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GLOSSARY2017 g Unlimited Advantage

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Menasha, the industry’s largest independent, retail-focused packaging and merchandising solutions provider, is proud to sponsor the 2017 Path to Purchase Glossary, one of the cornerstones of P2PI’s industry education efforts. In this sixth edition Glossary, you’ll find nearly 800 shopper marketing-related terms and visuals drawn from the ever-evolving Peter Breen disciplines of merchandising, consumer and trade promotion, digital marketing, packaging, e-commerce, P-O-P, advertising, research and store design. The Path to Purchase Institute’s editors compile and write all the entries after fielding suggestions* from the Institute’s brand, retailer, agency and solution provider members.

In addition to this print version, the 2017 Glossary will be accessible on the Tim Binder Path to Purchase Institute’s websites at www.p2pi.org/glossary and www.shoppermarketingmag.com. It also will become part of the “Shopper Marketing App,” which can be downloaded at either www.apple.com/itunes or https://play.google.com/store. Menasha supports initiatives like the Path to Purchase Glossary because information sharing and personal connections are foundational to good customer Patrycja relationships. We do indeed measure our success by our customers’ success, and Malinowska can do so because of a heritage that’s built on: • Innovative branding and “design that sells” capabilities, driven by an unmatched understanding of the retail sector; • A level of experience that enables us to collaborate at the highest levels of the world’s leading retailers and CPG companies;

• A proven personalized service methodology that develops efficient, sustainable Samantha offerings designed to meet each customer’s specific goals; and Nelson • A commitment to “Go Beyond” the expected and deliver the greatest measurable value across the entire integrated merchandising supply chain. On behalf of everyone at Menasha, we hope you’ll keep the 2017 Glossary handy and use it, share it and even critique it – but above all, we hope you’ll learn from it.

Michael K. Waite Cyndi Loza President Menasha Packaging

* To suggest a term, visit www.p2pi.org/glossary-request

Charlie PATH TO PURCHASE GLOSSARY Menchaca Executive Chairman Writers Alan Glass, [email protected] Peter Breen, Tim Binder, Patrycja Malinowska, President & CEO Samantha Nelson, Cyndi Loza, Peter Hoyt, [email protected] Charlie Menchaca, Ben Ross , William Schober Chief Customer Officer Underwriter Ned Bardic, [email protected] Menasha Chief Digital Officer Art Director Ben Ross Joel Hughes, [email protected] Sonja Lundquist Chief Operating Officer Managing Director, Platforms & Publishing Korry Stagnito, Albert Guffanti, [email protected] [email protected] Director — Associate Publisher Chief Financial Officer Craig Hitchcock, [email protected] Chris Stark, [email protected] Director — Associate Publisher William Rich Zelvin, [email protected] Schober 6 PATH TO PURCHASE GLOSSARY

1-D BAR CODE ACCELERATED PURCHASE A one-dimensional represen- A specific goal set by a brand tation of data, such as a UPC to have shoppers and retail- (“universal product code”). ers buy a product faster than expected or planned for. 2-D BAR CODE A two-dimensional represen- ACCENT LIGHTING tation of data in a geometric A touch of lighting that is used pattern that is easy for mobile to emphasize part of a shopper phone cameras to read. Code marketing display. types include QR (“quick re- sponse”) and Data Matrix. ACCEPTABLE PRICE RANGE 3PL Product prices that buyers and the retailer is not involved in A Third Party Logistics Pro- shoppers are willing to pay. development but simply ac- vider (3PL) provides outsourced cepts the product manufac- (“third party”) logistics for vari- ACCEPTANCE turer’s program. ous supply chain management The retailer’s agreement to functions such as transporta- support a manufacturer’s mar- ACCRUAL tion, warehousing and/or inven- keting program. Promotional allowances ac- tory management. cumulated by manufacturers ACCOUNT OPENER or suppliers for their retail or A premium or incentive of- wholesale customers. Typically A fered to a prospective buyer calculated as a percentage of A-BOARD to secure purchase. The term the product invoice price. is used most commonly in the A sign in which two sides are financial services industry. joined at the top by a cross ACCRUAL FUND brace to form an “A” shape. Promotional payments that ACCOUNT-SPECIFIC Often used at curbsides or build up over time based on PROMOTION outside store entrances. purchase volume and can be Marketing activity that’s cus- “redeemed” in a future period. tomized by a product manu- A-FRAME facturer for a specific retail A style of display in which the ACH partner. Typically used in refer- structure forms the shape of Automated Clearing House. ence to campaigns in which an “A.”

ABOVE THE FOLD The content at the top of a webpage that’s visible with- out scrolling down. A term borrowed from newspapers, where the most important sto- ries are at the top of a broad- sheet above the spot where the page folds in half.

ABOVE-THE-LINE ADVERTISING Any form of advertising for which a commission or fee is paid to a recognized advertis- ing agency operating on behalf of a client. The term most com- monly refers to mass media advertising through television, ACTION ALLEY radio and print; it also is used A store’s main thoroughfare, often the first sales area that shoppers to compare brand-building ad- see upon entering, and considered to be prime real estate for pro- vertising strategies with sales- motional merchandising. Originally used to denote Walmart’s power driving promotional tactics, or aisles, the term is now often used generally. The alleys, in general, below-the-line advertising. can be found up front, near checkout, or in the back of the store. PATH TO PURCHASE GLOSSARY 7

ADJACENCIES ADVERTISING SPECIALTY Product catego- Inexpensive branded toys or ries on-shelf or gifts such as key rings, pens, product depart- T-shirts, etc., used as premiums. ments located Less commonly referred to as next to each “advertising novelty.” other within a retail store. ADVERTISING SUBSTANTIATION A Federal Trade Commis- sion regulation that requires advertisers to document claims made in ads. ACRYLICS AD REPRINT HOLDER ADVERTISING WEIGHT Very popular display material A frame or other device used The amount of media advertis- because it has half the weight to encase reprints of circular ing supporting a brand over a of glass but can withstand four pages or other advertisements. particular time period, usu- times the impact. It resists most These are typically displayed ally measured in gross rating cleaning agents. While it can be on tabletops or stanchions. points. See GRP. scratched, polishing can remove marks. Common uses in P-O-P: AD SLICK jewelry cases, lenses, edge-lit ac- ADVERTISING/MARKETING Product or promotion graphics EFFECTIVENESS cents and faux glass shelves. provided by marketers to retail- An assessment of the impact ers or publishers for reproduc- made by a marketing program, ACTION AISLE tion in ads. measured by sales lift, brand A store aisle in which promo- awareness levels and various tional items are displayed. Also ADAPTIVE SELLING other parameters. referred to as a “power aisle.” A practice that encourages salespeople to alter their in- ADVOCACY ADVERTISING ACTIVATION teraction with the customer Ads supporting or opposing a (1) The implementation or ex- based on the nature of the sell- social or political issue. ecution of a marketing plan. (2) ing situation. A purchase action taken by a shopper that’s triggered by an ADD-ON in-store marketing activity (dis- Additional, secondary mer- play, discount, sign, promotion, chandise that can be included impulse, etc.). (3) The transla- in a sale. tion of shopper insights into actionable marketing activity. ADI An acronym for “area of domi- ACTUAL WEEKLY REACH nant influence,” which defines The number of people, con- designated market areas based firmed by audit, reached on media coverage. through marketing activity. ADVANCED PREMIUM ACV (ALL COMMODITY An up-front reward or take- VOLUME) away presented to a new AFFIDAVIT The total annual dollar volume customer as a means of gen- Legitimate proof of posting by in a given geography expressed erating goodwill and enticing the vendor that the advertiser’s as a percentage (or share) of the future purchases. message ran as scheduled. total market for that commodity. ADVERTISED BRAND AFFILIATED CHAIN AD IMPRESSIONS A nationally advertised brand. A group of non-competing Historically used in TV and other stores operating under an al- mass media to express the num- ADVERTISING ALLOWANCE liance to benefit from volume ber of viewers exposed to an A payment made by the purchasing or to gain exclusive advertising vehicle (one impres- product manufacturer to the territorial rights to market cer- sion equals one view). “Unique retailer in exchange for deliver- tain products. impressions” factors out multiple ing advertising opportunities to views by the same people. a specific product or brand. 8 PATH TO PURCHASE GLOSSARY

AIR RIGHT AISLE VIOLATOR DISPLAY A sign hanging perpendicu- A display lar to the shelf on which it is hanging attached, thereby sticking out above shop- into (“violating”) the aisle. Most pers and commonly used to identify product. rectangular signs that span more than one shelf width.

ALIGNMENT The practice of visually group- ing store elements in a harmo- nious way. AFFILIATED RETAILER AISLE A retailer participating in an A store corridor, flanked by fix- ALL COMMODITY VOLUME affiliated chain, or a retailer tures carrying shelves of product. See ACV. participating with other retail- ers in cooperative wholesale AISLE BLOCKER ALLOCATION (OR purchasing. A movable merchandiser used ALLOTMENT) to block a closed checkout lane. (1) Term for the designated AFFILIATED WHOLESALER quantity of merchandise made A wholesaler that hosts a AISLE DIRECTORY available or sold to a specific group of affiliated retailers, or a Navigational signage that iden- market area or retailer; often wholesaler who is a member of tifies the aisle’s product assort- reflects a limited quantity, an affiliated wholesaler group. ment. Usually suspended from usually less than a full order. (2) the ceiling or attached to an The shelf or secondary display AFFINITY MARKETING end-aisle display. It sometimes space designated for a specific The practice of marketing to also carries brand-specific ad product. the interests of specific demo- messages. graphic or shopper groups. ALLOWANCE A payment or invoice discount AFTERMARKET given by a product manufac- Secondary sales related to turer to a retailer as an incen- repairs, replacement parts or tive for a variety of actions, additions to a primary piece of including prompt invoice equipment. Most commonly payment, volume purchase, used to refer to the automotive and promotional activity such aftermarket, which covers all as temporary price reductions products and services that an or circular ads. Sometimes automobile owner might buy. delivered in the form of free product, but more frequently a AGENCY OF RECORD (AOR) AISLE JUMPER monetary transaction. An agency that has been des- A wire extending above an ignated as a marketer’s primary open aisle that sometimes ALPHA/BETA TESTING carries branded flags and pen- partner and often hired on A two-pronged method of test- nants. retainer. ing a new product’s likelihood of success through internal (alpha) AGGREGATION AISLE (OR CATEGORY) and marketplace (beta) tests. Broadly defining and grouping REINVENTION The process of using shopper a shopper segment under a ALTERNATIVE MEDIA insights to improve the design, universal concept or theme. Term used to describe non- assortment, visual aesthetics traditional channels of adver- and overall “shoppability” of an AIDED RECALL tising. Its scope varies by the aisle or category. In measuring advertising recall, viewpoint of the practitioner, a technique in which the in- but universally is understood AISLE SIGNAGE terviewer prompts the respon- to exclude mass media adver- (See aisle directory.) Naviga- dent’s memory with cues. (“Do tising. you remember seeing any ads tional signage that designates for Coke?”) the aisle’s product assortment. Typically deployed as ceiling hangers or at aisle ends. PATH TO PURCHASE GLOSSARY 9

ALTRUISTIC DISPLAY ANDROID which prohibits manufacturers A product display that contains An operating system for smart- from giving price discounts or products from outside parties phones and tablet comput- other preferential treatment to that did not pay for its manu- ers developed by Google and certain retailers when the result facture or placement. Also the Open Handset Alliance. could be restraint of competi- used to describe the inclusion Android runs on a wide variety tion. of a non-participating product of handsets from manufactur- within a store-wide seasonal ers including HTC, Samsung, LG API program or other campaign. and Motorola. It is positioned “Application programming as an alternative to Apple’s iOS interface,” a set of tools and AMAZON DASH for iPhone and Microsoft’s Win- protocols used to build inter- A proprietary service from dows Mobile platforms. net-enabled and mobile-based Amazon. Consumers attach applications. internet-enabled, brand-spe- ANSI cific “buttons” to home appli- The American National Stan- APPLICATION ances or walls so they can, with dards Institute. More often called an “app,” the a single click, order product term refers to software that refills. Dash buttons are now ANTITRUST LAWS helps a user perform one or being embedded into washing A series of Federal laws created more specific tasks. Now used machines, dishwashers, print- to establish fair trade practices almost exclusively for software ers and other appliances. and outlaw anti-competitive that can be downloaded for activity. The most important use with smartphones. are: (1) Clayton Act, which makes it unlawful for a manu- APPLET facturer to require that a retailer A small computer application not sell a competing product that performs a specific task as a condition of any distribu- and runs within the scope of tion deal, in cases where such a larger program. Applets are actions lessen competition or used to extend the functional- create a monopoly. The act ity of a larger, parent applica- also places restrictions on other tion. A common example is exclusive deals. (2) Sherman a game app inside a brand’s Antitrust Act, which prohibits Facebook page. a wide range of actions that would result in restraint of trade APRON of commerce. (3) Robinson- An area outside a gas station or Patman Act, also known as the AMBIENT LIGHTING other retail outlet in which mer- Anti-Price Discrimination Act, chandise displays are placed. The use of lighting to help cre- ate a particular atmosphere or mood within a store. ARCH ANA Signage Association of National Adver- running tisers. above an aisle ANCILLARY BUSINESSES from one gondola to Secondary businesses that a another. retailer operates within the primary retail operation (e.g., photo processing, optical, food court, travel, gas stations, etc.).

ANCOVA Abbreviation for “Analysis of Covariance.” A research prac- tice that looks for any variability between the test group and control group over time. 10 PATH TO PURCHASE GLOSSARY

AREA OF DOMINANT INFLUENCE See ADI.

ASM A common abbreviation for “Assistant Store Manager.”

ASSEMBLY (1) The program through which certain items are ordered to be shipped by a vendor to a ware- house and then to a store. (2) Building a display from compo- nent parts. (3) The area of a P-O-P production facility devoted to assembling and kit- ting display components.

ASSORTMENT DISPLAY AUGMENTED REALITY A product display designed to Augmented Reality (AR) involves superimposing digital content give shoppers a choice: color, onto the real world, usually via a smartphone and apps. AR can be size or other variable. as unsophisticated as a Snapchat photo in which the user snaps a photo of herself in the real world and overlays digital puppy ears. ATTACH-TO-MERCHANDISE Marketers can overlay a 3-D image of a P-O-P display into an actual DISPLAY store setting to visualize how it might look. Shoppers might use a P-O-P materials that attach smartphone app to scan an image of a product and obtain an infor- directly to the merchandise, mation overlay that might feature elements such as videos or related usually to provide some neces- product suggestions. See also Virtual Reality (VR). sary informational messaging.

