Baselining is documenting existing sales and marketing assumptions, beliefs, and opportunities. It involves capturing how revenue is currently generated across different channels and understanding the profitability of each channel. This provides a baseline to identify areas for improvement, such as underperforming channels where more investment could generate new revenue opportunities or channels where spending exceeds industry averages, representing inefficiencies.

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

2. Money Shot by: Jessica Shannon
BASELINING PROCESS
How do you
capture revenue
today?

3. by: Material Boy's
BASELINING PROCESS
DO YOU KNOW
HOW PROFITABLE
EACH CHANNEL IS ?

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. 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. COMPETITIVE ADVANTAGE
HOW DIFFERENT ARE
YOUR OFFERINGS &
WHAT VALUE DO
THEY CREATE FOR
THE MARKET?

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. 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. 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. 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. 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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