Price optimization modeling in international marketing

Abstract

Background. Formation of the price of a product is a process inalienable from marketing strategies. Making a reasonable decision on choosing a pricing strategy, its development using a systematic approach will enable the company to succeed on the market. The pricing strategy in the international marketing system takes one of the key places. Therefore, there is an urgent need to improve the strategy of international marketing and mechanisms for managing its components, which is directly connected with the general program of the exit from the precession stage of the development of the global economic system in general and of entrepreneurship at micro, meso, macro, and mega-levels in particular.
Analysis of recent scientific research. Recent scientific studies indicate the specificity of marketing as a scientific trend, which currently does not take into account the full use of the rich foreign and domestic experience of internal marketing in the formation and development of the international marketing system. Today there is a need to formulate a coherent mechanism for its functioning and management taking into account the peculiarities of the development of the international economic space in general and individual national economies in particular.
The aim of the article is the optimization modeling of the price strategy management system of the business entity in the industrial sphere of management.
Materials and methods. In the course of research the dialectical method of scientific knowledge and a number of general scientific and special research methods were used, interconnected and consistently applied in accordance with the general logic of analysis: theoretical generalization, analysis and synthesis; system analysis, methods of economic modeling.
Results. The necessity of global improvement of the management system of international marketing tools in the industrial sphere at the recessionary stage of development of the world economic system is established. The methodology of forming an optimization-pricing strategy of international marketing in the industrial sphere and modeling its management system for improving the efficiency of the functioning of the overall mechanism of international marketing and reducing the risk of participation in international business processes, taking into account the peculiarities of the functioning of business entities in the industrial sphere, has been developed.
Conclusion. The proposed methodology for forming an optimization pricing strategy for international marketing based on the use of a new conceptual approach of optimization-pricing modeling in international marketing is based on the functional dependence between profit from business activities and price level. The simulation process is carried out by minimizing the function by constructing a functional dependence between the volume of product sales in the international market and variable costs in different variants of the behavior of the return from the variable resource of the production function, based on the existence of links between the industrial and market subsystems of the industrial subject of international business.