ATTEND AND ASSIST (A/A) AUDIO-VIDEO DISPLAY AUTHORIZED LIST Shorthand for the assignment A product display enhanced Chain-approved vendors and of attending a store remodel/ by electronic components that products. set up and assisting as required. present audio and/or video messages to shoppers. AUTHORIZED STOCK ITEM AUDIO SHELF TALKER A product or SKU that has been A static sign attached to a shelf AUDIT approved for merchandising by enhanced by the addition of (1) A survey of store conditions, a store’s corporate or wholesale customized audio capabilities, usually conducted by third- buying headquarters. usually activated by push but- party merchandising firms. ton or motion detection. Among the more common AUTOMATIC DISTRIBUTION tasks performed are analysis of A process through which the primary shelf position and con- retailer’s headquarters (or ditions, price checks, audit of authorized wholesale grocer) competitor product sets, and approves and delivers new checks for the presence of spe- products, deals or special cific secondary P-O-P displays promotional stock to key stores and promotional materials. (2) without specific order from The process of verifying retail store managers. compliance of shopper mar- keting activity through physical AUTOMATIC checks, typically in a represen- REPLENISHMENT tative sample of stores. Any A service that lets consumers observable condition can be buy frequently purchased prod- measured, including location, ucts for home delivery at pre- copy, display activity, out-of- determined time intervals and stocks, etc. (3) Customer profile quantities. It is marketed under and usage studies conducted such names as “Subscribe & via interviews with shoppers in Save” and “Ship & Save.” or outside the store. PATH TO PURCHASE GLOSSARY 11

AVAILABLE MARKET BACKHAUL BACKLIT DISPLAY The number of consumers A trucking and freight term. A display that utilizes a fluo- identified as having an interest A backhaul is hauling differ- rescent bulb or other lighting in a product or service, access ent cargo back from a delivery system to illuminate a film to its purchase and the finan- destination to the originating transparency or graphic from cial means to purchase it. point. It makes economic sense behind. since it costs almost as much AVERAGE TICKET time and fuel to drive empty as BACK-UP MERCHANDISE (RECEIPT) fully loaded. A surplus of product made The average dollar amount available for restocking in-store spent by a shopper during a BACK HAUL ALLOWANCE displays. single store trip. (BHA) A fee charged by retailers BAIT AND SWITCH AWARENESS to pick up shipments at the Luring shoppers to a store with The ability of consumers to manufacturer’s distribution ads for a low-priced product, remember information about center. then attempting to sell them a brand, ad or promotion to a more expensive alternative which they were exposed. “Un- BACK ORDER once they get there. Widely aided awareness” refers to the A product currently not in considered to be an unethical ability to recall without assis- stock but being reordered. practice. tance; “aided awareness” refers to cases in which the con- BACKROOM (OR BACK BALANCE REWARDS sumer’s recall was prompted. OFFICE) The loyalty card program See Aided Recall and Unaided The non-sales storage area, launched by Walgreens in fall Awareness. usually in the back of the store, 2012. The retailer claims to have where shipments are received 87 million members. and overstock is kept; in cyni- B cal merchandising circles, the BALER place where approved displays B FLUTE CORRUGATED A machine that breaks down often go to die. PAPERBOARD cardboard. A specific wave shape (flute) in BACK TAG the inner portion of combined BANNER A product-identifier card for corrugated board. It measures (1.) An in-store sign, generally peg hooks or spring-loaded 3/32 of an inch. Considered the produced from satin, poplin, shelves that appears when the most common corrugate for poly-cotton and vinyl. product is out of stock. P-O-P. (2.) The name under which a retail chain operates; the name BABY BOOMERS that appears on the outside of Born during a sustained, post- the store (e.g., Jewel-Osco is a WWII increase in the birthrate banner of Albertsons Cos). from 1946-1964, the oldest Baby Boomers reached age BANNER AD 70 in 2016. Many are no longer Ads placed alongside content working, and up to half of this displayed on web pages, inter- motivated generation now active kiosks or video screens, consider themselves financially often featuring dynamic graph- stable. ics, user interactivity and the ability to track the number of BACKBAR DISPLAY times the ad was viewed and A display designed for use on clicked on by viewers. the counter or wall behind the bar in pubs, restaurants or BANNER AD IMPRESSIONS other “on-premise” channels. The number of times a banner ad is displayed for viewing on a web page, interactive kiosk or video system. 12 PATH TO PURCHASE GLOSSARY

BENCHMARKING STUDY A study that identifies per- formance measurements and standards for a specific industry, product category, or other group, thereby allowing individual entities to compare their performance with peers.

BENTONVILLE Commonly used shorthand for BASE WRAP Walmart’s corporate headquar- A roll of paper or corrugate featuring repeating graphics that can ters in Bentonville, Ark. be cut to various lengths and used to decorate or conceal the bot- tom cases of a mass display. BEST FOOD DAY (BFD) The day of the week a daily newspaper usually carries its largest volume of retail grocery are in many smartphones and BAR CODE ads. A scannable line graphic on can communicate with beacon hardware that’s placed in stores, packaging that contains a Uni- BIG DATA versal Product Code and other most commonly in displays or A somewhat nebulous term identifying information. See UPC. light fixtures. There are now a wide variety of beacon plat- referring to the vast amounts forms on the market as well. of detailed, granular informa- BAR CODE SCANNER tion about individual consum- A device that reads bar codes. ers, their behavior and their Portable versions are some- BELOW-THE-LINE ADVERTISING purchase habits that personal times referred to as “hand- technology now makes avail- Marketing tactics that do not helds” or “wands.” able to marketers. earn a commission for advertis- BASKET RING ing agencies, and therefore are viewed more as pass-through BILLBOARD Term for the amount spent by expenses than revenue genera- A large outdoor advertising a shopper or shoppers, refer- tors. They include P-O-P adver- display. ring to the accumulation of tising, direct mail and all types products and the sound of a of consumer promotion. The BILLBOARDING cash register. term has a somewhat negative Creation of a large branded connotation, in that it refers presence through a display BEACON to tactics that focus on driv- or other in-store marketing ing sales rather than building vehicle. brands and, therefore, are not “strategic.” BIN A merchandiser that carries BENCHMARK loose or bulk product. More A performance measurement commonly referred to as a or standard that future activity “dump bin.” can be measured against. Bluetooth low energy (BLE) BIODEGRADABLE chips – aka beacons leveraging A sustainable packaging/ Bluetooth 4.0 – are designed BENCHMARKING display term. The ability of a to reach shoppers at various (1.) The practice of using prior material to be broken down points of their in-store journey. results to forecast or evaluate a into simpler compounds by Beacon activity took off in 2013 marketing program’s effective- microorganisms. when Apple introduced the ness. iBeacon, its branded version (2.) The process by which com- BLACK FRIDAY of BLE. Prior to the iBeacon’s panies, following pre-estab- The day after Thanksgiving; release, brands and retailers lished guidelines for disclosure, considered to be the official were more focused on near share best business practices start of the holiday selling field communication (NFC) with other companies. technology, which at the time season. was available on very few mo- bile phones. Today, BLE chips PATH TO PURCHASE GLOSSARY 13

BLADES Vertical signs used to draw shop- per attention to a specific sec- tion of an aisle. See Aisle Violator.

BLISTER PACK A package with a translucent, molded plastic casing that cov- ers a product and is attached to a piece of cardstock or other durable substrate.

BLITZ A coordinated, rapid rollout of a marketing program. BRAND BLOCK Merchandising practice in which all of a brand’s SKUs are stocked BLOW MOLDING contiguously on the shelf, thereby creating a de facto billboard. Manufacturing process utilized Procter & Gamble’s Tide is often noted for having one of the stron- to produce lightweight, hol- gest brand blocks in the packaged goods world. low parts, ranging in size from small to relatively large. Hollow parts require less plastic, and consequently shorter cooling BOGOF BOTTLE POURER time, producing a faster mold- Abbreviation for “buy-one-get- A branded plastic or metal ing cycle. one-free.” piece that fits over the top of a liquor bottle that usually limits BONUS PACK pouring. A special package that con- tains additional product at no BRAND extra cost. The trademarked name of a product or group of products. BOOK ENDS Two TV ads, usually 15 seconds BRAND ACTIVATION each, that run at the beginning ASSOCIATION and at the end of a commercial Formerly the Promotion Mar- break. keting Association, a nonprofit organization for brand market- BORROWED INTEREST ers whose purview covers all PROMOTION consumer communication; A promotion that leverages the now part of the ANA. BODY COPY recognition and impact of a Informational text on a display well-known event or personal- BRAND AFFINITY or promotional piece; smaller ity to gain shoppers’ attention. The goodwill that a brand has in size compared with a head- established among consumers. line or subhead callout copy. BOTTLE GLORIFIER This display highlights a single BRAND AMBASSADOR BOGO bottle or bottles of liquor, wine Someone who represents a Abbreviation for a or beer, often placed behind brand in a positive way, thereby “buy-one-get-one” the counter in bars, restaurants serving as an advocate. Typi- offer, a type of and pubs. Many feature illumi- cally, the term is applied to an price promotion nation and graphics to draw at- employee of a promotional/ in which the shop- tention and generate trial of the event marketing company who per gets a second product among bar patrons. interacts with the public at (or third) item at See also Backbar display. special events, although it can special discount be applied to celebrity endors- with purchase of BOTTLE HANGER ers and even avid consumers the first. Often Also called a “neck hanger.” (as in Facebook “fans”). used to denote a An ad sign or tag that hangs “buy-one-get-one around the neck of a bottle. free” offer, which Largely seen in the wine and technically is a BOGOF. liquor industry. 14 PATH TO PURCHASE GLOSSARY

BRAND EQUITY The value of a brand as defined by consumer attitudes toward its stated attributes, product performance and perceived status.

BRAND EVANGELIST A customer who believes strongly in a product or service and volunteers to convince others to use it. Evangelists do this out of personal enthusiasm and not for money. (Affiliate CAPTIVE AUDIENCE marketing involves incentiv- Consumers who, due to circumstances of time and place, are izing people to advocate on almost guaranteed to be exposed to a marketing message. Shop- behalf of a product.) Apple pers waiting in a checkout line, for example, are considered by “fanboys” are an example of some marketers to be a captive audience. brand evangelists.

BRAND MANAGER BROWN GOODS CANNIBALIZATION The person responsible for A term for consumer electron- An action that generates sales in planning and coordinating all ics, especially smaller items like one respect by decreasing sales marketing activity for a specific clock radios. The term “white in another. Examples include the brand. goods” can refer either to addition of new stores to a mar- bedroom/bathroom linens or ket, thereby drawing away cus- BRAND PAGE major kitchen appliances. tomers from existing locations, A microsite dedicated to a or the launch of a line extension specific brand and generally that attracts users of the flagship housed outside of the manu- C product. Also used in regard to facturer’s website. Examples the potential for promotional include account-specific micro- C FLUTE CORRUGATE tactics, such as coupons, to sites appearing within retailers’ A specific wave shape in the reduce profits through their re- websites and publicly visible inner portion of combined cor- demption by loyal product users Facebook accounts. rugated board that measures who would have paid full price. 9/64ths of an inch in height. BRICK-AND-MORTAR Used most widely for materials CANVASS that require increased strength. Brick-and-mortar (also “bricks The practice of visiting retail- & mortar”) refers to a physi- ers in a particular market for a cal building or store where C-STORE specific marketing purpose. a business has face-to-face Commonly used abbreviation interaction with its customers. for convenience store. CAPACITY FIXTURES Brick-and-mortar businesses Displays designed to carry fast- typically have higher operating C&P selling products. costs and less flexibility than Abbreviation for “convenience internet-based businesses. and petroleum” stores, the lat- CAPTIVE BRAND ter of which do not sell addi- A product line sold exclusively tional merchandise. BRIGHT IDEAS through one retailer whose A Walmart weekly program, trade dress is not owned by introduced in 2009, that makes CAD (COMPUTER AIDED that retailer, or whose manu- DESIGN) product sampling and demon- facturer is not specifically Computer software used widely strations an integral part of the contracted by that retailer (and for designing product displays in-store experience. The pro- therefore doesn’t classify as and other marketing materials. gram is managed by Shopper private label). See Private Label. Events LLC, Bentonville, Ark. CAMPAIGN CAR TOPPER A coordinated effort to market A display designed to attach to a product, often including an the roof of a vehicle that can be overview of advertising sched- used in a dealer showroom or ules and the various media and for street marketing. tactics to be employed. PATH TO PURCHASE GLOSSARY 15

CARD-BASED MARKETING CARTWHEEL CASE CARD A relatively archaic term for the A digital savings program A header or riser attached to, or practice of mining data col- launched by Target in spring slotted into, a case of product lected through frequent-shop- 2013 with technological sup- to enhance its presence, or an per cards to develop marketing port from Facebook. Regis- easel card positioned on top of efforts. tered users receive hundreds a case stack. of in-store-only discounts each CARDBOARD month that can be redeemed CASE COUNT METHOD Cardboard is a generic non-spe- at checkout through a single The practice of accepting a cific term for heavy duty paper- barcode presented either as a wholesale delivery based on the based product. Do not use as a printout or via mobile phone. number of cases listed in the synonym for corrugated. invoice rather than by an actual count of the cases delivered. CART ADVERTISING Advertising messages deliv- CASE DIVIDER ered on shopping carts, rang- A cardboard or plastic strip de- ing from print attachments to signed to segment and orga- interactive media delivered via nize products in display cases wireless video screens. or freezers. The strip can carry a brand logo or other marketing CART CORRAL message. Also known as “case The fenced areas in store park- organizer.” ing lots used to collect discard- ed shopping carts. The spaces CASE RATE often contain sign frames, A calculation in which a brand’s canopies or other materials annual marketing budget is used by retailers for branding CAS divided by the number of cases and advertising. Abbreviation for “computer- sold to represent the level of aided sign making.” support the product received.

CASE ALLOWANCE CASE STACKER A payment or discount pro- A plastic or rubber base used vided by a manufacturer to a to add support for a case stack. retailer based on the number of cases purchased during a specified period.

CART MULE The motorized vehicles used to collect shopping carts in a store’s parking lot.

