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Marketing Premium Goods

In Seth Godin’s blog post entitled “Luxury vs. premium” he defines the difference between luxury and premium goods were at their core “Luxury goods are organized waste” and “Premium goods…are expensive variants of commodity goods.” With a premium good you get better performance while with a luxury good you are primarily getting value from the signal you are sending.

I think the most important take-away from this definition is the recognition that when you are marketing a premium good or service you need to understand the intrinsic value of premium you are providing. According to Seth, “Plenty of brands are in trouble right now because they’re not sure which one they represent.” This is true not only of luxury vs. premium but also premium vs. commodity.

When marketing premium goods it is critical to understand the value proposition not only of the commodity good but also the value of the premium you are offering. In a market full of commodity goods and services recognition and communication of your value is critical and consumers need to buy into the value you are selling.

Technorati Tags: Autoblog, Autocar, Business, Jaguar, Jaguar Cars, Jaguar XK, JaguarXf, Marketing, Seth Godin

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