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Glossary


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A

6-Way
A 6-Way is a merchandise display fixture with six hanging arms. Also Known As: 6-Arm Used for Merchandising clothing, lingerie, or accessories
Adjusted Net Attributable Profit
Net Attributable Profit + Goodwill Amortization + Exceptional Items
Asset Turnover
Turnover/(Average Total Assets + Average Accumulated Goodwill Amortization)
ABC sales contribution analysis
A method of P&L analysis utilizing activity based costsing principles for a fully loaded net profit contribution - usually on a customer basis for a product, or product group or entire customer business
Accommodation strategy
A business's decision to take responsibility for its actions when it is encouraged by special interest groups or threatened by government intervention
Account number
A number which designates an account classification. Ex.: Account#104 is for Master Charge Deposits
Accounts Payable
A division of an accounting department whose responsibilities include the payment of invoices received from vendors
Accounts Receivable
A division of an accounting department whose responsibilities include the receipt of moneys due
Adjacency
Lacation Next to something - strategically adjacency is about having relevant products grouped together in a manner useful to the shopper rather than on a product category basis alone
Adopter categories
Five groups into which customers can be divided according to the length of time it takes them to adopt a product: innovators, early adopters, early majority, late majority and laggards
Adoption stage
The final stage of product acceptance, when customers choose the specific product when they need a product of that type
Aggregators
A service conduit across all carriers MMS, 3G, 4G, and others: Coming technologies that will increase the marketing capabilities on mobile devices.
AIDA
Persuasive sequence used in advertisements: attention, interest, desire and action
Aided (prompted) recall test
Asks subjects to identify advertisements when being shown a list of products, brands, company names or trade marks to jog their memory
Allocate
To assign space on the shelf for products. Based on product movement and other measures
Allocation
A limited quantity of merchandise that is ordered and sent to the stores, usually less than a full order
Allowance
A price concession generally for a specified performance (pricing, display, advertising, etc)
Anticipation
A discount given to selected retailers by some vendors for receiving payment of invoices before due dates
Apparel
Clothing. Retailers typically segment toddler/infants, children, Boys, Girls, Teen Boys, Teen Girls and of course Men’s & Women’s
Approach
The way in which a salesperson contacts a potential customer
Asia Pacific Economic Co-operative (APEC)
Trade association of member countries: the six ASEAN members plus the United States, Australia, Canada, New Zealand, Japan, China, South Korea, Hong Kong and Taiwan
Association of South East Asian Nations (ASEAN)
Association for trade and other links between its six members: Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand
Assorting
Grouping products that buyers want to have available in one place
Assortment
A combination of products put together to provide customer benefits
Atmospherics
The physical elements in a store's design which appeal to consumers' emotions and encourage them to buy
Attitude
An individual's enduring evaluation, feelings and behavioral tendencies towards an product or activity
Attitude scale
A series of adjectives, phrases or sentences about a product used by a subject to indicate their feelings towards the product
Audit
An examination and verification of anything from quantity, availability, or pricing
Automatic vending
The use of coin operated self-service machines to sell products generally of small size and standardized, routinely purchased such as candy, soda, newspapers, cigarettes
Awareness stage
The beginning of the product adoption process, when individuals become aware that the product exists, but have little information about it
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B

Baby boomers
People born between 1946 and 1964. Typically considered more intelligent, better looking and much more fun to be with than the balance of the population
Backstock
Product remaining after shelf/fixture is stocked to capacity
Balance of retailing power
The balance of negotiating and buying power between retailers and their suppliers
Bar Code
A scanable line graphic imprinted on product indicating the Universal Product Code (UPC) and item number (SKU)
Base point pricing
A geographic pricing policy that includes the price at the factory, plus freight charges from the base point nearest the buyer
Batch
Invoices, claims, merchandise transfer reports or electronic data accumulated for transmittal. They will be transmitted together
Beginning Inventory
Merchandise in the store at the beginning of an accounting period. Another term with the same meaning is beginning on hand
Benefit segmentation
The division of a market according to the benefits consumers want from the product
BH
An abbreviation for "Back Haul Allowance." This is a discount given by the vendor when a customer truck, after delivering merchandise to a nearby store, picks up merchandise from the vendor
Bid pricing
Determination of prices through sealed or open bids submitted by the seller to the buyer
Bill of Lading
Document received and sent with merchandise to detail the shipment and/or receipt of goods
Blanket RA
A return authorization (RA) issued by a vendor to cover all returns of a specific item. All returns of this item use the same RA number
Blister Pack
A package in which an item(s) of merchandise is covered with a transparent plastic casing and attached to a piece of cardboard
Blue Shirt
A Best Buy term for employees who are responsible for sales and merchandising
Bobtail
Transferring a tractor or a tractor and an empty trailer from one location to another
BOH
An abbreviation for "beginning on hand". This is merchandise in the store at the beginning of an accounting period. It is also known as beginning inventory
Bonded storage
A warehousing arrangement under which imported or taxable products are not released until the owners of the products have paid customs duties, taxes or other fees
Brand
A manufacturer's specific trademark and label which is used to separate their products from others
Brand attitude
Consumers’ impression of a brand, created by emotions, logic, and cognitive beliefs
Brand awareness
The consumer's ability to recognize and identify aspecific brand in sufficient detail to distinguish it from other brands
Brand building
Developing a brand's image and standing with intended long term benefits for brand awareness and brand value
Brand Control
RNG Commercialization Strategy
Brand extension branding
It occurs when a firm uses one of its existing brand names as part of an improved or new product, generally in the same category as the original brand
Brand loyalty
A strongly motivated and long standing decision to purchase a particular product or service
Brand mark
The element of a brand that cannot be spoken, often a symbol or design
Brand purchase intention
The consumer's intention/decision and efforts to purchase the brand
Brand recognition
The extent to which consumers are aware of a brand
Break even point
The point at which the costs of producing a product equal the revenue made from selling the product
Build up approach
Measures the sales potential for a product by first calculating its market potential, then estimating the share of that potential that the company can expect
Business cycle
The fluctuations in the economy that follow the general pattern of prosperity, recession, depression and recovery
Business Items
A term used to describe critical items that support Standard Industry Code (SIC) focus. These items may have various vendors and pack sizes due to rationality. Business items will never change without review by the General Merchandise Manager and the SIC Manager. Business items have a notation on their signing. An (*) in the item description denotes a Business Item
Buy-back allowance
Per unit funds given to a buyer for each unit bought after an initial deal is over
Buying Allowance
Funds negotiated by a buyer with a vendor. These funds are usually a percentage of goods purchased and may be used as income or to reduce the cost of goods owned
Buying behavior
The decision process and actions of people involved in buying and using products
Buying centre
The group of people within an organization who are involved in making organizational purchase decisions
Buying power
Resources such as goods services, and financial holdings that can be traded in an exchange situation
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C