CART RAIL The area at or near a store en- trance in which shopping carts are stored; often also used to merchandise new, seasonal or CASE STACK promotional merchandise. A mass display made up of stacked cases of product. The top cases in the stack are cut open to expose product and replaced with CART WRAP another open case as the items sell down. Case stacks are often en- An ad printed on paper, light hanced with additional P-O-P elements, including signs set on top cardboard or other material to of the cases, affixed to poles near the cases (see Pole Topper), or with wrap around a shopping cart. rolls of graphics (see Case Wrap) wrapped around the bottom cases. 16 PATH TO PURCHASE GLOSSARY

CASE STRIPS CATEGORY CAPTAIN CAUSE MARKETING Cardboard or plastic materi- A product manufacturer who, A strategy in which the mar- als that snap into the graphics through his size, market posi- keter aligns with a non-profit channel of shelving units or tion or strength in delivering or promotes a socially relevant food cases to present product proven insights, is selected by issue in order to foster goodwill information or a marketing the retailer to play a leading with consumers. Campaigns message (see also Channel role in its category manage- typically include fundraising Strips). ment activity. activities or in-kind donation efforts. CASE WRAP CATEGORY DEVELOPMENT A roll of decorative paper or FUND CEILING CRASHER corrugate designed to sur- Pooled money used to increase A display sometimes found round the base of a case stack sales at the category level in convenience stores that display. Also known as base rather than to boost an indi- suspends from the ceiling to wrap or pallet wrap. vidual brand. Through coop- present the illusion that it is erative marketing associations, crashing through. CASH REGISTER DISPLAY categories such as cheese, milk A rack or other type of display and pork collect such funds to CENTER OF EXCELLENCE designed to mount onto or sit conduct periodic promotions. A special department through near a cash register. It typically which product manufacturers is used to merchandise high- CATEGORY KILLER seek to identify, test and show- impulse products like candy or A somewhat outdated term case best practices in market- cigarettes; also refers to a sign used to identify retailers whose ing and/or merchandising. designed to mount onto the large footprints and focus on cash register. specific product areas — The CENTER STORE Home Depot, Toys “R” Us, Literally, the large middle CASH VALUE Barnes & Noble — made them portion of a supermarket in The monetary value of a cou- dominant forces in those cat- which the majority of pack- pon, required in some states. egories and led to the demise aged goods are merchandised The amount is low enough of many independent retail- (in contrast to the perimeter, (1/100th of a cent) to offer no ers in the market. The rise of which typically houses fresh- real cash value. Walmart, however, has greatly food departments). The term reduced the lethalness of most is also used to identify the cat- CASH WRAP category killers. egories and product merchan- Alternative term for the check- dised there. out area, used primarily in the CATEGORY MANAGEMENT United Kingdom. (AKA “CATMAN”) The practice of analyzing SKU CATALINA MARKETING selection, shelf merchandising, promotion and sales history to A marketing service operating improve the business perfor- in numerous supermarket and mance of a specific product drugstore chains that ties into group. The function is the re- the store’s POS data to deliver sponsibility of a retailer’s catego- targeted coupons and other ry manager, with varying levels promotional offers in conjunc- of support provided by relevant tion with register receipts. product manufacturers. CATALOG ITEMS CATEGORY MANAGEMENT Displays and other marketing SYSTEM materials made available by An in-line display designed display manufacturers or prod- to make a specific product uct marketers for retailer orders category easier to stock and on an ongoing basis. maintain and/or easier to shop. CATEGORY ANALYSIS CATEGORY REVIEW An in-depth examination of a The periodic analysis of a product category to ascertain product category in which a the strengths, weaknesses and retailer evaluates the existing effectiveness of competing planogram to develop a more products. efficient and effective shelf set. PATH TO PURCHASE GLOSSARY 17

CHANNEL STRIP browsing for information. Often A piece of mold- used to gauge usability and ing that slides engagement levels for a site or into or over the application. front edge of a shelf, often used CLIP STRIP to communicate A trade- brand messages marked name or price. owned by Clip Strip Corp. that has become the standard term for a merchan- dising strip.

CHANNEL MARKETING CIGAR STORE INDIAN In the consumer electronics Native American figurine seen industry, advertising, promo- outside of tobacco stores in tion and educational initia- the 1800s. Considered to be tives that target value-added the first P-O-P display. POPAI resellers, system integrators, uses the image for the statues original equipment manufac- awarded in its OMA (Outstand- CLOSURE RATE turers, distributors and other ing Merchandising Achieve- The percentage of shoppers intermediate manufacturing ment) contest. who buy a product versus all and distribution partners rather those who enter a store or than end-user consumers. CLEAN STORE POLICY specific category/department. Term used to describe the pro- If 100 shoppers walk down the CHANNEL RED fessed policy of some retailers to laundry care aisle and 40 pur- The name Target has given to prohibit or severely restrict the chase a product, the closure its in-store video network. acceptance of vendor-supplied rate is 40%. P-O-P displays, in deference to CHECK-INS easier store navigation and an CLOUD COMPUTING overall cleaner appearance. When a person “checks in” to Internet-based computing in a physical place (store, restau- which resources, software and rant, concert, etc.), they are CLICKSTREAM ANALYSIS information reside on a server sharing their location with A study conducted to identify and are provided, on demand, friends (or alerting a service) by patterns in the way users “click to computers and other devices. text messaging or using a GPS- through” a sequence of web These resources are sometimes powered mobile application or application pages while referred to as “the cloud.” on a smartphone. On some social networking services, the check-in confirms the user’s presence in a specific place (e.g., retail sales floor), making the user eligible for a reward. Services that use check-ins include Shopkick, Google Lati- tude, Facebook and Gowalla.

CHERRY PICKERS Shoppers with no brand or store loyalty whose purchase plans are based solely on the promotions being offered at any given time. CLICK-AND-COLLECT A service that lets shoppers order and pay for products online and pick them up at a local store or other physical location at a sched- uled time. Also commonly referred to as “site to store.” 18 PATH TO PURCHASE GLOSSARY

CLUB STORE COLLECTIVE BUYING SITE CONFECTIONERY A retail channel in which Collective (also called group A class of products including chains charge annual mem- or social) buying involves the candy and other sugar-based bership dues and merchandise offer of a product or service at sweets. bulk items at discount prices a reduced price if a minimum within a warehouse environ- number of buyers agree to pur- CONSUMER ment. The three primary U.S. chase it. Group buying websites Standard term for an individual club stores are Costco, Sam’s (most notably Groupon and who buys and uses products Club and BJ’s Wholesale. LivingSocial commonly offer and services. Differs from a a “deal of the day” that takes shopper in that the consumer COD effect once a predetermined is not actively considering a Abbreviation for “cash-on-de- number of people sign on to purchase. livery,” in which the customer buy the product or service. The pays for merchandise when it is purchaser prints a voucher that CONSUMER INSIGHTS delivered instead of in advance. is then redeemed at the busi- Data-driven learning that leads ness. to an actionable understand- CO-CREATION ing of overall consumer behav- Collaborative shopper market- CO-MARKETING ior and its impact on brand ing in which manufacturer Strategic practice in which a awareness, consideration, and retailer work together to retailer and product manufac- product affinity and purchase develop a mutually benefi- turer combine their marketing intent. cial marketing plan from the resources and insights to cre- outset, rather than modifying ate exclusive, mutually benefi- CONSUMER INTERCEPT pre-existing programs (from cial programs. It differs from A research practice in which in- one side or the other) to fit the account-specific programs, dividuals are solicited in person other partner’s business needs. which typically involve much to take surveys and provide in- less effort from the retailer; also formation about their attitudes CO-EQUITY OVERLAY sometimes used for collabo- and behaviors. An add-on to a standard ration between two product free-standing insert in which manufacturers. CONSUMER PROMOTION the product manufacturer The name for a wide variety provides key retailers with a COMPARABLE STORE of marketing activities whose SALES free, co-branded secondary ad goal is to induce specific con- promoting exclusive deals or The amount of total sales sumer action. Among the more promotions. The SmartSource generated from stores that common consumer promotion and RedPlum co-operative FSI have been open for at least one tactics are P-O-P displays, cou- programs both run formal co- year, or long enough to make pons, sweepstakes and events. equity calendars. comparisons based on histori- cal data. Typically expressed as CONTAINERBOARD a percentage increase or de- COLLABORATION (IN The materials that go into the crease, comparable store sales SHOPPER MARKETING) manufacture of containers or exclude sales derived through Mutually beneficial marketing boxes. They consist of facings acquisitions or newly opened and merchandising activity called linerboard and the inter- stores and are often used by conducted by retailers and vening fluting. product manufacturers. The investors and analysts to deter- mine a retailer’s overall health. Retail Commission on Shop- CONTENT MARKETING Also known as same store sales. per Marketing identified three The use of proprietary infor- levels of potential collabora- COMPLIANCE mation and media assets tion: strategic, platform and to drive stronger consumer A 200-store chain approves or program. engagement and, ultimately, “accepts” an in-store marketing product purchase. It typically program from a CPG. Although COLLABORATIVE avoids overt sales pitches and accepted chainwide, the dis- MARKETING standard marketing-speak play was set up or “executed” A broad term used to describe to instead provide helpful or in only 140 of the chain’s stores. a wide variety of partnerships entertaining content that can The compliance rate, therefore, — retailer and product manu- strengthen brand affinity. Ex- is 70%. facturer, product manufacturer amples include recipes, how-to and product manufacturer, videos and lifestyle vignettes etc. — that combine resources relevant to a brand’s position- to conduct mutually beneficial ing or its consumers. campaigns. PATH TO PURCHASE GLOSSARY 19

CONTEST CONTROLLED STORE TEST CO-OPERATIVE A popular promotion tactic in A method of gauging the ADVERTISING (OR CO-OP which entrants are required to potential success of a product ADVERTISING) demonstrate a skill or talent launch or in-store marketing The practice of sharing the (write an essay, take a photo, campaign by testing in a small costs for mutually beneficial etc.) and winners are selected number of stores in which all marketing activity among two based on the merits of their potentially influential circum- or more parties. entries. Although more compli- stances are closely monitored. cated than a game or sweep- CORRUGATE stakes, the tactic is commonly CONVENIENCE STORE The material most often used used because contest operators (C-STORE) in the production of (tempo- are legally allowed to require a A small, easily shopped store rary) promotional displays. It is product purchase before entry. that merchandises an exten- formed by gluing one or more See Game and Sweepstakes. sive assortment of high-volume sheets of fluted medium to products, such as one or more flat facings of lin- cigarettes, beverages erboard. The size of the flute is and snacks, along with typically designated by a letter a limited selection of name. See B-flute and C-flute. numerous other items. More than half of all c- COST OF GOODS SOLD stores sell gasoline, and All expenses related to the an increasing number manufacture, sales and distribu- offer fresh coffee and tion of consumer products. In prepared-food op- the case of product manufac- tions. C-stores range turers, it includes all promotion- CONTEXTUAL in size from enclosed kiosks al allowances paid to retailers. ADVERTISING/MARKETING shopped from the outside to Some companies also classify Digital marketing that provides 5,000-square-foot, full-service the production and distribution targeted advertising based on locations. Some supermarkets of displays and signs as a cost of user info such as the search and other larger retailers oper- goods sold rather than as part terms they’re using or their ate adjacent c-stores to capture of the marketing budget. recent web-browsing activity. more convenience trips. COUNTER CARD CONTINUITY PROGRAM CONVENIENCE TRIP A standing sign used to deliver A long-term promotion Common shopping trip in advertising messages, used designed to induce repeat which store selection is based most often at checkout or purchase of a product by offer- overwhelmingly on proximity other type of service counter. ing ongoing rewards. A retailer and required time within the promotion designed to gener- store. COUNTERTOP DISPLAYS ate repeat traffic by offering Compact displays, typically new items in a set (dinnerware, CONVERSION carrying small amounts of books) on a periodic basis. The act of turning shoppers product, designed to fit on a into buyers. store’s counter to drive impulse CONTINUOUS MOVES purchase without impeding A freight term. Continuous work activity. moves link two or more ship- ments of the same service provider to get a lower cost or discount when shipments are COUNTER travelling in similar geographic MAT areas within a specific time A mat used to period. present adver- tising mes- CONTROL STORE sages at the In shopper marketing research, a point of sale. store in which standard condi- It protects the tions are maintained in order to counter from compare sales and other factors looking worn. with those from a test store. Con- trol stores are selected for their similarities to the test stores. 20 PATH TO PURCHASE GLOSSARY

COUPON CROSS-MERCHANDISE A printed or digital voucher The practice of market- distributed to consumers as a ing or displaying products purchase incentive by offer- from different categories ing a stated price discount or or store departments other type of deal. The discount together to generate typically is redeemable only incremental purchase or, for specific products or brands to a lesser degree, improve identified within the copy, the shopper experience. although retailers sometimes Product selection most of- offer coupons with broader ten is based on consumer redeemability (such as “20% off usage patterns reflecting any single item in the store”). either specific meal solu- The coupon must be submit- tions (peanut butter, jelly ted by the consumer at the and bread is an obvious ex- time of purchase. ample) or a broader theme (such as the common sea- COUPON DISPENSER sonal grouping of outdoor A small device that distributes grills, charcoal, beer and coupons in store, most often marshmallows). attached to shelves or cooler doors near the product in question. Sometimes activated via motion sensor.

