How should we market a premium quality product?

• Positioning - How are you positioning your product in the market? Is pricing going to be a key part of that positioning? If you're running a discount store, you're always going to be trying to keep your prices as low as possible (or at least lower than your competitors). On the other hand, if you're positioning your product as an exclusive luxury product, a price that's too low may actually hurt your image. The pricing has to be consistent with the positioning. People really do hold strongly to the idea that you get what you pay for.
• Demand Curve 
• Cost  
• Environmental factors  
• Short-term profit maximization  
• Short-term revenue maximization 
• Maximize quantity 
• Maximize profit margin 
• Differentiation 
• Survival  

For a successful marketing campaign of premium quality product company should focus on marketing mix and advertisement. It should convey characterstics of the target audience. A premium quality product is used by upper middle class and rich people and characterstics of such segment includes success, achiever at work place, expensive car, accessories and high class social life.

We need to convey these aspects via advertisement. For example: We intwish to market rolex watch, advertisement should have characterstics like young professional flying in business class, driving expensive car to his mansion, gifting his wife a precious gift on her birthday in a high end hotel. Such cues form an image of premium product in customer mind and thereby utilizing our resources effectively in reaching the target audience.

Such products should be promoted in a high end malls or stand alone shops with attractive interiors and classy store environment. Also salesperson should be well groomed and articulate while interacting with the customers.