Capital Employed (Invested Capital)
Total Equity + Net Debt + Accumulated Goodwill Amortization
Capital Turnover
Sales Turnover/Average Capital Employed
Code:
The 5 digit client code that is shared across carriers
Collection Period (Days)
(Accounts Receivalbes (Trade Debtors)/Turnover) x 365
CROCE (Cash Return on Capital Employed)
EBITDA/Average Capital Employed
C.O.D.
An abbreviation for "cash on delivery." This is often used for smaller vendors where the size of an order doesn't warrant the set up of billing procedures
CAGR
Compound annual growth rate. This measures the average rate of growth/change over a specific timeframe as if it the growth was compounded each time. It is very similar to “compound interest” CAGR=(most recent period data/past period data)^(1/#periods)-1
Call Report
A report filled out following a visit/call to provide a summary and input to the recipient
Cancel Date
The last date the vendor can ship merchandise without being penalized
Canned Order
A blanket order placed for a new store . This is the initial order to stock a new store
Capabilities
A firm's distinctive competencies to do something well and efficiently
Captioned photograph
A photograph with a brief description explaining its content
Carrier
Any truck line, rail line, etc. that caries freight to stores or warehouses
Carrier Code
A unique combination of letters (code) assigned to a carrier by the Interstate Commerce Commission (ICC). Ex. J.B. Hunt = JBHT
Cart Rail
The shelf located at the front of the store by the shopping carts where new or special items are displayed
Case Pack
The number of individual units in a case
Cash and carry warehouses
Global term for retail outlets that sell extensive ranges of groceries, tobacco, alcohol, beverages and confectionery to newsagents, small supermarkets and convenience stores, and the catering trade. In North America - frequently called Club Stores where there is a membership fee to buy there
Cash and carry wholesalers
Middlemen whose customers will pay cash and furnish transport
Cash cows
Products with a dominant share of the market but low prospects for growth and managed to maximize cashflow while holding competitive position
Cash Discount
Discount allowed by the vendor for payment within a specific time period as indicated on the purchase order
Catalogue retailing
A type of mail order retailing in which customers receive their catalogues by mail or they may pick them up if the catalogue retailer has stores
Catalogue showroom
Outlets in which one item of each product class is on display and the remaining inventory is stored out of the buyer's reach
Category
A group of products that have a common consumer end use; eg Best Buy sorts movies by Genre, such as Action (AC), Comedy (CM), and Drama (DR):
Category consistent packaging
The product is packaged in line with the packaging practices associated with a particular product category
Category need
The consumer's perception of his or her need for a product in a certain category
Category specialists
There are types of category specialists with each having its own merchandise and shopper focus. They compete on selection, service and then price (and even then only in some parts of their assortment)
Causal studies
Data collection that assumes that a particular variable X causes a variable Y
Center Section
Merchandise displayed in the middle of the store
Central and Eastern Europe (CEE)
Encompasses the Commonwealth of Independent States (formerly the Soviet Union), the Balkan states, the Czech and Slovak Republics, Hungary and Poland
Central business district (CBD)
The traditional hub of most cities and towns; the focus for shopping, banking and commerce and hence the busiest part of the whole area
Central Claims
Another name for return center. This is a central point set up for return of damaged and defective merchandise
Centralized organization
One in which top level managers delegate very little authority to the lower levels of the organization
CF ROI
Cash Flow ROI - an roi analysis based on cash flow vs net profits after tax
Chain Drug
These convenience oriented outlets have a Pharmacy. In addition some have broader “front end” assortments which are important to overall store profitability. Chain drug stores range from 1000 to 20,000 sq ft.
Chain retailers
Large scale multi-store operators. They share many common characteristics – they have multiple outlets, are often self distributing (have their own warehouse), they use common operating principles and practices; they market the stores as a group and so on. Many “chain retailers” own their stores but many use franchises as a way to grow
Channel capacity
The limit of information that a particular communication channel can handle effectively
Channel of distribution
A group of individuals and organizations that direct the flow of products from producers to customers; also called marketing channel
Channel power
The ability to influence another channel member's goal achievement
Channels
Generally the same as store format formats - channels have evolved from specific product based definitions (food or grocery stores, drug stores) to include more format based designations
Chargeback
Product that is returned to vendor for a refund, also know as return
Claim
An action taken against a carrier, vendor, or individual for lost and/or damaged freight
Claims Invoice
An invoice correcting billing to the stores/clubs for claims or paybacks that were filed against the distribution center or vendor
Claims Terms
An agreement made between the buyer and vendor regarding how to deal with defective merchandise
Client publics
In non-business organizations, direct consumers of a product
Clip Strip
Type of display that hangs on a strip that product clips into
Closing
The stage in the selling process in which the salesperson asks the prospect to buy the product or products
Clubs
The club format includes both “cash & carry” as well as “Membership Warehouse clubs”.
CO Code
An adjustment to inventory to "correct the on hand" shown in the system to actual on hand
Codes of ethics
Formalized rules and standards that describe what the company expects of its employees
Coding process
Converting meaning into a series of signs that represent ideas or concepts; also called encoding
Cognitive dissonance
Doubts which occur because the buyer questions whether the right decision was made
COL
An abbreviation for "collect."
Collect
The transfer of ownership of merchandise when it is picked up from the vendor's dock. Another term for this is "freight collect."
Combination compensation plan
Under this plan, salespeople are paid a fixed salary plus a commission based on sales volume
Commercialization
Involves refining and settling plans for bringing it ll scale manufacturing and marketing
Commission merchants
Agents who receive goods on consignment from local sellers and negotiate sales in large central markets
Committed Stock
The least amount of an item ever needed on hand in a club
Common Carrier
A company engaged in the business of transporting goods
Commonwealth of Independent States (CIS)
A loosely connected group of fifteen former Soviet Union states including Azerbaijan, Armenia, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan
Communication
A sharing of meaning through the transmission of information
Comparative advertising
A style of advertising that compares two or more brands on the basis of one or more product attributes
Competition
Those firms that market products that are similar to, or can be substituted for a given business's products in the same geographic/trading area
Competition matching approach
Budgeting technique in which marketers match their major competitors' budgets or allocate the same percentage of sales for advertising as their competitors
Competition orientated pricing
A pricing method whereby an organization considers costs and revenue to be secondary to competitors' prices
Competitive advertising
Points out a brand's uses, features, and advantages that may not be available in competing brands
Competitive position
An organization’s role in the competitive market place, which influences its marketing strategies and tactics
Competitor monitoring
Studying the actions of major competitors in order to determine what specific strategies competitors are following and how those strategies affect their own, and to guide marketers as they try to develop competitive advantages, adjust current marketing strategies, and plan new ones
Competitor scanning
The monitoring of competitive positions and competitors' strengths
Complexity
Determined by the number of steps required to perform a service
Component parts
Become a part of the physical product and are either finished items ready for assembly or products that need little processing before assembly
Comprehensive spending patterns
The percentages of family income allotted to annual expenditures for general classes of goods and services
Computer assisted telephone interviewing
A survey method that integrates questionnaire, data collection and tabulations and provides data to aid decision-makers in the shortest time possible
Concealed Shortage
A shortage discovered by opening a carton or breaking a shrink wrapped pallet. This type shortage is usually discovered after the proof of delivery has been signed
Concentration
When fewer and fewer entities (retailers) control an ever increasing share of the market
Concentration strategy
Involves an organization directing its marketing effort towards a single market segment
Concentric diversification
Results when the new products are related to current products but are introduced into new markets
Conglomerate diversification
It occurs when new products are unrelated to current technology, products or markets and are introduced into new markets
Consignment
Merchandise that is not due for payment until sold. Unsold goods are returned and payment is due for the non-returned portion
Consolidation
Merger & acquisition activities between two or more companies or entities. Example: The merger of Kmart with Sears is a form of consolidation
Consolidator
A company accumulating freight from several vendors to make a large load, earning a lower freight rate
Consumable supplies
Supplies used in a store or operation that facilitate production and operations but do not become part of a finished product - this includes floorcleaner or bags in stores etc.
Consumer buying behavior
The buying behavior of ultimate consumers -- those who purchase products for personal or household use
Consumer buying decision process
A five stage process that includes problem recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation
Consumer contests
Invite consumers to compete for prizes based on their analytical or creative skill; contests generate traffic at the retail level
Consumer focus group
A group of actual or potential buyers of the advertised product who are asked to judge one or several dimensions of the advertisements
Consumer market
Consists of purchasers or individuals in their households who personally consume or benefit from the purchased products and who do not buy products primarily to make a profit
Consumer movement
A diverse collection of independent individuals, groups and organizations who seek to protect the rights of consumers
Consumer products
Consumer products are purchased to satisfy personal or family needs
Consumer purchase diaries
A market research tool in which consumers record their purchases
Consumer sales promotion techniques
Encourage or stimulate consumers to patronize a specific retail store or to try a particular product
Consumer services
It includes house cleaning, home maintenance, preparation of tax returns and other services to help consumers
Consumer spending patterns
Information indicating the relative proportions of annual family expenditures or the actual amount of money spent on certain kinds of goods and services
Consumer sweepstakes
A method of stimulating sales in which consumers submit their names for inclusion in a drawing for prizes
Consumer Testing Laboratory
A US facility that tests product for quality, value and label correctness. Another name for this facility is CTL
Consumers' Association
A private organization funded by the subscriptions of its membership that works to further consumer interests
Containerization
The practice of consolidating many items into a single large container that is sealed at its point of origin and opened at its destination, greatly increasing efficiency and security in shipping
Contract Carrier
A carrier under contract to haul a company's freight at a predetermined price
Convenience products
Inexpensive, frequently purchased and rapidly consumed items which demand only minimal purchasing or preparation effort
Convenience stores
Shops that sell essential groceries, alcoholic drinks, drugs and newspapers outside the traditional shopping hours also frequently sell gasoline and lottery tix
Conveyor
An automated system of pulleys and rollers with belts used in the distribution center to transport merchandise to the shipping lanes
Co-operative advertising
An arrangement whereby a manufacturer agrees to pay a certain amount of a retailer's or dealer's media costs for advertising the manufacturer's products in conjunction with the retailers banner advertising
Copy
The verbal or written portion of an advertisement
Copy writing
The creation and wording of the promotional message
Core Consumer
Consumer segment or type representing the primary target or source of consumption
Core product
The perceived or real core benefit or service to be gained from a product
Core retail area:
That part of a town centre where pedestrian flows are greatest, competition for representation is greatest and rents are noticeably higher than elsewhere
Corporate strategy
Determines how resources are to be used to meet the organization’s goals in the areas of production, finance, research and development, personnel and marketing
Correction Invoice
A correction invoice is used to additionally bill or issue credit to a store/club when it has been incorrectly billed for goods
Correlation methods
Attempt to find a relationship between past sales and one or more variables such as population, per capita income or gross national product
Cost
The price that is paid for an item
Cost comparison indicator
A measure that allows an advertiser to compare the costs of several vehicles within a specific medium in relation to the number of persons reached by each vehicle
Cost of goods sold
The cost of the merchandise that was actually sold to the shopper. This typically includes any shrink, markdowns, or vendor allowances
Cost orientated pricing
A pricing method whereby a monetary amount or percentage is added to the cost of a product
Cost per Thousand Viewers (CPM)
The cost of advertising per thousand potential customers reached by a given screen, network or outdoor deployment
Cost plus pricing
A pricing method whereby the seller's costs are determined and the price is then set by adding a specified amount or percentage of the cost to the seller's cost
Cost trade-offs
Offsetting higher costs in one area of the distribution system with lower costs in another area, in order for the total system to remain cost effective
Costs
One consideration that helps determine transportation mode, involving comparison of alternative modes to determine whether the benefits of a more expensive mode are worth the higher costs
Countertop Display
Display that sits on a counter
Counts and recounts
A promotion method based on the payment of a specific amount of money for each product unit moved from a reseller's warehouse in a given time period
Coupons
A promotion method that reduces the purchase price of an item in order to stimulate consumers to try a new or established product, to increase sales volume quickly, to attract repeat purchasers or to introduce new package sizes or features
Coverage
The extent to which a call/client is covered and/or serviced
Credence qualities
Attributes that cannot be assessed even after purchase and consumption
Credit Memo
A document issued by the vendor giving Accounts Payable authority to deduct from a check or future purchases
Crisis management
In response to negative events, involves the identification of key targets (publics) for which to provide publicity, the need for a well rehearsed contingency plan, the organization’s skills and ability to report and respond and the provision of access for journalists
Cross Merchandising
Displaying product along with other related product
Cross-Dock
The receiving area of a warehouse where merchandise is processed. Merchandise is put on the conveyor right off the trailer and conveyed to the shipping lanes for redistribution to stores
C-Store
Convenience store
Cube
The total cubic feet of a case. The formula to figure cube is: (Length (inches) x Height (inches) x Width (inches)) / 1728
Culture
Everything in our surroundings that is made by human beings; consisting of tangible items, such as food, furniture, buildings, clothing and tools, and intangible concepts, such as education, the legal system, healthcare and religion
Cumulative discounts
Quantity discounts aggregated over a stated period of time
Customary pricing
A pricing method whereby goods are priced primarily on the basis of tradition
Customer forecasting survey
Asks customers what types and quantities of products they intend to buy during a specific period
Customer satisfaction
Results when an exchange meets the needs and expectations of the buyer
Customer service
In terms of physical distribution: availability, promptness and quality
Customer threshold
The number of customers required to make a profit
Cut Case Display
A product display created by trimming the corrugated outer casing to display the product contained within or via display ready cases that do not need to be cut
Cut-Ins
New items that need to be placed on an already existing display/fixture/shelf, in a specifically designated location
CWO
An abbreviation for "cancel when out." This term refers to items that are scheduled for deletion
Cycle
The time span in which a store or groups of stores are visited and/or revisited by a rep
Cycle analysis
A forecasting technique that analyses a firm's sales figures over a period of three to five years to ascertain whether sales fluctuate in a consistent, periodic manner
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D

Discount food stores:
Standardized no-frills convenience stores (circa 1,500 sq. m. gross) that concentrate on selling limited product lines in bulk
DA
An abbreviation for "damage adjustment." This code is used to describe corrections made to inventory for claims processing. It can be used to track damage expenses
Daily Inventory Control Log
An instrument for maintaining perpetual inventory for the store. It lists all charges and credits and is coordinated monthly with the Accounting department in the home office
Damage
Damaged cases that are reported and listed on the purchase order receiving copy(green sheet) when they arrive at the D.C. or club
Damage Adjustment Codes
Codes used at club level to describe corrections made to the club's inventory for claims processing. Used to track damage expenses
Damages
Products that cannot be sold for any number of reasons; broken, ripped, dirty, tarnished, etc.
Data standardization and synchronization
process (usually electronic) for ensuring common format and accurate simultaneous data coordination between seller and retailer
Dating
Allows manufacturers to ship earlier and the retailer to pay invoices near or after the selling season. This is generally negotiated between the buyer and the vendor for seasonal merchandise
DC
An abbreviation for distribution center
DCF
Discounted Cash Flow - financial term for discounting based on internal rate of return or cost of capital the future cash flows from a financial activity
DD
A damage adjustment code referring to "defective allowance/no credit." This is used when "keying out" items on which a defective allowance has been negotiated by the buyer
Dead Orders
Denotes orders that have been received, checked in, and paid. They are filed in the dead order drawer
Dealer listing
An advertisement that promotes a product and identifies the names of retailers or dealers who sell it
Dealer loader
A gift to a retailer or dealer who purchases a specified quantity of merchandise
Debit Balance
A condition resulting when a vendor owes retailer money
Decentralized organization
One in which authority is delegated as far down the chain of command as possible
Decision Corridor
The area leading to the product on shelf where the consumer makes the decision of what product to buy, also called the FMOT or First Moment of Truth
Decline stage
The last stage of a product's life cycle, during which sales fall rapidly
Decoding process
Process in which signs are converted into concepts and ideas
DED.
An abbreviation for deduction
Dedicated Driver
A driver that is under contract to a carrier, that drives his own tractor and hauls a hring company's trailer
Dedicated Service
Another word for exclusive service, loyal to one account/client
Deduct
A term used to describe money owed to retailer that is subtracted from a check to the vendor
Defective Allowance
An allowance given by the vendor either off invoice or due by check/credit memo in lieu of filing claims for defective or out-of-date merchandise
Defense strategy
A business's decision to try to minimize or avoid additional obligations linked to a problem or problems
Defensive advertising
Aims to offset or lessen the effects of a competitor's promotional program
Defensive warfare
Involves striking a balance between waiting for market developments or competitor activity and proactively parrying competitors' actions
Deflation
Either the purchase or re-sale price of products and/or services actually declines over time
Deletion
An item that will no longer to be carried. There should be no warehouse inventory on a deleted item. Item status is listed as "D."
Delphi
A method for problem definition that consists of a series of interviews with a panel of experts
Delphi approach
A centralized forecasting method that takes into account the views of managers, sales personnel and individual participants, aggregates them, and modifies them
Demand curve
The graph of the quantity of products expected to be sold at various prices
Demand orientated pricing
A pricing method based on the level of demand for the product, such that a high price is used when demand is strong and a low price when demand is weak
Demographic factors
Individual characteristics such as age, sex, race, ethnic origin, income, family life-cycle and occupation
Demonstrations
Manufacturers demonstrate products to encourage trial use and purchase of the product or to show how the product actually works
Demos
A vendor funded demonstration/sampling in a store to promote a trial of a product
Department Number
A number used to divide merchandise into groups (department, category, etc).
Department stores
Physically large stores that occupy prominent positions in the traditional heart of the town or city that typically carry home, apparel and accessories products in separate departments manned by sales people with checkout stations
Dependent variable
A variable that is contingent on, or restricted to, one value or a set of values assumed by the independent variable
Depression
A period of extended negative growth of the economy during which unemployment is extremely high, wages are very low, total disposable income is at a minimum and consumers lack confidence in the economy -
Depth (of product mix)
The number of different products offered in each category
Derived demand
A name given to the demand for industrial products because it derives from the demand for consumer products
Descriptive studies
Data collection that focuses on providing an accurate description of the variables in a situation
Descriptors
Variables used to profile or build a fuller picture of target segments
Destination
First destination: The first drop of a trip; Actual destination: The present location of the trailer; Final destination: The location where the trip is complete. The trailer will be dropped at this location
Developed markets
Those that have the most advanced modern retail store development; distribution networks/supply chains and technology for example. “Developing markets” tend to be dominated by traditional retail structures (e.g. Open markets, independent kiosk and store owners) and are “wholesaler” led as few retailers have the scale to buy directly from suppliers
Diary tests
In these experiments, households log their weekly purchases and consumption patterns
Differential advantage
An attribute of a product which is not currently matched by rival companies or products and which is highly desired by the target customers
Direct cost approach
Includes only direct costs and traceable common costs
Direct costs
Directly attributable to the performance of marketing functions
Direct distribution channels
Distribution channels in which products are sold directly from producers to users
Direct Import
Imported merchandise where a retailer is the importer of record
Direct mail
Printed advertising material delivered to the target's home or work address in order to contact prospective customers or donors
Direct mail package
A mix of mailing envelope, covering or explanatory letter, circular, response device and return device
Direct marketing
The use of non-personal media or telesales to introduce products to consumers, who then purchase the products by mail or telephone
Direct Ship
Merchandise shipped directly from the vendor to the stores/clubs
Disc.
An abbreviation for "Discount"
Discount
Money given by a vendor for payment of invoices within a specified number of days
Discount sheds
Cheaply constructed, one storey retail stores with no window displays and few add-on amenities; oriented towards car-borne shoppers
Discounters
Refers to value discounters, a group of retailers with different store formats with strikingly similar merchandising and pricing strategies. These retailers often sell “opening price point” food, HBC and general merchandise products
Discretionary income
Disposable income that is available for spending and saving after an individual has purchased the basic necessities of food, clothing and shelter
Dispatch
The department responsible for scheduling the movement of merchandise from the vendor to the distribution center when the retailer fleet is being utilized
Display
Arrangement of merchandise, usually accompanied by printed signs
Disposable income
After-tax income, which is used for spending or saving
Distribution
The process by which merchandise is transported from the distribution centers to the stores/clubs
Distribution (place) variable
The aspect of the marketing mix that deals with making products available in the quantities desired to as many customers as possible and keeping the total inventory, transportation and storage costs as low as possible
Distribution Center
Also referred to as D.C. This is a building where freight is brought in from multiple vendors and shipped to stores/clubs on a regular basis
Distributors
Firms which buy and sell on their own account but which tend to deal in the goods of only certain specified manufacturers
Diversified growth
Diversified growth occurs when new products are developed to be sold in new markets
Diverted Goods
Merchandise that may not be purchased direct from a manufacturer because the manufacturer will not sell to a retailer or where the product is sold to one buyer at a low price who resells to other retailers below the original sellers offer to those retailers.
Diverter
A vendor who sells diverted merchandise to a retailer - often another retailer or related party.
Dock
A temporary location in the receiving area of the distribution center where freight is stacked until slotted or loaded on an outbound trailer
Dogs
Products that have a subordinate share of the market and low prospects for growth
Domestic marketing
Occurs when a business undertakes marketing activities exclusively in its home market
Drop
The location where a truck stops to load/unload merchandise. A trailer that is left at the D.C. without being unloaded. Appointments are not required for drop trailers and only certain carriers are allowed to drop trailers
Drop and Hook
When a truck drops one trailer and picks up another trailer at the same time and location
Drop shippers
Intermediaries who take title to goods and negotiate sales but never take actual possession of products
DS
A damage adjustment code referring to sample merchandise. It is used at club level when a vendor has authorized product to be pulled from the sales floor and sold to a member
DSD
Direct store delivery, shipped direct from vendor to store
DSL
A company that consolidates merchandise received from overseas
Dual distribution
The use of two or more marketing channels for distributing the same products to the same target market
Dump Bins
A type of box or bin used for holding product
Dumping
The sale of products in non-domestic markets at lower prices than those charged in domestic markets when all costs are not allocated or when surplus products are sold
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E