COUPON PAD (OR COUPON TEARPAD) A pad of coupons that is glued CPM (COST PER CROSS DOCKING together for easy tear-off. THOUSAND) A logistics term for transferring A standard currency rate in a vendor’s product to store- the media advertising world, bound trucks at the warehouse in which advertisers evaluate without a lot of handling or costs by comparing the dollar lengthy storage. amount required to generate 1,000 consumer impressions. CROWDSOURCING The practice of making an CRM open call to a broad commu- Customer Relationship Man- nity to solve a problem or test agement. a product. Brand marketers use it to engage with consum- CREATIVE BRIEF ers through social media, and A detailed document that con- to gain deeper insights into solidates input from all stake- consumer wants and needs. holders to provide a specific Technologies used include direction for a design team or email, blogs and online forums. other group charged with a For example, Doritos “fans” cre- program’s development and/or ated and submitted their own execution. Super Bowl advertisements for a chance to win trips and cash. CPG CROSS-CHANNEL Commonly used acronym for RETAILING CURBSIDE PICKUP “consumer packaged goods,” A strategic initiative in which A service that lets shoppers which encompasses a wide the retailer attempts to present order and pay for products variety of food, beverages and a consistent shopping experi- online and pick them up at a general merchandise pre-pack- ence in terms of marketing local store or other physical aged for sale to consumers. messages, pricing and custom- location at a scheduled time. It er service across all consumer differs from “click and collect” communications (i.e., brick- and “site to store” services in and-mortar, online, catalog, that shoppers don’t have to en- etc.). ter the store or, in many cases, leave their vehicle. PATH TO PURCHASE GLOSSARY 21

CUSTOMER-CENTRIC DANGLER (OR SHOPPER-CENTRIC) A sign or small graphic A strategy in which store de- attached to channels signs and layouts, merchandis- of shelving units with ing activity, product selection a thin strip of material. and/or marketing initiatives are Also known as shelf developed to meet the needs “wobblers” due to their of specific consumer groups. propensity to move with air currents. The CUSTOMER CENTRICITY term “ceiling dangler” A term made popular by Best is sometimes used Buy to express its strategy of to refer to signs hung basing store design, merchan- from the ceiling. dising, marketing and even labor strategies on the needs of spe- cific customer demographics. in order to develop more effec- tive methods of marketing and D CUSTOMER FIRST merchandising and, ultimately, DATA (SHOPPER DATA) The business mantra used by to engender deeper loyalties. While there’s an abundance Kroger to express its efforts to of shopper data out there, use a deep understanding of CUSTOMER-FACING from store transactions, loyalty its shopper base as the founda- Any retail operation, technolo- cards and social media to the tion for all decision-making. gy, service or program to which tracking of mobile devices and the shopper is exposed. Often internet search indexes, the CUSTOMER MARKETING contrasted with “back-office” challenge comes in harness- The practice among product activity. ing this data and leveraging it manufacturers of devoting for targeted path-to-purchase personnel, money and other CUT CASE marketing. resources to the development A shipping case in which the of specific marketing and mer- front portion has been torn off DATING chandising programs for key (or “cut”), thereby exposing the Term for a deferred billing retailers, often in close collabo- product and turning the case practice in which the retailer ration with those accounts. into a merchandiser. Com- isn’t required to pay for the monly found stacked together merchandise it receives for sev- CUSTOMER RELATIONSHIP as case stacks within aisles or eral months, with no interest MANAGEMENT (CRM) on shelves (particularly in price- charged. Originally used specifically for impact stores where labor is computer-based methods of more scarce). Usually cut with DAYS SALES OUTSTANDING tracking customer interactions, box cutters, many now are de- (DSO) the term now refers to the signed to be self-opening. The average number of days practice of efficiently manag- it takes a company to collect ing all aspects of customer CUT IN revenue after a sale has been interaction and the use of pur- The introduction of a new made. A low DSO number chase history and other data product into the shelf set, signifies that it takes a com- to develop targeted marketing which involves a change to the pany fewer days to collect the offers. The underlying goal is to existing planogram. A cut in revenue; a high DSO number manage each customer based usually occurs between major indicates that a company is on individual preferences and shelf resets. selling its product to custom- needs over time rather than on ers on credit, and taking more isolated transactions or general CYBER MONDAY time to collect revenue. behavioral assumptions. The Monday after Thanksgiv- ing, when e-commerce sales DEAL PACK CUSTOMER traditionally have spiked in a A special package design, like SEGMENTATION manner similar to “Black Friday” bonus packs, that typically car- The practice of dividing a at physical stores. Many online ries the marketers’ promotional retailer’s shopper base (or a retailers have reacted to the pricing graphics. brand’s user base) into groups phenomenon by conducting that reflect their demograph- special sales that day as well as ics, lifestyle needs, purchase extending them for an entire habits and shopping behaviors “Cyber Week.” 22 PATH TO PURCHASE GLOSSARY

DEALER TIE-IN DEMONSTRATOR Local support by a retailer for DISPLAY an advertiser’s promotional P-O-P that shows program. Methods include in- how a product store display materials, cooper- functions. ative advertising, local contests and identification in media ads.

DEALER’S PRIVILEGE A sign with advertising on one side and just a service message on the other, such as “We ap- preciate your business.”

DECAL A print that is enclosed be- tween a lamination film and pressure-sensitive adhesive film with a mounted release liner.

DEDICATED SPACE DESIGN FOR RECYCLING DIGITAL ASSET A company purchases space in A design concept that encour- MANAGEMENT a store that is used for display- ages recycling by eliminating In e-commerce, the process of ing its product. hazardous and non-recyclable creating, organizing, managing components. and sharing all of the neces- DEMONSTRATION sary digital assets of a brand or The practice of drawing atten- DESIGNATED MARKET product. tion to a product by showing AREA (DMA) how it operates, what it can A geographical area defined by DIGITAL COUPON be used for and/or what end the exposure of its population to A promotional offer that is result it delivers. Food sampling the same media outlets, such as integrated directly with a retail is a type of demonstration, TV and radio stations, newspa- point-of-sale system for auto- especially when it involves the pers and other vehicles. Nielsen matic redemption at checkout, preparation of featured recipes. Media Research recognizes 210 thereby allowing pre-qualified DMAs in the United States. They consumers to accept the deal in DEPARTMENT typically are identified by the some simple manner. The most Large areas within the store largest city within them. common conduits are store loy- dedicated to one product alty cards and smartphones. (As category or brand line and DIE-CUT INSERTS technology has improved, the sometimes targeted to a Cardboard packaging ele- term’s definition has narrowed specific demographic. These ments that precisely fit and to exclude digitally delivered specialized areas include elec- thus protect a part’s contour. coupons that must be printed tronics, pharmacy, hardware, and brought to a store.) cosmetics, garden, pet, sewing, DIGITAL ADVERTISING housewares, men’s apparel, NETWORK shoes and furniture. A narrowcast network combin- ing targeted entertainment DEPARTMENT MANAGER and/or informational content The person in the department with advertising. Distributed who is responsible for ordering through digital networks and/ product, conducting mark- or screens in place-based, downs and performing other out-of-home consumer venues management tasks. such as retail, transit, malls, grocery, health clubs, medi- DEPARTMENT STORE cal offices, gas stations, office Large-scale stores, sometimes buildings and hotels. multi-level, offering a mix of merchandise focused on fash- ion, apparel and home goods. PATH TO PURCHASE GLOSSARY 23

DIGITAL DISPLAY marketing programs. (See DIRECT TO CONSUMER (BILLBOARD) Shopper Marketing.) It can be (DTC) Devices that display advertis- used to directly influence on- Manufacturers selling products ing-only messages via screens line purchases or to drive traffic directly to consumers rather equipped with LED (light emit- to bricks-and-mortar stores. than through a retailer or other ting diode) or LCD (liquid crys- third-party source. tal display) technology, often DIGITAL SIGNAGE changing, at predetermined A flat-screen digital display. The DIPA times or through motion rec- term covers both large screens Abbreviation for “dynamic im- ognition technology, to feature (usually mounted on walls age provisioning applications,” multiple brands. or ceilings) and small (a few software that controls digital inches in size, attached at the signage content distribution. It DIGITAL MARKETING shelf edge), as well as single- determines, for example, which Any communication delivered screen displays and chain-wide files will be played at certain through a digital technology, narrowcast networks. They times and locations, or what including the internet, net- offer information, advertis- will be shown on various por- worked place-based signage, ing copy, animation and/or tions of a particular screen. in-store kiosks, personal shop- broadcast-quality content. ping assistants, video games Today, the screens are usually DISPLAY ADVERTISING and mobile phones. The goal, programmed and networked The placement of ads con- according to the Digital Mar- from a remote, central location. taining hypertext links on a keting Institute, is to use such Also used synonymously with website in order to drive traffic technology “to create integrat- in-store TV; dynamic signage; to another online location. ed, targeted and measurable digital out-of-home media; and communications which help to electronic signage. DISTRIBUTION CENTER/DC acquire and retain customers A distribution center (also while building deeper relation- DIRECT TO CARD called a DC, fulfillment center, ships with them.” Term used for a digital coupon cross-dock facility or break- or other offer that a shopper bulk) is a warehouse or other DIGITAL SHOPPER can download to her loyalty specialized building stocked MARKETING card for automatic redemption with goods for redistribution to The practice of using digital at checkout. retail stores. communication channels such as the internet or mobile DIVERSION phones to deliver shopper- An unscrupulous but fairly common practice in which a retailer buys product in large volume from the manufacturer at a promotional price, then sells a portion of it to other retailers or sales channels at a profit.

DIVISIONAL MERCHANDISE MANAGER A retail executive who oversees category buyers and coordi- nates merchandising activity across multiple categories, departments or divisions.

DLP Abbreviation for “digital light processing,” the technology used in many video projectors. DIRECT-STORE (OR DIRECT-TO-STORE) DELIVERY (DSD) Process in which the product is delivered directly to individual stores by a manufacturer’s field representative rather than to a distribution center. DSD vendors often have an advantage when it comes to in- store execution because they have the labor to set up programs, as well as more personal relationships with store personnel. 24 PATH TO PURCHASE GLOSSARY

DRONE E-TAILING An unmanned Short for Electronic Retailing, aircraft that can op- which encompasses a broad erate autonomously. array of shopping transac- Possible applica- tions fulfilled directly through tions at retail include e-commerce websites such warehouse inven- as Amazon.com or mobile ap- tory and fulfillment; plications designed for smart- intra-chain store phones and tablet computers. replenishment tasks; inter-chain cross- EACHES promotional drone Industry slang for the practice pick-ups/deliveries; of shipping single units of a and even the instant product (one “each”) directly to shuttling of frozen consumers rather than ship- and hot food items. ping them in multi-unit cases to retailers for sale.

EAS DOLLAR STORE DVR Electronic Article Surveillance (EAS) uses security tags and A small-footprint retailer offer- Abbreviation for “digital video special detection equipment. ing a wide variety of merchan- recorder,” offered by cable Systems installed at entrances dise but a limited number of companies as well as by TiVo. and exits set off an alarm when SKUs in each category. The the tag passes through the name comes from the practice DWELL TIME equipment without previously of selling all merchandise at $1 How long a shopper lingers in being deactivated. or less, although few chains ac- front of an in-store TV screen or tually adhere to it. Once viewed sign, or shops a specific store or EASEL CARD with disdain by product manu- store area. facturers as a place for diverted Flat signs or cards with a chip- board easel attached to the or damaged product, the chan- DYNAMIC SCREEN ZONES back, providing support for the nel has produced two signifi- The separate segments of display to stand on a counter, cant players — Dollar General screen space that feature dif- shelf or case stack. Also a free- and Family Dollar — whose size ferent types of information. standing floor unit of wood, and increasing sophistication Typically three zones, compris- plastic or metal to support have made them key accounts ing (1) full-motion content with signs, large cards and frames. for a number of CPGs. (2) a news scroll along the bot- tom and (3) store specials listed ECR DOS in a panel along the right side. Days of supply. Efficient Consumer Response (ECR) is a strategy in which a DSD E chain, distributor and vendors work together to take out cost Commonly used acronym for from supply chains. “direct-store delivery.” E-COMMERCE Actions related to the buying DUMP BIN or selling of products and ser- EDGE CRUSH TEST vices over the internet or other A test of corrugated board to A mer- digital medium. determine the force that will chandiser crush standard board while that carries standing on its edge. The test loose or E-COUPON measures the stacking strength bulk prod- An electronically or digitally of corrugated boxes and fiber- uct. See transmitted discount offer. To board. also Bin. redeem, e-coupons may be printed, loaded directly onto store loyalty cards or displayed EDI via smartphone screens at Electronic Data Interchange, checkout. which involves transmitting in- formation directly by standard- izing computer formats. PATH TO PURCHASE GLOSSARY 25

EFT ENDLESS AISLE/ DIGITAL the similar observation of con- Electronic Funds Transfer. SHELF sumers in their homes or other Connecting shoppers with an natural environments. The ELECTRONIC CRM expansive online assortment analysis of information collect- (CUSTOMER RELATIONSHIP via in-store kiosks. ed through such techniques MANAGEMENT) is used to gain better insights The use of websites, emails and ENGAGEMENT into the consumer mindset. other digital communication Measure of a marketing ve- vehicles to conduct targeted hicle’s ability to capture, then EVENT communication programs with hold, the attention of shoppers. A physical event used to key customers and prospects. activate marketing programs ENTERTAINMENT TIE-IN and immerse consumers in a ELECTRONIC PAPER The use of licensed imag- branded experience. Also, a (E-PAPER) ery from popular film and multi-page FSI program used A technology that imitates the television properties to gain to create maximum impact for appearance of conventional additional exposure for and a promotion or product launch. paper and ink using plastic film increased participation in a laminated to circuitry. E-paper brand’s consumer promotion. EVENT MARKETING is somewhat bendable. The practice of sponsoring or ETHNOGRAPHERS staging physical events as a END-AISLE DISPLAY In the shopper research con- means of engaging consumers, Alternative term for endcap or text, they are usually graduate business partners or employ- endcap display. anthropology students who are ees through activities relevant trained to note aspects of the to the brand. ENDCAP shopping experience such as Merchandising space located needs, decision logic, brand/ perpendicular to and at the channel/store selections, aisle end of store aisles, used to behavior, etc. They work on-site, prominently display products from videotape, via in-store fo- on sale or other special items. cus groups and/or shop-alongs. Space allocation is often ne- gotiated between retail buyer ETHNOGRAPHIC and product seller. Endcaps RESEARCH are considered to be prime The use of personal observa- store real estate offering great tion or video monitoring to potential for incremental sales. study the behavior of shoppers as they traverse the store; or

ENDCAP EVERY DAY LOW PRICE DISPLAY (EDLP) A singular prod- A retail policy in which prod- uct display built ucts are sold at a consistent specifically for low price rather than being of- placement on a fered at fluctuating price points store endcap, or through on-and-off promo- a collection of tions. Walmart is considered to product and P- be the father — not to mention O-P materials set the king — of EDLP. up to simulate a product display. EXCLUSIVE BRAND A brand distributed through a single retailer but not directly owned or manufactured by that retailer. Also known as a captive brand. 26 PATH TO PURCHASE GLOSSARY

EXECUTION EXTRUSION MOLDING FACTICE The act of carrying out the The process of pushing heated A giant replica bottle used various aspects of an in-store plastic through a die, which most frequently in the display marketing program. Most is cut with the desired profile. of class cosmetics. commonly used in reference to (Think of the Play-Doh “Fun Fac- store-level execution of brand tory.”) Extruded parts are used campaigns. when a shape with undercuts or long, continuous straight EXPANDABLE lengths of plastic are needed. POLYSTYRENE (EPS) Often called “profiles,” these are Common name for this plastic commonly used in shelf-edge is Styrofoam. Usable at sub- signage applications. zero temperatures; can expand or blister at high temperatures. F EXPERIENTIAL MARKETING FACEBOOK ‘LIKES’ The practice of using vari- A feature on Facebook that ous stimuli related to the five lets users connect to content senses to immerse consumers posted on the social media in a physical representation of site and be identified as a “fan.” FBO the brand message. Brand or retailer Facebook The acronym for 7-Eleven’s pages often require a user to “First, Best, Only” merchandis- EXPOSURE “Like” a page to access cou- ing strategy, through which the The act of a consumer being pons, sweepstakes and other convenience store chain strives presented with an opportunity special offers. to be First to market with a to experience a marketing product, offer the Best version communication. See Opportu- FACING of a product, or be the Only nity to See, Impression. Term for each row of product retailer to stock the product. stocked on a shelf or display. EXTRACARE A brand’s strength at retail is FEATURE The name of CVS/pharmacy’s often based on the number of Term for the ad space given loyalty program. facings it commands on the to a product in the retailer’s shelf. Determining the number circular, typically negotiated of optimal facings for each SKU between buyer and seller and is a key component of plano- funded with trade promotion gram development. dollars. A key characteristic of a product or service that often is highlighted in marketing ma- terials as a point of difference from the competition.

