BASELINING

Baselining is the process in which you document the underlying assumptions, beliefs, and opportunities in your existing sales and marketing activities.

BA

SELININ

G P

RO

CESSHow do you

capture revenue

today?

Mo

ney

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ot

by:

Jes

sica

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ann

on

BA

SELININ

G P

RO

CESS

DO YOU KNOW

HOW PROFITABLE

EACHb

y: M

ate

rial

Bo

y's

CHANNEL IS ?

RETU

RN

ON

INV

ESTMEN

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LCU

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RCPSPHERE RECESSION ACTION PLAN ROI CALCULATOR

SALES & EXPENSESSample Company

Your Company

A. 2008 Gross Revenue ($) $1,200,000

B. Current SG&A Expenses (%)30%

(Selling costs: salaries, commissions, advertising, other marketing expenses, etc)

C. Net Profit Margin / EBITDA (%) 8%

Revenue Sources (%)D

Industry Average

E(Revenue you are generating from each sales

channel?)

F. Difference(F= D - E)

Field Sales Force (Salary + Commission) 29% 18% 11%

Field Sales Force (Commission only) 11% 31% -20%

Partners (Distributors, Wholesalers, Independent Reps etc.)

39% 41% -2%

Retailers 2% 2%

Internet 12% 5% 7%

Telesales 5% 1% 4%

Direct Mail Catalogues 2% 1% 1%

Other 3% -3%

G. Money you're leaving on the table (%)25%(As a result of insufficient investment in the most productive sales channels)

P = Sum of all Fs, where F > 0

H. Sales Costs Inefficiencies (%)25%(As a result of spending more than the industry average)

Q = Sum of all Fs, where F is < 0

IMPACT$300,000

X1. Revenue Opportunities (A x G)

X2. Convert revenue into profit by multiplying revenue times net profit margin

(X1 x C)$24,000

Y. Efficiency Opportunities ($) (A x B x H ) $90,000

Z. YOUR TOTAL BENEFIT ($) (Z = X2 + Y) $114,000

ROI CALCULATIONS

I. Channel Building & Marketing Costs (7% - 10 % of AxB) $36,000

U. Consulting Fee ($30,000 + % of increase in sales TBD) $30,000

V. Costs (I + U) $66,000

P R O F I T (Z-V) $48,000

ROI (PROFIT / COSTS) 73%

BA

SIC FA

CTS

Competitive Advantage

•What sets your product, service and company apart from your competitors?

Customers

• Who pays your bills?

Markets

• What attributes are shared by the group of customers that you serve?

Channels

•How do you connect your products with customers?

Brand/Message

•What kind of image do you present and with what message?

CO

MP

ETITIVE A

DV

AN

TAG

E

HOW DIFFERENT ARE

YOUR OFFERINGS &

WHAT VALUE DO

THEY CREATE FOR

THE MARKET?

CU

STOM

ER

DESCRIBE YOUR KING

TH

EC

US

TO

MER

ISK

ING

You may have different customers for different products.

You may have many customers – buyers, users, influencers– for a complex product.

But your distributors/partners are not your customers.

MA

RK

ET SEGM

ENTS

customer

IT DOESN’T MATTER HOW GOOD PRODUCTS ARE, AND HOW CLEVERLY

THEY ARE PRICED, PACKAGED AND PROMOTED – EVEN IF THEY ARE

SOLD FOR FREE. A COMPANY STILL WON’T SUCCEED UNLESS IT

FOCUSES ITS EFFORTS ON SELLING ITS PRODUCTS INTO THE RIGHT

MARKETS – MARKETS THAT ARE WILLING TO BUY.

How do you segment markets and why do you segment the way you do?

What are the market trends , e.g. market size, product-market growth rates, etc.?

Are you planning to exit some markets?If so, why?

CH

AN

NELS / D

ISTRIB

UTIO

N C

HA

NN

ELS

CHANNELS ARE THE

LIFEBLOOD OF A

BUSINESS. THEY

CONNECT YOU WITH

CUSTOMERS, AND

ESTABLISH ROUTES

THROUGH WHICH

SELLERS AND BUYERS

CAN DO BUSINESS.

What channels are you using?

Are your customers demanding any new channels?

Are your competitors using different channels?If so, what they are?

What if we sell it through ___ ? (fill in the blank)

BR

AN

D / M

ESSAG

ING

ULTIMATE DRIVING MACHINE -- OR -- ZOOM ZOOM ZOOM?

HOW & WHAT PEOPLE SAY ABOUT YOU IS THE

RESULT OF WHAT YOU GIVE THEM TO SAY: THEIR

CUSTOMER EXPERIENCE. THE SECRET OF A GOOD

CUSTOMER EXPERIENCE IS SIMPLICITY,

REPEATABILITY, AND AUTHENTICITY

What is your customer relationship cycle?

What tools are you providing your customers to spread your message?

Are you using different messages for different product/market groups?

What message seems to work and why?

START THE CONVERSATION & UNCOVER MANY VALID OPPORTUNITIES THAT MAY HAVE BEEN PREVIOUSLY HIDDEN IN PLAIN SIGHT.

CPSPHERE IS AN INNOVATIVE MANAGEMENT CONSULTING FIRM, FOCUSED ON STRATEGIC SALES AND

MARKETING AND ITS HANDS-ON EXECUTION. RESULTING IN INCREASED SALES AND IMPROVED PROFITS.

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