Home/Company Links/In-Store Marketing, Merchandising and General Advertising Definition of Terms
In-Store Marketing, Merchandising and General Advertising Definition of Terms
A Frame: Retail displays that are “A” shaped.
Accelerated Purchase: When a consumer product manufacturer sets a
plan in motion to move a product much faster than originally was planned for.
This can be sales to a retail buyer or to a consumer.
Accent Lighting: A specific spot on a retail display that gets
slightly more lighting focus than the rest of the display to make a part stand
Promotion: The Consumer Product Manufacturer (aka CPG) offers a specific
promo to a specific retailer. It’s up to the retailer to accept or reject it.
If accepted, it usually is implemented as suggested by the CPG.
Acrylics: A very
popular material used in point of purchase displays ranging from countertop
sign holders to jewelry risers, shelving etc. It is clear in color, can handle
much more impact than glass, and when scratched, most of the time, can be
removed with a polish.
Action Aisle: The store aisle that is chosen for promos.
Activation: Marketing strategies when put into action. When a retail customer makes a purchase directly
as a result of an in-store trigger such but not limited to; a promotion, sale,
POP signage, retail displays, a cross-sell or impulse purchase, etc.and doing due diligence to learn in-store shopper
behaviors to make new marketing plans in direct response to that information
Ad re-print holder: A device that is used off-walls, counters or
displays that will hold multiple printed
sheets usually 8.5” x 11” in
When in-store sales staff change their style of sales based on the scenario
they are confronted with.
Add-on: When unexpected, incremental merchandise
becomes part of a sale.
Products and/or Product Departments located alongside one another in retail
It provides good-will to a customer by giving them up-front rewards, all in an
attempt to encourage future purchasing.
Allowances: Payments made by the
brand manufacturer to the retailer for advertising opportunities in store,
radio, television or other media placements.
Advertising Specialty: Branded items that are normally used as giveaways
to help promote a company. Common items include pens, magnets, bags, key
Affiliated Chain: A consortium of retail stores that do not
compete with each other, but instead join together to gain buying power and
have the ability for exclusive sales rights in a territory.
Affiliated Retailer: A co-op of retailers that join forces to benefit
from volume purchasing and shared marketing dollars.
Affinity Marketing: Marketing to specific groups of people based
on their shared interests.
marketing term referencing shoppers being grouped together under a universal
Air Right Display:
A display that suspends from overhead at retail.
Aisle: A corridor within a retail store which has a
unique subset of products marked off with signage from above or high off a wall.
It will normally have retail store shelving and wall fixtures flanked on both
sides displaying products and some temporary corrugated displays on the floor.
Aisle Blocker: A
movable display merchandiser that is used to temporarily block off a closed check-out
counter or store aisle.
A retail store sign suspended from the ceiling or attached to a wall at both
ends of an aisle with product category names identifying what is in the aisle.
Aisle Jumper: A
cable wire that hangs above horizontally displaying a sign or banner.
Aisle Signage: A
broad range of signs that are displayed in an aisle off the retail display from
the top, the back wall, from a shelf, the price channel in a flush or in a flag
position. This signage can also be used with
a floor banner stand or with peel on floor graphics.
Aisle Violator: A retail store sign that hangs from a store
shelf or display fixture in a flag position (at a 90-degree angle). Because it hangs out into the aisle, it
“violates” the aisle, hence the term.
Alignment: When a
store groups elements in a seamless manner creating a synchronized “look and
Allotment: A limited quantity of
product made available to a specific retailer or geo-region. The term can also describe
the actual physical space designated for a product.
Allowance: When a manufacturer gives a retailer a
discount on invoice for a set of actions by the retailer such as paying
earlier, bulk purchasing, or promos provided to manufacturer such as sales or
Alpha Testing: Testing a new product out internally before
hitting the market at-large.
This term is becoming obsolete but does get used in certain circles. It once
meant, everything but TV, Radio, Print and Outdoor Advertising. “Alternative” included media such as
Out-of-Home (aka OOH), Guerilla Marketing and even Digital. But that has
changed over time as marketing digital media has become mainstream.
