Product Hierarchy:

Each product is related to certain other products. The product

hierarchy stretches from basic needs to particular items that
satisfy those needs. There are 7 levels of the product hierarchy:
1. Need family:
The core need that underlines the existence of a product family.
Let us consider computation as one of needs.
2. Product family:
All the product classes that can satisfy a core need with
reasonable effectiveness. For example, all of the products lie
computer, calculator or abacus can do computation.
3. Product class:
A !roup of products within the product family reco!nised as
havin! a certain functional coherence. For instance, personal
computer "#$% is one product class.
4. Product line:
A !roup of products within a product class that are closely
related because they perform a similar function, are sold to the
same customer !roups, are mareted throu!h the same channels
or fall within !iven price ran!e. For instance, portable wire&less
#$ is one product line.
5. Product type:
A !roup of items within a product line that share one of several
possible forms of the product. For instance, palm top is one
product type.
6. Brand:
The name associated with one or more items in the product line
that is used to identity the source or character of the items. For
example, #alm #ilot is one brand of palmtop.
7. tem!stoc"#"eepin$ unit!product %ariant:
A distinct unit within a brand or product line distin!uishable by
si'e, price, appearance or some other attributes. For instance,
L$(, $(& )*+ drive and ,oystic are various items under palm
top product type.
Brand is the "name, term, design, symbol, or any other feature that identifies one seller's
product distinct from those of other sellers."
[1]
Brands are used in business, marketing,
and advertising. Initially, livestock branding as adopted to differentiate one person's
cattle from another's by means of a distinctive symbol burned into the animal's skin ith
a hot branding iron. ! modern e"ample of a brand is Coca-Cola hich belongs to the
#oca$#ola #ompany.
In accounting, a brand defined as an intangible asset is often the most valuable asset on
a corporation's balance sheet. Brand oners manage their brands carefully to create
shareholder value, and brand valuation is an important management techni%ue that
ascribes a money value to a brand, and allos marketing investment to be managed
&e.g.' prioriti(ed across a portfolio of brands) to ma"imi(e shareholder value. !lthough
only ac%uired brands appear on a company's balance sheet, the notion of putting a
value on a brand forces marketing leaders to be focused on long term steardship of the
brand and managing for value.
*he ord "brand" is often used as a metonym referring to the company that is strongly
identified ith a brand.
+ar%ue or make are often used to denote a brand of motor vehicle, hich may be
distinguished from a car model. ! concept brand is a brand that is associated ith an
abstract concept, like breast cancer aareness or environmentalism, rather than a
specific product, service, or business. ! commodity brand is a brand associated ith
a commodity.
! logo often represents a specific brand.
Definition of 'Brand'
A distinguishing symbol, mark, logo, name, word, sentence or a
combination of these items that companies use to distinguish their
product from others in the market.
*he ,roduct hierarchy is developed top don. *he starting point, if haven-t
already done so, is to map out every one of target customer-s shopping missions
and define all of the purchase drivers for each mission. !ccording to the
.+arketing management/ 10th edition, by ,hilip 1otler and 1evin 2ane 1eller
.*he product hierarchy stretches from basic needs to particular items that satisfy
those needs/. 3n the other hand, this is the levels of needs and as it heads more
the need ill be more detailed one. I took an e"ample 4ntertainment on a need
family and develops into Item as a 5oogle ,lay. *here are 6 levels of product
hierarchy.
7 8eed family' *his is the core need that underlies the e"istence of a product
family. In this first section e can find the core need by ansering to the folloing
%uestion. 9hat is the basic need being fulfilled: ;or e"ample' 4ntertainment. 7
,roduct family' !ll the product classes that can satisfy a core need ith
reasonable effectiveness. ;or e"ample' 2eisure.
7 ,roduct class' ! group of products ithin the product family recogni(ed as
having a certain functional coherence. 9hat all product classes can fulfill the
basic need: *<, book, movie, social netorks, radio etc. 7 ,roduct line' *here is
a group of products ithin a product class that are closely related because they
perform similar function, are sold to the same customer groups, are marketed
through the same outlets or channels, or fall ithin given price ranges. 9hat are
the sub$categories under social netorks: 9hat are the various types of social
netorks one can use: Blogs, =ocial netorking services, =ocial media sharing,
=ocial bookmarking, =ocial nes services, 2ocation based netorking and
#ommunity building services. 7 ,roduct type' ! group of items ithin a product
line...
There are diferent types of products and they too act as a family tree and have their branches
and are classifed under diferent sections on the basis of their features. Diferent types of
products category are:
The diferentiated product The diferentiated product enjoys a distinction from other
similar products/brands in the market. The diferential claimed may be real, with a real distinction
on ingredient, quality, utility, or service, or it may be psychological brought about through subtle
sales appeals.
The customised product - Customer specifc requirements are taken into account while
developing the product. Commonly practised in the industrial product marketing, where the
manufacturer and the user are in direct contact and the product gets customised to the
requirements of the customer.
The augmented product The augmented product is the result of voluntary improvements
brought about by the manufacturer in order to enhance the value of the product, which are neither
suggested by the customer nor expected by them. The marketer on his own augments the
product, by adding an extra facility or an extra feature to the product.
The potential product The potential product is tomorrows product carrying with it all the
improvements and fnesse possible under the given technological, economic and competitive
condition. There are no limits to the potential product. Only the technological and economic
resources of the frm set the limit.
Product Classifications and Types
1. Consumer product: ,roduct bought by final consumer for personal consumption. *here are four types of consumer goods.
Convenience Product: #onsumer product that the customer usually buys fre%uently, immediately, > ith a minimum of comparisons and buying
effort. e.g. tooth paste
Shopping Product: #onsumer good that the customer purchase after the process of selection. It re%uires characteristically compares on such bases
as suitability, %uality, price, and style. e.g. clothing
=pecialty product
Speciality Product: #onsumer product ith uni%ue characteristics or brand identification for hich a significant group of buyers is illing to make a
special purchase effort. 4"pensive and fashionable shopping goods !meer !dnan, #otton > #otton.
Unsought product: #onsumer products that the consumer either does not kno about or do not ant to think normally before buying. It has some
emotional feelings. e.g. donations.
2. Industrial Product: ,roduct bought by individuals and organi(ation for further processing or for use in conducting a business.
aterials and parts: ?a materials are the basic materials that actually become part of the product. *hey are provided form mines, forests, oceans,
farms and recycled solid astes.
Capital Items: #apital items consist of office accessories and operating materials.
Supplies: =upplies facilitate productions, but they do not become part of he finished product. ,aper, pencils, oils, cleaning agents and paints are
e"amples.
Industrial Services: Industrial services include maintenance and repair services such as machinery repair and business advisory services such as
legal, management, consulting, advertising, marketing research services. *hese services can be ac%uire internally as ell as e"ternally.
Definition of stock-keeping
*he activity of checking the %uantity of goods that a shop or business has available to sell, so that more can be ordered if necessary. [1]