[Drupal] Explain taxonomy module with an example

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Taxonomy allows to categorize content in a drupal website. The basic elements of the Taxonomy module are

  1. Terms
    Terms are used to describe content.
  2. Vocabularies

    Vocabularies are a collection of terms.

Consider the following example.
Suppose you have a Drupal website which sells game tickets. As the website sells game tickes, the vocabulary name can be considerd as Event group ie tournament. 'Event group' specifies which event is going to happen.

To understand the concept of terms, consider the following heirarchy.

 
Sports
 - Football
  - Premier League
  - Spanish league
 - Cricket
Concerts
 - Music
  - rock
  - pop
 

In the above example, Sports and concerts are level 1 terms.
Football and Music are Level 2 terms.
Premier League. Spanish league, rock, pop are level 3 terms.

In Drupal 7 settings, the Taxonomy module can be found at Administer > Structure > Taxonomy
In Drupal 6 settings, the Taxonomy module can be found at Administer > Content Management > Taxonomy

Hope you understand taxonomy, vocabulary and terms concept now.