IIM Bangalore PGSEM elective
Strategic Selling of Innovation ver 0.8
Draft Version 0.8 – SUBJECT TO CHANGE
INDIAN INSTITUTE OF MANAGEMENT, BANGALORE
PGSEM Q4 2009-10, Open to PGP
Course Outline: Strategic Selling of Innovation (Elective)
Faculty: S. Rajeev (AF) and J. Ganguly (GF)
email: rajeevs@iimb.ernet.in and jyotinath.ganguly@hp.com
cell: 92413-52324
January 10, 2011
Course Description
The focus of this class is on the challenges and key issues associated with bringing an innovative
new product (or service) to market. There is the assumption that the invention has happened, and
there is a new offering ready to be marketed to (eager or not-so-eager) buyers. The emphasis is in
understanding how the value created for the customer is communicated, and thereby how the
appropriability of the innovation can be increased. There will be no focus on sales technique
(i.e., students should not expect a course on "How to be a Better Salesperson").
The course is organized to follow the development of the sales function from the early stages of
venture to a point where the offering becomes established in the market. We examine issues
related to:
 Building and managing the sales effort at start up (e.g., what is involved in making the
first sale?)
 Getting traction (e.g., how should the company identify the most promising early-stage
customers and best deploy its resources to pursue them?)
 Early growth (e.g., how should a company think about setting up compensation and
incentive plans, sales forecasting and control systems?)
 Developing strategic alliances (e.g., OEM, VAR and SI relationships)
 “Crossing the chasm” issues (e.g. how to get to the early majority, how to offer a ‘whole
product’, etc.)
 Service components of products (e.g., integration, customization, try-and-buy, etc.)
 Financing the sale (reducing the cost of entry e.g., through lease financing, ASP-style
solutions, etc.)
There are three themes in the course:
 Market segmentation and focusing sales and marketing efforts
 Overcoming customer resistance through the “whole product”
 Building a channel and partner eco-system with co-specialized assets
Course Requirements and Grading
S. Rajeev and J Ganguly, Jan 10, 2011
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Mar – May 2011
IIM Bangalore PGSEM elective
Strategic Selling of Innovation ver 0.8
There are no specific pre-requisites other than the core marketing and strategy courses in the
curriculum.
The course will revolve around case studies. Course grading will be:
 20 percent on class participation (each student will be evaluated based on volunteered
contributions and performance on cold calls)
 20 percent on two mid-term quizzes,
 30 percent on a group project and other group efforts (including in-class presentations of
cases or readings) and
 30 percent on a final exam.
Quizzes and Final Exam
There will be two quizzes during the course, each of 30 minutes’ duration. Each of these
quizzes will be objective-type, but not multiple-choice. The questions require short answers.
The first quiz will be based on the material covered in Sessions 1 through 9. The second quiz
will be based on the material covered in Sessions 10 onward. Questions will be drawn from
both the cases and the readings, as well as any additional material handed out in class. The
quizzes seek the assess the participants’ learning and mastery over the course materials.
The Final Exam is likely to be a case analysis covering many topics touched upon in the
course.
Project Description
All students (working in teams) must complete a written project. Students are expected to
conduct a “bringing innovation to market audit” for an organization. This will involve selecting
a company and interviewing at least three people in the organization to gain insight into the way
sales is organized and managed. The interviews should include a senior sales executive whose
scope of authority is consistent with the audit scope. In addition, you should identify other
individuals who can help you triangulate on the key issues. The dimensions of the audit should
be those raised in class discussions, which may include (but are not limited to) the following:
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Alignment of sales strategy and corporate strategy
Channel development and management
Sales forecasting, compensation and control mechanisms
Ability to manage ‘marquee customers’
Partnerships for services including customization
Implementation management
Creative pricing for consultative selling
The objective of the audit is to evaluate how successful the company may be in bringing the
innovation to market, and what improvements can be made to their current plans. The project
represents an opportunity for a student team to delve more deeply into innovation-related sales
management issues and practice in an industry or company of particular interest.
S. Rajeev and J Ganguly, Jan 10, 2011
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Mar – May 2011
IIM Bangalore PGSEM elective
Strategic Selling of Innovation ver 0.8
Project Requirements
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Students are required to work in teams of five-six members each. The groups need to be
finalized by the third session.
All teams must submit a project proposal (a paragraph will do; no more than a page)
indicating the chosen company and a list of potential contacts.
The project proposal is due at the end of the third session either in class or by e-mail. It
is the responsibility of the student team to keep the instructor advised of any changes in
the project over the course of the term.
An interim project progress report is due in the twelfth session. This should be no more
than 5 pages
The written project is due at the beginning of the final class session, either in class or by
e-mail. The project will count for 30 percent of the final course grade.
Each group must make a detailed presentation of their findings to the entire class. There
will be time set aside in the last few sessions for project presentations.
