The Product hierarchy is developed top down. The 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. According to the “Marketing management” 12th edition, by Philip Kotler and Kevin Lane Keller “The product hierarchy stretches from basic needs to particular items that satisfy those needs”. On the other hand, this is the levels of needs and as it heads more the need will be more detailed one. I took an example Entertainment on a need family and develops into Item as a Google Play.
There are 6 levels of product hierarchy. * Need family: This is the core need that underlies the existence of a product family. In this first section we can find the core need by answering to the following question. What is the basic need being fulfilled? For example: Entertainment. * Product family: All the product classes that can satisfy a core need with reasonable effectiveness. For example: Leisure. * Product class: A group of products within the product family recognized as having a certain functional coherence.
What all product classes can fulfill the basic need? TV, book, movie, social networks, radio etc. Product line: There is a group of products within 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 within given price ranges. What are the sub-categories under social networks? What are the various types of social networks one can use? Blogs, Social networking services, Social media sharing, Social bookmarking, Social news services, Location based networking and Community building services. * Product type: A group of items within a product line that share one of several possible forms of the product.
This question should be answered: What are the sub categories under social networking services? Facebook/Google +, Twitter/Plurk, Linkedin/Xing. * Item: This is a distinct unit within a brand or product line distinguishable by size, price, appearance or some other attribute. It is specific product which fulfills the need. Google Play. This hierarchy is essential for marketing managers when segmenting their market. By using this concept the product will be more detailed and distinguished as it will be easier for customers to make their choices.