EBITA
Earnings Before Interest, Tax and Goodwill Amortization
EBITDA
Earnings Before Interest, Tax, Depreciation and Goodwill Amortization
EV (Enterprise Value)
Market Value of Equity + Average Net Debt + Market Value of Minority Stakes — Market Value of Associated Stakes/Affiliates
Early adopters
People involved in a category of products who tend to try new products and are often consulted by other people for recommendations from the other four adopter categories
Early Buy Discount
When a vendor or manufacturer allows merchandise to be purchased in advance at a lower price. The shipping date may not be specified
Early majority
People who adopt products just prior to the average person
Early Order
A discount allowed for orders placed before a specific date
Economic and competitive forces
Factors in the marketing environment including the effects of general economic conditions, buying power, willingness to spend, spending patterns, types of competitive structures, competitive tools and competitive behavior, that influence both marketers' and consumers' decisions and activities
Economic order quantity (EOC)
The order size that minimizes the total cost of ordering and carrying inventory
Edge of town sites
Retail locations on undeveloped land, providing purpose build stores, parking facilities and amenities for their customers on the edge of built up area
Edge-of-centre:
A location within easy walking distance (usually not more than 300-400 meters) of the core retail area, and providing parking facilities that serve the centre as well as the new development thus enabling one trip to serve several purposes
EDI
Electronic data interchange - use of digital data transfer for transactions in defined forms for computer to computer communication - reduces error rate and time
Empowerment
Letting front-line employees make marketing decisions without seeking approval from supervisors
End Cap
Shelf/fixture/display on the end of an aisle
Ending Inventory
Merchandise in the stores/clubs at the end of an accounting period. It is also known as Ending On Hand
Environmental analysis
The process of assessing and interpreting the information gathered through environmental scanning
Environmental factors
Environmental factors are uncontrollable forces such as competitive and economic factors, legal and regulatory issues, technological changes and socio-cultural issues
Environmental scanning
The process of collecting information about the forces in the marketing environment
EOM
An abbreviation for End Of Month
EPOS
Electronic point of sale scanning of bar codes for inventory management
eRetail Expansion & Integration
RNG Commercialization Strategy relating to growth of internet retailing and integration of that activity from a marketing and merchandising feel perspective with bricks and mortar retailing
Ethical formalism
Develops specific rules for behavior by determining whether an action can be taken consistently as a general rule without concern for alternative results
Ethical issue
An identifiable problem, situation or opportunity requiring an individual or organization to choose from among several actions that must be evaluated as right or wrong, ethical or unethical
European Economic Area (EEA)
An agreement, beginning in 1993, that encourages free trade between EFTA and the EU
European Free Trade Association (EFTA)
EFTA was set up in 1960 to encourage free trade between member countries
European Union (EU)
One of three major market groups in Western Europe, the EU has fifteen members: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, and the United Kingdom
Evaluation stage
The stage of the product adoption process when customers decide whether the product will meet their individual needs
Every day low pricing (EDLP)
The reduction of retail prices of leading brands for a pro-longed period
Evoked set
The group of products that a buyer views as possible alternatives after information search
Exception
A situation or circumstance that does not conform to the standards relative to a store, section configuration, or other components
Exchange
The provision or transfer of goods, services and ideas in return for something of value
Exclusive
Undivided loyalty to one client, also known as dedicated service
Exclusive dealing
Exclusive dealing occurs when a manufacturer forbids an intermediary to carry products of competing manufacturers
Exclusive distribution
Using only one outlet in a relatively large geographic area to distribute a product
Executive judgment
A way of forecasting sales based on the intuition of one or more executives
Experience curve pricing
A pricing policy in which a company fixes a low price that high cost competitors cannot match and thus expands its market share
Experience qualities
Attributes that can be assessed only after purchase and consumption, including satisfaction, courtesy and the like
Experimentation
Data collection that involves maintaining certain variables constant so that the effects of the experimental variables can be measured
Expert forecasting survey
Prepared by experts such as economists, management consultants, advertising executives, academics or other experts outside the firm
Exploratory studies
Deliberately flexible data gathering used to discover the general nature of a problem and the factors that relate to it
Export
Transfer by sale of product from originating country to another
Export marketing
Export marketing takes place when a business takes advantage of opportunities outside its home market but continues production in the home country
Exporting
It involves using an intermediary that performs most marketing functions associated with selling to other countries; entails the minimum effort, cost and risk involved in international marketing
Extended marketing mix for services
In addition to the standard "4 Ps" marketing mix of product, promotion, price, and place (distribution), there are 3 Ps: process, physical evidence (ambience) and people
Extensive decision-making
When a purchase involves unfamiliar, expensive or infrequently bought products for which the buyer spends much time seeking information and comparing alternative brands before deciding on the purchase
External customers
Individuals who patronize a business
External search
Focuses on information not available from the consumer's memory
Extranets
Networks between trading parties and/or collaborators that enables each party “behind the firewall” or simply to connect with specific databases. A good example is Wal-Mart's Retail Link
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F

F.O.B factory
Abreviation for "Freight on Board" referring to price quotation for a product as loaded on the buyers truck at the loading dock ie excluding transport costs which must be paid by the buyer
F.O.B.
Free On Board or Freight On Board. This is the point at which the ownership of merchandise passes to the purchaser
F.O.B. destination
A price quotation indicating that the producer absorbs the costs of shipping the merchandise to the customer
Facilitating agencies
Organizations such as transport companies, insurance companies, advertising agencies, marketing research agencies and financial institutions that perform activities that enhance channel functions
Facing A "space" on the display fixture.
One facing means that merchandise has one space in the fixture
Facing a Counter
Arranging merchandise in a fixture so that it is displayed neat and orderly with no "blank" spaces
Facing Out
Positioning a movie product with the front or face out to the customer, a position that is most desired for gaining customer attention
Facing(s)
A single item on a shelf/fixture/display. Total number of items visible on shelf/fixture/display
Fact Tag
A sign that lists detailed information about a product, including warranty information. The sign usually hangs above the merchandise
Factory outlet centers
: Retail outlets specializing in the sale of manufacturer’s products directly to the public
Family packaging
In this approach, all of a firm's packages are similar or include one major element of the design
Feature article
A manuscript longer than a press release (up to 3,000 words) that is usually prepared for a specific publication
Feature Wall
A plan-o-gram location,where new products or products on sale are merchandised
Feedback
The receiver's response to a message or experience
Field public warehouse
A warehouse established by a public warehouse at the owner's inventory location
Field Specialist
Field person who services retail stores and who is knowledgeable of their customers brands, product and store objectives to drive sales (also see Merchandiser)
Financial price
The quantified value of what is exchanged; the basis of most market exchanges
Fiscal Year
The 12-month period a company uses for accounting purposes.eg Wal- Mart Stores, Inc. fiscal year is February 1 through January 31
Five category classification
A way of analyzing services by five criteria: type of market, degree of labor intensiveness, degree of customer contact, skill of service provider and goal of the service provider
Five communication effects
Communication aims that include category need, brand awareness, brand attitude, brand purchase intention and purchase facilitation
Fixed costs
Those costs that do not vary with changes in the number of units produced or sold
Fixture
Shelf/case/display that holds product
Fixture Document
a compilation of all the plan-o-grams for all the fixtures .
Fixture Fill
Amount of product it takes to completely stock a shelf/fixture/display
Flashes
Headers printed on a direct mail package to gain the recipient's attention
Floor Load Vendor
A term used to describe a vendor that has an agreement with the buyer that does not require them to ship on pallets, or allows them to ship on pallets that do not meet our Standards. No claims will be filed for bad pallets and pallets are not exchanged. Ex.: Furniture Items.
Focus group
A semi-structured market research discussion involving 6 to 12 people led by a moderator
Focus group interviews
Aim to observe group interaction when members are exposed to an idea or concept
Food brokers
Intermediaries who sell food and general merchandise items to retailer owned and merchandise wholesalers, grocery chains, industrial buyers and food processors.
Food Repositioning
RNG Commercialization Strategy relating to the changing nature of how food is merchandised and selected for sale
Forecourt retailing:
a term which has evolved to reflect the popularity of linking mini-supermarkets to Petrol Filling Stations
Foreign direct investment (FDI)
Involves making a long term commitment to marketing in a foreign nation through direct ownership of a foreign subsidiary or division
Formal market
Refers to “measured retail” or organized retail. Excludes the “informal market” usually made up by small individual and private operations that are often the “non-tax paying part of retail
Format Rotation
RNG Commercialization Strategy
Formats
The store type and are typically characterized by size, merchandise content, service levels, and positioning
Franchise
An exclusive privilege to sell particular products, granted by a supplier to a Retailer ro a retailer to an operator of a store
Franchising
A form of licensing which grants the right to use certain intellectual property rights such as trade names, brand names, designs, patents and copyright
Free merchandise
Sometimes offered to resellers who purchase a stated quantity of the same or different products
Free samples
Giveaways used to stimulate trial of a product, to increase sales volume in the early stages of a product's life cycle or to obtain desirable distribution
Freight absorption pricing
A pricing policy in which the seller absorbs all or part of the actual freight costs
Freight Collect
When the point where merchandise is received is responsible for paying freight charges
Freight forwarders
Specialized agencies that co-ordinate and combine shipments from several organizations into efficient lot sizes
Freight Prepaid
When the party shipping the merchandise is responsible for freight charges
Frequency
Rate of occurrence
Frequent-user incentives
Incentive programs that reward customers who engage in frequent repeat purchases
FRT
An abbreviation for freight
Full cost approach
Using this approach, cost analysis includes direct costs, traceable common costs and non-traceable common costs
Full service wholesalers
Middlemen who offer the widest possible range of wholesaling functions
Functional foods
Foods that are primarily consumed for their specific health benefits and nutrients (e.g. foods fortified with vitamins, herbs or nutraceuticals)
Functional middlemen
Intermediaries who perform a limited number of marketing activities in exchange for a commission
Functional modifications
Changes that affect a product's versatility, effectiveness, convenience or safety
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G

Gearing
Net Debt/(Total Equity + Accumulated Goodwill Amortization)
General Merchandise
Non-Apparel, non-food, non-consumable goods including toys, sporting goods, household goods, furniture and fixtures and similar goods
General merchandise wholesalers
Middlemen who carry a wide product mix but offer limited depth within the product lines
General publics
In non-business organizations, indirect consumers of a product
Generic brand
Products lacking a brand name. Product sells based on only the product category and does not include a company name or other identifying terms
Generic strategies
term for standard or common practice strategies to help firms to achieve industry success; they include cost leadership, differentiation and focus
Geographic pricing
A form of pricing that involves reductions for transport costs or other costs associated with the physical distance between the buyer and the seller or related to the cost of operating a store in a particular geography
Geo-Shuttle
A music and movies shipment from Best Buy's distribution facility. Product on Geo-Shuttles generally comes in sealed yellow totes, and most stores get two such shipments weekly.
Global marketing
Requires total commitment to international marketing, applying the company's assets, experience and products to develop and maintain marketing strategies on a global scale
Global Retailer
A retailer that operates on 2 or more continents
Globalization (Mkts, Sourcing, Services)
RNG Commercialization Strategy
Gondola
An island shelving unit open on two sides
Good
A tangible physical product
Government markets
the market made up of government bodies who buy goods and services to support their internal operations and to provide the public with good and services
Grand Opening
The official first day of business for a new store
Gratuity
Any gift or compensation from a vendor to an employee of a retailer. Accepting a gratuity is against company policy and is grounds for termination for most retailers
Green marketing
The specific development, pricing, promotion and distribution of products based on attributes positioned as being more benificial to the environment than others in the category
Green movement
the increase in environmental awareness and active participation in politics and consumption decisions based on environmental positions, policy and impact.
Gross Assets
All property “owned” including cash and inventory
Gross domestic product (GDP)
Gross domestic product. It measures all the goods and services produced in each country or market. It is a useful view on the economic scale, growth and overall well being of any market. GDP per capita, real household income and average household size too are useful measure as an indicator of household incomes and wealth
Gross Margin
The difference between the cost and selling price of an item, including all expenses (freight, handling, etc.) incurred in the transition
Gross profit
Gross revenue less returns, markdowns, any promotional allowances and cost of goods sold
Gross revenue
Monies received for all goods and services before returns, mark-downs, trade promotion and other reductions
Gross Sales
Total retail dollars made in the course of a financial period
Group Member
A wholesale club member who qualifies for membership based on company employment or group affiliation.
Growth stage
During this stage, sales rise rapidly and profits reach a peak, then start to decline
Guarantee
Offer for a products quality performance. Guarantee statements specify what the producer or supplier will do if the product malfunctions
Guaranteed Sale
When the manufacturer agrees to buy back any product that does not sell within a specified time
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H

