Product hierarchy of basic needs to begin with a particular item that can m emuaskan requirements. Product hierarchy consists of seven levels, namely:
1 Need family, the core needs / basic form product family. Example, a sense of security.
2 product family, the entire class of products that can satisfy the needs of the core / base with sufficient levels of effectiveness. For example, savings and income.
Class 3 product (product class), which is a set of products within a product family that is considered to have a specific functional relationship. For example, a financial instrument.
4 product line (product line), which is a set of products within a product class that are closely related. For example, life insurance.
This close relationship can be due to one of the following four factors, namely:
a. Function is the same.
b. Sold to the same customer group.
c. Marketed through the same distribution channels.
d. The price to be in the same scale.
- Product type, namely the items in a product line which has a particular form of the many possible forms of the product. For example, term life insurance.
- Brand (brand), which is a name that can be connected / associated with one or more items in a product line that is used to identify the source or character of the item. For example, insurance Bumi Putera.
- The items, which is a special unit within a brand or product line that can be differentiated by size, price, appearance, or other attributes. Usually called also stockkeeping unit or product variants. For example, Life Insurance Bumi Putera renewable.
Classification of products can be done over a wide range of viewpoints. Based on the least tangible, products can be classified into two main groups, namely:
1 Item
Goods are physical tangible product, so it can be seen, touched / touched, felt, held, stored, transferred, and other physical treatments. Judging from the aspect of durability, there are two kinds of goods, namely:
a. Nondurable Goods
Non-durable goods are tangible goods that normally consumed in one or a few times. In other words, economic life under normal usage is less than one year. Examples are soap, drinks and snacks, chalk, sugar, and salt.
Therefore this type of goods consumed rapidly in a short time and the frequency of purchase is often the case, the most appropriate strategy is to provide one at many locations, apply a small mark-up, and advertise it heavily to stimulate people to try it and at the same time established a for-tuk preferences.
b. Durable Goods
Durable goods are tangible goods that normally can last a long time with a lot of usage (for normal use its economic life is one year or more). Examples include TVs, refrigerators, cars, computers, and others. Generally this requires a kind of personal selling of goods and services more than non-durable goods, providing greater benefits, and require a guarantee / warranty from the seller specified.
2 Services
Services are activities, benefits or satisfaction that is offered for sale. For example, a repair shop, beauty salon, courses, hotels, educational institutions, and others.