It displays a product out of good-will
and does not pay the manufacturer for placement.
Apron: An area where
it displays merchandise outside the primary space.
Bar Code: a
machine-readable code, which has alternating dark and light bars, placed on a
product’s packaging for identification.
Basket Ring: It
refers to the amount of money spent by consumers.
product that is temporarily out of stock.
Black Friday: The
day after Thanksgiving, when massive sales events occur nationwide.
It is a strategy in which a product is promoted through the distribution of
pamphlets, brochures, products demos and sampling, rather than radio,
television, out-of-home ads and print media.
Big-box Store: A
large warehouse type of store that sells a variety of products and is usually
part of a major chain.
Brand: A way to distinguish between like and/or
similar products to avoid any confusion. Furthermore, many brands separate
themselves legally by registering a trademark of the brand term with the United
States Patent and Trademark Office.
Assortments: a variety of products that are for sale.
Brick and Click: It
is when a retailer integrates both their offline and online store.
Brick and Mortar: It signifies physical store selling
compared to stores selling online
When a company or business bundle products together and sell it for a lower
price than selling them individually.
Card File: It is
a systematic way of collecting cards, containing sensitive information.
Carrying Cost: It
is a holding cost that refers to the cost of inventory; includes maintenance,
warehousing rent, utilities and salaries.
Cashwrap: It is a
place where the POS terminals are located and where consumers can make a
Chargeback: It is
a type of transaction reversal, when a cardholder reports fraudulent activity
committed by both merchants and individual.
letter: It is a letter intended to convince a customer not to pursue the
goods: Pertains to the products that are available for consumers to
This is a business agreement, where the consignee will pay the consignor, after
the product has been sold.
These are the products that consumers frequently buy, without the need for
Cost of goods sold:
This refers to the total cost of sold goods over a particular period.
It refers to displaying products coming from different categories in the vicinity
of each other in order to generate additional sales for the store.
Dead Stock: This
pertains to an item that has not been sold and/or has been out of stock for a
long period of time.
It is a hub where products are kept in order to be disseminated to different
stores or directly to customers.
Drop Ship: It is a process of moving goods
or products from the manufacturer directly to the consumers, hence the merchant
will not be able to see or handle the product in the process.
These are items that are being used daily and can be used for a period of time.
These are products that do not need be refrigerated and have a long shelf life.
to the selling of products online.
Endless aisle- It
is a strategy being utilized by brick-and-mortar to showcase products that are
currently out of stock or only sold online. This allows customers to order
these items and have them shipped directly to their homes.
Everyday Low Pricing
(EDLP)- It is a strategy that promises shoppers of constant low price,
without needing to wait for a sale or promotion.
Flash Sales- These
are sales that are offered by online stores and usually promoted over a short
period of time.
Franchise- It is
a strategy of expanding ones’ business either by distributing goods or services
and therefore giving another entrepreneur the right to open and run a business
through a licensing relationship.
This pertains to the commitment of a business to support and practice
environmentally friendly initiatives. For example, encouraging customers to use
recyclable shopping bags, etc.
High Speed Retail-
It pertains to making the customer’s experience go by much quicker and reducing
It refers to products that are bought by the customer that are not part of the
original shopping list. Emotions typically play a significant role in this purchasing
It is a pricing method wherein an item is being sold at an amount that is
double the wholesale price.
It is an arrangement in which a retailer reserves an item, secured by a
deposit, and such item will be given to the customer once payment is settled in
Last in First out
(LIFO)- It is an accounting method where the last item produced or
purchased were the ones used or sold first.
Loss Leader- It
is a product that is sold lower than its market value to attract customers.
Lot size- Refers
to the quantity of items offered or purchased during a specific period of time.
refers to the reduction in price of a product.
opposite of markdown, it is the amount added to the price of a product.
Pertains to the custom products that are produced in large volumes at a low
is the process of displaying products accordingly to encourage consumer
Price (MAP)- It is an agreement between supplier and retailers, distinguishing
the lowest price a product is allowed to be advertised at, where and where not
a reseller can sell items etc.
