Setting revenue goals for new product/program/service

Hey all,

I am a product manager and we are in the process of creating a new product and releasing it.  Before we got this far, we did a market survey, combo'd that with market statistics and rough estimates of past performances of new product releases, we set some rough revenue numbers (which frankly are pretty conservative).  However, now our sales department is balking claiming that they don't think that they can hit those numbers, are upset that we didn't consult them before setting the numbers and are attempting to block further process on creating the product.

So my question out to all that have regular contact with sales or are even in sales is as follows.  How much influence SHOULD a sales department have on setting potential revenue goals for a brand new product?  I understand that they should have influence over setting revenue goals for existing products based on past performance and previous years numbers, but when it comes to a brand new product, I'm not quite certain how much influence they should have.  Should they be aware of HOW we got to those numbers and why we think it is reasonable?  Absolutely.  But they want to actually have the hand in setting those numbers and I've got a bit of a problem with that.

Any help would be appreciated.

Those sales numbers should be based only off of market research and statistics. sales force should have no or very little input in a new product launch and expectations. If based off that data you set a conservative estimate and pass that along to sales prior to product launch, with the market analysis they should do their jobs and try to meet or beat those expectations.

Granted this is my opinion and is not in any way related to my area of work HOWEVER I have been involved with the market research on a few launches for new drugs so have a bit of knowledge there but those are probably a completely different area of manufacturing than what you are talking about.

That's my thought too.  And the previous company I worked for they had the same through process.  I feel that the sales force at my current company is a bit too entitled and think they know the market.  No, they know their clients, not the entire market.

Anyone else?  I would love to hear the other side of the coin for this.  If there is one.

Hey all,

I am a product manager and we are in the process of creating a new product and releasing it.  Before we got this far, we did a market survey, combo'd that with market statistics and rough estimates of past performances of new product releases, we set some rough revenue numbers (which frankly are pretty conservative).  However, now our sales department is balking claiming that they don't think that they can hit those numbers, are upset that we didn't consult them before setting the numbers and are attempting to block further process on creating the product.

So my question out to all that have regular contact with sales or are even in sales is as follows.  How much influence SHOULD a sales department have on setting potential revenue goals for a brand new product?  I understand that they should have influence over setting revenue goals for existing products based on past performance and previous years numbers, but when it comes to a brand new product, I'm not quite certain how much influence they should have.  Should they be aware of HOW we got to those numbers and why we think it is reasonable?  Absolutely.  But they want to actually have the hand in setting those numbers and I've got a bit of a problem with that.

Any help would be appreciated.

Marketing gets to be the ones who figure out what's possible.  Sales will tell you what's realistic.  A well targeted goal is probably somewhere in the middle.

If you completely ignore what sales is telling you, you're setting yourself up for failure.  It's true they know their own clients best, but those are the channels through which your first sales will likely occur, and channels through which you can branch out to new targets.

I'm an engineer and it's COMMON for marketing to bite off more than the rest of the company can chew.  Be aggressive but realistic.

they only care because they get bonuses based on reaching those numbers.  have they recently been burned by an ambitious product launch?  employees will act in a way that benefits them.  in general, there needs to be a feedforward/feedbackwards loop with development and sales.  what is the market, the possible revenue, the true cost, the targeted margin, etc.  you can't make a proper estimate without sales, they can't make a proper estimate without development.

however, most people just don't work that way.  it's hard, it takes too long, and personalities/incentives are often conflicting.