Description

One of the major problems facing modern managers is the question of how to develop and implement successful new products and services. Millions of dollars are spent annually by large and small organizations to launch new products and services.  Many of these efforts fail due to inadequate attention to customer needs and competitive actions.  In an effort to improve success rates, the use of a process to consider these factors has become more popular.  Persons involved in new product planning develop skills in managing projects, marketing research, sales forecasting, and promotional planning.

Career Opportunities

Product planning is usually not an entry-level position.  However, anyone in the organization can come up with ideas and get involved in new product development.  Once an idea is generated, people with technical experience or salespeople who understand customers might be asked to join new product development teams.  Participation on these teams is often added to departmental functional responsibilities, however many organizations are beginning to recognize the value of having employees dedicated to new product efforts. 

Entry Level Positions

Formal positions in product planning are increasing. Historically, such positions carried titles such as "assistant manager/director" of product planning or innovation.  An MBA degree, though not a requirement, does appear to be the level sought for these positions. Undergraduates are usually hired as "new product assistants."

Requisite Personal Qualities

New product work demands a unique combination of creative and analytical talents. A "product planner" must be able to uncover new ideas, conceptualize the product behind the idea, and objectively evaluate the idea from a market and financial standpoint.  Working with a team is essential, as product development often includes technical and creative individuals, as well as marketers.  Unlike managing an existing business, new product development is ever changing and requires a person with a high degree of tolerance for uncertainty.  The uncertainty and pressures of new product work are compensated by the fun of giving birth to new entrants to the market.

Academic Preparation

Anyone desiring this career path should take course work in product planning, marketing research, consumer behavior, and marketing strategy.  Courses in capital budgeting, entrepreneurship, and sales forecasting would likewise be valuable.