FIELD REPRESENTATIVE An agent working on behalf of a manufacturer who visits stores to deliver product, set up in-store marketing programs and perform other tasks.

FILL-IN TRIP One of the more common types of shopping trips in which a shopper visits a store in between stock-up trips to replenish several items and/or buy some additional products. EYE-TRACKING The use of specialized devices to follow and analyze the path that a viewer’s eyes travel while observing an object or scene. Eye-tracking research is often used to gauge how quickly and effectively pro- posed package designs, shelf sets, print ads and other marketing materials convey a desired message. PATH TO PURCHASE GLOSSARY 27

FOUR P’S The key elements or ingredients of effective marketing, as postu- lated by marketing professor E. Jerome McCarthy in 1960. The Four P’s are “product,” “place,” “price” and “promotion.” The FOUR C’S model is used widely to help plan new marketing programs. A shorthand checklist for developing and evaluating effective P-O-P materials (formulated by MarketingLab president Richard Butwinick). The Four C’s are “command” attention, “connect” with FRANCHISEE shoppers, “convey” key information and “close” the sale. An independent storeowner who has contractual ties to a retail chain. Based on the terms of the contract, the owner can FIRST MOMENT OF TRUTH FLOORSTAND (OR FLOOR operate relatively independent- The now legendary phrase DISPLAY) ly or be required to follow fairly popularized by Procter & A freestanding merchandiser stringent guidelines for mer- Gamble CEO A.G. Lafley, who designed to sit directly on the chandising and marketing. For in a 2002 letter to sharehold- sales floor. example, 7-Eleven requires its ers defined it as the moment franchisees to follow fairly regi- “when consumers stand in FOOTFALL mented guidelines on product front of a store shelf ... and Retail term that denotes the sourcing, planogramming and decide whether to buy a P&G amount of store traffic within a marketing, yet storeowners brand, or a competing prod- certain time frame. still maintain some operating uct.” The phrase has been autonomy. widely interpreted both as an FOUR-WAY affirmation for the importance A fixture that holds product on FREESTANDING DISPLAY of in-store marketing and as an four sides. It is most commonly Any display designed as a stand- endorsement for the store as a found at Walmart, which uses alone merchandising unit. viable brand-building medium. numerous four-ways in its Ac- As such, it has become an tion Alley merchandising plan. FREE-STANDING INSERT oft-quoted battle cry among (FSI) industry practitioners. An ad inserted into Sunday newspapers as a stand-alone 5-BY-5 RULE piece (versus a run-of-press ad). The theory that a product in a The FSI market is dominated store should convey its value by the SmartSource (operated proposition within five seconds by News America Marketing) from at least five feet away and Redplum (Valassis Inc.) from its position. Warehouse co-operative programs, which club operator Costco is gener- run weekly insert programs ally credited with establishing that offer category exclusivity the practice. and national, regional or local distribution. FLOOR DECAL/GRAPHIC/ CLING FREQUENT-SHOPPER A plastic substrate that adheres PROGRAM to floors (and is easily removed) A program that encourages on which advertising graphics shoppers to identify them- are printed. The tactic is used selves during each trip (usually most often to draw attention by swiping a card at checkout), to a product in close proxim- thereby letting the retailer col- ity, but is also utilized to direct lect historical purchase data shoppers from other areas of and develop personalized mar- the store or to communicate keting offers. Normally used retail messages. synonymously with loyalty card program, although that term implies more dedicated efforts to analyze and activate the data collected. 28 PATH TO PURCHASE GLOSSARY

FRONT-END GENERATION X GEO-SEGMENTATION/ The area including and sur- Consumers born after the Baby GEO-TARGETING rounding checkout — upfront, Boom ended, roughly from The practice of tailoring a near the entry doors — that the mid-1960s through the marketing message based on attracts high traffic volume late 1970s. Having witnessed the recipient’s specific location, and is therefore considered a the rise of cable TV, the home thereby making the message prime location for secondary computer and the internet as more locally relevant. Originally merchandising. social and commercial tools, a term of art in direct-mail mar- they have a reputation for be- keting, today it is commonly as- FSI ing independent and skeptical. sociated with digital marketing. See Free-Standing Insert. Considered to be more racially, ethnically and culturally diverse GLOBAL POSITIONING FULFILLMENT than previous generations. SYSTEM (GPS) A term (sometimes “order A satellite-based navigation fulfillment”) often associated GENERATION Y system that provides loca- with e-commerce, although The demographic group born tion-specific information via ultimately it relates to the over- roughly between the late-1970s receivers such as smartphones. all process of receiving, pack- to the mid- to late-1990s. This Location-based marketing plat- aging, labeling and shipping generation is defined by their forms rely on GPS signals. orders for goods, including increased use of and familiar- mail orders. ity with new media and other GO-TO-MARKET (GTM) technology. This group has PROPOSITION a reputation for being more The commercial viability of an G peer-oriented due to its fond- organization’s products/servic- ness for social networking. Also es in the marketplace. Improv- GAME known as Millennials, Echo ing GTM proposition could A chance promotion that re- Boomers and the Net Genera- involve products, lowered pric- quires participants to perform tion. ing, marketing investments, a a rudimentary task, such as en- new market entry, and so on. tering a code online or scratch- GENERATION Z ing off a card. It is unlawful to With birth years ranging from GONDOLA make product purchase an the mid-1990s to the early A secure shelving unit for entry requirement, although 2010s, this demographic group stocking products that accom- the common practice of deliv- is also known as the Post- modates shopping from at ering codes and other neces- Millennial “iGeneration.” These least two sides. It is the primary sary information on-pack often consumers have grown up in method of merchandising for implies otherwise. a highly sophisticated media most packaged goods retail- and computer environment ers. It comes in two standard GENERAL MERCHANDISE with widespread usage of the sizes: “high profile” gondolas Non-food packaged goods internet from a young age. are about 72-inches high, while with relatively low price points They interact on social media “low profile” gondolas stand and high usage rates that are websites for a significant por- about 48-inches high. sold through most mass-mar- tion of their socializing. ket retail channels. Categories include health and beauty GEO-FENCING care, cleaning products, statio- In marketing, the use of a nery and toys. virtual perimeter around a specific geographic location GENERAL MERCHANDISE to facilitate targeted and/or MANAGER protected communication A retail employee in charge between electronic devices. of product purchasing and The practice allows marketers category management for one to send targeted communi- or more product categories or cations to consumers within departments. (In this context, predetermined locations, such “general merchandise” is not as a store or even specific store confined to non-food catego- aisle. It also may ultimately be ries.) used to facilitate smartphone- based transactions. PATH TO PURCHASE GLOSSARY 29

GRAVITY FEED DISPLAY I A display slanted ICM (INSTANT COUPON or otherwise MACHINES) designed so An automatic coupon dispens- that merchan- er attached to a retail shelf. dise automati- cally slides or is IDENTICAL STORE SALES pushed forward The amount of total sales as upfront items generated from stores whose are removed operation has not undergone from shelves. any major change during the reporting periods in question. Differs from same store sales or comparable store sales in GROSS IMPRESSIONS H that it excludes stores that have Measure of the total audience been relocated, expanded for a marketing communica- HALF-PALLET DISPLAY or otherwise altered in a way tion without factoring out See Pallet Display. that could significantly affect duplicate impressions. results. HBA (HBC) GROSS RATING POINT Commonly used abbreviation IMPRESSION (GRP) for “health and beauty aid,” Unit of measurement in which A unit of measurement for esti- used interchangeably with each exposure of a consumer mating the audience exposed HBC (“health and beauty care”). to a marketing communication to an ad through television, equals one impression. The radio or outdoor advertising. HEADER term implies actual viewership, One point equals 1% of the A message board that sits but in fact only measures likely total potential audience avail- atop a display, fixture or case exposure. able through that medium. stack to communicate the The “gross” portion refers to the primary points of communica- IMPULSE ITEM (PRODUCT) fact that multiple exposures tion. Differs from a riser in that A product that derives a to a single individual are not a header is typically larger or significant portion of its sales factored out of the total. The more detailed. from unplanned purchases. medium’s reach multiplied by Batteries, gum, magazines and the ad’s frequency equals GRP. other products merchandised at checkout are largely impulse GROUP PACKAGING/ items. SECONDARY PACKAGING A sustainable packaging/dis- IMPULSE PURCHASE play term. P-O-P packaging Purchases made without prior that does not come in contact planning or careful consid- with the product and can be eration, often triggered by removed without affecting the in-store stimuli. The opposite of product unit’s characteristics. a planned purchase. A toothpaste tube’s carton and shipping case are examples. IMPULSE SALES HIGH LOW (OR HI LO) Retail sales resulting from im- GROUPON The antithesis of EDLP, in which pulse, or unplanned, purchases The world’s largest “deal-of- certain products are marketed by shoppers. the-day” website. For most of at relatively low discount prices its history, the company has for a short period while the rest IN-AD COUPON focused primarily on discounts of the inventory remains at av- A coupon placed in a retailer’s from local retailers and servic- erage or above-average levels. circular or print ad, typically es, but it is gradually expanding The goal is to drive store trips redeemable only at that retailer to feature national offers. for the advertised deals, then for specific products and dur- make up the profit margin on ing a certain time frame. the purchase of other products. With the rise of Walmart and its EDLP strategy, this strategy has largely fallen out of favor. 30 PATH TO PURCHASE GLOSSARY

INFLATABLE IN-LINE DISPLAY Within the standard shelf set or A type of display that planogram. ships deflated and is filled with air or gas at IN-LINE DISPLAY the store to promote A merchandising unit designed a product. to fit into or attach to a retailer’s larger shelf fixture or gondola.

IN-PACK COUPON A coupon included inside a product’s package for use on a subsequent purchase.

IN-PACK PREMIUM A toy or other premium included inside a product’s packaging. Used as a purchase incentive.

INSTANT COUPON DISPENSER Machines affixed to store IN-MARKET TESTING IN-HOUSE shelves or fixtures for distribu- The practice of conducting A term used to describe a com- tion of coupons. Often at- field research within a fully pany that develops advertis- tached near related products functioning store (as opposed ing or other services internally to help spur impulse sales. to a lab or virtual environment). rather than contracting with outside suppliers. INSTANT GRATIFICATION IN STORES NOW Tendency for consumers to A dedicated area on Walmart. INJECTION MOLDING prefer immediate rewards for com (http://instoresnow. their actions rather than wait to walmart.com) that showcases receive promised benefits. marketing programs from various product manufacturers INSTANTLY REDEEMABLE and brands. Placement on “In COUPON (IRC) Stores Now” is sold and main- A coupon available within the tained by third-party supplier store that can be redeemed Triad Retail Media. for an immediate purchase. Distribution vehicles include INCENTIVE packaging stickers, shelf dis- An additional product, service pensers, display tearpads and or other feature offered with checkout receipts. purchase of a product to trig- ger purchase. Process that pushes liquid INCREMENTAL REVENUE plastic at high pressures and (INCREMENTAL SALES) temperatures into a machined, Revenue gained from market- two-part mold. (Think model ing and merchandising activity airplane parts or any plastic that would not have been gen- toy that snaps together.) As the erated through the standard plastic quickly cools and solidi- course of business. fies, the mold is opened, and the part is ejected. This type of IN-HOME USE TESTS (IHUT) molding is recommended not Observation of consumers at only for parts small and large, home, usually to gauge pack- but also for parts that are com- aging functionality and prod- plex, and intricately configured. uct usage and performance. Common uses in P-O-P: gravity feed displays and wall mer- chandisers for mass cosmetics. PATH TO PURCHASE GLOSSARY 39

IN-STORE COUPON IN-STORE TV INTERCEPTS A coupon distributed within A proprietary video feed dis- Interviews with shoppers and/ a store via shelf dispensers, tributed through strategically or retail personnel that usually kiosks, POS systems, packag- positioned monitors that pres- occur either on the sales floor, ing or other means. In-store ents a variety of programming, at checkout or in the parking coupons usually are instantly including product information, lot prior to or immediately after redeemable and sometimes recipe ideas, paid advertising a store visit. specific to the retailer through and entertainment shorts. The which they are being distrib- term has been criticized in INTERNET OF THINGS (IOT) uted. some circles because it implies The ability of everyday objects that the medium can be lever- to access and be controlled IN-STORE MARKETING aged by advertisers, and will be by an internet connection. All marketing activity carried used by shoppers, in a manner Some IoT-enabling technology out within a store, including identical to broadcast TV. already is in use at retail, includ- tactics such as displays, mer- ing beacons, Bluetooth low en- chandising, media advertising INTEGRATED MARKETING ergy and in-store Wi-Fi. Some promotions, sampling and The practice of planning and key CPG applications: Consum- coupons. Also, any marketing developing all forms of market- ers scan and “check in” to prod- activity designed to drive traf- ing communication — advertis- ucts for instant rewards such fic to stores to make specific ing, promotion, public relations, as bonus points for games; purchases. customer marketing, etc. — in a refrigerators automatically add unified manner rather than in items to a digital household IN-STORE MARKETING isolation. The goal is to create shopping list as they run low INSTITUTE a clearer, more consistent and or expire; trash cans track what See Path to Purchase Institute. more effective message with consumers throw away (using a maximum impact poten- combination of bar-code scans IN-STORE MEDIA tial. Practitioners also often and voice commands) and add Broadly, any device within a advocate a media-agnostic items to a digital shopping list; store that provides opportuni- approach to campaign devel- and shopping carts help retail- ties for retailers and product opment in which marketing ers understand how shoppers manufacturers to present mar- vehicles are selected for their flow through the aisles and keting messages to shoppers. potential effectiveness rather where they dwell. Such devices include display than because of any internal graphics, shelf signs, coupon preconceptions or prejudices. IOS dispensers and narrowcast Apple Inc.’s mobile operating TV and radio networks. More INTEGRATION system, which runs exclusively specifically, however, the term A term used in B2B relation- on Apple hardware includ- is being used to identify adver- ships, it signifies a step beyond ing iPhone, iPad and iTouch tising opportunities that have basic collaboration where devices. brand-building potential in ad- there is a seamless linkage dition to sales-driving function- between two organizations IRI ality. (Note: the Path to Pur- across functions such as Chicago-based syndicator of chase Institute uses the term transportation, warehousing, scanner data and a shopping even more narrowly to identify inventory management, and so research provider for packaged ongoing marketing programs on. Integration often relies on goods marketers and retailers. that actively solicit advertisers common data systems to man- Competes with Nielsen. and guarantee messaging op- age all organizations’ functions portunities.) covered under the integration ISLAND DISPLAY scope. A freestanding floor display IN-STORE RADIO that merchandises product on A proprietary audio feed piped INTERACTIVE DISPLAY all accessible sides. into a store to enhance the A display that invites and often shopping environment, often responds to interaction from also used to deliver promotion- shoppers via buttons, touch- al messages. screens, functioning product samples or other means. 40 PATH TO PURCHASE GLOSSARY

J KIOSKS KNOCKED-DOWN (KD) Traditionally, small, open-fronted DISPLAY J HOOK cubicle-sized shops where items Displays that are shipped flat A “J”-shaped hook extending like newspapers, tobacco and and generally independent of from the shelf or pegboard candy were sold. For in-store the merchandise in consider- from which merchandise is marketers, the term refers to a ation of freight costs and logisti- hung. Often used to spark small structure that provides cal issues. They must be assem- impulse purchase. information and services on an bled and packed at the store. interactive computer screen. L LANDING PAGE A web page on which a con- sumer “lands” after clicking on a hypertext ad or other link or scanning a two-dimensional code (such as a QR code). Landing pages typically pres- ent a promotion or other mar- keting message.

