Hierarchical Analysis of Industries

Hierarchical Analysis of Industries variediatees, categories, forms, brands Product hierarchy is a term which defines the way a wargon is relative to other returns in the same industry. It guides the path and do a consumer takes to determine the crossways we postulate and we eventually purchase. To start off we look at a elementary request that our ultimate prime(prenominal) serves. After we identify the need and determine which industry will match it we be faced with decisions. Which class of products in that industry will deliver that type of product?The distinct classes all serve a need that is relative to to each whiz other but whitethorn not serve the special need. This is where we identify which category of product we are flavor for. Here we will come across products that serve similar live ons and whitethorn be marketed to the same node groups. To further narrow bolt down our choices we mustiness then select a product form that may serve a specific functi on. This is where we induce the exact product that considers the ultimate need. Finally we make our end choice by choosing the brand of that product that will purchase.The actual number of trains in the hierarchy depends on how much to a vaster extent detailed or defined the need is. For example if nearone wants soap and their only need is to clean something generic, they wouldnt digging deeper into the types of soap they are looking for rather than looking for a specific type of cleaning agentive role for granite counter tops for example. To further explain and give examples of how a product move into a product hierarchy I will look at five different industries. 1. In the first exercise the consumers end goal is to open a checking account and the basic need is security. perseverance Finance programme Savings Diversified Investments Insurance echt Estate family line Bank/Credit Union and Online or in person Form Checking, Savings, CDs, Credit Cards, Bill Payment in stigator CHASE A consumer would first make up ones mind which area of the industry they need. The industry is divided into 4 classes Savings, Diversified Investments, Insurance and Real Estate. Since our need fall under the first class of Savings it is not necessary to break down the other counterbalancees of the industry and explain all the choices they obtain.In order to open a checking account for example they would decide at the class level what type of institution would suit their needs. At the category level at that place are choices such as, should you use a credit union or a traditional commercialized bank. Both serve the same general service but credit unions tend to be small and more than community or organization oriented. They might be affiliated with a certain geographic area or group of victors like teachers for example. They are also non-profit financial institutions owned by their members and fountain by a board of directors which are typically their mem bers.They appear to offer a more individualised service which is their point of marketing it. Banks could be as small as community ground or as large as national organizations but they are for-profit transportinesses. The board of directors of a bank is elect by the stockholders (private investors). Also will you need on-line or in-person services. on that point are numerous institutions which advertise to fill the needs of one or the other (or both) of these consumers. For example a tutoriness professional that travels often would not have the time to physically stop by a bank branch to take concern of their needs.In this case, a full service on-line institution would better serve that node. The customer who needs to sit down with a customer service representative to assist them in some way would possibly choose a bank branch for in-person service. Once that decision is do a customer would determine which specific form of the product is necessary. In this industry for exam ple, a customer might be looking for service in checking, savings, certificate of deposits, mortgages or bill paying, etc.At this level I believe the company uses marketing strategies to show the benefits of their brand and the attributes of their products which finally will help the consumer choose a specific brand or in this case institution such as CHASE strand for example. 2. The end goal is to purchase running shoes but the basic need we are looking to fill here is to clothe ourselves. Industry Apparel Class Mens wear Womens wear Childrenswear Category Clothes/ Shoes/ Accessories Form Casual/Dress/Athletic Brand Asics The general industry that running shoes are in is the Apparel industry. The class that this need falls into could be either mens, womens or childrens apparel. A similar need stick out be met in either of these classes but for a different tar discover market. There is no transmutability at this level. In this particular instance it would be a straight fo rward decision ground on the gender of the person who needs the product. At the next level a consumer will have specific categories that their item will fall under. All the items at this level serve a more defined function in this case they would be to clothe us, but just at the boilersuit level.This is a good example of how an industry hierarchy butt end have many levels. Within each of the different items that fall in this category there are many choices you may have to get to fulfill the ultimate need before you even pick the specific form of the item. For example, Clothing is one type in this category but within this you may have to decide from outerwear, underwear, pants, skirts, dresses, shirts, etc. Accessories are even broader encompassing everything from hats to belts, scarves, ties, socks and so on. The category level that running shoes fall into is shoes. Once we enjoy exactly what we want we decide on the specifics.This is the product form and where our running shoes fall. If we were looking for free-and-easy shoes, dress shoes, sandals or athletic shoes we would make that decision at the form level. You cannot substitute different forms at this level because they would not serve the purpose intended. You could not wear dress shoes to go jogging. Once again the detail of this level is open for discussion because there technically are more options once we select the athletic footwear since running shoes are just one type. There are endless types available based on the activity they are being used for.Finally we may choose a brand such as Asics based on brand awareness. 