The project report should not be longer than 20 typed double-spaced A4 pages (with
normal margins (1”) and normal font size (12 point), plus exhibits if any.
Readings
A number of readings are from the textbook Rethinking the Sales Force (RSF) by Neil
Rackham and John R DeVincentis (2004), low-priced Indian edition from Tata McGraw-Hill.
Available in the bookstore. You are required to purchase a copy of this book.
All cases and required readings (other than from the RSF book) will be handed out in the
syllabus in one or two bound volumes which are not meant for circulation elsewhere, as the cases
and readings are copyrighted materials. Supplementary material will be forwarded as softcopy or
handed out in class.
Session Outlines
(Note: sessions will consist of a case and/or one or more readings or special topic presentations.
Teams are required to present.)
Modules/Themes:
1. Market segmentation and focused sales and marketing efforts
2. Overcoming customer resistance through a “whole product”
3. Building a channel and partner eco-system
Schedule of Sessions:
No
1
Topic and Case
Readings and Deliverables; Chapters
are from Rethinking the Sales Force
Module: Market Segmentation and focused
Sales and Marketing efforts
Identifying New Market Opportunities
Case: AT&T USA Direct (Harvard)
S. Rajeev and J Ganguly, Jan 10, 2011
Eager Sellers, Stony Buyers, HBR 2006
Chapter 1 RSF. The New Selling
3
Mar – May 2011
IIM Bangalore PGSEM elective
3
Creating competitive advantage
Case: HDFC (A)
4
Building a sales force
Case: Outerbay and EMC (Stanford)
Strategic Selling of Innovation ver 0.8
Hidden Flaws in Strategy McKinsey 2003
Chapter 2 RSF: The New Purchasing
World
Project Proposal Due; Groups finalized
Aligning Sales and Marketing, HBR 2006
5
SPECIAL TOPIC: Pricing to penetrate a new market
Group A to present the topic Going to
Market, HBR 2000
6
Guest Lecture: TBD
Knowing a Winning Business Idea, HBR
2001
Chapter 3 RSF: The Three Emerging
Selling Models
7
Module: Overcoming customer resistance
through the ‘whole product’
Creating a new class of service
Case: Ryanair (Dublin)
Creating New Markets through Service
Innovation Sloan 2006
8
SPECIAL TOPIC: Evangelistic Selling and
Mid-Course Correction
Group B to present the topic
Theodore Levitt on Marketing Myopia
HBR Classic 1966
Chapter 5 RSF: The New Consultative
Selling
9
Using intellectual property as a weapon
Case: Rambus (Stanford)
New Rules for Bringing Innovation to
Market HBR 2004
Chapter 7 RSF: Sales Process
10
SPECIAL TOPIC: Re-evaluating core competencies
Group C to present the topicDarwin and
the Demon HBR 2004
Chapter 4 RSF: The New Transaction
Selling
Mid-term Quiz 1
11
Transforming from a service provider to a
solution provider
Case: 3i Infotech (Insead)
12
Entering new markets with new services
Case: Citibank Asia Private Banking (Nanyang)
Group D to present the case
The Indian Software Industry 2005,
Stanford
The Sales Learning Curve, HBR 2006
Interim Project Report Due
Module: Building a channel and partner ecosystem
13
SPECIAL TOPIC: Market Rebels
Group E to present the topic
Chapter 8 RSF: Rethinking Channels
S. Rajeev and J Ganguly, Jan 10, 2011
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Mar – May 2011
IIM Bangalore PGSEM elective
McKinsey Quarterly: Market Rebels, Jan
09
14
15
16
Strategic Selling of Innovation ver 0.8
SPECIAL TOPICS: Direct or Indirect Channel?
Group F to present the topic
Entering a new geography with partners
Case: Inkra Systems (Stanford
Leveraging non-traditional Channels
Case: Hindustan Lever Shakti (Harvard)
Designing Channels of Distribution, H
1994
Peter Drucker on the Discipline of
Innovation, HBR Classic 1985
Chapter 6 RSF: The New Enterprise
Selling
Networked for Innovation, MIT Sloan
2004
17
Bringing a BPO to market
Portfolio Approach to Sales, HBR 2006
Case: netCustomer
Chapter 9 RSF: Changing the Sales Force
18
Building a win-win situation for partners
Channel Stewardship, HBS Press 2006
Case: SAP America (Harvard)
19
Group Project Presentations
20
Course Summary and Evaluation; Group
Project Presentation
21
Final Examination
Final Quiz
Final Project Report Due
Reference:
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5.
The Innovator’s Dilemma: Clayton Christensen
Crossing the Chasm; Inside the Tornado: Geoffrey Moore
Making Strategy Work: Lawrence Hrebiniak
Transforming your go-to market strategy: V Kasturi Rangan
Strategic Management of Technology and Innovation: Burgelman, Christensen,
Wheelwright
S. Rajeev and J Ganguly, Jan 10, 2011
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Mar – May 2011