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Business Definition for: benefit
Dictionary of Business Terms
benefit

  1. something that contributes to an organization, such as enhanced profitability, better efficiency, or reduced risk. An example is the technological introduction of a new machine that will enhance the quality and quantity of the production process.
  2. payment made by an insurance company to an individual due to the occurrence of an event, such as death or sickness.
  3. any fringe benefit, such as subsidized lunches, day care, and health club. See also fringe benefits .
  4. corporation-sponsored performance to raise funds for a needy cause.

Dictionary of Insurance Terms
benefit

monetary sum paid or payable to a recipient for which the insurance company has received the premiums.

Dictionary of Marketing Terms
benefit

satisfaction or need fulfillment that the consumer receives from a product or service.

See also benefit segmentation
Related Terms:
benefit segmentation

method of determining a target audience for a particular product in terms of those people who want the benefits the product offers. If the product is a fast sports car, for example, the target audience will be the segment of the population that wants the benefits of a fast sports car.

There are different audiences for different perceived benefits. As an example: Dentifrice or toothpaste offers three distinct benefits, each of which will appeal to a different audience segment. One benefit relates to a tooth decay deterrent; the second, to a tooth whitener; and the third, to a mouth freshener. By segmenting the audience according to these benefits through the copywriting, the advertiser can position the product in three different markets to achieve maximum advertising effectiveness.

Referring Terms:
company benefits
employee benefits
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 Copyright c 2000, 1994, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
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