PRODUCT CONSULTING: CONCEPT, MAIN SERVICES AND TECHNOLOGIES

Author
, associate professor, Kharkiv, Pushinska, 77

In heading

 Economic theory;

Signed print

 22.11.2019

Issues number

 2019 - № 4 (39)

Page

 83-98

Type of articles

 Scientific article

Code UDK

 339.138

ISSN print

 2411-5584

Abstract

 Problem setting. Nowdays increasing of competition, increasing and diversifying of consumer requirements, weakening of the market position of firms because of standardization and typicality of their competitive advantages actualize the problem of forming an optimal product portfolio and effective assortment policy of the firm as a powerful resource for enhancing its competitiveness. Product consulting services allow the firm to align its product
with the objective factors of the market and the subjective needs of clients, which becomes the starting point for the development and implementation of the further marketing measures.
Recent research and publications analysis. Theoretical bases and practical aspects of forming the product policy of the company have been investigated in the works of foreign and domestic scientists, in particular L. V. Balabanova, Zh.‑Zh. Lamben, F. Kotler, T. S. Mazepa, S. O. Maliuk, M. В. Pavlova, O. V. Shymko etc. However, the problems of determining the relevant tools for forming a balanced product portfolio in order to ensure the
competitive advantages of business organizations and their market adaptation remain insufficiently elaborated.
Paper objective. The purpose of the article is to reveal the content of product consulting services concerning determination of key levels of a client organization’s product, optimizing of the structure of its product matrix and developing of product policy, as well as generalization of methods of analysis and directions of optimization of the product portfolio of the company.
Paper main body. Product consulting services include the development of a product strategy; analysis, designing and optimization of product portfolio; designing of a new product; consulting on the development of the assortment strategy. There are several product level classifications in marketing theory. Understanding each level of product helps to build a «ladder of benefits» of the brand. One of the tools of policy development is to analyze, design and optimize its product portfolio. It is the base of the sales funnel. By the value for the product portfolio marketers distinguish different groups of products. Economic and portfolio analysis methods (ABC and XYZ analysis, Dibb-Simkin’s method, BCG matrix, McKinsey – General Electric matrix, Ansoff’s matrix) are used to formulate and optimize the assortment policy. Recommendations for adjusting the product policy of a client
organization may be: improvement of the marketing mix, optimization of the product matrix by expanding the assortment, withdrawal of product from the market.
Conclusions of the research. Product consulting is the complex of consultancy and analysis servicesе that provides development and improvement of the product policy of a firm, forming a portfolio of products and services that is optimal for satisfying customer needs. The type of the product matrix determines the position of the company on the market, the basic concept of its development. The balanced product portfolio helps to build the
trust with customers, gradually introduce them to the main products. The correctly balanced product matrix consists products, that provide stable and predictable profit, as well as related products that form a sales funnel. To improve the product matrix, the consultant needs to analyze the assortment using methods of economical and portfolio analysis and offer directions for its updating and improvement.
Short Аbstract for an article
The article defines the content of product consulting and its basic services. The features of the analytical toolkit of marketing consulting on issues of development and improvement of product policy of the client organization are considered. Special attention is paid to the formation of marketing understanding of a product of the firm and its product matrix. The methods of analysis and ways of optimization of the firm’s product portfolio are summarized.

Keywords

 marketing consulting, product range, product matrix, assortment policy, portfolio analysis, product portfolio optimization.