Retailing- It is a strategy where a company uses other avenues to promote
and sell products either via traditional brick-and-mortar, catalogs or online.
also known as secret shopping; it is when a person was hired by a market
research firm or by retailers acting like a regular shopper, gathering data on
consumer behavior, pricing and or customer services.
Niche Retailing- It
is a type of business setup that sells product to a specific type of market
Net Profit- it is
the number of sales after accounting for all costs and taxes.
It is used to describe products that have not sold for a long period of time
and cause large losses for the company.
Off Price- it is
a method where products are being sold for less than the retail price
it is a type of marketing where retailers integrate different shopping
experiences available for the comfort of their consumers. Its main objective is
to provide customers with a seamless shopping experience.
is the process of planning merchandise purchasing; designed to assist business
owners replenish their assets.
is used in retail to indicate placements of products to minimize dead space and
It is a strategy of pricing goods at a premium level to show its exclusivity
and give an impression that the product is luxurious and high quality.
Price Look Up- This
refers to identification numbers affixed to products in the supermarkets to
make check out and inventory efficient and accurate.
Private Label- It
refers to the product manufactured by a third party and being sold by a
retailer brand’s name.
is the process of selecting and acquiring products or services that is vital to
an organization or retail business.
Product Life Cycle-
This pertains to every product that goes through from introduction of product
to the market to withdrawal or an eventual demise.
POP Display- Also
known as Point-of-Purchase display; marketing paraphernalia displayed next to
the product being promoted to catch the customer’s eyes and attract more sales.
Refers to a retail store that is opened for a short period of time, where
retailers take advantage of a trend or holiday season.
Purchase Order- It
is a legally binding document where the descriptions, quantities, price, terms
of payments, and delivery dates are indicated.
Quantity on hand-
Pertains to the number of items a retailer currently has in stock.
Quantity on order-
Refers to the number of ordered items from the supplier.
It is the incentive offered by a seller to a buyer for purchasing a high volume
Quick Response- It
is a term used in inventory management that refers to quickly replenishing
products or goods according to the demands of the consumer.
Identification (RFID)- It is a form of communication used to identify and track
items via a small radio wave device attached to products, frequently related to
retailing- It is a strategy utilized by retailers that focuses on customer
loyalty and long-term customer engagement.
is a form of online targeted advertising that allows online advertisers to
target consumers based on their previous interaction with the brand’s website.
pertains to the loss of inventory resulted from several factors like employee
theft, shoplifting, inventory errors, product damage and more.
is when a consumer visits a physical store to inspect the product meticulously
before buying it online for a fraction of the price.
Spot- This refers
to a television or radio commercial. These spots may range from 30-60 seconds
(SKU)- It is a product identification code assigned to a product by the
retailer to identify price, track inventory and determine manufacturer of the
Social commerce- It
is a form of ecommerce, which incorporates the use of social media to assist in
the buying and selling of products. It relies on the user ratings, reviews,
comments and referrals to facilitate online shopping.
Store Loyalty- It
is when a buyer repeatedly purchases the products/services of a specific store.
It is a strategy where a retailer has positioned itself in the retail market.
It is a sales strategy wherein the store staff would recommend a product that
would fit the client’s needs.
Management- it is the art of managing all the activities that must take
place to meet the needs of the end-customer.
Tear sheet- It is
an actual copy of a print advertisement that is sent to the advertiser as a
proof of advertisement.
is a process of customizing your store and products - everything from the
overall look of the store design to ad campaigns, designed to target a specific
group of consumers.
Unit per transaction-
It is a sales metric that measures the average number of products that
customers are purchasing over a specific period with comparison to target
It is a strategy utilized by retailers to effectively maximize sales. It is used
to influence customers’ purchasing decisions.
pertains to the number of products or services sold by a company in a specific
period of time.
System- It is a system that manages and tracks movements of items inside
Wholesale- It is
the selling of products in bulk quantities and at low prices, to be resold by