Home delivery shopping:
All-inclusive term used to describe domestic reception of goods either digitally via the Internet/ Interactive Television, orally by phone, or by written request via the post
Handheld
Portable computers designed to collect in-store data usually fo inventory and demand planning
Hardlines
Lines of product, commonly considered tools, automotive, house wares, etc.
HBC
Health & Beauty Care items to including oral care, bath & spa products, cold and flu, aspirin, bone care and related goods. Also called HBA or Health and Beauty Aids
Heavy shoppers
Those that are the top 1/3 of shoppers based on the total annual spend. Can be viewed in the geography or by retailer.
Heterogeneity
Variability in the population, group or products . EG in quality of service because services are provided by people, and people perform inconsistently
Heterogeneous markets
Markets in which customers have many different requirements - ie little commonality
Holt Brand Leaders
Indicated Retail leader based on above average sales growth and ROIC
Home Office
Corporate offices
Home placements
Market Research process for live use of a product by placing it in a live home setting and getting feedback on performance etc
Horizontal channel integration
Combining institutions at the same level or operation of the supply/value chain under one organization
Horizontal diversification
Results when new products that are not technologically related to current products are introduced into current markets
Hotline
A customer service area that takes urgent calls and directs customers to the right department
Hub
Best Buy's employee break room, lunchroom, and meeting area
Hypermarket:
These are superstores in excess of 5,000 net sq. m. Since the publication of the last retail strategy there has been a tendency for the large retailers to seek to build hypermarkets, exemplified by the likes of Tesco Extra
Hypermarkets
Stores that take the benefits of the superstore even further, using their greater size to give the customer a wider range and depth of products
Hypothesis
An informed or assumed theory of reasoning for how a certain problem or set of circumstances or outcomes are caused
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I

Interest Cover
EBITA/(Finance Charges + Capitalized Interest)
Inventory Turnover (Days)
(Inventory/Cost of Goods Sold) x 365
Idea
A concept, philosophy, image or issue
Idea generation
active or passive process whereby an organizaton gets businesss or product ideas. Active processes are intended to focus on ideas aligned with a certain strategy or set of parameters
Ideas
Concepts, philosophies, images or issues that provide the psychological stimulus to solve problems or adjust to the environment
Illustrations
Photographs, drawings, graphs, charts or tables used in advertisement artwork
Image
A functional and psychological picture in the consumer's mind
Immediate drop
An option that drops an unprofitable product immediately
Impact Items
Items that have a fast rate of turn such as toilet paper, Clorox, etc.
Import
Merchandise that is purchased overseas
Importer
An agent for foreign manufacturer(s) who bears the cost of goods, ocean freight, duty, and other importing expenses. An importer can be a direct importer or an import jobber. They usually maintain a warehouse
Impulse buying
Involves no conscious planning but a powerful, persistent urge to buy something immediately
Inbound
A trailer arriving at a distribution center or store/club
Income
The amount of money received through wages, rents, investments, pensions and subsidy payments for a given period
Independent variable
A variable not influenced by or dependent on other variables in experiments
In-depth interview
The collection of data from an individual by an interview
In-Depth interviews
Lengthy, one-to-one structured interviews, examining in detail a consumer's views about a product
Indirect Costs
Production costs that is not directly associated with the goods
Individual branding
A policy of naming each product differently
Industrial distributors
An independent business organization that takes title to industrial products and carries inventories
Industrial marketing
Activities directed towards facilitating and expediting exchanges between industrial markets and industrial producers
Industrial or business-to-business products
Items bought for use in a firm's operations or to make other products
Industrial services
The intangible products that many organizations use in their operations, including financial, legal, marketing research, computer programming and operation, caretaking and printing services
Inelastic demand
A price increase or decrease will not significantly alter demand for an item
INFOREM
An ordering system used by Replenishment that forecasts suggested orders
Informal markets
the non-organized or corporate/company based part of a market often “non tax paying” or un-reported part of the market, typically dominated by independent operators. The informal market is on average estimated at about 25% of all retail and is growing about the same speed as all retail in many markets
Information inputs
The sensations received through sight, taste, hearing, smell and touch
In-home interviews
Long, 45 to 90 minute interviews in which the researcher visits the respondent in his or her home
In-home retailing
Selling via personal contacts with consumers in their own homes
Initial Set
Setting a new product(s) on shelf/fixture/display
In-Line
Product placement within an aisle run
Inner Pack
The largest pack inside the vendor pack
Innovators
The first people to adopt a new product
Input-output data
Give information on the products which form an input for manufacturers
Inseparability
Production and consumption means that services are produced at the same time as they are consumed
Institutional advertising
Promotes organizational images, ideas or political
Institutional markets
Organizations with charitable, educational, community or other non-business goals
Intangibility
A non physical quality or implied attribute of a product or service cannot be tasted, touched, seen, smelled or possessed
Intangibility of service products
Services cannot be defined in terms of their physical attributes because they cannot be perceived by any of the five senses
Integrated growth
Integrated growth can occur in the same industry as the firm is in and in three possible directions: forwards, backwards and horizontally
Inteligent Check-out
RNG Commercialization Strategy
Inteligent Execution
RNG Commercialization Strategy
Intended strategy
The strategy the company decides on during the planning phase
Intense growth
Intense growth can occur when current products and current markets have the potential for increasing sales
Intensive distribution
Using all available outlets for distributing a product
Interest stage
The stage of the product adoption process in which customers are motivated to obtain more information about the product's features, uses, advantages, disadvantages, price or location
Intermec
Handheld computer that has the capabilities of a desktop PC, pen tablet, and digital camera compressed into a book-sized device
Inter-modal transport
The combination and co-ordination of two or more modes of transport
Internal customers
A company's employees
Internal marketing
Coordinating internal exchanges between the firm and its employees to achieve successful external exchanges between the firm and its customers
Internal search
Involves the buyer searching their memory for information about products
International marketing
It occurs when a business reduces reliance on intermediaries and establishes direct involvement in the countries in which trade takes place
Interpersonal factors
The relationships among the people in the buying centre
Introduction stage
Begins at a product's first appearance in the marketplace, before any sales or profit have been made
Intuition
The personal knowledge and past experience upon which marketing managers may base decisions
Inventory
Number of items on hand
Inventory management
Developing and maintaining adequate assortments of products to meet customers' needs
Inventory Turns
The number of times the average inventory is sold in a year. This is calculated by dividing annual sales by average inventory. It is also referred to as turns
Invoice
The document used to bill a buyer for goods/services purchased
IRC
Instant Redeemable Coupon - usually attached directly to the product or at the shelf
Irregular Route Carrier
A carrier that can deliver in all states. It does not have regulated routes
Item Audit
When a physical count is taken at club level on an item to compare the count to the system on hand count. Any differences are corrected and inventory counts adjusted
Item Number
A number assigned to an item - manufactures and retailers often use different numbers
IVR
Inter-active voice response, data collection via phone
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J

Jobber
Wholesaler who sells to independent markets and delivers product to the individual store location
Joint demand
Joint demand occurs when two or more products are used in combination to produce a product
Joint venture
a partnership between a two firms that has defined shares of ownership vs combined or merged ownership
Junk mail
Unwanted mail binned unread by disinterested recipients
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K

Keyword
The opt in mechanism that consumers text in to drive an action
Keyword:
trigger words used by websites to facilitate web search
Kinesic communication
It is body language, including winking, head nodding, hand gestures and arm motions
Kiosk
An electronic stand or booth usually with a computer and monitor for shopper access to information, catalogs, ordering, customer service etc.
Knowledge
Familiarity with a product and expertise, or the ability to apply the product
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L

Labeling
How products are labeled - can be used in a variety of promotional, informational and legal ways eg for pharmaceuticals (RX & OTC) this is a specific regulatory process. For product Claims there are also sometimes regulatory impications
Laboratory settings
A non natural or typical condition for product or market research in which participants or respondents are invited to react or respond to experimental stimuli absent the normal context
Laggards
The last people to adopt a new product; they are suspicious of new products and are oriented towards the past
Landed Cost
the cost of merchandise including transportation costs to the point of destination - often used for imported goods
Last Ones
A term used to describe items in "cancel" status with only one on hand or an on hand quantity of two when one is a display.
Late Delivery
A delivery that arrives after the scheduled time
Late majority
The people who are quite skeptical about new products and who eventually adopt them because of economic necessity or social pressure
Layout
For a store this is the arrangement of departments and fixtures into a floor plan for shoppers and store opperations . For an advertisement this is the physical arrangement of the illustration, headline, sub-headline, body copy and signature of an advertisement
Lead Time
The amount of time from receipt of purchase order by the vendor to receipt of goods
Learning
Changes in a person's behavior caused by information and experience
Lease Program
A US Club store program in which the vendor is solely responsible for keeping product in the store. No purchase orders are written. The vendor must stock the shelves and receives payment weekly for product that has been sold
Level of involvement
The level of interest, emotional commitment and time spent for a product. Relates to retail in the time a person is willing to spend searching for a product in a particular situation or their level of commitment to a product relating to product switching or out of stock implications
Levels of brands
The tangible product, the basic brand, the augmented brand and the potential brand
Licensing
a transfer of rights via license vs full sale with a commission or royalties to the licensor - can be for use of ideas, patents, names, etc
Lifestyles
How people live – as opposed to demographics (e.g. ethnicity, age) or even psychographics (key behaviors)
Limited decision-making
It occurs when buying products which are purchased only occasionally and for which a moderate amount of information gathering and deliberation is needed
Limited line wholesalers
Wholesalers who carry only a few product lines but offer an extensive assortment of products within those lines
Limited service wholesalers
Middlemen who provide only some marketing services and specialize in a few functions
Line family branding
A policy of only using a family brand name for a group of products
Live Goods
Plants, trees, and shrubs, pets etc
Live Load
The standard method of receiving full truckload shipments at the warehouses. A driver delivers an empty trailer to a vendor, stays with the trailer while it is loaded with merchandise, and delivers the merchandise to the D.C. and waits while the trailer is received, then leaves with an empty trailer
Load sheet
A list of purchase orders, cases, weights, destinations, driver instructions, etc., for a central backhaul load
Loader
An employee responsible for loading trailers
Location
The strategic retailing issue that dictates the limited geographic trading area from which a store must draw its customers
Long range plans
Plans that generally extend beyond five years
Loose Freight
Merchandise that is not in pallet quantities or is received at the club or the D.C. "loose". If it is received at the D.C. loose, the D.C. may choose to combine several vendors or items into a master pallet to ship to the clubs
Loss Prevention
A division responsible for the reduction of inventory shrinkage and safety
Loyalty card
It offers discounts or free merchandise to regular customers
LTL
An abbreviation for Less Than Truckload. This indicates a shipment that does not require the use of a full truck to pick up and deliver merchandise
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M

