JPS
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JPS
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Glossary of Industry Terms
ACV
(All Commodity Volume) This
is the basis for measuring retailer distribution, which takes into account the
relative importance of each operator. Fort example, if Brand x has distribution
in only one store and that store does 3 percent of market sales, then Brand X is
said to have 3 percent ACV distribution. ADI (Area of Dominant Influence) This
is the geographic division of markets by Arbitron based on preponderance
of television viewing by country.
Advertising The
use of paid media to generate awareness of a product or service, establish an
image, and stimulate purchase intention.
Advertising expenditures include the spending in established commissionable
media to communicate a brand/corporate image/service etc. and to communicate a
product/service benefits story to the audience involved.
Payment
by national marketer to a retailer, intended to reimburse the retailer for local
advertising of marketer’s product. Aftermarketing Term
coined by Dr. Terry Vavra to describe the mix of marketing techniques deployed
after the initial sell, including customer-retention programs. Discount
offered by a marketer to a retailer or wholesaler, usually in return for a
specific performance; i.e., stocking, buying, paying cash, merchandising, et al. ANSI American National Standards Institute Private,
non-profit organization that administers US voluntary standards and conformity
assessment systems. ANSI is the sole A combination of parallel lines or bars and spaces an electronic scanner can read that and that communicates data about a product, shipping container, or coupon. Batch
Processing Technique
of fulfillment, in which orders are accumulated and processed in a unified run. Best Food Day (BFD) The day of the week that most food stores in a particular market usually runs their newspaper ads – usually Wednesdays or Thursdays. An
allowance offered to retailers in return for performance of specific
merchandising activity, which is not paid until the retailer submits proof along
with an invoice. Black Plate A change in coupon value or offer
code, using black ink. FSI publishers charge a nominal fee for this. A black
plate change within a Form can result in a Form Break charge. The practice at retail of doubling – sometimes tripling – the face value of a coupon. There are often limitations on face values, types of products, days of the week for bonus couponing, etc. Bounce-back Additional
promotion offer made to respondents of an initial offer, usually intended to
encourage repeat purchases or customer loyalty. Brand Development Index (BDI) Market Volume/Market Population)
versus (National Volume/National Population). An average market is ‘100’. Volume
ratio of the sales of a brand to a specific sub-population compared which a
total population. Brand
Assets The
consumer equities of a brand, e.g., user base, loyalty, imagery and distinction
in addition to its trade channel relationships. Brand
Equity A
brand’s asset value or its perceived value as a “trust-mark” to its users. Brand
Image The
characteristics which a consumer attributes to, and by which he/she
identifies/relates to a specific brand. Brand
Name Protected,
proprietary trademark of a manufacturer of consumer goods/services. Category Development Index (CDI) Sales
volume ratio of the sales of a category (e.g., soft drinks) versus a specific
sub-population, compared with a total population. Category
Killer A
retailer who’s combination of size, selection, service and/or pricing can
drive the majority of competing retailers out of business. The practice of maximizing retail profits based on alternative brand stocking, shelf-set, promotion and merchandising mixes on overall category sales performance. Cents-Off Coupon A coupon is a certificate with a stated value to be used when purchasing a specific product. Coupons are issued by manufacturers to give consumers immediate discounts on the purchase of specific items. Channel
Management The
process of direct marketing activity for all of a manufacturer’s brands by
class of trade, e.g., good chain, price club, and convenience, et al. Channel
Marketing Differentiating
marketing efforts into discrete programs designed to appeal to differing needs
of trade categories. Notification by a manufacturer or manufacturer’s agent to a retailer and/or clearinghouse that coupons submitted by the retailers have been denied payment and that the retailer/clearinghouse is being billed back for the coupons’ face value plus handling. Usually requires a lengthy reconciliation process between manufacturer and retailer. Coupons submitted by a retailer, but rejected for payment by the manufacturer or their agent, because of suspected misredemption. Clearinghouse Processes coupons from grocery and other stores and sends them to manufacturers or their agents for payment. Cluster
Analysis A statistical technique for analyzing homogenous groups of people, products, etc. CPFR Collaborative Planning Forecasting and Replenishment Collaboration
between manufacturers and retailers to share future sales and promotion plans. Color Plate A change in ad copy or any other
color item in an FSI. The FSI publisher will charge a Color Plate Charge, which
can be expensive. A Color Plate Charge within a Form can result in a Form Break
charge. Summarization of multiple store tag amounts for one retailer for one manufacturer within a clearinghouse invoice. Consumer Promotion Consumer promotion can be defined as those marketing activities that provide consumers, employees or business-to-business audiences as an incentive. Promotion also includes co-operative activities that involve other areas of the distribution cycle to help sell a product or service (ie. retailers) Additionally promotion at many companies is also defined as all communication activity that is not established as trade advertising or public relations. Consumer-redeemed Coupons submitted by consumers
