What is meant by "product hierarchy".

[CALVINDOL]

The product hierarchy is a concept in marketing that refers to the different levels of products or product offerings within a company's product mix. The product hierarchy consists of four main levels:

CORE PRODUCT: The core product is the basic product or service that the customer is actually purchasing. For example, a car manufacturer's core product is the car itself.

ACTUAL PRODUCT: The actual product refers to the physical and functional characteristics of the core product. This includes features, design, and quality of the product.

AUGMENTED PRODUCT: The augmented product refers to the additional benefits and services that are added to the core product to enhance its value. This can include things like warranties, after-sales service, and customer support.

POTENTIAL PRODUCT: The potential product refers to future developments or upgrades that can be made to the core product. This level considers the potential for product improvement and innovation.

The product hierarchy provides a framework for thinking about the different aspects of a product or product offering and how they contribute to the customer's overall experience. By understanding the different levels of the product hierarchy, businesses can develop and market their products in a way that meets the needs and expectations of their target audience, and that effectively differentiates their products from those of their competitors.

 

[moonchild]

Think about it product hierarchy like a library. In a library, you have books organized by genre, author, publication date, and so on. This makes it easier for you to find the book you want, right? That's exactly what product hierarchy does for your business. It helps simplify your product offering and makes it easier for customers to find what they're looking for. The hierarchy can range from broad to narrow, and can include categories, subcategories, and product families.

And here's the best part - a well-defined product hierarchy can increase your sales, reduce customer frustration, and improve your overall customer experience. So, it's not just a structure, it's a key element to your business's success. so, there you have it. That's what "product hierarchy" means and why it's so important. Trust me, take the time to understand this concept and implement it in your business. It'll pay off in the long run!

 

[TOZZIBLINKZ]

Product hierarchy in my own view and perspective refers to the levels in which a particular raw material passes through before it becomes a sellable product. First of all raw materials pass through the stage of excavation for example if we are talking about the finished product of tables and chair the raw materials involved there is timber. Timber need to be excavated what's the lead from the forest or from plantations where various timber woods are being planted.

Secondly this wood would pass a pre specification and process stage, however in a situation where they are being modified by human beings to become finished product. Before they actually become finished product they need to carry out other activities like assembly computing and rearranging of the product or possibly packaging the product. Finally they will have to ship these products to the final consumers who possibly must have ordered the product possibly for sale to the final consumers or for their own personal use.