WHAT IS A PRODUCT HIERARCHY?
A Product Hierarchy is a method of classifying a firm's products/services based on their essential components into an organized and logical structure. This structure is made up of seven layers – starting from the core product need to the individual final product.
DIFFERENT LEVELS IN THE PRODUCT HIERARCHY
The Product Hierarchy can be understood best by looking at an entire business market, as against to looking at individual products. Here, an example in the computing industry is considered.
- PRODUCT NEED: This is the primary reason behind the existence of the product, i.e. the which is being satisfied due to the product.
For example, need for Laptops or Smartphones or Calculators exist because of the underlying Core need of computing.
- PRODUCT FAMILY: Looking at the entire business market, all the product classes that satisfy the core need are classified as a Product family.
For example, multiple devices such a (...) Read more? Sign up for free
