PRODUCT HIERARCHY
Each product is related to certain other products. The product hierarchy stretches from basic needs to particular items that satisfy those needs. We can identify six levels of the product hierarchy (here for life insurance):
1. Need family:
The core need that underlies the existence of a product family. Example: security.2. Product family:
All the product classes that can satisfy a core need with reasonable effectiveness, Example: savings and income.3. Product class:
A group of products within the product family recognized as having a certain functional' coherence. 'Example: financial instruments.4. Product Line:
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 channels, or fall with in given price ranges. Example: life insurance.5. Product type:
A group of items within a product line that share one of several possible forms of the product. Example: term life.6. Item
(also called stock-keeping unit or product variant); A distinct unit within a brand or product line distinguishable by size, price, appearance, or some other attribute. Example: Prudential renewable term life insurance.
A product system is a group of diverse but related items that function in a compatible manner. For example, the Handspring personal digital assistant comes with attachable Visor products including a phone, radio, pager, video games, e-books, MP3 player, digital camera, and voice recorder.
A product mix is the set of all products and items that a particular seller offers for sale to buyers.
No comments:
Post a Comment