bargaining position. You may already know this but it is worth repeating: finding the right employee is as much a difficult task for the recruiter as finding the right job is for the job seeker. So once a recruiter finds an applicant who demonstrates that he or she is the right candidate for the job, the recruiter would have no business continuing the search. Help the recruiter end their search on time and land yourself that job by demonstrating to them that you are the candidate they have been searching for.
4. Support your argument with examples of what you have done in similar position. If two candidates answer the 'why should I hire you' question and one of them gives a real life example from past work while the other candidate gives only a hypothetical answer to the question, the one with real life example will get the job.
5. Ask relevant questions. The questions we ask determine the answers we get. Ask leading questions. For example asking your employer to describe the ideal candidate for the position can give a clue as to what the the employer is looking for. Once you know what your potential employer is looking for it is then up to you let your employer know how you fit into that picture. It is usually best to reserve this to the end of the interview
6. Go the extra mile. Yes, there are many qualified candidates but not all the qualified candidates will get the job because not all the qualified candidates will go the extra mile. Many will stop at a 'reasonable distance'. It is hard to notice a person in a crowd if that person is like everyone else and it is hard to not notice a person if that person distinguishes himself from everyone else. Wow your potential employer by raising the bar and going father than she expects. Unless it is not a job that you are passionate about, you would have the energy it takes to beat every odds till you cross the finish line. You could do this by presenting samples of past projects with outstanding figures of success, drawing up a 30, 60 or 90 day plan for your new job, researching the company and providing a potential solution to their business need or opportunity to achieve their business objective.
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