LAST THREE FEET A term used for all in-store JOINT BUSINESS marketing that illustrates PLANNING its general proximity to the A collaborative process in purchase decision, but refers which retailers and manufac- specifically to the final step in turers formally work together the process when the shopper to align goals, strategies and KITTING is considering a product on action plans and achieve better display. business results. The act of putting in-store marketing materials together, LCD as into kits. JUST FOR U Acronym for “liquid crystal A digital savings program KMA display,” a type of flat-panel launched by Safeway in 2011. display or screen. Requires less Acronym for “Kroger Market- The program delivers personal- power than a plasma screen, so ing Area,” the designation the ized offers based on the shop- it is more commonly used with supermarket chain gives to its per’s own purchase history. It battery-powered devices. has roughly 6 million members. regional store groups.

K KD Abbreviation for “knocked down” display.

KEY PERFORMANCE INDICATOR/KPI A statistic or data point used to measure the success of a business plan or marketing program. Typical KPIs include incremental sales, redemp- tion rates and new-customer acquisitions.

LEADERBOARD In digital marketing, a large banner ad that typically spans most of the width of a web page. A leaderboard is usually positioned promi- nently either directly above or below the page’s header. PATH TO PURCHASE GLOSSARY 41

LED/OLED LIMITED-ASSORTMENT nology to identify the user’s Acronym for “light-emitting STORE whereabouts and deliver geo- diode/organic light-emitting A retail outlet that merchan- graphically relevant informa- diode.” Semiconductor diodes dises a relatively small number tion. Popular examples include that light up when electrified. of product categories and/ Foursquare, Shopkick and Organic LEDs utilize organic or SKUs per category. Such Checkpoints, which reward us- compounds and are consid- stores usually focus on top- ers for “checking in” at specific ered more flexible. selling, high-turn products and locations and often present emphasize price value and promotional offers. LENTICULAR shopping convenience. Aldi A grooved and Save-A-Lot are examples of LOCATION-BASED sheet of limited-assortment stores. MARKETING (LBM) plastic con- The practice of targeting pro- taining light LINE EXTENSION motional offers and other mar- properties A product marketed under keting messages to a recipi- that display an existing brand that offers a ent’s physical location, such as different visu- new flavor, formulation, scent, her proximity to a store or even als at different size or packaging shape to the a specific aisle within a store. light angles, portfolio. The product typically If combined with loyalty-card often creating expands the brand’s presence information or other historical a three-dimen- in an existing category (as purchase data, the practice sional effect. opposed to a brand exten- makes consumer-specific tar- sion), ideally to attract new geting a possibility. The primary users. It also sometimes is used method of delivery is a per- defensively to prevent the loss sonal smartphone, although of brand sales to competing in-store technologies theoreti- products, even though it may cally could also be used. LICENSED PRODUCT result in cannibalization of existing brand products. LOCK BAR A product whose name and A system that allows an entire packaging graphics leverage high-ticket product package the established equity of a LITHO-LAMINATING to be seen and held while licensed property through a Process in which a printed remaining safely secured to a contractual agreement with sheet of SBS board is combined fixture. the property owner/licensor. with single-face corrugate to produce a finished structural LOSS LEADER LICENSED PROPERTY sheet ready for die cutting. A product offered to shoppers Any of a variety of copyright- at cost or even below cost as protected, registered or LOCATION-BASED APP a way of driving traffic to the trademarked properties whose A mobile application for store and gaining additional, affinity among consumers can internet-enabled devices that profitable purchases. be leveraged by marketers for employs GPS tracking tech- promotional activity. Examples include the National Football LOSS PREVENTION League’s Super Bowl, NASCAR, The methodology a retail busi- Disney Channel TV series and ness employs to curb physical Hollywood films released the- loss of property (from earth- atrically or on home video. Pro- quakes, floods, hurricanes and motional rights are negotiated so forth), reduction in inventory between the marketer and the (due to theft, damage, spoil- property owner/licensor. age and so forth), and loss of money due to clerical error or LIFT theft (employee, customer, or vendor). Also known as “LP” or The sales or revenue increase “Security.” from an in-store marketing initiative that usually is short- term or promotional in nature. Expressed as a percentage. Also called “uplift.” 42 PATH TO PURCHASE GLOSSARY

LOYALTY CARD PROGRAM MASS MERCHANT (MASS MERCHANDISING STRIP MERCHANDISER) A long, narrow device made of A large-format store carrying a plastic or metal with hooks or wide variety of popular product grooves used to merchandise categories, typically at discount individually wrapped pack- prices. The most common ages of a product. The low-cost examples are Walmart and displays are typically used to Target. provide secondary placement for relatively small packages of MASTER DATA high-volume product, and are MANAGEMENT (MDM) often used to facilitate cross- A method that enables an en- merchandising (such as batter- terprise to link all of its critical ies in the electronic toy aisle). data to one file, called a master Also commonly referred to as a file, that provides a common “clip strip.” point of reference. Data ele- ments can include informa- MICROSITE tion such as item numbers, list A section within a larger web- price, weight, cube and so on. site, often with a slightly differ- ent URL, that contains specific M-COMMERCE (MOBILE content or a special theme. The retailer practice of provid- COMMERCE) Retailers and brands typically ing discounts and other special The full shopping experience build microsites to house infor- offers to regular shoppers. on a mobile device, including mation related to short-term Participation requires initial product selection, shopping promotions. registration and continued basket, payment, checkout and activation, thereby allowing transfer of product or service MILLENNIALS retailers to track behavior go- from retailer to consumer. See Generation Y. ing forward. The “card” por- tion of the term is gradually MEDIA AGNOSTIC (MEDIA MOBILE decreasing in importance as NEUTRAL) A ceiling sign that uses coun- alternative activation methods A strategy in which media ter-balanced elements to cre- are launched. Also known as options are evaluated on their ate motion in a current of air. frequent shopper program. ability to effectively reach the target audience rather than on LOYALTY PROGRAM any preconceived notions or Marketing activity designed institutional biases. to establish and/or maintain loyalty to a brand or store by forging emotional connections with consumers.

LUG-ON A sign or other P-O-P element that is attached to a primary display, typically to add dimen- sional presentation or highlight specific information.

M MARKETING MIX MODELING (MMM) The use of multivariate re- gression and other statistical techniques on sales data to gauge, compare and forecast the impact and effectiveness of MOBILE PAYMENT various marketing tactics. Paying for goods and services via a mobile device instead of us- ing cash, checks or credit cards. Examples include Apple Pay and Google Wallet. PATH TO PURCHASE GLOSSARY 43

MOBILE APPLICATION/APP A software application de- signed for smartphones that lets users perform specific tasks or access specific information.

MOBILE COUPON A coupon offer delivered to a mobile phone for redemption at the store, in most cases via either a numerical confirma- tion code or a bar code.

MOBILE CRM The emerging practice of con- NARROWCAST NETWORK ducting traditional customer An audio or video feed of content created for delivery through a relationship management specific, closed network to a unique audience; a less controversial activity via mobile phones. term for in-store TV. With mobile media, marketers can communicate even more directly with customers, and MOTION DISPLAY NEAR PACK PREMIUM provide customers “anytime, A display that features a An ad specialty or other type of anywhere” access to their ac- moving component, usually gift offered free with product counts and other information. battery-powered but some- purchase and typically dis- times requiring electricity. Used played near the product or at MOBILE DEVICE to attract more attention to the checkout to help influence the A wireless, portable (and often display. purchase decision. handheld) device such as a media player, mobile phone, MULTIMEDIA MESSAGING NEAR-FIELD e-reader or tablet. SERVICE (MMS) COMMUNICATION/NFC The standard way to exchange Short-range wireless technol- MOBILE MARKETING multimedia messages (typical- ogy that facilitates secure data The emerging practice of ly photographs) with a mobile exchange between electronic delivering marketing messages phone. devices within close proximity. to “on the go” consumers via portable media devices such as MYSTERY SHOPPER NEAR PACK DISPLAY cell phones and personal digital A brand or retail representative A display made to merchan- assistants. Also refers to an event who visits a store anonymously dise a premium that will be marketing tour, especially one to evaluate store conditions given away with product that features a branded vehicle. and customer service without purchase. It typically is placed influencing the actions of store near the product in question MOBILE WEBSITE personnel. and delivers the promotional A website specifically designed message. to be user-friendly on small- screen mobile handsets. Mobile N NECK HANGER sites typically present simpli- A P-O-P material that fits over NARMS fied, less graphically intensive the neck of a bottle to de- The National Association for versions of their corresponding liver a marketing message at Retail Marketing Services, the main websites by adjusting font the shelf. Also called a bottle old name for The World Alli- sizes, page layouts, interactive hanger. features and other aspects. ance for Retail Excellence & Standards. MODULAR DISPLAY A display whose components NATIONAL ASSOCIATION can be constructed or com- OF CONVENIENCE STORES (NACS) bined in multiple ways to produce different sizes and A group for convenience store shapes, thereby accommodat- owners and operators. ing the requirements and/or needs of various retailers. 44 PATH TO PURCHASE GLOSSARY

OFF-PREMISE Term to describe sales of pack- aged beer, wine and liquor sales through retail stores at which they will not be con- sumed, as opposed to “on- premise” bars or restaurants. The distinction is significant in some states and in many local jurisdictions where public policy limits access to alcohol. Also comes into play in follow- ing local laws that affect the permissibility of liquor promo- tions targeting store owners, club owners, bartenders, wait- NEUROMARKETING staff, etc. The practice of applying neuroscience to marketing, advertis- ing and product design through the measurement of emotional, OFFSET PRINTING cognitive and physiological reactions to stimuli. It employs such re- A method of printing on paper- search methods as facial coding, biometrics, electroencephalogra- board and litho sheets in which phy (EEG), facial electromyography, functional magnetic resonance the image areas of aluminum imaging (fMRI) and eye tracking. plates are chemically treated to accept ink and transfer it to a rubber blank that transfers it to THE NIELSEN COMPANY or icon-bearing shelf signs or la- the final material. One of two leading auditing bels that point out a product’s services that collects point-of- specific nutritional attributes. ON-PACK (PREMIUM) The content is sometimes sale scanner data from retailers A promotion or other market- developed in conjunction with to provide syndicated tracking ing message delivered on the outside healthcare organiza- and analysis of product sales, product’s packaging; a free gift tions and professionals. market share and other perfor- included as part of the prod- mance benchmarks. It also is uct’s packaging. the leading syndicator of audi- ence measurement analytics ON-PREMISE for television advertising and Term to describe beer, wine other mass media. Through its and liquor sales through Nielsen In-Store division, the channels offering immediate company offers syndicated consumption, such as bars data on in-store audience levels and restaurants, as opposed to and ad placement. “off-premise” sales of packaged products in stores. NETWORK OPERATIONS CENTER (NOC) ON-SHELF STUDIES The central office where a staff Research conducted to assess controls a communications whether a CPG’s merchandise network. is actually on a given shelf at a given store at a given time. The NEUROSCIENCE goal is to determine whether The scientific study of the ner- replenishment or out-of-stock vous system to advance the un- issues at the store level are a derstanding of human thought, major problem. emotion and behavior. O OPP (OPENING PRICE NUTRITION LABELING OMNICHANNEL RETAILING POINT) SYSTEM A strategy in which the retailer The lowest price offered in a An at-shelf food-labeling pro- focuses on providing a consis- product category, which often gram developed by retailers to tent, integrated shopping ex- serves as the consumer’s pur- help shoppers make better-in- perience across physical stores, chase entry point. formed, healthier food choices. websites, mobile devices and It often consists of color-coded any other sales vehicle. PATH TO PURCHASE GLOSSARY 45

OOS OVERHEAD Abbreviation for “Out of stock” merchandise. MERCHANDISER A display that sits above a checkout counter, allowing the cashier to reach the product without abandoning his posi- tion. C-stores often use over- head merchandisers to stock cigarettes.

OVER-WIRE (OR OVER-THE- WIRE) BANNER A printed communication piece, often paper, that can be thrown over a wire to display a marketing message on either side.