when purchasing a product with a coupon. Term describing coupons that appear with other coupons from the same of different manufacturers. COT
(Class of Trade) The
distinguishing between retail formats, i.e., supermarkets, warehouse, chain
drug, etc. CPPM
(Cost Per Package Moved) Total
promotional costs divided by the number of packages sols. Co-Marketing Promotional
strategy wherein manufacturers collaborate with key retail customers to create
promotions that accomplish mutual positioning, promotion and sales objectives. Contract
Pricing Pricing
arrangement between a retailer and marketer, which provides for consistent
pricing and/or promotional consideration, thereby avoiding the need to schedule
buying in consideration of promotional windows. Co-Op
Advertising Advertising
run by a local retailer featuring the product of a national manufacturer,
usually on a shared-cost “cooperative” basis. Co-Op
Coupon One
of a group of coupons delivered in the same vehicle for media efficiency. Co-Op
Mailing Promotional
mailing in which several marketers share the envelope, postage, and lettershop
cost. The Co-Pack Cross-Couponing Technique
in which coupons, typically in-packed, offer price reductions. Coupon A certificate with a stated value (in money or merchandise) that the customer presents to the cashier in a store that entitles the customer to savings on a specified item at the time of purchase. Coupon Billing Service A company that receives coupons from retailers and that performs the sort-and-count process, only allowing the retailer to hold its own receivables. Coupon Drop The distribution of a coupon by a manufacturer at a specific time through one or more media. Coupon Mix A variety of coupons from different media and for different products submitted by a store in a single, common submission. Crossruff Coupon A manufacturer coupon that is placed inside a product or printed on the package and is redeemable on the purchase of a different product. Deduction The difference between manufacturer invoice and the amount of distributor’s (wholesale or retailer) actual remittance. Delivery Acknowledgement Card A card returned to the shipper (usually a retail store) signed by the receiver (usually a clearinghouse) that gives the date and acknowledges delivery of a shipment made by UPS or similar return receipt.
Demographics
Statistics describing factual aspects of a target audience, including age, sex,
race, religion, income, geographic location, et al. Direct Submission Coupons that are redeemed by a retailer and sent directly to the manufacturer.
Distribution
Allowance Incentive
paid to trade in return for distributing marketer’s product to stores. Double Coupon In some markets, retailers may double (or even triple!) manufacturer’s coupons. There is always a maximum value (usually $0.50 or $1.00). Most manufacturers have guidelines they use to help their promotion planners know what values are best for these markets for their brands. EAN European Article Numbering System for global label standards European
Article Numbering International—a non-profit governing body for enabling the
efficient management of global, multi-industry supply chains by uniquely
identifying products, shipping units, assets, locations and services. EDI (Electronic Data Interchange) The computer-to-computer transmissions of business information in standard file format – purchase orders, invoices, etc.
EDLP
(Every Day Low Pricing)
Practice of eliminating promotion allowances, to provide consistent lower
pricing of marketer’s brand or retailer’s store offerings. A strategy for a cooperative effort between manufacturers, brokers, retailers and wholesalers to eliminate unnecessary costs from the overall supply chain resulting in more value for the consumer. The ECR strategy focuses particularly on four major opportunities to improve efficiency:
Elasticity Marketing term used to describe the sensitivity of sales to price. ECCC Electronic Commerce Council of Canada A
non-profit member organization that administers the EAN/UCC system for Canada. Electronic Coupon A coupon that is printed by machine in the retail store at the time of checkout. It is intended for use a future purchase. Electronic Discount A discount received by all consumers at the checkout if they purchase a specified product at a particular retailer during the promotion period. Electronic Funds Transfer (EFT) The preauthorized transfer of funds electronically via computer. Electronic Frequent Shopper A discount received electronically at checkout by all frequent shopper club members if they purchase a specified product during the promotion period. Electronic Funds Transfer (EFT) The pre-authorized transfer of funds electronically via computer. Electronic Internet Coupon A non-targeted electronic coupon delivered by the Internet. The consumer may receive a shopping list or other information with a bar code to be scanned at the checkout. No paper coupons are required. Electric Shelf A coupon dispensed on the shelf next to the product being promoted and intended for immediate use. Excessive Volume A submission of coupons that appears to be too large a number for the sales volume of a particular store, area or coupon drop. Expiration Date The last date a consumer may redeem a coupon for a product. Face Value The actual worth of the coupon or the amount
subtracted from the product price to the consumer. The
redeemable value of a coupon. Family Code A three-digit code assigned to manufacturer’s products that is part of the UPC code. Foreign Coupons A manufacturers’ term referring to coupons that were sent to them but were issued by other manufacturers. Most manufacturers return such coupons to the sender. Form Breaks FSI publishers require clients to purchase newspapers in groups, resulting in lower overall costs due to fewer press changes and less plate administration. All papers within a form will have the same FSI version, unless form breaks are allowed.