Reviewer

External reviewer

Article in PDF

 83-98

Bibliography

 1. Balabanova, L. V., & Bryndina, O. A. (2006). Marketynhova tovarna polityka v systemi menedzhmentu pidpryiemstva [Marketing commodity policy in the enterprise management system.]. Kyiv: VD «Profesional» [in Ukrainian].
2. Lamben, Zh.‑Zh. (2004). Menedzhment. oriyentirovannyy na rynok [Market oriented management]. Sankt-Peterburg: Piter [in Russian].
3. Kotler, F., Keller, K. L., & Pavlenko, A. F. (2008). Marketynhovyi menedzhment [Marketing management]. Kyiv: Vydavnytstvo Khimdzhest [in Ukrainian].
4. Mazepa, T. S. (2007). Formuvannia asortymentnoi polityky pidpryiemstv rozdribnoi torhivli [Formation of assortment policy of retail trade enterprises]. Extended abstract of Candidate thesis . Kharkiv [in Ukrainian].
5. Maliuk, S. O. (2014). Optymizatsiia upravlinnia asortymentom produktsii [Optimization of product range management]. Visnyk Kharkivskoho natsionalnoho ahrarnohouniversytetu im. V. V. Dokuchaieva. Ser.: Ekonomichni nauky – Bulletin of V. V. Dokuchaev Kharkiv National Agrarian University. Series: Economic Sciences, 6, 124–131. Retrieved from http://nbuv.gov.ua/UJRN/Vkhnau_ekon_2014_6_21 [in Ukrainian].
6. Pavlova, M. B. (2018). Metody optymizatsii asortymentu tovariv [Methods of optimizing the range of goods]. Pidpryiemnytstvo i torhivlia – Entrepreneurship and trade, 22, 128–131. Retrieved from http://nbuv.gov.ua/UJRN/Torg_2018_22_22 [in Ukrainian].
7. Shymko, O. V. (2016). Formuvannia asortymentnoi polityky torhovelnoho pidpryiemstva: marketynhovyi pidkhid [Formation of assortment policy of a trading enterprise: marketing approach]. Biznes Inform – Business Inform, 11, 408–413. Retrieved from http://nbuv.gov.ua/UJRN/binf_2016_11_69 [in Ukrainian].
8. Blog o biznese. reklame i nestandartnykh marketingovykh resheniyakh (2013, January 23). Kak uvelichit prodazhi na 345 % [How to increase sales by 345 %]. Retrieved from http://coolmarketingideas.blogspot.com/2013/01/345‑tontine.html?fb clid=IwAR0Z4EepcNrfA1eMDpIhuLGodUy5QeSlExsGLOlVIGQXQw2u8XQmtkp OniE [in Russian].
9. Marketing Media Review (2019, April 12). Kompleksnyy podkhod: kak dolya rynka brenda «Galichina» vyrosla na 33 % za god [An integrated approach: how the market share of the Galichina brand grew by 33 % over the year]. Retrieved from https:// mmr.ua/show/kompleksnyy_podhod_kak_dolya_rynka_brenda_galichina_vyrosla_na_34_za_god [in Russian].
10. Skryhun, N. P., Stetsenko, V. A., & Kapinus, L. V. (2011). Vykorystannia portfelnoho i odnoproduktovoho analizu dlia rozrobky asortymentnoi polityky [Use of portfolio and one-product analysis to develop assortment policies]. Formuvannia rynkovykhvidnosyn v Ukraini – Formation of market relations in Ukraine, 4 (119), 153–157 [in Ukrainian].
11. Mikhaylov, A. (n.d.). Produktovoye liderstvo: potrebitelskiye predpochteniya. strategii konkurentov ili tseli kompanii [Product leadership: consumer preferences, competitor strategies or company goals]. Retrieved November 01, 2019, from http://www.myshared.ru/slide/658884 [in Russian].
12. Shypulina, V. O. (2014). Metody otsinky rivnia dyversyfikatsii asortymentnoho portfeliu firmy na rynku miasnykh produktiv [Methods for assessing the level of diversification of the firm’s portfolio in the meat products market]. Visnyk Khmelnytskoho natsionalnoho universytetu. Ekonomichni nauky – Bulletin of Khmelnitsky National University. Economic sciences, 3 (3), 173–176. Retrieved from http://nbuv.gov.ua/UJRN/Vchnu_ekon_2014_3 %283 %29__37 [in Ukrainian].

Code DOI

 10.31359/2411-5584-2019-39-4-83

22.11.2019