The notochord is a key characteristic that defines the phylum Chordata. This rod-like structure forms on the dorsal side of the embryo during development and is derived from mesodermal tissue. Animals that possess a notochord are classified as chordates, which include vertebrates, while those that do not form a notochord are referred to as non-chordates, spanning various animal groups from porifera to echinoderms. The presence or absence of this structure not only aids in the classification but also indicates evolutionary relationships among different animal groups. The notochord serves as a key feature for the development of a vertebral column, being replaced by a bony structure in adult vertebrates.