Forward
Buying Retailer anticipating the future needs and buying product “on deal” in excess of needs to take advantage of available discounts. Free Item Coupon A coupon that entitles the consumer to a product at no cost and that requires the retailer to fill in the retail price for that product on the coupon. FSI
(Free-Standing Insert) A
frequently used medium where an advertisement is inserted into Sunday
newspapers; usually a four color coupon. Gang-Cut Coupons that appear to have been cut by machine and submitted for redemption; a form of coupon fraud. GCI Global Commerce Initiative In an effort to
develop the Global Commerce Internet Protocol, four working groups have been set
to address each of the three key areas:
A fourth group has been established to make recommendations on the overall process of managing changes to standards. GCI is a
multinational industry group of suppliers, distributors and trade associations.
The group’s objective is to build an inter-business process that will
endorse a set of recommended standards enabling technologies with worldwide
application. Joining this group are
the four major Exchanges presently active in the consumer goods industry:
Transora, the WorldWide Retail Exchange, Global NetXchange and CPGmarket.com. GLN Global Location Number A
numeric code that identifies physical, functional or legal entities, used as a
unique reference key to retrieve information from databases about stores,
manufacturing plants, warehouses, sales offices, corporate headquarters, etc. GSMP Global Standards Management Process A
jointly managed EAN/UCC methodology for developing global supply chain
standards. GTIN Global Trade Item Number The
EAN/UCC 14-digitglobal numbering system for uniquely identifying products and
services. Grace Period Period beyond expiration date that manufacturers allow for coupons to complete the redemption process. Group Promotion A promotion involving several brands from one or different companies united by a theme or a mutually shared promotional device. Handling Fee The amount paid by the issuing manufacturer to
the retailer for redemption of a coupon.
Fee paid to retailer (8
cents per coupon) to accept and process manufacturer coupons. Indexes Data organized to allow comparison between newspapers or markets. In-House Processor A manufacturer who operates his own coupon-redemption center rather than contracting with an agent.
IRC
(Instantly Redeemable Coupon) On-pack
coupons intended to be removed in the store and redeemed “on-the-spot” at
checkout. In-ad
Coupon Manufacturer’s
or retailer’s coupon printed in a retailers advertising or in-store handout.
Incremental
Sales Additional
product movement (sales) traced to the effect of a promotion. In-Store
Marketing Promotions that occur at the retailer’s location, e.g. product demonstrations, sample distribution, electronic marketing, price features, et al. Instant-Redeemable Coupon (IRC) A coupon attached to a package or displayed nearly that can be removed by shoppers and redeemed at the time they purchase the product. Internet Coupon Coupons obtained via the Internet for savings on products or services. Invoice Receipt Date The date the manufacturer or agent takes possession of the invoice. ISO International Organization for Standardization A
network of national standards institutes from 140 countries working in
partnership with international organizations, governments, industries,
businesses and consumer representatives for establishing and maintaining
harmonized international standards. Loyalty
Program Promotional
program designed to enable a marketer to identify, cultivate and retail its base
of current customers. Manufacturer Coupons Coupons issued by a manufacturer offering consumers a specific amount off the purchase price of one or more of the manufacturer’s products. The coupons may be distributed through a variety of media – in the manufacturer’s newspaper or magazine ads; in a free-standing insert; in or on a product package; by mail or door-to-door delivery; etc. Manufacturer’s Redemption Agent An independent company hired by a manufacturer to handle coupon redemption on behalf of the manufacturer. Manufacturer’s Processing Service Service that provides the labor-intensive work
related to the processing of coupons including receiving and data entry work. A sales representative of a manufacturer, who may be either a salaried employee or a broker acting as an agent for several manufacturers on commission. Maquilla A company in Mexico that provides services to U.S. companies. Marketing
Mix The
combination of all elements utilized to market a product, including pricing,
advertising, packaging, and promotions, et al. Market
Share Percentage
of a category sales accounted for by a brand. Misredemption Coupons that were not redeemed properly for the correct products in accordance with the stipulations printed on the particular coupon. The intentional redemption of any coupon without a corresponding product sale by a retailer. Non-Coupon A piece of paper that may resemble a coupon or may even be part of a coupon, but is not an actual coupon. Offer Code A five-digit element in a UCC/EAN 128 coupon extended code used by coupon issuers to identify a coupon promotion. On-Pack Coupon A manufacturer coupon that is printed on a product's package or affixed to a product in some way. Open System The term used to describe computer systems that are freely available for use without payment by hardware/software developers.
