usually BLD one sets up the behaviour / action you want then CT..... eg lure the dog to sit and reward it .... when its doing that ok add the cue (the word sit) just before the dog is about to sit. Then after a bit the dog will recogonise the word / action and sit before you need to lure it into a sit. That way the cue is easier to link to the action.
you can use words or physical cues ( or both). My dogs for example will sit to either the word "sit" or to my forefinger held up as if I was signaling "one" to someone.
If you wait till the dog does something like sit and CT that is called free shaping (as in your example but I would not say the word the first few times) .... and you would work on only that one task at a time, not CT any other action no matter how desirable. You might have to start of with the beginning of an action ..... like just looking at you or turning towards you as a atert to come rather than wait till dog comes all the way. One (s)he realises you are a source of rewards (s)he more likely to come nearer anyway.
When new to training for dog or human def best to train only one task a session till both "get it". then when both experienced you can add other things in.
sit , down and come tend to be the easist as most dogs do those things anyway in the house / garden / enclosed area where initial training is easiest.
luring , or making the conditions so the dog more likely to do a certain action, can help if its not something the dog naturally offers.
there are loads sites on CT and some great books that explain it a lot more......
here is one to start off with .
homepage.ntlworld.com/k.westgate/
If dog not interested in the treats on offer one might have to use either a "better" treat ( my gsd only interested in liver at first ) or with some dogs have a special play toy they realy realy like and only get in training sessions.
have fun !