mini supermarkets
small convenience outlets (usually no bigger that 500 sq. m. gross)
Maastricht Treaty
This treaty established the European Union and signed in 1992
Mail order retailing
Selling by mailed description because the buyers usually do not see the actual product until it arrives in the mail
Mail order wholesalers
Wholesalers who use catalogues instead of sales forces to sell products to retail, industrial and institutional buyers
Mail panels
Groups of consumers selected to represent a market or market segment and who are regularly interviewed by mail
Mail surveys
Questionnaires sent by mail to respondents, who are encouraged to complete and return them
Mailing lists
Directories of suitable, relevant recipients or targets
Maintenance
General upkeep of keeping product set to current schematic/plan-o-gram and fixtures/displays/shelf clean
Major equipment
Large tools and machines used for production purposes
Manifest
A list of all materials included in a shipment. The manifest is provided by the seller
Manufacturer brands
Product Naming and indicia used by producers to ensure that their products are identified with the maker at the point of purchase and consumption
Manufacturers' agents
Independent middlemen or distributors who represent two or more sellers and usually offer customers complete product lines
Margin
short for gross margin The difference between retail and cost of an item. (Retail - Cost)/Retail.
Marginal cost (MC)
The extra cost a firm incurs when it produces one more unit of a product
Marginal revenue (MR)
The change in total revenue that occurs when a firm sells an additional unit of a product
Mark up pricing
A pricing method whereby a product's price is derived by adding a predetermined percentage of the cost, called mark up, to the cost of the product
Markdown
Product reduced from its original retail price
Markdowns
Typically relates to the costs of price reductions provided to the shopper to clear merchandise at the end of a season, sale, product lifecycle or competitive pricing. Many retailers recover these costs via allowances from their suppliers
Market
An aggregate of people who, as individuals or in organizations, have a need for certain products and the ability, willingness and authority to purchase such products
Market attractiveness--business position model
A two-dimensional matrix that helps to highlight a companies product or business attractiveness or relative value basd on comparison to the products market place and the company's competitive position
Market challenger
A non-market leader that aggressively tries to capture more market share from its rivals
Market density
The number of potential customers within a unit of area
Market development
A strategy of increasing sales of current products in new markets
Market follower
A low-share competitor that lacks resources, market position, research and development or commitment to challenge for extra sales and market share or develop innovations
Market Forces
Those external forces that help define a retailer’s strategy. These would include any major change in Government/regulatory, Supplier (vendors), Transportation, Consumer/Shoppers and any other person/party in the consumer products value chain
Market leader
The single player enjoying the largest individual share in the market or with the greatest influence in the category/market based on innovation, pricing, image etc
Market nicher
A company that specializes by focusing on a very narrow range of products or on a select band of consumers
Market opportunity
Circumstances and timing that allow for an organization to take action towards reaching a target market
Market penetration
A strategy of increasing sales in current markets with current products - ie going deeper into the market
Market potential
The total amount of a product that customers will purchase within a specified period of time at a specific level of industry wide marketing activity
Market requirements
Relate to customers' needs or desired benefits
Market segmentation
Grouping customers in markets with some heterogeneity into smaller, more similar or homogenous segments
Market test
Involves making a product available to buyers in one or more test areas and measuring purchases and consumer responses to distribution, promotion and price. Marketers can choose exclusive, selective or intensive exposure for products, but may move to more intensive options as the product matures
Marketing
Consists of individual and organizational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion and pricing of goods, services and ideas
Marketing assets
Capabilities that managers and the market-place view as beneficially strong
Marketing audit
A systematic examination of the marketing group's objectives, strategies, organization and performance
Marketing channel
A group of individuals and organizations that direct the flow of products from producers to customers
Marketing concept
The philosophy that an organization should try to provide products that satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals
Marketing control process
It consists of establishing performance standards, evaluating actual performance, and reducing the differences between desired and actual performance
Marketing cost analysis
Breaks down and classifies costs to determine which are associated with specific marketing activities
Marketing environment
The external forces that directly or indirectly influence an organization’s acquisition of inputs and generation of outputs; consists of six categories of forces -- political, legal, regulatory, societal/green, technological, economic and competitive
Marketing era
The current period, in which product and aggressive selling no longer suffice if customers either do not desire a product or they prefer a rival brand, and customer needs must be identified and satisfied
Marketing ethics
Moral principles that define right and wrong behavior in marketing
Marketing experimentation
A set of rules and procedures by which data gathering is organized to expedite analysis and interpretation
Marketing function accounts
Indicate the function performed through the expenditure of funds
Marketing implementation
It involves activities to put marketing strategies into action
Marketing intelligence
The composite of all data and ideas available within an organization, a company or a marketing department
Marketing intermediary
A middleman who links producers to other middlemen or to those who ultimately use the products
Marketing management
A process of planning, organizing, implementing and controlling marketing activities to facilitate and expedite exchanges effectively and efficiently
Marketing manager
The person responsible for managing the marketing activities that serve a particular group or class of customers
Marketing mix
The tactical "tool kit" of product, distribution, promotion, price and people that an organization can control in order to activate purchase or increase the image or brand equity (value) in the purchasers mind
Marketing objective
A statement of what is to accomplished through marketing activities
Marketing opportunity
The opportunity exists when circumstances allow an organization to take action towards reaching a particular group of customers
Marketing oriented organization
One that concentrates on discovering what buyers want and providing it in a way that lets the company achieve its objectives
Marketing plan
A document or blueprint which details requirements for a company's marketing activity
Marketing planning
A systematic process of assessing marking opportunities and resources, determining marketing objectives and developing a thorough plan for implementation and control
Marketing planning cycle
A circular process that runs in two directions, with planning running one way and feedback the other
Marketing program
The set of marketing strategies that are implemented and used at the same time
Marketing research
The process of gathering, interpreting and reporting information to help marketers solve specific problems or to take advantage of marketing opportunities
Marketing strategy
It encompasses selecting and analyzing a target market and creating and maintaining an appropriate marketing mix that will satisfy those people in the target market
Markets
There are halls where fresh foods, clothing and house wares are sold, catering for budget conscious shoppers who typically have a middle and down market social profile
Markup
An increase in the initial retail of an item.
Markup Percent
The percentage of increase from cost to retail. Markup percent is calculated using the formula: (Retail-Cost) / Retail
Mass Merchant
Retailer selling a wide range of products including hard goods, apparel, home, auto, sporting , toys etc . WalMart, Target, K-Mart, etc. are typical examples
Materials handling
Physical handling of products
Maturity stage
During this stage, the sales curve peaks and starts to decline, and profits continue to decline
Measured retail
The value of goods and services sold to consumers as measured by government or other official measurement body (e.g. syndicated services companies such as IRI or AC Neilsen)
Mechanical observation devices
Cameras, recorders, counting machines and equipment to record physiological changes in individuals
Media plan
plan including the costs and timing for the exact media vehicles to be used for advertising,
Medium of transmission
The tool used to carry the coded message from the source to the receiver or audience
Medium range plans
Plans that usually cover two to five years
Mega carriers
Freight companies that provide several methods of shipment, such as rail, road and air service
Membership Desk
An area located at the front of a store where customers may apply to become a member for club cards etc
Membership Income
Revenue generated from membership fees for wholesale clubs
Merchandise allowance
A manufacturer's agreement to pay resellers certain amounts of money for providing special promotional efforts, such as advertising or displays
Merchandise ladders
Typically range from OPP, to “good”, “better or “bridge” “best” and “premium” or “designer”. Retailers typically can cover 2-3 of these. Most apparel retailers for example will only cover 1-2 using different brands for each
Merchandise Plan
A monthly publication from the Home Office giving specific instructions on items, merchandising, and seasonal issues to retail store operations
Merchandise standards
The principles, specifications established by merchandising to help store level personnel present the goods as the merchant intended. Generally the looser the standards the easier a store is to maintain but less consistent the presentation. Target Stores for example maintains very high standards – requiring more retail skills to keep the store up to specification
Merchandiser
A person who services retail stores who is knowledgeable with their clients brands, product and store objectives
Merchandising
Placing product in an approved and eye appealing configuration
Merchant wholesaler
Wholesalers that take title to goods and assume the risks associated with ownership
Merchants
Intermediaries who take title to products and resell them
Misleading prices
Pricing policies which confuse or dupe consumers
Mission
The broad, long-term tasks that the organization wants to accomplish
Missionary salespeople
One who support salespeople, usually employed by the manufacturer, who assist the producer's customers in selling to their own customers
MO
Mobile Originated messages are created by phone user
Modified re-buy purchase
It occurs when a new task purchase is changed when it is re-ordered
Modular
Permanent or freestanding fixture, used with pegs or shelves, also know as gondola and in-line fixture
Money refunds
A specific amount of money mailed to customers who submit proof of purchase
Monopolies and Mergers Commission
An independent body that investigates monopolies to determine if they operate against the public interest in the UK
Monopolistic competition
A market structure that exists when a dominant firm attempts tocontrol the market dynamics through scale ro some other differential advantage.
Moral philosophies
Principles or rules that individuals use to determine the appropriate way to behave
Motive
An internal energy giving force that directs a person's activities towards satisfying a need or achieving a goal
MRO items
Another name for consumable supplies, referring to the subcategories maintenance, repair and operating (or overhaul) supplies
MT
Mobile Terminated messages are received by phone user
MTR
An abbreviation for merchandise transfer report. This form is used to track the transfer of merchandise or expenses between store locations and distribution centers
Multi PO
One freight bill covering multiple purchase orders or cases on several different purchase orders
Multi-format retailers
Retailers that operate one or more store formats (as defined above). Could include on-line retail
Multinational companies
companies that participate in multiple countries
Multinational enterprise
A firm with operations or subsidiaries located in many countries
Multinational marketing
Where multi country marketers adapt some of the company's marketing activities to appeal to local culture and differences in taste
Multiple packaging
Includes more than one unit of the product, such as twin packs, tri-packs and six-packs
Multi-segment strategy
A strategy in which an organization directs its marketing efforts at two or more market segments
Multivariable segmentation
Uses more than one characteristic to divide a total market
Mystery Shopping
An audit/survey that takes place without the knowledge of the party being audited
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N

NCF (Net Cash Flow)
Adjusted Net Attributable Profit + Depreciation + Movements in Provisions
NOPAT (Net Operating Profit After Tax)
EBITA x (1 — Effective Rate of Tax)
NA
North America. North America generally includes the US, Canada & Caribbean. It may or may not include Mexico depending on the organization structure.
Natural accounts
Classification of costs based on how money was actually spent
Natural foods
Unprocessed or minimally processed foods that remain very close to their complete, original state
Nature of Ownership
For retailers- ownership structure by parent company or retail brand owner (eg franchise, joint venture, partial equity)
NEC 900
A type of Handheld computer that has the capabilities of a desktop PC and a pen tablet in a book-sized device; scanner and camera add-ons are available
Neck Hanger
Tag or POS placed on product or peg
Negotiated pricing
Determination of prices through negotiations between the seller and the buyer
Negotiation
Mutual discussion or communication of terms and methods in an exchange situation
Net 10th Prox/Net 10 EOM
Payment of an invoice is due on the 10th day of the following month if billed before the 25th day of the month. If billed after the 25th, payment will be due thirty days later
Net 30
Payment of invoice is due 30 days from receipt of the goods
Net Club
A Club store that has recently opened for business or has not opened but is receiving D.C. orders preparing for their grand opening
Net Income
The balance left after all operating expenses and deductions have been made from the gross income
Net Profit
The money left free and clear at the end of a financial period (month, year, etc.). It is often referred to as bottom line profit
Net Sales
The amount of money left from gross sales after refunds and allowances have been paid
Networking
The sharing of information and services among individuals of groups linked by a common interest
New product development
The process a product goes through before introduction; it involves six phases: idea generation, screening, business analysis, product development, test marketing and commercialization
New store Allowance
A percentage allowance negotiated by the buyer to apply to the first purchase order written going to a new club
New Store Set Up
Setting up shelf/fixtures/product in a new store of a retail chain
New task purchase
An organization’s initial purchase of an item to be used to perform a new job or to solve a new problem
Noise
A condition that exists when the decoded message is different from what was coded
Non-Business Items
A term used to describe items that my change in brand, size, or feature, but will always be in-stock in the clubs. Ex.: Batteries
Non-business marketing
Activities conducted by individuals and organizations to achieve some goal other than ordinary business goals of profit, market share or return on investment
Non-cumulative discounts
One-time only quantity discounts
Non-Palletized Vendor
A term used to describe a vendor that has an agreement with the buyer that does not require the vendor to ship on pallets or allows the vendor to ship on pallets that do not meet our standards. No claims will be filed for bad pallets and pallets are not exchanged
Non-price competition
A policy in which a seller elects not to focus on price but instead emphasizes other factors
Non-store retail
Non-store retail is web and catalog based. This format is among the fastest growing retail outlet type globally. While catalogs have been around for many years, web based retailing is growing in all markets some as mass merchants e.g. (WMT.com) others as specialist (e.g. Books, art/posters, designer clothing and luggage)
Non-store retailing
The selling of goods or services outside the confines of a "bricks and mortar" physical retail facility
Non-tariff barriers
It include a wide range of rules, regulations, and taxes which impact upon trade flows between countries
Non-traceable common costs
Cannot be assigned according to any logical criteria
NOP
Not on planogram
North American Free Trade Agreement (NAFTA)
Implemented in 1994, NAFTA aims to eliminate all tariffs on goods produced and traded between Canada, Mexico and the United States, providing for a totally free trade area by 2009
Not-On-File
When an item cannot be scanned at the register. The item's bar code information is not recognized in the computer system
Nutraceuticals
Any substance added to foods to provide medicinal and/or health benefits
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O