Pantry
Loading
Quantity purchase of products on discount, deal or coupon.
Pay-for-Performance Marketer’s
incentive payment to retailer based upon a specific, measured action being
accomplished. Pay Directs Coupons that are submitted by the clearinghouse to the manufacturer on behalf of the retailer with instructions to pay the store directly instead of the clearinghouse. Point of Sale (POS) The place where the purchase is made at the check stand or scanning terminals in a retail store. The retail location where the consumer encounters a marketer’s product. Price Lookup Function (PLU) A feature of an in-store computer system that verifies the selling price of an item through use of a centrally maintained price file.
Private
Label Packaged good product produced by the retailer or wholesaler under the retailers label. Promotion 1) A marketing tool that is a temporary effort to create extra interest in the purchase of a product or service by offering values in excess of those customarily afforded by such purchases, including temporary discounts, allowances, premium offers, coupons, contests, sweepstakes, etc. Also, sales promotion. 2) Loosely, any effort to encourage the purchase of a product or service. Promotional Allowance Also called merchandising allowance, a discount from a supplier to a retailer, who agrees to use the discount to promote the product’s purchase. Proof-of-Purchase Invoices showing a retailer’s purchase of a sufficient quantity of product to validate the number of coupons submitted for redemption by the retailer. Also the U.P.C., label, bottle capliner, etc. used as evidence that a promotional item was purchased. Questionnaire A series of questions used by a retail clearinghouse or a manufacturer to confirm that a firm submitting coupons for redemption is a bona fide merchant redeeming coupons in accordance with the stipulation of the specific manufacturer’s coupons. Quick Pay Program set up for the manufacturer to pay the retailer within five days of receipt of scan data collected at the retailers and sent through the retailer’s clearinghouse.
Rebate/Refund An incentive to purchase in the form of a discount mailed to consumers after their purchase. A monetary reward to the consumer in return for proof of purchase. Redeem To fulfill the requirements of a consumer promotional offer (such as a coupon) in a prescribed manner resulting in receipt of goods at a reduced price or for free. Redemption The cashing-in of coupons when merchandise is purchased in order to obtain discounts or premiums. Redemption Center A location maintained by a manufacturer or the manufacturer’s agent where coupon redeemed by consumers are to be submitted by retailers and clearinghouses to obtain reimbursement. Redemption Rate A weighted measure of responses calculated by dividing cumulative redemptions by the total number distributed. Refund Certificate A certificate issued by a manufacturer that offers consumers money back on the purchase price of a product, usually after they mail some proof of purchase to the manufacturer. A rebate. Retail Clearinghouse An independent company used by a retailer to sort, count and submit coupons for payment to manufacturers or their agents on behalf of the retailer. Retailer Agreement An agreement between a retailer and a clearinghouse authorizing the clearinghouse to serve as the retailer’s agent in submitting coupons to manufacturers. Retailer Verification Authentication of the legitimacy of a retailer (usually by means of a visit to the store, called an "audit") to verify that a retail location exists and that products for which coupons have been submitted are actually available for sale in that store. Return Receipt Card A green card returned to the sender of a shipment by U.S. Post Office signed by the receiver of the shipment and showing the date the shipment was received.
ROI
(Return on Investment) Measurement of the success of a marketing program calculated by comparing the revenue generated to the amount invested in the campaign. For example, if a $1million program produced incremental sales of $3 million, with a 50% profit margin, the ROI is 50%. (Three million times 50% equals $1.5 million in incremental profit. Subtract the $1 million expense from the $1.5 million return and you got $500,000 profit in excess of cost.) The $500,000 is half the original costs, so the ROI can be factored at 50%.