OPPORTUNITY TO SEE OTC OVERLAY (OTS) Abbreviation for “over the coun- A secondary tactic included Refers to the shopper’s (or ter” medications, which require in a promotion to generate consumer’s) potential to view no prescription for purchase. additional awareness or par- a marketing communication. ticipation, or to customize the A shopper walking down a promotion for a specific retail store aisle has an “opportunity account. to see” a particular shelf sign but won’t necessarily do so. OWN BRAND/OWN LABEL The term is often used inter- Product brands owned and changeably with exposure and marketed by retailers for sale impression. in their own stores. Also known as store brand or private-label ORC/ORT brand. Organized Retail Crime/Orga- nized Retail Theft. Theft gangs target household commodi- P ties and consumer items that can be sold over the internet P2P or through fencing operations Shorthand for “Path to Pur- and flea markets. Items at high chase.” risk include OTC drugs, razor PACK-OUT DISPLAYS blades, camera film, batteries, OUT-OF-HOME videos, DVDs, CDs, smoking ADVERTISING Displays that are folded flat for cessation products and infant A grab bag of media opportu- shipment but are included in formula. nities that consumers encoun- the same box as the merchan- ter after leaving their house. dise and assembled in stores. ORGANIC SEARCH The term covers place-based REFERRAL TV networks (in-store, in-office, PACKAGED GOOD (OR A hyperlink referral to a website transit), billboards, bus wraps PACKAGE GOOD) originating from the non-paid, and a large number of other A consumer product pre- “organic” search results of an vehicles. Technically, all forms packaged for sale at retail that online search engine such as of in-store marketing are “out- is relatively small, carries a low Google, Yahoo! or Bing. See of-home” advertising. unit price and is consumed also Sponsored Search Referral. on a frequent basis. The term OUT OF STOCK is used for all pre-packaged food and beverage, health and A product is temporarily sold beauty, and general mer- out and unavailable for pur- chandise products. It does not chase. Products may be out of include, for example, apparel or stock at the shelf or at other consumer electronics. points in the distribution chan- nel. Often abbreviated as OOS. 46 PATH TO PURCHASE GLOSSARY

PAID-OWNED-EARNED- PANTONE COLORS shopper marketing informa- SHARED MEDIA A standardized color system for tion, world-class publications, A marketing conceit in which printing patented by Pantone leading educational/business consumer-facing media op- Inc. The Pantone Matching forums, and groundbreaking portunities are identified either System (PMS) utilizes a palette research. Formerly the In-Store as “paid” (TV advertising or of standard colors that can be Marketing Institute, and now a online display ads), “owned” (a mixed in precise combinations part of EnsembleIQ, a business brand’s own website or delivery to recreate a wide range of col- intelligence resource. truck), “earned” (unsolicited ors consistently across different product reviews or Facebook printing presses and substrates. PANTRY LOAD posts) or “shared” by brand and A common store trip in which a specific retailer (co-branded PATH TO PURCHASE the shopper purchases a large product displays or emails). The route that shoppers take number of grocery and general from discovery of a product/ merchandise items to satisfy PAID SEARCH need to actual purchase of her needs (“load the pantry”) The use of paid listings that run a product. May include sev- over an extended period of in prominent positions on the eral steps such as consulting time. Also called a stock-up search-results pages of Google, research or product reviews on trip. Yahoo! and other search the internet, discussing prod- engines. The listings appear ucts with their friends, being PAY-PER-CLICK (PPC) atop and alongside the organic exposed to media advertising, ADVERTISING search results and are identi- traveling to a store, and exam- An internet advertising model fied as advertising. ining the product on shelf or popularized by larger search display before buying. engine sites such as Google PALLET DISPLAY and Yahoo! in which advertisers PATH TO PURCHASE pay their host only when their INSTITUTE ad is clicked. A global association serving the needs of brands, agencies, PDA retailers, P-O-P firms, research Abbreviation for “personal organizations and other solu- digital assistant,” a device used tion providers along the path by some shopper researchers to purchase. The Institute is to quantify observations by: committed to fostering best scanning UPCs and/or record- practices and the understand- ing purchases and loyalty card ing of all marketing efforts that data in order to track products culminate in product sales. purchased, compared and/ To achieve its mission, the or considered, and integrat- Institute provides members ing and organizing data on with an ever-evolving variety customer shopping behav- A type of display built on of resources including robust ior, purchases and interview standard pallets for efficient websites and databases of responses. shipping and rollout to sales floors with minimal effort. Pallet displays are typically pre-packed with product and shrink wrapped for ship- ping. Many contain additional graphic panels and structural elements for enhanced prod- uct imagery, brand logos or other messaging. Some consist of a series of stacked trays that can be removed and discarded as product sells down. Full-size pallets that display product on all four sides are most com- mon, especially in larger stores PDQ DISPLAY where floor space isn’t as tight, A display that facilitates “pretty darn quick” stocking at the store but half pallets and quarter pal- by arriving pre-packed with product in a shelf-ready container. In lets are also commonly used. Walmart’s parlance, all shelf trays are PDQs. PATH TO PURCHASE GLOSSARY 47

PERIMETER shoppers and stores (and/or The borders of a store’s interior, encompassing the walls and adja- departments), the creation of cent areas. In stores with a racetrack layout, the perimeter is often key messages and themes, and the most heavily trafficked area of the store. In the traditional su- an outline of objectives, perfor- permarket format, the perimeter is the location for fresh food and mance goals and measures. service departments such as deli, bakery and meat, and therefore has become a shorthand way of referring to those departments. PMA The Produce Marketing Associa- tion, a nonprofit whose goal is to enhance the marketing of produce, floral and related prod- ucts and services worldwide.

POINT-OF-PURCHASE (P-O-P) The site of a consumer transac- tion, most commonly used to denote the retail environment.

POINT-OF-PURCHASE PERMANENT DISPLAY PLASMA SCREEN ADVERTISING A product display designed A type of flat-panel display or Marketing strategies and tac- to remain in use anywhere screen. Plasma screens are said tics executed within the store from three months to multiple to have better viewing angles environment, including (but years. As such, they typically than LCD screens, but use not limited to) displays, signs are made out of more durable more power. and proprietary audio and materials such as plastic, wire, video networks. wood and metal. These ma- PLATFORM (IN SHOPPER terials often give the display a MARKETING) POINT-OF-PURCHASE more “premium” look. As used by the Retail Commis- DISPLAY sion on Shopper Marketing, A product merchandiser PETG the tangible, customer-facing designed to hold product and A low-cost substitute for representation of a retailer’s (or influence purchase at retail. polycarbonate. It has higher brand’s) go-to-market business impact strength than acrylic. strategy. A traditional super- POINT-OF-SALE (POS) PETG is available in clear and market retailer (as an example) Often used as an alternative opaque formulations and can may have platforms related to term for point of purchase, be injection molded, vacuum fresh food, convenient pharma- although some practitioners formed or extruded. A PETG cy and a friendly, helpful store make a distinction by using POS sheet is easily die-cut and is a environment. Effective plat- in reference to checkout/cash good material for screenprint- form development includes register technology and P-O-P ing. Common uses in P-O-P: the identification of target for anywhere else in the store. lenticular signage, clear shelv- ing, lenses and signs. PLANOGRAM PLACE-BASED MEDIA A schematic An out-of-home advertising ve- diagram used to hicle that delivers content cre- direct the exact ated specifically for the venue placement of spe- and its unique audience. cific SKUs on store shelves. Plano- PLACEMENT grams typically are The set-up of a marketing pro- created for prod- gram within a store; also refers uct categories and to the specific positioning of sub-categories. the program.

PLANNED PURCHASE A purchase the shopper intended to make before enter- ing the store. 48 PATH TO PURCHASE GLOSSARY

POLE TOPPER POLYURETHANE POWER Signs communicating an ad Often combined with other WING message that are mounted materials to produce a liq- A product dis- on paper or plastic poles. The uid foam that’s poured into play designed poles usually are set at the rubber-lined molds to make to hang from floor by a corrugate pedestal special parts and character a store fixture, or wire stand, with the product shapes. Common uses in P-O- most often on stacked around them. They P: dimensional signs, imitation the sides of most commonly are used in wood, beer-tap knobs and endcap dis- beverage merchandising. dimensional trim. plays. See also Sidekick. POLYCARBONATE POLYVINYL CHLORIDE Another popular substitute for (PVC) glass, polycarbonate has 45 The most widely used member times the high-impact strength of the vinyl family. It is chemi- of acrylic, is stain resistant, rigid, cally inert and resistant to and can withstand a wide water, corrosion, weather and range of temperatures. How- dents. Common uses in P-O-P: ever, it scratches more easily graphics, price channels, edge PRE-CONSUMER than acrylic. Common uses in molding and banners. MATERIALS P-O-P include corner brackets, Materials destined for disposal food containers and unbreak- POPAI had they not been diverted able lenses. The former name of Point of from the waste stream for Purchase Advertising Interna- reuse or recycling. POLYETHYLENE (PE) tional. The association is now The most frequently used called Shop! PREMIUM thermoplastic in the world. A tangible item offered free There are hundreds of formu- P-O-P PRODUCER with purchase of a specified lations of PE available, result- A company involved in the product, used as an incentive ing in different properties for design, manufacture and sup- to buy. different uses. The varieties ply of displays, signs and other most commonly used in point- in-store marketing materials to PRE-PACK DISPLAY of-purchase advertising are product manufacturers, retail- high density (HDPE), and low ers and marketing agencies. density (LDPE). Common uses in P-O-P include polybags, POST-CONSUMER product facsimiles, flexible MATERIALS hinges, promotional flags and Materials that have already snap-to-fit parts. served their intended use and have been recycled as a raw POLYPROPYLENE material. A plastic material commonly used in tire stands, shelves, POST-INDUSTRIAL bases and other P-O-P materi- MATERIAL als. Material that’s generated by manufacturers, such as over- POLYSTYRENE (PS) runs or waste, and incorporat- A versatile thermoplastic used ed back into the manufactur- in foam packaging and plastic ing process. cups. Common uses in P-O-P include signs, vacuum-formed POWDER COATING trays, menu-boards and A type of coating that’s applied One of the more popular shelves. Available in three dif- as a free-flowing, dry powder. display types. A product ferent grades: general purpose The coating is typically applied merchandiser that is filled polystyrene (GP); high-impact electrostatically and is then with product at the plant and polystyrene (HIPS); and high cured under heat. Used to cre- shipped as a single unit rather expandable polystyrene (EPS). ate a hard finish on aluminum than separately. The practice and other metals. MDF board reduces labor demands at the can be powder coated by pre- store, and therefore generally is heating the board and making believed to improve execution. it conductive. Sometimes used synonymously PATH TO PURCHASE GLOSSARY 49 with “shipper display,” although that term usually denotes less elaborate, lower-cost units.

PRICE ELASTICITY The levels to which a prod- uct’s price can be increased or decreased without negatively affecting long-term sales or brand equity.

PRICE FEATURE PLUS (PFP) PRODUCT INFORMATION MANAGEMENT The name used by News In e-commerce, the process of gathering and storing all necessary America Marketing’s Smart- product content for streamlined distribution to retailers and other Source co-op FSI program for external trade partners. its co-equity overlay program. (See Co-Equity Overlay.)

PRICE-IMPACT FORMAT PRODUCT DETAIL PAGE PROGRAMMATIC A store whose marketing and The primary page for a product ADVERTISING merchandising strategies cen- on a retail website that ter on discount pricing of high- contains all of the perti- volume consumables. Food 4 nent information shop- Less and SaveRite are examples pers might need to make of price-impact stores. a purchase decision. The content also is needed to PRIMARY RESEARCH effectively feed search en- Data collected firsthand gine algorithms. Maintain- through a new study, often to ing accurate, informative gather insights that previously and robust product detail had not existed in the market- pages is considered to be place. a critical component of e-commerce success. The automated sale of ad PRIVATE LABEL space made possible by tech- nology connecting advertisers A line of products exclusive to a PRODUCT INTRODUCTION and publishers. The technology single retail entity whose brand The first stage in a product’s life is used to select appropriate and trade dress is owned by cycle, covering its announce- ad placements and transact that retailer (as opposed to an ment to the marketplace and the sale. The transaction can exclusive brand). Private label initial period of availability. be entirely automated using products are either manufac- an auction-based marketplace tured by the retailer or out- PROGRAM (IN SHOPPER (marketplace programmatic) sourced to another party. MARKETING) As used by the Retail Commis- or partially automated with humans negotiating the sale P.R.I.S.M. sion on Shopper Marketing, the (programmatic direct) be- The more commonly used marketing and merchandising fore technology takes over to acronym for “Pioneering Re- campaigns through which a process data and attain an search for an In-Store Metric,” retailer (or brand) activates its appropriate placement. an ambitious research initiative platforms in stores, circulars and undertaken in 2006 to develop other marketing communica- PROJECT IMPACT a formula for measuring store tions on a long-term or short- Walmart’s multiyear chain traffic at the category level us- term basis. A supermarket chain modernization initiative that ing sales data and other known may execute a platform related involved nearly every aspect variables. The Nielsen Com- to helping the community with of the store, from SKU counts, pany abandoned efforts to turn a “cash back” incentive program product assortments and cat- the initiative into a commer- benefiting local schools. Pro- egory adjacencies to merchan- cially viable service in late 2008. grams will borrow many of the inputs from their corresponding dising tactics, in-store com- platforms, but will drill down munications and customer to identify the specific tactics, services. Many aspects have categories and brands that will been reversed. be utilized in each campaign. 50 PATH TO PURCHASE GLOSSARY

PROMOTION ALLOWANCE PURCHASE BEHAVIOR Q A rebate, discount or other The habits and tendencies monetary reward given by a exhibited by a shopper when QR CODE manufacturer to a retailer in buying products. Short for “quick response exchange for special marketing code,” the term refers to a two- or merchandising consider- PURCHASE DECISION dimensional bar code or other ation. In theory, they serve as The consumer’s act of choosing type of image that contains reimbursements for expenses to buy a product. encoded data. Readable by incurred by the retailer when smartphone apps, the codes performing certain tasks. In PURCHASE INFLUENCE typically are used to drive con- practice, however, they often A factor, either tangible or sumers to a specific website for have become “pay to play” intangible, that affects a shop- information about a product or charges for planogram fac- per’s decision to buy a product promotion. ings, secondary display space, or not. circular ads and other market- QUALITATIVE RESEARCH ing activities. PURCHASE INTENT In broad terms, anecdotal re- A consumer’s predisposition to search. The analysis of narrative PROMOTION buy a product, or the likelihood feedback derived from a hand- Marketing strategies and tac- that she will buy. ful of consumer focus groups tics whose goal is to directly is an example of qualitative stimulate consumer action. In PURCHASE TRIGGER research. the retail community, a special A stimulus that inspires a pur- price offer. chase decision. QUANTITATIVE RESEARCH In broad terms, data-driven re- PROMOTIONAL DISPLAY PURE-PLAY search. The analysis of scanner A display produced and distrib- A retailer that conducts busi- data to forecast sales is an ex- uted for use during a specific ness solely on the internet ample of quantitative research. time frame, often in conjunc- without any physical locations. tion with a particular consumer QUARTER-PALLET DISPLAY promotion. PUSH/PULL NOTIFICATIONS A display whose footprint ac- The delivery of information commodates shipment and, PROXIMITY MARKETING from a software application if desired, display on a quarter The delivery of marketing to a computing device with- pallet. Sometimes shipped four messages to specific consum- out/with (push/pull) a specific to a pallet for use as a full pal- ers with smartphones or other request from the client. let in some locations or to be compatible devices in a store broken down in others. or other defined location. QUICK TRIP A common trip in which shop- pers visit a store to purchase PURCHASE FUNNEL one to three items that fill A model that illus- immediate needs (such as that trates the “journey” a evening’s dinner). consumer takes when deciding what to buy, beginning with aware- R ness and concluding with the purchase. The RACETRACK model has multiple A continuous aisle that runs variants. in a circle or oval around the entire store with products mer- chandised on either side.

