Product hierarchy classifies products into essential components from basic needs to specific items. It progresses from (1) product need, such as the need for transportation, to (2) product family which satisfies that need through various modes like cars, trains, planes. (3) Product class further categorizes related goods within a company, while (4) product line refers to a whole range of items in a category. (5) Product types differentiate items within a line, and (6) product units are the last and most specific elements, like the Hyundai I20 Asta and Magna models.

1. PRODUCT HIERARCHY

2. Product hierarchy is the classification of a
product into its essential components. It is inevitable
that a product is related or connected to another.
The hierarchy of the products stretches from basic
fundamental needs to specific items that satiate the
particular needs.

3. 1- PRODUCT NEED
The product need is the primary reason for the
existence of a product. For example, motor vehicles exist
because people have to and want to travel. This is the core
product need, for example, Toyota, Hyundai, Volkswagen..

4. 2- PRODUCT FAMILY
In product family, the core need satisfied by a
product is the focus. This means that the attention should
not be on the individual market but rather the entire
business market. For example, if travelling is the core
need, then it can be satisfied by planes, trains or ships. In
this case, the Product family is passenger travel and the
product family of Volkswagen is Cars.

5. 3) PRODUCT CLASS
Product class and product family have a lot in
common and can be used interchangeably. Volkswagen, for
example, makes buses and two-seater luxury automobiles,
as well as other multi-passenger transportation vehicles. As
a result, product class is used to categorise various goods
within the firm (rather than outside the company, as in
product family)

6. 4- PRODUCT LINE
The product line refers to the whole range of items within
a single product category. So, if we're talking about
Volkswagen passenger vehicles, we've got the Volkswagen Polo
and the Volkswagen Vento, as well as other Volkswagen models.
Audi, on the other hand, is a Volkswagen brand that is
separated into numerous model lines, including the Q series. So,
the Q series is only one of Audi's product lines, and there will be
others.

7. 5-PRODUCT TYPE
Inside the Product line there are different item types. For
instance – If we discuss Hyundai's I20, then, at that point there is
I20 Asta, I20 Magna just as I20 Sportz. So I20 turns into an item
type and different models become item units (clarified
underneath).

8. 6- PRODUCT UNIT
The product unit, often known as the SKU, is the last element
in the Product hierarchy. Continuing with the previous
example, the Hyundai I20 Asta and the Hyundai I20 Magna
are both Product units. If a product is self-contained and not
dependent on other products, it is referred to as an
individual product unit.

9. THANKS