Today we increasingly hear the word "premium", which we immediately associate with something of high quality and expensive. Sometimes manufacturers, without attaching importance to this word, write it on each of their products, sometimes they do not even deliberately deceive the buyer. Today we will try to understand the meaning of the word "premium" and in what situations it is appropriate and inappropriate to use it.
Definition of premium
This word is becoming more common with the development of advertising and marketing, today it can be heard at every step, but what does this concept really mean?
Premium means a thing, service or product that is of the highest quality, the best example in its class. This is a formal meaning in a dictionary, but the meaning in the market is slightly different. We will talk about this later. Often, because of this, the price of products rises, so only wealthy people can afford goods and services of this quality.
Reasons to Buy Premium Products
Most people are negative about premium quality products, calling them a waste of money, a simple overpayment for a brand. Of course, some people intentionally buy goods and use services with artificially inflated prices only to stand out from others, to appear richer and wealthier than their friends and acquaintances.
The value of premium is to stand out from the products of other classes. Basically, the premium class is really distinguished by its quality, and when buying goods of this category, you absolutely get an excellent assembly, sewing or painting. You can be sure that your money will not fly into the pipe and this thing will serve you for many years without changing its appearance for the worse. A certain premium to the price for the brand is actually present, but if you are willing to pay for quality, this should not bother you.
There are two components of the concept of "premium". The first is high quality, execution with particular attention to detail. The second is the emotional response of the buyer, his social status or image.
Classification of products by their quality
In the marketing field, a classification has long been invented for various types of goods and services. In total, there are five categories of products established by their quality, condition, and demand among buyers.
Economy class
The lowest class of product quality. These are mainly lower-quality goods, which are distinguished by the simplicity of their production and use. The manufacturer is not a professional, often just starting to work or still studying. The service of these goods is extremely mundane, mostly self-service.
Middle class
Consumer Products. Focused on people with average incomes, have good quality. Often manufacturers are little-known companies responsible for their product. The most common class of goods. Incomplete self-service.
The third class in quality is premium, but we will analyze it in more detail later.
Luxury class
This class includes goods of the highest quality, aimed at people who want to live in luxury and convenience, no matter what. Differ in the overestimated price and duration of production. Often, such goods are produced by personal order, evaluating the personal characteristics of the client, his status and solvency. Each client has a special approach based on his desires and requests.
Deluxe
Products of this class are distinguished by their uniqueness and originality. Often, coordination of work takes a long time. The order is carried out by true masters of their craft, comparing their products with works of art, and very often it happens. Deluxe products are sold at auction for crazy money or even get into personal collections or museums. When creating, all the smallest requirements of the buyer are taken into account.
Premium class
Finally, let's talk about premium products, their features and characteristics. Here the paramount role is played not so much by the quality of the product, but rather by its image. These are products of well-known companies and brands that produce high-quality products, standing on the border with luxury. Premium is an improved middle class, asking for a reasonable price for its high quality.
Premium features
1. High price.
This feature consists primarily of the funds spent on production, in addition, the so-called added value for the brand and the manufacturer is taken into account. That is why prices for such goods exceed average market indicators. This factor is crucial for many when purchasing goods of this class. For many, the high price is a kind of quality guarantee, to which buyers pay attention in the first place.
2. Uniqueness and quality.
To match the name, these products must have a unique style, original packaging or design. Here a special role is played by the reputation of the goods. The market reacts extremely emotionally to every failure of premium products, so every serious mistake can be the last for the company. Simply put, premium is something of a special quality that stands out from other similar products in this category.
3. The ability to satisfy emotional needs.
The main requirement for a premium product, in addition to its quality, is its ability to satisfy the emotional and social needs of the buyer. The goal of premium products is to increase customer engagement.
4. Original design and packaging
Premium is, first of all, a beautiful appearance that creates your image or complements it. Therefore, beautiful and original packaging not only looks stylish, but also protects the goods from fakes.
Premium Products
Often, when advertising a product, manufacturers can use epithets such as super-premium or extra-premium. Such expressions are absolutely unacceptable. Basically, buyers require premium products for its expensive appearance. For example, Mercedes-benz engineers make sure that the sound of a door slamming has a special tonality and volume. From technology giants, premium products are manufactured by Apple, Samsung, Sony. The Rolex watch company specializes in the sale of premium products and above.