Product Development Report: Marketing and Ethical Considerations

This report provides a comprehensive analysis of product development, encompassing various critical aspects. It begins by examining the environmental factors that influence new product development, emphasizing the importance of raw materials, ergonomics, recyclability, and cultural considerations. The report then delves into the GAP model, using a food product (cereal) as an example to illustrate gaps in customer preferences, service perception, experience delivery, and expectation. Further, the report explores the functions of a distribution channel, highlighting its role in bridging the gap between production and consumption, product promotion, financial management, and stock holding. The design of a promotional mix is also discussed, considering factors such as market nature, product characteristics, customer location, marketing budget, and the product's life cycle. The advantages and disadvantages of television advertising are then presented, followed by a comparison of advertisement and sales promotion. Finally, the report addresses ethical issues in tourism and hospitality marketing, including leadership, loyalty, fairness, accountability, reputation, and trustworthiness, emphasizing the challenges marketers face in balancing business growth with ethical values. The report is supported by relevant references and a bibliography.

Running Head: PRODUCT DEVELOPMENT
Product Development
Name of Student
Name of University
Author note

1PRODUCT DEVELOPMENT
Environmental factors affecting new product development- Availability of raw materials
for manufacture and resources in the environment influence new product development.
Ergonomics plays a major role in the development of a new product. Some industrial production
causes heavy damage to the environment and hence while designing a new product the
manufactures must ensure that it can be recycled . Culture can also influence the development of
a new product since the same product can be desirable for a specific culture and offensive for
another.
GAP model- Assuming it’s a food product (cereal), the managers fail to identify that the
customer prefer a variety in flavors. The second gap related to the consumer’s experience and
management perception. The organizers need to define the level of services provided. Thirdly,
the experience is delivered differently than the specification of the experience. Managers must
make sure that the experience and delivery tally. The final gap is concerned with the customer’s
expectations and their perception of the product. The customer’s past experiences of substitute
products has caused a gap between the experience of the new product and their expectations (Lee
et al., 2016).
Functions performed by a channel of distribution- Bridging the gap between consumption
and production is a key function of distribution channel. It is also responsible for product
promotion and maintaining liaisons with prospective buyers. The channel must look into the
financial requirements so the firm can function smoothly. Stock holding is a notable example of
their functions.
Factors affecting the design of promotional mix- The nature of market and product
largely influences promotional mix. The promotional tools for different products is determined

2PRODUCT DEVELOPMENT
by their nature while the location of customers influences the decisions of the managers in the
promotional mix. Additionally, marketing budget, stages of buyer’s decision and of the product’s
life are influencers of promotional mix (Nour and Almahirah., 2014) .
Advantages and disadvantages of television advertising- The advantages include visual
and sound communication that affords full exposure. Televisions can target local and
international audience via independent stations. Customers are offered selectivity and flexibility
options and if the advertisement is alluring enough, they can convince the customers to buy
them. The disadvantages are high cost, complicated procedure, and limited screen time for
proving all information about the product.
The difference between advertisement and sales promotion- Advertisement is a
permanent and long-term strategy while sales promotion is carried out within a limited period.
Advertisement always involves a definite target audience for persuasion whereas sales is about
moving services and boosting up the finances of the company. Sales promotions are direct but
advertisement usually involve complicated and indirect methods (Andrews and Shimp., 2017).
Ethical issues in tourism and hospitality marketing- The marketing managers might
encounter ethical dilemmas relating to leadership, loyalty, fairness, accountability and reputation.
Marketers in the future might find it difficult to remain integral towards one’s values while
meeting the requirements of the business’ growth. Trustworthiness is another ethical issue the
industry might have problems with. It is difficult to hire employees who are able to treat all
individuals with equal respect and be trusted with all responsibilities.

3PRODUCT DEVELOPMENT
REFERENCES AND BIBLIOGRAPHY:
Andrews, J. C., & Shimp, T. A. (2017). Advertising, promotion, and other aspects of integrated
marketing communications. Nelson Education.
Knani, M. (2014). Ethics in the hospitality industry: Review and research agenda. International
Journal of Business and Management, 9(3), 1.
Lee, Y. C., Wang, Y. C., Chien, C. H., Wu, C. H., Lu, S. C., Tsai, S. B., & Dong, W. (2016).
Applying revised gap analysis model in measuring hotel service
quality. SpringerPlus, 5(1), 1191.
Nour, M. I., & Almahirah, M. S. (2014). The impact of promotional mix elements on consumers
purchasing decisions. International Business and management, 8(2), 143-151.