In marketing and advertising, premium refers to a segment of a company's brands, products, or services that carry tangible or imaginary surplus value in the upper mid- to high price range.
The targeted customer groups can be high or average income; especially the latter can be premium-aware but on the lookout for bargains.
Premium brands are designed to convey an impression of exclusiveness or rarity, especially in the mass markets. Frequently, companies will invent different (sub)brands to differentiate their product lines into a premium and a general segment (e.g. Toyota with their Lexus, Prius, and Scion marques). In most ways, the premium segment can be thought of as the contrary or a complement of value brands. The success of a brand is determined by the combination of aforesaid category and the market share. In that sense, the term "premium" replaces the traditional attribute "luxury" although the former can be perceived as less ostentatious.
- ^ "Here is How to Position Your Product as a Premium Brand". entrepreneur. 2016.
The best way to position a product as a premium brand is with a high price
- ^ Gerardo A. Dada (2012). "Taking a premium position in the market". Austin AMA / slideshare.
Align prices with Value - You might already have a premium product but you are selling it at a commodity price
- ^ "Quality or price: What makes a product 'premium'?". mycustomer.com. 2013.
74% are on the hunt for a premium product at a discounted rate and love finding a luxury brand at half the cost
- ^ "Exclusive, rare, limited, or premium?". thehipperelement.com. 2014.
If you have an unlimited supply, everybody knows that lots of people are using it, and there are no restrictions, that means it's not exclusive, not rare, and not limited. ... "Premium" is an artificial limit on something that is not actually limited, aimed at people who have higher expectations, and therefore a higher perception of value.
- ^ Vijay Vishwanath and Jonathan Mark (1997). "Your Brand's Best Strategy". Harvard business review.
- ^ "Luxury versus Premium - Luxury Detectives". wpp. 2011.