a project on market-all types of markets should be covered. can anybody help?

Answer 1

Two principles that apply to every market are the supply and demand pricing dynamics and the product life cycle pricing dynamics.

A project to demonstrate these principles that would be elegant is to choose two different markets and model the pricing in the market according to supply and demand and over time with respect to the product life cycle.

Much like a scientist investigating genetic eveolution, choose markets with relatively short product life cycles so that the time element is easily observed.

For example, the Apple ipod is a product that revolutionized the music industry by making downloading legal and cache. The devices progressed from the first ipod, to the ipod mini to the ipod nano. The backbone of the offering is iTunes, which changed the way we buy and listen to music. Look at the pricing curves over time for the ipod models by looking at press releases and industry coverage of the ipod revolution. You will see that the pressures of supply and demand drove the ipod pricing, while the product lifecycle drove the introduction of new models to keep the public buying and maintaining image and pricing.

Next, look at the video game platform market. In this market the product life cycle is very influential since new technology provides a more interesting user experience as the new models appear about every two years (product lifecycle). The pricing of the platforms is below cost to attract gamers to buy the platform since the profit is derived from the game sales and royalties.

To go to a completely different market, look at hybrid cars. The price of oil and fear of spiking oil prices, along with government incentives in tax credits and car-pool lane priviledges, drove demand of the flagship Toyota Prius into the stratosphere. The cars are still difficult to find since the dealers are backlogged with orders from eager customers. A bit of clever marketing and timing with the pressure on oil prices and the Global Warming crisis have continued to spur sales. The more interesting story may be the Honda Civic hybrid that offers many of the same features as the prius, but hasn't enjoyed the attention from the press. Look at the difference in the pricing as a result of the significant difference in demand.

That's a few ideas. There are many more.

Good luck.

j