Posted in Marketing and Strategy Terms, Total Reads: 1031
Benefit is the gain which a customer gets by purchasing a product (service). While purchasing a product, customer doesn’t think about the product or its features but he thinks about what benefits he/she gets out of it. So customers don’t buy products or services instead they buy benefits.
The concept of benefit can be practically observed in relatively similar products where manufacturer tries the best to differentiate its product from competitors by giving extra benefit to the customer. To know what benefit does a customer actually needs, a manufacturer needs to study consumer behavior, analyze the market and deliver the same with their improvised marketing strategy. A benefit maybe design, reputation, quality, cost effectiveness, performance, service & support etc.
Assume market of mobile phones. We can see, number of competitors in mobile phone market who differentiate themselves by providing differentiating features. A customer who wishes to buy a mobile phone will select the one which gives him maximum benefit. Like, a customer will think to purchase an iPhone (Apple’s iPhone 5) which is not only equipped with all advanced features but gives customer a prestige/status with its renowned brand value. That is exactly the benefit which a customer pays money for.