Baseling Markeing Process

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Baseling Markeing Process

  1. 1. BASELINING Baselining is the process in which you document the underlying assumptions, beliefs, and opportunities in your existing sales and marketing activities.
  2. 2. Money Shot by: Jessica Shannon BASELINING PROCESS How do you capture revenue today?
  3. 3. by: Material Boy's BASELINING PROCESS DO YOU KNOW HOW PROFITABLE EACH CHANNEL IS ?
  4. 4. CPSPHERE RECESSION ACTION PLAN ROI CALCULATOR RETURN ON INVESTMENT (ROI) CALCULATOR Your Sample Company SALES & EXPENSES 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% D E Revenue Sources (%) (Revenue you are generating from each sales F. Difference Industry Average channel?) (F= D - E) Field Sales Force (Salary + Commission) 29% 18% 11% Field Sales Force (Commission only) 11% 31% -20% Partners 39% 41% -2% (Distributors, Wholesalers, Independent Reps etc.) 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 (%) (As a result of insufficient investment in the most productive sales channels) 25% P = Sum of all Fs, where F > 0 H. Sales Costs Inefficiencies (%) (As a result of spending more than the industry average) 25% 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 $24,000 (X1 x C) Y. Efficiency Opportunities ($) (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%
  5. 5. BASIC FACTS Competitive Markets Channels Brand/Message Advantage Customers • What attributes •How do you •What kind of •What sets your are shared by the product, service • Who pays your connect your image do you group of and company bills? products with present and with customers that apart from your customers? what message? you serve? competitors?
  6. 6. COMPETITIVE ADVANTAGE HOW DIFFERENT ARE YOUR OFFERINGS & WHAT VALUE DO THEY CREATE FOR THE MARKET?
  7. 7. THE CUSTOMER IS KING CUSTOMER You may have many customers – buyers, users, influencers– for a complex product. You may have different customers for different products. But your distributors/partners are not your customers. DESCRIBE YOUR KING
  8. 8. customer MARKET SEGMENTS 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? 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.
  9. 9. CHANNELS / DISTRIBUTION CHANNELS CHANNELS ARE THE LIFEBLOOD OF A BUSINESS. THEY CONNECT YOU WITH CUSTOMERS, AND ESTABLISH ROUTES THROUGH WHICH What channels are you using? Are your customers demanding any new channels? SELLERS AND BUYERS Are your competitors using different channels? CAN DO BUSINESS. If so, what they are? What if we sell it through ___ ? (fill in the blank)
  10. 10. HOW & WHAT PEOPLE SAY ABOUT YOU IS THE BRAND / MESSAGING 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? ULTIMATE DRIVING MACHINE -- OR -- ZOOM ZOOM ZOOM?
  11. 11. 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. WWW.CPSPHERE.COM | 310.645.0707 | GROWTH@CPSPHERE.COM 5777 W. CENTURY BLVD. SUITE 1250, LOS ANGELES, CA 90045

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