Robinson-Patman
Act Federal
law prohibiting unfair price competition among retail outlets for specific
product categories. ROP Coupon (Run of Press) Newspaper coupon requiring very short lead times. Salting Unethical
practice of adding extra coupons to a retailer’s submission, for the purpose
of defrauding the marketer. Sampling Marketer’s
technique of achieving trial by getting product into the hands of consumers,
usually free. Scan
Down A
marketer’s incentive to retailers, passed onto consumers, based on product
movement through check-out during a specific time period, as measured by scanner
data. Scanner
Data Data
captured by the scanner process, which can be used for inventory control, sales
analysis, et al. Scan Validation Scanned coupon is verified by matching with
product purchase. Products which have strong seasonal cycles and/or newspapers which have stronger circulation during the winter. Segmentation The
act of viewing consumer markets as segments, defined by narrower-than-mass
target audiences, and developing products or marketing programs most appropriate
for those segments. Shelf-Talker A written promotion designed to hang over the edge of a retailer’s shelf. Shipping Time Reasonable shipping time to the manufacturer/agent is five days. Single Count A one-count processing system where coupons are collected and all coupon processing procedures are done at one location. Slippage The
difference between the potential number of consumer responses to an offer from
the actual number that responded. Slotting
Allowance An
incentive paid to a retailer in return for the retailer’s shelf space. Smartcard Memory-chip
resident card used to store information about the holder, which is readable and
writable when inserted into the card reader of any smartcard appliance. The
science of analyzing product movement potential and allocating shelf inventory
to best accommodate that potential. Also
involves the decision of product location/position/facings on the shelf. Sponsorship Underwriting
an event for the purpose of gaining positive brand awareness with the event. Store Check An examination of a store to determine merchandise carried. Store Coupon A coupon printed by a retailer and available to shoppers in the store, either in a special flyer or at the shelf or display where the couponed product is stocked. Submission Verification A clearinghouse process of counting and sorting a shipment of coupons from a retailer. Sunday Supplement On-page coupons/ad delivered via printed pages of the Sunday newspaper supplements or general interest magazines, etc. (See FSI)
Sweepstakes A promotion which requires only a chance to win and therefore: 1) no purchase (consideration) can be acquired; and 2) winners(s) can be determined by random drawing.
Target
Audience That defined group of consumers a marketer considers to be “prime prospects’; “i.e. most likely to purchase large quantities of product. Tearsheet An unbound page from a newspaper or periodical showing an article, advertisement, etc. as printed; used as proof or as an extra copy. Test
Market Defined marketing area in which an alternative marketing mix can be evaluated versus the national plan, or a new product introduction marketing mix evaluated. Tie-in A cooperative promotion effort where more than one brand or company is involved. Trade Promotion Trade Promotion is any expenditure paid directly
by a manufacturer to the trade or retail factors in a given industry as a set
amount on a per unit basis or in payment for a merchandising value provided by
the retailer. Trade Promotions would include "slotting allowances",
"performance allowances", "case allowances" and
"account specific" promotions. The number of times a product’s average retail inventory is moved (sold) during a year. UCC Uniform Code Council A
non-profit organization established to manage the US UCCnet A
non-profit data registry providing a universal foundation for electronic
commerce by allowing trading partners to have access to synchronized EAN/UCC
item information, as well as access to compliant business applications and
services ensuring connectivity between trading partners. Uniform Communication Standard (UCS) A set of standard transaction sets for the grocery industry that allows computer-to-computer, paperless exchange of documents between trading partners. Universal Product Code (U.P.C.) Coupon Code A 12-digit, all-numeric code, beginning with a number system character (NSC) assigned by the UCC as part of the manufacturer’s ID number. Next comes the five-digit manufacturer identification number, a three-digit family code, a two-digit value code, and a modulo 10 check character. Universal Product Code (U.P.C.) Symbol A combination of vertical bars printed on product packages (or on coupons) that can be "read" by an electronic scanner at the checkout to identify the item, automatically look up the item’s price (or the coupon’s value) in a computer, and instantaneously ring-up the price (or the value) on the cash register. Version Each combination of ad-copy and coupon graphics. VICS Voluntary Interindustry Commerce Standards Association A
global organization focused on improving the availability of products to
consumers by providing leadership in the identification, development and
implementation of volunteer standards, protocols, guidelines throughout the
entire supply chain in the retail industry. |
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