Objective and task approach
A technique for determining a plan that involves determining the objectives to achieve and listing the tasks required to accomplish them
Objective of physical distribution
Decreasing costs while increasing services
Observation methods
Involve researchers recording respondents' overt behavior, and taking note of physical conditions and events
Odd Size Pallet
A term used to describe a vendor that ships merchandise on a custom pallet specifically designed for the merchandise. It requires D.C. Operations approval so they can ensure the pallet specifications are safe and that our equipment can handle the pallets at the distribution centers and the clubs
Odd-even pricing
A pricing method that tries to influence buyers' perceptions of the price or the product by ending the price with certain numbers
Off Invoice
An allowance negotiated by the buyer with the vendor allowing a certain percentage be deducted off invoice at the time of payment
Offensive warfare
Requires challengers to aggressively seek market share by identifying any weakness in the leader's marketing mix and developing a corresponding strength
Office of Fair Trading
It exists in the UK to oversee government policy for monopolies and mergers
OH
An abbreviation for on-hand. On-hand is the total quantity of an item in the store/club.
OI
An abbreviation for off invoice
Oligopolies
When a limited # of competitors have significant market share and exercise control over a defined market usually through common behavior if not via collusion
Oligopoly
A market structure that exists when a few sellers exercise control over a market
Omega-3 Fatty Acids
Polyunsaturated acids that are found in certain fish, flax and hemp seeds, walnuts, and canola oil, which may provide health benefits
On Order
Merchandise ordered but not yet received
On-Hand
The total quantity of an item in the Store. This includes merchandise on the counter, in the stockroom, etc.
On-line retailing
Selling goods & services over the internet
On-site computer interviewing
Requires respondents to complete a self-administered questionnaire displayed on a computer monitor
OO
An abbreviation for on order
OOD
Out of date
OOS
Out of stock; Product is non-available within the store and must be ordered
Open Orders
Purchase orders not yet received
Open to Buy
Refers to the dollars available to purchase merchandise in a given time frame. The figure is usually determined by a sales to inventory ratio
Opening Price Points
The 1st product at the lowest price in the category that can be purchased in a market.
Operating Costs
All expenses incurred in doing business. This includes wages, and equipment purchases
Operating expenses
Retailers’ largest operating expenses are Labor, store costs (utilities, taxes, rent, and maintenance), marketing and all other.
Operating profit
The difference between gross margin and operating expenses. Does not reflect any interest (financial) income, taxes or unusual items
Opinion leader
The member of a reference group who provides information about a specific sphere of interest to reference group participants seeking information
Opportunity
A favorable set of conditions that limit barriers or provide rewards
Opportunity cost
The value of the benefit that is given up by selecting one alternative instead of another
Order
A request for product. Another term used is purchase order
Order getters
Employees who increase their firm's sales by selling to new customers and by increasing sales to present customers
Order processing
The receipt and transmission of sales order information
Order takers
Employees who ensure that repeat customers have sufficient product quantities where and when they are needed in order to perpetuate long-lasting relationships
Organic foods
Foodstuff produced without chemical fertilizers, synthetic pesticides, hormones, irradiation, and genetic engineering. A regulated term in most markets
Organizational (industrial) buying behavior
The purchase behavior of producers, resellers, government units and institutions
Organizational (industrial) market
Individuals or groups that purchase a specific type of product for resale, for use in making other products or for use in daily operations
Organizational culture
A set of values or beliefs, goals, norms and rituals that members of an organization share
Organizational factors
Organizational factors include the buyer's objectives, purchasing policies and resources, as well as the size and composition of its buying centre
Organizational, or industrial, market
Consists of individuals or groups that purchase a specific kind of product to resell it, use it directly in producing other products, or use it in general daily operations.
Organizing by functions
A way of structuring a marketing department, with personnel directing marketing research, product development, distribution, sales, advertising and customer relations reporting to the top level marketing executive
Organizing by products
Structuring the marketing department in order to give a firm the flexibility to develop special marketing mixes for different products
Organizing by regions
Used for large national or international companies, this structure requires managers of marketing functions for each region to report to a regional marketing manager
Organizing by type of customer
Works well for a firm that has several groups of customers with very different needs and problems
OTB
An abbreviation for open-to-buy
OTC
Over the counter, health and beauty care and drug items that do not require a medical prescription for purchase
Out of Stock (OOS)
Product is non-available within the store and must be ordered
Out-of-centre:
That area beyond the edge-of-centre limit but within the settlement boundary
Outpost
Best Buy's term for fixtures/displays that are outside of the Media Department (e.g., a 4-sided fixture that often represents one Studio on each side known as Race Track or Spinner)
Outsourcing
Using employees / independents under contract from a company other than your own
Overage
When a vendor ships more of an item than was requested on a purchase order
Overall family branding
A policy of branding all of a firm's products with the same name or at least part of a name
Overhead
The cost of conducting business. Example: rent, taxes, and insurance
Overship
When a vendor ships more of an item than was requested on a purchase order
Overstock
excess product beyond target inventory levels or purhase order levels
Own label brands
Retailer or wholesaler brands - Also known as private brands or private label
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P

Payment Period (Days)
(Accounts Payables(Trade Creditors)/Cost of Goods Sold) x 365
P & L
An abbreviation for "Profit and Loss". This is an income statement that measures profitability
P.O.
An abbreviation for purchase order
PA
An abbreviation for payment authorization. A document used by Accounts payable. It combines purchase order and receiving information
Pack Out
the count of items for Placing of product on a shelf/display/fixture to capacity
Packaging
The development of a product's container and label, complete with graphic design
Packing List
A document sent by the vendor to itemize each order. It shows what items are included in the shipment, the number of cases shipped, and how items are packed
Pallet
A movable wooden platform used to stack cases or boxes for storage or for presentation. Another term often used is skid
Palletized Breakdown Vendor
A vendor who is required to ship on pallets, but since clubs do not receive an entire pallet, the D.C. has to break down the pallet to smaller quantities. Merchandise is combined with other product not requiring a full pallet and shipped to the clubs. Pallets are not exchanged and claims are filed for bad pallets
Parallel imports
Goods that are imported through "non official" channels from low price to high price countries m
Patronage motives
Those motives which influence where a person purchases a product
Payment Terms
The time allowed for payment of invoices. All payment terms are negotiated by the buyer as part of the vendor agreement
Penalty
A charge against a vendor for violation of a procedure/process. Example: The buyer can assess a penalty for late shipment
Penetration price
A price set below the prices of competing brands in order to penetrate a market and produce a larger unit sales volume
People variable
The aspect of the marketing mix that reflects the level of customer service, advice, sales support and aftermarket back-up required, involving recruitment policies, training, retention and motivation of key personnel
Percent of Increase/Decrease
A term used when comparing the increase or decrease of sales, margin, or expenses of one period to another
Percentage of sales approach
Budgeting technique that involves multiplying a firm's past sales, plus a factor for planned sales growth or decline, by a standard percentage based on both what the firm traditionally spends on advertising and what the industry averages
Perception
The process of selecting, organizing and interpreting information inputs to produce meaning
Perceptual mapping
A tool used by marketers and marketing researchers for visually depicting consumer perceptions and prioritizing of brands and their perceived attributes
Perfect competition
A market structure that entails a large number of sellers, not one of which could significantly influence price or supply
Performance standard
An expected level of performance against which actual performance can be compared
Perishability
A characteristic of a product or service that diminishes in value and quality over time or in adverse conditions. Produt therefore can not be stockpiled or inventoried for future time periods
Perma-Shipper
A fixture that is shipped in a permanent form (non-cardboard), also known as Tombstone and Permanent Shipper
Personal factors
Factors that are unique to a particular individual
Personal interview surveys
Face-to-face situations in which the researcher meets the consumer and questions him or her about a specific topic
Personal selling
Informing and persuading customers to purchase through direct personal communication also called hand selling ie when the seller holds the product to show the customer and discuss its attributes
Personality
Includes all the internal traits and behaviors that make a person unique
Persuasion
Convincing and prevailing upon someone by argument to facilitate an exchange
Phase out
An approach that lets the product decline without a change in marketing strategy
Physical distribution
A set of activities consisting of order processing, materials handling, warehousing, inventory management and transport, used in the movement of products from producers to consumers and end users
Physical Inventory (PI)
Available on-hand inventory of product
Piggyback
When a trailer is shipped long distance by rail, picked up by a tractor, and hauled to the unloading point
Pioneer advertising
Informs people about a product: what it is, what it does, how it can be used and where it can be purchased
Pioneer pricing
Setting the base price for a new product
Plan-o-Gram
Approved arrangements or maps of how product is to be presented on a shelf/fixture/display
Plus 5 Member
A Clubstore shopper who pays a 5% up charge instead of a membership fee
PO
Purchase order used to ship product to a store
POE
An abbreviation for Port of Entry
POG
Plan-o-Gram
Point of Purchase in Digital Signage (POP)
Strategically placed screens usually in high profile areas based on theories and studies that approximately 70 percent of all brand purchase decisions are made in-store by using POP
Point of Sale
The point in time that sales are scanned/entered through the cash register area of the club
Point to Point
The mileage between locations. This figure is used when establishing a rate.
Point-of-sale (P-O-S) materials
Outside signs, window displays, counter pieces, display racks and self-service cartons
POP
Point of purchase
Population
All elements, units or individuals that are of interest to researchers for a specific study; universe
POS
Point of sale
Positioning
Key characteristic of a product or retailer or other attribute that represents how the retailer wants to be known to the customer in desired targets perspective and language
Post campaign test or post test
Evaluation of advertising effectiveness after the campaign
PPD
An abbreviation for prepaid. This abbreviation generally appears on a freight bill indicating that shipping costs have been prepaid.
Premium or push money
Additional compensation provided to salespeople in order to push a line of goods
Premiums
Items offered free or at minimum cost as a bonus for purchasing a product
Prepaid
The vendor pays the freight charges from their dock to either the store or warehouse (as stated on the purchase order). Retailer does not own the merchandise until it is received at the store or distribution center. Another term is Freight Prepaid
Press (news) release
A publicity mechanism, usually consisting of a single page of typewritten copy
Press conference
A meeting called to announce major news events
Prestige pricing
A pricing method whereby prices are set at an artificially high level to provide prestige or a quality image - Price as an indicator of quality
Pre-tests
Evaluations performed before the advertising campaign begins to evaluate the effectiveness of one or more elements of the message
Pre-Ticketing
Placing price or other infomration lables on Product before arriving at store
Price
The value placed on what is exchanged
Price Adjustment
Any change in retail (either up or down) to make a new price point
Price competition
A policy whereby a marketer emphasizes price as an issue and matches or beats the prices of competitors
Price differentiation
A pricing method used when the firm wants to use more than one price in the marketing of a specific product
price discrimination
A policy resulting in different prices being charged to give a group of buyers a competitive advantage
Price elasticity of demand
A measure of the sensitivity or change in of demand in response to a change in price
Price leaders
The retailer or product that sets pricing in the market usually via below the usual mark-up, near cost, or below cost pricing
Price lining
A pricing method whereby an organization sets a limited number of prices for selected groups or lines of merchandise
Price Positioning
How products are priced relative to total offering (experience, convenience, promotions, etc)
Price skimming
A pricing policy whereby an organization charges the highest possible price that buyers who most desire the product will pay
Price variable
The aspect of the marketing mix that relates to activities associate with establishing pricing policies and determining product prices
Price-off offers
Give buyers a certain amount off the regular price shown on the label or package
Pricing as Capability vs Philosophy
RNG Commercialization Strategy
Pricing method
A mechanical procedure for setting prices on a regular basis
Pricing objectives
Overall goals that describe what the firm wants to achieve through its pricing efforts
Pricing policy
A guiding philosophy or course of action designed to influence and determine pricing decisions
Primary data
Information gathered by observing phenomena or surveying respondents
Prime Manufacturer
A manufacturer that sells only items they make
Prime pitch
The area at the centre of the shopping zone with the main shops and the highest levels of pedestrian foot-fall
Private Label
A retailer's brand. The brand is owned by the retailer not the manufacturer
Private warehouse
A warehouse operated by a company for shipping and storing its own products
Proactive strategy
A business's decision to take responsibility for its actions and respond to accusations made against it without outside pressure or the threat of government intervention
Probiotics
Products containing beneficial bacteria that are naturally found in the human digestive tract, which are added to foods to strengthen immunity and improve digestion.
Problem children
Products that have a small share of a growing market, generally requiring a large amount of cash to build share
Problem definition
The process of uncovering the nature and boundaries of a negative, or positive, situation or question
Problem Tag
A tag placed on problem merchandise at the distribution center
Process materials
Used directly in the production of other products, but are not readily identifiable
Pro-competitive legislation
Laws enacted to preserve competition and to end various practices deemed unacceptable by society
Producer markets
Buyers of raw materials, semi-finished and finished items used to produce other products or in operations
Product
Everything, both favorable and unfavorable, tangible and intangible, received in an exchange of an idea, service or good
Product adopter categories
Five groups into which customers can be divided according to the length of time it takes them to adopt a product: innovators, early adopters, early majority
Product adoption process
Refers to the stages which buyers go through in accepting a product: awareness, interest, evaluation, trial and adoption
Product advertising
Promotes goods and services
Product deletion
The process of eliminating a product that no longer satisfies a sufficient number of customers
Product development
A strategy of increasing sales by improving present products or developing new products for current markets
Product item
A specific version of a product that can be designated as a distinct offering among an organization’s products
Product life cycle
The four major stages for products: introduction, growth, maturity and decline
Product line
A group of closely related product items that are considered a unit because of marketing, technical or end use considerations
Product manager
The person responsible for a product, a product line or several distinct products that make up an interrelated group within a multi-product organization
Product mix
The composite group of products that an organization makes available to customers
Product modification
Changing one or more characteristics of a firm's product
Product portfolio analysis
A strategic planning tool that takes a product's market growth rate and its relative market share into consideration in determining a marketing strategy
Product specific spending patterns
The annual monetary amounts families spend for specific products within a general product class
Product variable
The aspect of the marketing mix that deals with researching consumers' product wants and designing a product with the desired characteristics
Production era
The period of mass production following industrialization
Professional pricing
Pricing used by people who have great skill or experience in a particular field or activity
Profiling
The task of building up a fuller picture of the target segments
Profit Impact on Marketing Strategy (PIMS)
A research program that compiled a databank of information on 3,000 strategic business units of 200 different firms in order to assist in analyzing marketing performance and formulating marketing strategies
Project
A type of service that varies in description and is usually a one time call
Projective techniques
Tests in which subjects are asked to perform specific tasks for particular reasons, while actually being evaluated for other purposes
Promotion
Special allowances of discounts offered on products by suppliers
Promotion variable
The aspect of the marketing mix that relates to activities used to inform one or more groups of people about an organization and its products
Promotional mix
The specific combination of ingredients an organization uses to promote a product; traditionally, it includes four ingredients: advertising, personal selling, public relations and sales promotion
Promotional pricing
Pricing that is interrelated with the product's promotion
Prospecting
Developing a list of potential customers
Prosperity
A period during which unemployment is low and total income is relatively high
Proxemic communication
A subtle form of communication used in face-to-face interactions when either party varies the physical distance that separates them
PRP
Product Replacement Plan
PSMS:
Premium Short Message Service provides rich content to consumers, usually content for which consumers will pay Short
Psychological factors
Factors which influence consumer behavior, including perceptions, motives, ability and knowledge, attitudes and personality
Psychological pricing
A pricing method designed to encourage purchases that are based on emotional rather than rational responses
Public relations
The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its target publics
Public Symbol
The stock trading symbol of a publicly traded company
Public warehouses
Warehouses that rent storage space and related physical distribution facilities to other companies and sometimes provide distribution services such as receiving and unloading products, inspecting, reshipping, filling orders, financing, displaying products and coordinating shipments
Publicity
Non-personal communication in news story form about an organization, its products or both, that is transmitted through a mass medium at no charge
Pull policy
A promotional policy in which a firm promotes directly to consumers in order to develop a strong demand for its products
Pup
A short trailer (usually 28 feet) that is hooked to another short trailer and pulled together. Sometimes called a tandem
Purchase facilitation
Circumstances that make it possible for the consumer to purchase the product: availability, location, price, and familiarity of vendor
Purchase Order
A purchase is on official authorization for ordering merchandise. It can be generated at store/club level or by the home office
Push money
Additional compensation provided to salespeople in order to push a line of goods
Push policy
A promotional policy in which the producer promotes the product only to the next institution down the marketing channel
PYMT
An abbreviation for payment
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Q

