The first and the most basic requirement in managing new product development relates to the formulation of a complete overall strategy starting with deciding the objectives of how to reach the customers.

The second strategy is to communicate it and have consultation with R & D personnel and other related personnel of the firm. It may lead in creating interest among the different personnel (marketing, production, finance) because it is a team effort. It will lead to better coordination and cooperation reducing organizational confusion and conflicts.

Top management support is a must in terms of ideas, facilities, resources, encouragement, manpower and fair evaluation of efforts. With the support of top management the support of lower ranks would be automatic. Unless and until the new product planning and development activity gets a total company support, it is bound to meet failure.

New product planning and development process involves a series of steps from idea generation to commercialization.

Booz, Alien and Hamilton conducted a research study of 51 companies to study the morality of new product ideas. He concluded that out of 60 ideas originally developed only one comes out as the successful new product. The number of new product ideas may be much higher. The termination of ideas can occur at any point because cost increases the farther into the process the company goes.

According to Evans and Berman, in the new product planning process, a firm needs to endeavor to balance competing goals such as:

A systematic process should be followed; however, there must be flexibility to adapt to each unique new product opportunity.
The process should be thorough, yet not unduly slow new product introduction.
The innovations should be pursued, yet finances must be considered.
An early reading of consumer acceptance should be sought, but the firm must not give away too much information to potential competitors.
There should be interest in short run profitability but not at the expense of long run growth.

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