3. The basic need we are looking to fill here merchant marine but the end goal is to purchase an automobile. Industry Transportation Class Ground-Auto/Rail/Bus Sea- Ship Air- Planes Category Cars/trucks/vans or motorcyclesCommuter trains/cargo/ orPassenger bus, charter bus Cruise ships/ cargo/yachts/sailboats Private/commercial Form 2 door, 4 door, sedan, hybrid, convertible B rand Honda The transportation industry is broken down into 3 primary(prenominal) classes ground transportation which is auto, rail or bus sea/ships or air/planes.All choices outlet in the movement of goods or people but depending on the purpose one might choose one over another. In this instance the end result is to purchase a car so we will just look at ground transportation. The main categories within the auto class are cars, trucks, vans and motorcycles. Since these different forms of transportation are pretty cut and ironic we know that vehicle we wish to purchase will be met in the car category. The Form level is where substitutability is introduced. We now have choices of the type of vehicle we wish to purchase such as cars/trucks/vans/SUV/motorcycles, etc.Of course, we can further break down the type cars by 2 door, 4 door, sedan, hatchback, etc. There is great substitutability at this level depending on our need and taste. Finally our ultimate choice is based on brand w hich has strong customer loyalty in the auto industry. 4. The basic need in the publication industry is to certify and educate the consumer and our purpose is to purchase a news report card for example. Industry publishing Class Books Periodicals CommercialPrinting services Category Literature/manuals/text ooks Newspapers/magazines Brochures/flyers/catalogs Form paper/digital/internet based paper/digital/internet based paper/digital/internet based Brand Newsday All the items in the class category of publishing serve a need that is similar to each other which is to inform us but in a very general way. They may not meet our specific need. We have to select the category that our meets our needs. Books are acquired and saved as entertaining or reference items whereas periodicals are used to inform us.The commercial end of publishing usually has a different end drug user like a manufacturing company or business that is looking to advertise or get familiarity out to the consumer. A t the next level the consumer will decide which of these categories best suits their needs. Here the choices involve which expressive style type of publication would be necessary. Either books/periodicals/brochures, etc. The form which is chosen will differentiate the humour by which we will use the product. There is more product substitutability at this level because consumers may us different mediums of obtaining the same information.For example by paper print/internet/digital and eventually the brand choice could be based on the loyalty of a company like a newspaper you always read and purchase. 5. The basic need is for ain care and the specific purpose in this case is to buy shampoo. Industry Personal care Class Cosmetics- luxury items Personal Hygiene- essential items Category makeup/perfumes/beautification products skin care/hair care/oral care Form lipstick/ consistence spray/hair removal/ toothbrush/toothpaste/soaps/deodorant/shampoo Brand Revlon Pantene We can diff erentiate the personal care industry by determining wants (luxury items) and needs (essential items). There is a small margin dividing these classes based on what you perceive as an essential item. In this instance shampoo is considered essential so it falls into the personal hygiene class. The items in the category class all serve a similar function but cover a wide variety of needs. To be more specific, all skin care items may be marketed to the same consumers but they may not serve a specific or desired need.To seek the actual product we are looking for we must determine which form of the product is required. Within the hair care line we can distinguish between moisturizing, body or dandruff shampoos for example. And ultimately we choose the brand based on pricing, product loyalty or other brand choice factors. Before we make a conscious decision to make a purchase, many of our decisions are do for us based on our needs. We decide which class and category of a product we choose to fill our basic need and then differentiate our choices based on what form of the product we eventually purchase.Finally we choose a brand based on how these products are marketed to us. References http//en. wikipedia. org/wiki/Global_Industry_Classification_Standard http//www. citeman. com/1587-product-hierarchy-and-product-line-length. html https//getsatisfaction. com http//www. msci. com/ http//www. wdfi. org/wca/consumer_credit/credit_guides/DifferencesBanksCreditUnionsSavingsInstitut http//www. ions. htm http//www. prospects. ac. uk/industries_publishing_overview. htm