QTY
An abbreviation for quantity
Quali-depth interviews
25 to 30 minute long intercept interviews which incorporate some of the in-depth advantages of focus groups with the speed and flexibility of intercept studies
Qualitative research
Deals with information too difficult or expensive to quantify, such as subjective opinions and value judgments, which is typically unearthed during interviews or discussion groups
Quality
a product's level and cosnistency in providing the attribures and basic functional requirements expected of it
Quality modifications
Changes concerning a product's dependability and durability
Quantitative research
Produces data that can be statistically analyzed and results that can be expressed numerically
Quantity discounts
Deductions from list price that reflect the economies of purchasing in large quantities
Quarter
A three-month period occurring four times a year used for accounting purposes. 1st Qtr. runs Feb. thru April; 2nd Qtr. runs May thru July; 3rd Qtr. runs Aug. thru Oct.; and 4th Qtr runs Nov. thru Jan.
Questionnaires
Base documents for research studies, providing the questions and structure for an interview or self-completion and providing space for respondents' answers
Quota sampling
A form of sampling in which the final choice of respondents is left to the interviewers, who look for respondents based on one or two variables (such as age, sex and education)
Quotas
Physical restrictions on the amount of goods which can be imported into a particular country or region
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R

Regional shopping centre:
This is a term used to describe a massive purpose built retail development.
ROCE (Return on Capital Employed)
EBITA/Average Capital Employed
ROE
Net Attributable Profit/(Average Shareholders’ Funds + Average Accumulated Goodwill Amortization)
RA
An abbreviation for return authorization. Before merchandise is returned to the vendor, it must have a return authorization
Race Track
Wide aisle that circles the perimeter of the center store floor reflecting the primary traffic pattern
Rack jobbers
Specialty line wholesalers who own and maintain their own display racks in supermarkets and drugstores
Radio Frequency Identification (RFID)
Technology with coded radio broadcasting chips put on products, pallets, that use wireless antennas and provide data to the retailer regarding product status (location, in stock, shrinkage
Random factor analysis
An attempt to attribute erratic sales variations to random, non-recurrent events
Random sampling
Occurs when all the units in a population have an equal chance of appearing in the sample
Random Weight
Price per pound or price for each. This term is usually used when referring to meat or produce items
Ratchet effect
The impact of using sales promotion and advertising together
Raw materials
The basic materials that become part of physical products
Reachable & relevant population
The relevant market population for modern retail chains - populations living in urban/suburban locations served by modern retail
Reaction strategy
A business's decision to allow a condition or potential problem to go unresolved until the public learns about it
Realized strategy
The strategy that actually takes place
Re-balanced Development & Capex
RNG Commercialization Strategy- relating to retailer capex strategies shifting from new stores to store remodernization and relauch
Recall
Product being recalled and sent back to manufacture at their request, or the remembering of a brand's message from advertising by consumers
Receipt of Goods
The date merchandise is received. Invoice terms begin on the date of receipt of goods unless specified in the vendor agreement as date of invoice
Receiver
A document generated electronically to give purchase order details needed to insure accurate receiving of merchandise
Receiving
The area where freight is received
Receiving Clerk
Individuals responsible for making delivery appointments, keeping the receiving log, assigning a receiving number to the purchase order, and preparing paperwork to key the order into the system
Receiving Log
A form used to record all incoming shipments at store level. Information includes date received, carrier, number of cartons, vendor, department, purchase order number, and person receiving merchandise
Recession
A period during which unemployment rises and total buying power declines
Reciprocity
An arrangement in which two organizations agree to conduct buisiness with (buy from) each other
Recognition test
It involves showing the actual advertisement to individual respondents and asking whether they recognize it
Recovery
The stage of the economic business cycle in which the economy moves from depression or recession to positive growth
Recruiting
soliciting and developing a list of applicants for job positions
Reference group
A group which an individual identifies with so much that he or she takes on many of the values, attitudes or behavior of group members
Refusal to deal
It occurs when suppliers refuse to deal with wholesalers or dealers just because these wholesalers or dealers have resisted policies that are anticompetitive or in restraint of trade
Regional Buyer
A buyer in the home office who negotiates purchases of items that will be sold in a specific geographic location
Regional issues
Versions of a magazine or newspaper that differ across geographic regions in their advertising and editorial content
Reinforcement advertising
Tries to assure current users that they have made the right choice and tells them how to get the most satisfaction from the product
Relationship management
The process of encouraging a match between the seller's competitive advantage and the buyer's requirements over an item's life-cycle
Relationship marketing
All of the activities which an organization uses to build, maintain and develop customer relations
Relationships
Regular, on-going contacts between businesses and their customers
Relay
When a full truckload is delivered in stages to multiple store. It also applies to the re-merchandising of the sales floor to a new layout
Reliability
The quality of producing almost identical results in successive repeated trials
Reminder advertising
Reminds customers of the uses, characteristics and benefits of an established brand
Reorder point
The inventory level which signals that more inventory should be ordered
Replenishment
A department in the home office that reorders merchandise for individual stores/clubs
Reps
Field merchandisers/Representatives
Reputable partnerships
Reputable and ethical dealings between a recognized, welcome and acceptable sponsoring organization and a recipient organization
Reseller markets
Intermediaries, such as wholesalers and retailers, who buy finished goods and resell them to make a profit
Reset
Changing shelf/fixture/product display to conform to authorized or preferred configuration
Restricted sales territories
Occurs when a producer tries to prohibit intermediaries from selling its products outside designated sales territories
Retag
Changing shelf order tags on shelf/fixture/display to conform to new system
Retail Digital Signage (RDS)
Discussed as a complete system when the research has been done to support it as a well thought out advertising machine with measurement, statistics and research having been completed
Retail park
Groupings of free-standing superstores, forming a retail village or park
Retail park:
Agglomeration of retail operations, which may also include a superstore & other leisure/entertainment uses as well as warehouses/DCs
Retail positioning
Identifying a highly attractive market segment and serving it through a strategy that distinguishes the retailer from others in the minds of people in that segment
Retail technology
Systems which increase retailers' efficiency and productivity and often create a competitive edge
Retail warehouse:
Large single level individual store selling mainly bulky durable goods or food service products to consumer and business shoppers
Retailer
An organization which purchases products for the purpose of reselling them to ultimate consumers, the general public, often from a shop or store
Retailing
the act of selling products and services to others through a fixed physical or online presence
Retrofit
To furnish or affix parts or equipment made available after the time of original manufacture, or to modify an existing floor plan or fixtures to new specifications
Return Authorization
A number assigned to track the return of goods to a vendor
Return Center
A central point set up for stores/clubs to send defective merchandise for return to the vendor
Return on Assets – formula
Operating profit divided by gross assets
Return on Capital – formula
Operating profit divided by invested capital (also called “shareholders equity”)
Return on Investment
The amount of profit for each dollar invested. An abbreviation for this is ROI
Return to Vendor
Merchandise that is being returned to the vendor per instructions from the buyer. This usually occurs due to overages, wrong items being shipped, damaged merchandise received, or wrong warehouse pack
Returns
Product that has not sold or is damaged and sent back to supplier
Role
A set of actions and activities that a person in a particular position is supposed to perform, based on the expectations of both the individual and surrounding persons
Routine response behavior
Occurs when buying frequently purchased, low cost items that need little search and decision effort
Routing
The process that informs the vendors how merchandise will be shipped. Routing is usually handled by the traffic department
Run out
selling the last inventory of an item at it own rate without clearance markdowns - tends to be focused on higher rate markets
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S

