Spar InfoTech, Inc.
PROMOTION GLOSSARY OF TERMS
Advertising Allowance - Payment by a manufacturer, to a retailer for advertising the manufacturer's product.
All Commodity Volume (ACV) - The total of all products sold through grocery stores in a given market. Each chain's relative importance is measured by its share of ACV.
Allowance - A temporary price reduction or discount offered to the retailer by the manufacturer. Sometimes given in the form of free goods, like one case free with twelve.
Base Franchise - Level of loyal consumer purchases (see SPARLINE).
Billback Allowance - An allowance which is not paid to the retailer until he provides proof he has complied with the requirements of promotion.
Bonus Goods - Free product given by a manufacturer to a retailer as an allowance (e.g., 1 free with 11 means that for each 11 cases of a product purchased, a retailer get 1 case free).
Box Stores - (Also known as halfcase warehouses) - Stores, usually very plain in design, that sell consumer products by the case (or half case) at very low prices.
Case Allowance - An allowance by a manufacturer to a retailer. The allowance is usually proportional to the number of cases purchased.
Case Rate - The amount of the case allowance.
Clearing House - An organization that counts and rebates coupons sent from retailers and, in turn, sends them to the manufacturer's redemption center for payment.
Consumer Promotion - Marketing activity designed to cause specific consumer reaction.
Cooperative Merchandising Agreement - A contract between a manufacturer and a retailer or wholesaler in which the manufacturer agrees to pay for specified merchandising services, such as featuring, display, price reduction, etc. Abbreviated C. M.A.
Count and Recount Allowance - An allowance paid for each unit of a manufacturer's specified merchandise sold to customers in a stated period of time. Involves inventory at beginning of period (count) plus purchases and final inventory (recount) to determine retailers' sales to customers during the promotion period.
Cub Store - A large boxstore chain licensed by a wholesale grocer.
Dead Net Pricing - The price to the retailer after all promotional allowances, quantity and cash discounts are considered.
Deal - (noun) A promotion to retailers.
Deep Deals/High List - A strategy where the list price is artificially high and is subject to continuous deals at a high discount rate.
Direct Store Delivery (DSD) - A delivery of merchandise from a manufacturer directly to a retailer rather than via a warehouse or wholesaler. Also drop shipment, store door delivery.
Display - (noun) An arrangement of goods, possibly with decorative material, intended to call attention to the product. A stack of products in a selling area.
Display Allowance - A promotion allowance to retailers to display merchandise, in addition to regular shelf position.
Display Bin (dump bin) — An open bin, usually of heavy paper or cardboard, for the display of merchandise piled inside.
End Aisle Display - A special retail store display in which the promoted product is prominently positioned at the end aisle gondola location.
Execution of Promotions - The actual implementation of the performance criteria.
Feature - A retail item being given special sales attention, usually referring to cooperative advertising.
Floor Stand - A standing bin for the display of merchandise.
Forced Distribution - Automatic distribution of a product by chains to individual stores.
Free Goods - Product given free with the purchase of specified quantities from a manufacturer.
Free Standing Insert (FSI) - A preprinted advertisement that is inserted loose into newspapers, particularly Sunday editions.
Group Promotions - A promotion involving several brands from the same or different companies, usually integrated by a theme or mutually shared promotional program such as sweepstakes or refund. (Also known as Theme Promotions.)
In-House - A term used to describe a company that implements one or more services within the company as opposed to contracting with outside suppliers.
Invoice — A bill sent to a customer for merchandise shipped to him. It lists quantities, brands, prices and date of shipment.
Key Account - A major customer of a manufacturer.
Market Area - A geographical area that becomes a cohesive area for marketing. It tends to have the same distribution patterns, the same supply sources, and frequently, political boundaries.
Merchandising - (noun) Marketing activities, including sales and promotion, designed to make product available, attractive and conspicuous in a retail store.
Off Invoice - (noun) A deduction from an invoice from a manufacturer in exchange for the retailer's promotional efforts. Also off invoice allowance or deal.
Packaged Goods - Products wrapped or packaged by the manufacturer, normally of uniform sizes. Items are used broadly and frequently consumed; typically sold through food, drug, and mass merchandise retail stores.
Performance Allowance - A rebate of a portion of the purchase price of goods provided to those retailers who agree to perform merchandising services such as advertising or display.
Performance Criteria — The specific activity required so that the trade will receive a performance allowance.
Point-of—Purchase (POP) — The place at which a customer encounters a retail item that he or she may buy. Also point-of-sale (POS).
Pre-Pack Display - (floor stands, pre-assembled displays) Displays with merchandise (product and/or premium) placed inside at plant and shipped as one unit (rather than shipping display pieces, premiums, and product displays). This procedure makes it relatively easy for the retail outlet to display the product.
Promotion - (noun) A marketing tool that is a temporary effort to create sales of a product by offering values in excess of those customarily afforded by such purchases.
Promotion Allowance - A rebate or discount offered by a manufacturer to a retailer who agrees to promote the product purchased under allowance. Also merchandising allowance.
Roto (Rotogravure) - Special color circulars run by retail accounts to highlight special product savings.
Scanner Data - Information regarding consumer purchases gathered from automated checkout sytems.
Share - The percentage of total retail purchases for a given category that is enjoyed by any one brand in that category. Also share of market, share of retail sales.
Shipments - Cases of product sent to retailers during a specified period (week, month, year).
SPARLINE - Proprietary name for SPAR's estimate of volume that would be sold in the absence of specific promotions. Corresponds to base consumer franchise.
Store Door Delivery - Delivery of product or materials directly to a store.
Street Money - Funds under the control of local sales offices, used to supplement normal spending levels for certain retailers. (Also known as Local Marketing Funds and Fighting Funds.)
Sunday Supplement - Any of various non-news sections included with a Sunday newspaper, such as comics, or television schedules, and especially general interest magazine sections.
Trade Promotion - Short term activity designed to stimulate trade support for a specific product.
Universal Product Code (UPC) - Most products sold in grocery stores in the United States have a special striped visual code on the package which is used by optical scanners at checkout counters to automatically record the brand and its price. Referred to by different names in other countries (e.g. in Australia it is APC standing for Australian Product Code).
Warehouse Store - A retail store, usually of large size, offering discount prices by means of eliminating or reducing such services as carryouts, deliveries, price marking of items, shelf stocking, etc. Also known as hypermarket.