Point of Purchase Retail Store Fixtures, merchandising displays, sign holders and frames, hang tabs, display peg hooks, ceiling hanging, display construction and much more...

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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 out.
  • Account Specific 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 size.
  • Adaptive selling: 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.
  • Adjacencies: Products and/or Product Departments located alongside one another in retail environments.
  • Advanced Premium: It provides good-will to a customer by giving them up-front rewards, all in an attempt to encourage future purchasing.
  • Advertising 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 chains, etc.
  • 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.
  • Aggregation: A marketing term referencing shoppers being grouped together under a universal concept
  • 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.
  • Aisle Directory: 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 feel.”
  • Allocation or 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 advertising.
  • Alpha Testing: Testing a new product out internally before hitting the market at-large.
  • Alternative Media: 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.
  • Altruistic Display: 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.
  • Backorder: A product that is temporarily out of stock.
  • Black Friday: The day after Thanksgiving, when massive sales events occur nationwide.
  • Below-the-line-advertising: 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.
  • Breadth of 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
  • Bundled Pricing: 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 purchase.
  • Chargeback: It is a type of transaction reversal, when a cardholder reports fraudulent activity committed by both merchants and individual.
  • Chargeback rebuttal letter: It is a letter intended to convince a customer not to pursue the dispute.
  • Consumer packaged goods: Pertains to the products that are available for consumers to purchase.
  • Consignment merchandise: This is a business agreement, where the consignee will pay the consignor, after the product has been sold.
  • Convenience product: These are the products that consumers frequently buy, without the need for intensive decision-making.
  • Cost of goods sold: This refers to the total cost of sold goods over a particular period.
  • Cross merchandising: 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.
  • Distribution Center: 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.
  • Durable goods- These are items that are being used daily and can be used for a period of time.
  • Dry Storage- These are products that do not need be refrigerated and have a long shelf life.
  • E-tailing- Refers 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.
  • Green Retailing- 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 wait time.
  • Impulse Purchase- 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 decision.
  • Keystone Pricing- It is a pricing method wherein an item is being sold at an amount that is double the wholesale price.
  • Layaway/Lay-by - 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 full.
  • 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.
  • Markdown- it refers to the reduction in price of a product.
  • Markup- The opposite of markdown, it is the amount added to the price of a product.
  • Mass customization- Pertains to the custom products that are produced in large volumes at a low cost.
  • Merchandising- It is the process of displaying products accordingly to encourage consumer purchasing.
  • Minimum Advertised 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.
  • Multi-channel 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.
  • Mystery Shopping- 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 segment.
  • Net Profit- it is the number of sales after accounting for all costs and taxes.
  • Obsolete Inventory- 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
  • Omnichannel Marketing- 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.
  • Open-to-buy- It is the process of planning merchandise purchasing; designed to assist business owners replenish their assets.
  • Plan-o-gram- It is used in retail to indicate placements of products to minimize dead space and maximize sales.
  • Prestige Pricing- 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.
  • Procurement- It 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.
  • Pop-up store- 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.
  • Quantity discount- It is the incentive offered by a seller to a buyer for purchasing a high volume of products.
  • 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.
  • Radio Frequency 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 theft prevention.
  • Relationship retailing- It is a strategy utilized by retailers that focuses on customer loyalty and long-term customer engagement.
  • Retargeting- It is a form of online targeted advertising that allows online advertisers to target consumers based on their previous interaction with the brand’s website.
  • Shrinkage- It pertains to the loss of inventory resulted from several factors like employee theft, shoplifting, inventory errors, product damage and more.
  • Showrooming- It 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 in length.
  • Stock-keeping Unit (SKU)- It is a product identification code assigned to a product by the retailer to identify price, track inventory and determine manufacturer of the merchandise.
  • 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.
  • Store positioning- It is a strategy where a retailer has positioned itself in the retail market.
  • Suggestive selling- It is a sales strategy wherein the store staff would recommend a product that would fit the client’s needs.
  • Supply Chain 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.
  • Tribetailing- It 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 values.
  • Visual Merchandising- It is a strategy utilized by retailers to effectively maximize sales. It is used to influence customers’ purchasing decisions.
  • Volume- It pertains to the number of products or services sold by a company in a specific period of time.
  • Warehouse Management System- It is a system that manages and tracks movements of items inside the warehouse.
  • Wholesale- It is the selling of products in bulk quantities and at low prices, to be resold by retailers.