Shopping centre/mall:
Predominantly purpose built centers comprising a mix of large and small units, typically anchored by a food store
Superstore:
self-service stores, usually over 2,500 gross retail sq. m in size devoted to selling mainly food items
Safety Stock
Additional stock required at store/club level to ensure enough product to maintain sales
Sales analysis
Uses sales figures to evaluate a product or firms current business health and opportunities
Sales contest
A way to motivate distributors, retailers and sales personnel by recognizing and rewarding outstanding achievements
Sales force forecasting survey
Asks members of a firm's sales force to estimate the anticipated sales in their territories for a specified period of time
Sales forecast
The amount of a product that the company actually expects to sell during a specific period under specific level of marketing and promotional activities
Sales potential
The maximum percentage of market potential that an individual company can obtain for a specific product or service
Sales promotion
An activity or material that acts as a direct inducement by offering added value to or incentive for the product to resellers, sales people or consumers
Salience
The level of importance assigned to each criterion for comparing products
Sample
A limited number of units chosen to represent the characteristics of an entire population
Sampling
Selecting representative units from a total population
Scanners
Check stand and handheld technology designed to "read" product
Scanning
The act of moving the UPC label across the electronic eye at the cash register to record the purchase of goods in our computer system
Schematic
Approved arrangements of products on shelf/ fixture/display - AKA Planogram which is a pictoral representation
Scientific decision-making
An orderly and logical approach to gathering information
Scrambled merchandising
The addition of unrelated products and product lines, particularly fast moving items that can be sold in volume, to an existing product mix
Screening ideas
Involves assessing whether product ideas match organizational objectives and resources
Search qualities
The tangible attributes of a service that can be viewed prior to purchase
Seasonal analysis
The study of daily, weekly or monthly sales figures to evaluate the degree to which seasonal factors influence the firm's sales
Seasonal discount
Price reduction to buyers who purchase goods or services out of season
Seasonal Merchandise
A term used to refer to merchandise which is sold only during certain periods of the year. EX.: Christmas trees, Easter eggs, snow shovels, swim suits
Seasonal Profile
A graph showing a pattern of sales above or below the average weekly sales for a 52 week period
Seasonal Section
An area in a store predominantly used to rotate and display merchandise for a specific season. (Ex.: Christmas, Easter, etc.)
Secondary data
Information compiled inside or outside the organization for some purpose other than the current investigation
Secondary Manufacturer
A manufacturer who buys from other manufacturers to complete or compliment their assortment. It can also be a vendor who supplies merchandise when the primary manufacturer is unable to meet requirements
Secondary use packaging
It can be reused for purposes other than its initial use
Security
The measure of the physical condition of goods upon delivery
Segmentation variables, or bases
The dimensions or characteristics of individuals, groups or organizations that are used for dividing a total market into segments
Selective distortion
The changing or twisting of currently received information
Selective distribution
Choosing only some available outlets or customers in an area to distribute a product
Selective exposure
The selection of inputs which people expose to their awareness
Selective retention
The remembering of information inputs that support personal feelings and beliefs and the forgetting of those which do not
Sell Pack
The pack size sold to customers
Sell Price Retail
This is the amount a shopper pays for an item
Selling agents
Agents who market either all of a specified product line or a manufacturer's entire output
Selling Units
The actual single unit that is sold to the customer. EX.: The case pack of an item may be six cans of juice. The juice is sold in singles. This means the case contains 6 selling units
Service
The application of human and mechanical efforts to people or objects in order to provide intangible benefits to customers
Service Desk
A desk and cash register located at the front of each store/club where customers return purchases, receive refunds, etc.
Service product quality
The consumer's perception of the quality of service he or she receives
Service provider
A person who offers a service, such as a bank clerk or hairstylist
Shelf Life
The maximum length of time a dated product can appear on the shelf and still be appropriate for consumption
Shelf Tag
A label/sticker placed on shelf used to identify product
Ship Date
The first date the vendor can ship merchandise for a specific purchase order
Ship Point
The location from which merchandise is shipped
Shipping
A department in the distribution center responsible for loading freight on a truck to be shipped to the stores/clubs. The process of moving freight out of the distribution center
Shopping mall intercept interviews
Personal interviewing of a percentage of persons who pass by certain "intercept" points in a shopping centre
Shopping products
Items which are more carefully chosen than convenience products; consumers will expend considerable effort in planning and purchasing these items
Shopping trip (or “Trips”)
Trips to retail center or a specific store/retailer. Ideally this would include all people who entered a store – today most retailers measure only those that checked out
Short range plans
Plans that cover a period of one year or less
Short Ship
When a vendor ships less then the complete order
Shortage
When less than the amount of goods listed on the order arrives at the distribution center or stores
Shrink
term for loss of product or profit from theft, damage, or perishabiltiy
Shrink Wrap
A heat shrinking plastic film used to wrap a pallet of merchandise - also strech wrap is used for this purpose
Shrinkage
The difference between inventory that should be on hand according to the books and what actually is on hand
Signing Program
A Home Office directed program for in-store advertising of merchandise
Single variable segmentation
Achieved by using only one variable, and it is the simplest type of segmentation to perform
Situational factors
External circumstances or conditions that exist when a consumer is making a purchase decision
Skid
A moveable wooden platform used to stack cases or boxes for storage or presentation in a SAM'S Club. Another term for skid is pallet
SKU
Stock keeping unit (unique item number assigned to product) often the UPC
Slip Sheet
Heavy weight cardboard placed under a pallet load of cases so they be "slipped" on or off a palletor off the truck as a single unit
SMS:
Short Message Service is the only technology that every carrier currently supports, limited to 140 character messages
Social class
An open group of individuals who have similar social rank
Social factors
The forces which other people exert on buying behavior
Social responsibility
An organization’s obligation to maximize its positive impact and minimize its negative impact on society
Softlines
Lines of product, commonly considered ready to wear, cosmetics, jewelry, etc.
Sole sourcing
The selection of only one supplier
SOQ
Suggested order quantity
Sorting activities
Functions letting channel members divide roles and separate tasks
Sorting out
Separating products into uniform, homogeneous groups
SOTP
"Sum of the Parts"
Source
A person, group or organization that has a meaning it intends and attempts to share with an audience
Special Buy
Merchandise bought to take advantage of special prices or deals. This is usually a one-time purchase
Special Event
A scheduled, limited time only, event. The events create incremental sales and provide an opportunity to test new items for possible addition later
Special event pricing
Advertised sales or price cutting that is linked to a holiday, season or event to increase sales volume
Special Training Pieces
Special training pieces are created as needed for any special, usually one-time, projects we are asked to complete.
Specialty line wholesalers
Middlemen who carry the narrowest range of products, usually a single product line or a few items within a product line
Specialty products
Items that possess one or more unique characteristics; consumers of specialty products plan their purchases, and will expend considerable effort to obtain them
Specialty shops
Stores that offer self-service but a greater level of assistance from store personnel than department stores; stores that carry a narrow product mix with deep product lines
Spider Wrap
Security wrap that resembles a spider placed on select product that may be a target for theft (shrink)
Spine Out
Positioning a dvd/cd/Game product with the spine or edge out to the customer, a position that is not desired for gaining customer attention
Sponsorship
The financial or material support of an event, activity, person, organization or product by an unrelated organization or donor
Spot Check
A random check on the status of a client at retail level
Stack Base
A short riser (six to eight inches) used to display boxed or bulk merchandise
Staging Area
The area of the receiving dock where pallets of merchandise are kept until they are processed and slotted or loaded into outbound trucks
Standard Industrial Classification (SIC) system
Provides information on different industries and products, and classifies economic characteristics of industrial, commercial, financial and service organizations
Stars
Products with a dominant share of the market and good prospects for growth
Statistical interpretation
An analysis of data that focuses on what is typical or what deviates from the average
Stock Rotation
The process of moving older stock to the front
Stock-outs
Shortages of products resulting from too few products carried in inventory
Storyboard
A graphical depiction throughs a series of miniature television frames (screens) to show the sequence of major scenes in an advertisement
Straight commission compensation plan
A plan according to which salespeople's compensation is determined solely by the amount of their sales for a given time period
Straight re-buy purchase
It occurs when a buyer purchases the same products again routinely under approximately the same terms of sale
Straight salary compensation plan
Under this plan, salespeople are paid a specified amount per time period
Strategic alliances
Partnerships formed to create a competitive advantage on a worldwide basis
Strategic business unit (SBU)
A division, product line or other profit centre within a parent company
Strategic channel alliance
Distributing the products of one organization through the marketing channels of another
Strategic market plan
An outline of the methods and resources required to achieve an organization’s goals within a specific target market
Strategic market planning
A process that yields a marketing strategy that is the framework for a marketing plan
Strategic window
A temporary period of optimum fit between the key requirements of a market and the particular capabilities of a firm competing in that market
Stratified sampling
It involves dividing the population of interest according to a common characteristic or attribute, then conducting a probability sample within each group
Strike Zone
Key point of potential customer sales, the opportunity zone to influence shopper purchases - also called the decision corridor
Style modifications
Changes that alter the product's sensory appeal such as taste, texture, sound, smell or visual characteristics
Subcategory
A grouping of like merchandise belonging to the same category. This subcategory may then be used to track sales and inventory.
Subcontracting
Outsourcing rep labor
Sub-cultures
Sub-divisions of culture according to geographic regions or human characteristics, such as age or ethnic background
Substitution
When one thing replaces another – in this instance we generally refer to one format for another or one competitor for another
Suburban centers
Shopping centers created at major road junctions that cater for local shopping needs
Successful brands
To create successful brands, a company must prioritize quality, offer superior service, get there first, differentiate brands, develop a unique positioning concept, have a strong communications program and be consistent and reliable
Supercenters
The supercenter format includes European Hypermarkets and North American Supercenters/SuperStores. A one stop destination outlet – broadly targeted at all households – for all that shoppers need (food and general merchandise consumables) and want. Large stores usually over 100K sqft and sometimes over 200K Sqft
Supermarket
self-service store of more than 2,500 net retail sq. m. in floor area selling mainly food.
Supermarkets
Supermarkets are themost common format type. These include self service, consumable food products oriented stores typically ranging in size from 20,000 sq ft to 70,000 sq ft. with many service departments including Bakery, Deli, Meat, Floral and other related categories. Wide range of positioning from premium/gourmet to hard discount no frills.
Supply chain
The network that goods flow through from the point of origin to retail. This includes from raw materials, to production/assembly/packaging to warehouse(s) to store
Support personnel
Employees who facilitate the selling process but are not usually involved solely in making sales
Surge Blitz
A focused retail coverage strategy conducted in a compressed time frame on a given initiative, project, or circumstance
Survey methods
Include interviews by mail or telephone and personal interviews
Surveys
Questionnaire that collects information requested by customer/client
SWOT analysis
Determining competitive position/business health by examining four factors: strengths, weaknesses, opportunities and threats
Syndicated
Providing common information/reports across a variety of accounts/clients
Syndicated data services
Organizations that collect general information and sell it to clients
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T

Total Equity
Shareholders’ Funds + Minority Interest
Tactile communication
Interpersonal communication through touching, including shaking hands
Target market
A group of people for whom a firm creates and maintains a marketing mix that specifically fits the needs and preferences of that group
Target public
A collective of individuals who have an interest in or concern about an organization, product or social cause
Target publics
An organization’s target audiences: customers, employees, shareholders, trade bodies, suppliers, government officials and society in general
Targeting
The decision about which segment(s) a business decides to prioritize for its sales and marketing efforts
Tariffs
Taxes which affect the movement of goods across economic or political boundaries and which can affect imports, exports, or goods in transit
Technical salespeople
They give technical assistance to the organization’s current customers
Technology assessment
A procedure by which managers try to foresee the effects of new products and processes on their firm's operation, on other business organizations and on society in general
Telemarketing
The direct selling of goods and services by telephone based on either a cold canvass of the telephone directory or a pre-screened list of prospective clients
Telephone surveys
Surveys in which respondents' answers to a questionnaire are recorded by interviewers on the phone
Terms
Conditions for payment of goods, usually negotiated by the buyer with the vendor
Test marketing
A limited introduction of a product into geographic areas chosen to represent the intended market
Text Message
A message sent to or from a mobile phone
Third party endorsement
A recommendation from an opinion leader or respected personality used to increase the credibility of publicity and public relations
Time series analysis
A forecasting technique that uses a firm's historical sales data to discover a pattern or patterns in the firm's sales over time
Total cost
The sum of average fixed costs and average variable costs multiplied by the quantity produced
Total quality management (TQM)
Coordination of efforts directed at improving all aspects of a business -- from product and service quality to customer and employee satisfaction
Traceability
The relative ease with which a shipment can be located and transferred
Traceable common costs
It can be allocated indirectly, using one or several criteria, to the functions they support
Trade (functional) discount
A reduction off the list price given by a producer to an intermediary for performing certain functions
Trade mark
Legal designation indicating that the owner has exclusive use of a brand or mark (logo)
Trade name
The full and legal name of an organization
Trade sales promotion methods
Stimulate wholesales, retailers or dealers to carry and market a producer's products
Trade shows
Industry exhibitions that offer both selling and non-selling benefits
Trading company
A company that provides a link between buyers and sellers in different countries
Trading stamps
Stamps, dispensed in proportion to the amount of a consumer's purchase, that can be accumulated and redeemed for goods S&H green stamps were very common in the US in the 1960s
Traffic
A department in the Home Office that is responsible for routing merchandise to the distribution centers. The area within the distribution center that handles the arrival and processing of paperwork for inbound trailers
Transfer pricing
The type of pricing used when one unit in a company sells a product to another unit
Transit time
The total time a carrier has possession of goods
Transport modes
Methods of moving goods, including railways, motor vehicles, inland waterways, airways and pipelines
Transportation
Moving a product from where it is made to where it is purchased and used
Trend analysis
Focuses on aggregate sales data over a period of many years to determine whether annual sales are generally rising, falling, or constant
Trial stage
The stage of product adoption when individuals use or experience the product for the first time
Truck wholesalers
Limited service wholesalers that transport products directly to customers for inspection and selection
turnover
british term for sales
Turns
The number of times that average inventory is sold in a year
Tying contracts
Exist when a supplier (usually a manufacturer or franchiser) furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well
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U

Underlying Sales Growth (Organic Sales Growth)
Sales Growth Excluding the Impact of Sales from Acquisitions, Disposals and Exchange Rate Movements
Unaided (spontaneous) recall test
Asks subjects to identify advertisements that they have seen recently but gives them no clues to help them remember
Under Ship
When a vendor fails to ship an order complete. Another term for under ship is short ship
Undifferentiated, or total market, approach
Assumes that all customers have similar needs and wants and can be served with a single marketing mix
Uniform geographic pricing
A type of pricing in which the same price -- based on average shipping costs -- is charged to all customers regardless of geographic location
Unit loading
Grouping one or more boxes on a pallet or skid, permitting movement of efficient loads by mechanical means
Unit Pricing
The section of the item sign that lists the cost of a unit by measurement. Eg.: Eaches, ounces, etc.
Universal product code (UPC) or barcode
A series of thick and thin lines that identifies the product and provides inventory and pricing information readable by an electronic scanner
Unsought products
Items that are purchased when a sudden problem must be solved or when aggressive selling is used to obtain a sale that otherwise would not take place
Utilitarianism
A moral philosophy concerned with maximizing the greatest good for the greatest number of people
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V

Value for money
The benefit consumers perceive to be inherent in a product or service, weighed against the price demanded
Value Retailers
Value retailers sell common products at extremely competitive prices
Variability
The amount of diversity allowed in each step of service provision (opposite of consistency)
Variable costs
Those costs that vary directly with changes in the number of units produced or sold
Variety stores
Slightly smaller stores than department stores, offering a reduced range of merchandise
Vendor
A supplier of product
Vendor Agreement
A legal document signed by the vendor outlining all terms and legal agreements between both companies
Vendor Log
Book and/or sheets used by retailers to identify vendors and visitors in their stores
Vendor Number
A number created for each vendor. This number is used to create purchase orders and for payment of invoices
Vendor Pack
The original quantity of merchandise packaged together when shipped from the vendor
Vendor Stock Number
A code used by the vendor to identify an item
Venture or project team
Creates entirely new products that may be aimed at new markets and is responsible for all aspects of the products' development
Vertical channel integration
Combining two or more stages of the channel under one management
Vertical marketing system (VMS)
A marketing channel in which a single channel member co-ordinates or manages channel activities to achieve efficient, low cost distribution aimed at satisfying target market customers
Volume Rebate
A discount allowed for the purchase of a large volume of merchandise
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W

Warehouse
A large facility for storage and redistribution of goods between the point of manufacture and the retail location
Warehouse clubs
Large scale, members only selling operations combining cash and carry wholesaling with discount retailing
Warehousing
The design and operation of facilities for storing and moving goods
Waybill
Another name for manifest. This is a list provided by the seller showing all materials included in a shipment
Wealth
The accumulation of past income, natural resources and financial resources
Weighted Out
A trailer that has reached its maximum weight prior to cubic capacity being reached
Wheel of retailing
The theory that new retailers often enter the market-place with low prices, margins and status, and eventually emerge at the high end of the price/cost/services scales, competing with newer discount retailers
Wholesaler
An individual or organization engaged in facilitating and expediting exchanges that are primarily wholesale transactions. Wholesalers purchase products for resale to retailers, other wholesalers and producers, governments and institutions
Wholesaling
Comprises all transactions in which the purchase intends to use the product for resale, for making other products or for general business operations
Width (of product mix)
The number of product lines a company offers
Willingness to spend
A disposition towards using buying power; influenced by the ability to buy, expected satisfaction from a product and numerous psychological and social forces
WOW Items
Special merchandise intended to attract shopper's attention
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Y

Yard
The parking area used for trailers when waiting to be unloaded
Yellow Shirt
Best Buy's Loss Prevention Team members where yellow shirts; a member is responsible monitoring the doors and signing you in and out in the Vendor Log book
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Z

Zone prices
Regional prices that take advantage of a uniform pricing system, in which prices are adjusted for major geographic zones as the transport costs increase
Zones
The United States is divided into 9 zones. Each zone represents an area with similar climate. The smaller zone numbers represent warmer climates
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