RACK A floorstand, usually construct- ed of wire or metal, used for displaying certain products or a group of related products. PATH TO PURCHASE GLOSSARY 51

RELATED REDPLUM DISPLAY Name for one of the two week- A display or other ly co-operative free-standing unit carrying insert programs distributed different prod- nationally through Sunday ucts that have newspapers and, to a lesser seasonal, func- degree, direct mailers. Owned tional or other and operated by Valassis Inc. similarities. Also called a “cross- REMANUFACTURING merchandising When used in a sustainable display” when packaging/display context, it is the products the dismantling of a product being promoted for cleaning and repair for the are from differ- same use. ent categories or manufacturing RESERVE STOCK sources. Merchandise that is kept somewhere other than the sell- ing floor area and away from customers. RADIO FREQUENCY REBATE CATALOG IDENTIFICATION (RFID) A collection of rebate of- RESET A technology in which the fers and related redemption (1) A major change or revision location of a specific pallet, dis- information distributed in print to an existing planogram, sec- play, shipping case or individ- and/or online form. The tactic is tion, department or entire store ual SKU can be verified by an used extensively in the drug- undertaken to accommodate attached data chip called an store channel. new product lines, packag- electronic product code. The ing or fixtures, or an improved chip emits radio waves that REBRANDING configuration as determined by continuously broadcast its data Introducing a new name, logo, the retailer. (2) The realigning or to nearby readers, which can symbol, etc. for an established adjusting of dies or tools during be attached to a door, forklift, brand with the intention of a production run; not to be con- shelf or handheld device. To developing a new, differenti- fused with the operation setup date, the technology’s ad- ated identity in the minds of that occurs before a production vancement in the retail indus- consumers. run. try has been driven largely by Walmart and its efforts to track RECLAIMED RETAG product shipments to stores; A specialized process of clean- Changing shelf order tags on a Walgreens has been testing its ing and refurbishing a product shelf/fixture/display to conform capabilities for determining in- for reuse. to a new system. store marketing effectiveness for several years. RECOVERED MATERIALS RETAIL COMMISSION ON Waste materials and byprod- SHOPPER MARKETING REBATE ucts diverted from solid waste, Sponsored by Coca-Cola and A price discount offer in which including post-consumer run by The Partnering Group the buyer is required to pay for materials. and the then-In-Store Market- the product at full price, then ing Institute, a commission of submit information by mail or RECYCLABLE retailers and brands formed to online to receive money back. The ability of a product to be enhance the shopping experi- The tactic is sometimes favored diverted from the solid-waste ence, increase same-store sales over immediate price discounts stream. and boost profit performance because some consumers ne- through the design of a next- glect to redeem the offers. generation model for retailer/ manufacturer collaboration. 52 PATH TO PURCHASE GLOSSARY

RETAIL LINK REUSE ROLLBACK Walmart’s online data informa- Repairing, refurbishing, wash- A marketing term used by tion network, a best-in-class ing or recovering worn prod- Walmart to identify products system that gives product ucts and using for the same whose prices have been deeply vendors near real-time access purpose. discounted for periods of at to sales data. least 90 days and, most often, RFID for six months or more. Items in RETAIL READY See Radio Frequency Identifi- the rollback program are iden- PACKAGING/RRP cation. tified as such through signage, circular features and, occasion- RFP ally, media advertising. More commonly used acronym for “request for proposal,” a ROTATIONAL MOLDING request by a potential cli- Manufacturing process used to ent for suppliers to submit produce hollow parts, ranging bids on a project. Prod- in size from medium to large. uct manufacturers often A common example is the “Big require RFPs from market- Wheels” toy. In P-O-P applica- ing agencies and P-O-P tions, a rotationally molded suppliers. part can be hollow, making it lightweight for shipping yet RFQ structurally sound for service A shipping case that doubles Acronym for “request for quota- on a sales floor. Sometimes, as display packaging and tion.” Some use it as synony- sand or water is poured into can be set up on a retail shelf mous with RFP (see above). the part on-site to help anchor with minimal labor and cost. a display. The downside is slow Store associates need only RISER production cycles. place entire trays of product The topmost shelves of a on a shelf and do not have to gondola, often too high to be ROUNDER handle individual SKUs. Some shoppable and frequently used A circular fixture for clothing. RRP designs also feature an to store overstocks. A graphic easy-open “zipper” design that panel or card attached to the eliminates the need to use top of a display. cutting utensils. Walmart uses the term “Retail Ready Packag- ing.” Kroger and others use the term “Shelf Ready Packaging.”

RETURN ON INVESTMENT (ROI) While there is no definitive way to measure the performance of a shopper marketing pro- gram, in numbers it can be the benefit (return) of the program divided by the cost of the investment. Related measure- ment terms include return on relationship (ROR), return on objectives (ROO), return on marketing objectives (ROMO) and even return on retailer relations (RORR).

RETAILTAINMENT Term for in-store events and other marketing activities that en- hance the store experience by entertaining shoppers. In the early 2000s, Walmart was enamored enough of the concept to seek trademark protection of the word (although its application was eventually denied). PATH TO PURCHASE GLOSSARY 53

SAMPLING S Promotional tactic in which a full or smaller version of the product S HOOK is given free to consumers. Often used for new product launches to A hook shaped like an “S” often induce trial. used to hang merchandising strips or other displays.

SAME STORE SALES The amount of total sales gen- erated from stores that have been open for at least one year or otherwise long enough to make comparisons based on historical data. Typically expressed as a percentage in- crease or decrease, same store sales exclude sales derived through acquisitions or the opening of new stores and are often used by investors and an- alysts to determine a retailer’s overall health. Also known as “comparable store sales.”

SCAN DOWN A price discount programmed into the retailer’s computer sys- tem that automatically regis- ters when a product is scanned SEO (SEARCH ENGINE SECONDARY RESEARCH OPTIMIZATION) at checkout. The analysis and synthesis of The practice of manipulating existing data to inform new a website’s code in order to SCAN-BASED TRADING learning. improve its visibility and page The practice of withholding rank in the search results of payment for a product until it SECURITY AD WRAP leading search engines such as actually is purchased in a store. An advertisement placed over Google, Microsoft’s Bing and the theft-prevention secu- Yahoo. SCANNING INVENTORY rity pedestals located at store CONTROL CLIP fronts. SEASONAL MERCHANDISE Used to deter theft of expen- Products that exhibit higher sive products by installing in demand from shoppers and front of packages. merchandising activity from re- tailers during specific seasons of SEARCH the year, such as back-to-school, The act of looking up specific Halloween or the holidays. information via online search engines such as Google and SEASONALITY Yahoo. Measurement of the sales fluc- tuations at retail based on the SEARCH ENGINE MARKETING (SEM) time of year. The use of paid search, display SECONDARY DISPLAY advertising and other tactics to guarantee prominent top- Placement of product in a loca- of-page positioning in search tion separate from its primary results for specific terms. shelf position; or, the actual display on which a product receives the additional mer- chandising. 54 PATH TO PURCHASE GLOSSARY

SHELF ORGANIZER SEMI-PERMANENT A form of mat or base that arranges products on shelves or dis- DISPLAY plays in an appealing, organized way to make it easier to shop the A product display designed to category. remain in use from three to six months. These displays often combine corrugate with more durable materials such as plas- tic, acrylic or styrene.

SHELF CHANNEL A recessed channel on the front of store shelving units where pricing labels or other messaging can be inserted.

SHELF EXTENDER A display or fixture attached to standard shelving units to increase available space on the shelf or interrupt the aisle in an effort to focus more atten- tion on a product or product category.

SHELF LABEL A label placed on shelves or in shelf channels containing infor- mation such as price, product size, bar codes or temporary SEGMENTATION SELF SHIPPER sales offers. The process of dividing a large Alternative term for pre-pack group of shoppers into smaller shipper or shipper. SHELF LIFE groups of individuals shar- The length of time a product ing common characteristics, SELL DOWN can safely remain on display before it spoils or deteriorates usually in an effort to tailor The gradual purchase of prod- in quality. marketing and merchandising uct from a display. efforts more effectively to the SHELF READY PACKAGING/ needs of specific audiences. SELL IN SRP Segmentations may employ The process of gaining retail See “Retail Ready Packaging.” geographic, demographic, approval to conduct an in-store behavioral/lifestyle, attitudinal, marketing campaign. psychographic or other forms SHELF TALKER A small sign affixed to a shelf of data to separate individuals SELL THROUGH into discrete groups. edge, typically used to high- The purchase of product by light temporary promotions, shoppers, discussed in terms new product introductions or SELF-LIQUIDATING OFFER of quantity and duration; also other advertising messages. A promotion that features used synonymously with “sell some sort of bonus, gift or down.” special offer that generates enough extra product sales SELL SHEET revenue that it at least pays A printed sheet or brochure for the item itself, if not other with detailed information promotional costs as well. A about a product’s available display for which the retailer pack sizes, display options and is paying all or part of its cost. promotional offerings, typically A premium offer in which the used by product manufactur- consumer pays a nominal fee ers to sell in programs to retail- that covers the premium’s pro- ers. Also sometimes called a duction costs. “one sheet.” PATH TO PURCHASE GLOSSARY 55

SHIPPER SHOPPER-CENTRIC (OR SHOPPER SOLUTION A display that includes pre- CUSTOMER-CENTRIC) A marketing/merchandising packed merchandise and the A strategy in which store de- program that presents multiple display structure all in one car- signs and layouts, merchandis- products as a holistic solution ton, usually designed for quick ing activity, product selection to shopper needs rather than and easy set-up in the store. and/or marketing initiatives are individually or by category, developed to meet the needs such as “Family Move Night” or of a specific consumer seg- “Cold & Flu Center.” ment. SHOPPING ASSISTANT APP SHOPPER INSIGHTS An application for smart- Data-driven learning that leads phones that offers utilities for to an actionable understand- on-the-go shopping. Typical ing of shopper behavior and functions include store and purchase influences. product locators, bar code scanners that link to product SHOPPER INTERCEPT information or promotions, Research practice of interview- coupon search and fulfillment, ing consumers before or after and price comparison tools. their shopping trip (usually outside the store) to gain an understanding of their atti- tudes and behavior.

SHOPPER MARKETING A cross-functional discipline designed to improve busi- ness performance by using actionable insights to connect with shoppers and influence behavior anywhere along the SHOP! path to purchase. Key elements Shop! is the new name for of effective shopper marketing A.R.E./POPAI. include: n an organizational culture that SHOP-ALONGS embraces shopper-centric A popular research technique thinking as a key marketing in which a trained modera- strategy; tor accompanies a consumer n strong collaboration be- on a shopping trip to observe tween retailer and brand tendencies and reactions to marketer, in which both SHORT MESSAGE SERVICE in-store stimuli. sides work toward mutually (SMS) beneficial objectives using Service that enables the ex- SHOPFITTING/ shopper needs as the com- change of text messages on a SHOPFITTERS mon ground; mobile device. The term “SMS” The term, used primarily in the n the development of pro- is often used as a synonym for United Kingdom, for design- grams that, in addition to all types of text messaging. ing and building store interiors. driving sales, can build brand The more common U.S. term is equity for both product and SHOWROOMING “store design.” retailer by engaging shop- In literal terms, the act of visit- pers in relevant ways. ing a brick-and-mortar store SHOPPABILITY to gain hands-on knowledge Evaluation of a store’s ability SHOPPER SEGMENTATION about a product while simulta- to satisfy shoppers by mak- Techniques retailers use to neously using a mobile device ing their experience fast, easy, identify key customer seg- to shop for that product at informative and pleasant. ments, usually with a special other retailers online; also used nomenclature. to denote any online shopping SHOPPER conducted within a brick-and- A consumer who is actively in- mortar store. volved in considering products to purchase. 56 PATH TO PURCHASE GLOSSARY

SHRINK/SHRINKAGE SLATWALL A reduction in inventory due A wall display in to shoplifting, employee theft, which particleboard spoilage, paperwork errors and or other paneling supplier fraud. material is fitted with linear slots, SIDEKICK facilitating the instal- A small display designed to lation of bracketed hang on the sides of an endcap shelves, hooks or or fixture. Most sidekicks ship other devices on prepacked for quick set-up. which to stock Many retailers have permanent product. Slatwalls endcap hardware to house often have modular prepacked sidekicks from capabilities, allowing manufacturers. Some sidekicks them to be easily ship with a temporary base reconfigured and/or that lets retailers use the dis- changed out. Com- play as a floorstand. The term monly used to mer- is often used synonymously chandise footwear. with power wing, although this term refers primarily to larger displays. SKU SLOTTING ALLOWANCE The more commonly used ac- A fee paid by a manufacturer SINTRA ronym for “stock keeping unit,” to a retailer to provide shelf Brand name for a rigid PVC a numerical identification tag space — or, a “slot” — for a new (i.e., plastic) sheet product used given by a retailer to a specific product. The payment osten- quite frequently in permanent product, brand, flavor, variety sibly covers the administrative display and signage applica- and/or package size. Rhymes and labor-related costs of add- tions. Very popular because it with “flu.” ing a new item to the system, is offered in a wide variety of as well as the potential lost colors. The name is sometimes SKU RATIONALIZATION sales involved in making room improperly used to describe any The systematic evaluation of for an unproven product. colored plastic sheet. product performance, usually intended to reduce the num- SMART POSTER SITE TO STORE ber of SKUs offered in a specific Signage or collateral contain- Term used by Walmart and category. ing a near field communication other retailers for a service that (NFC) tag loaded with informa- lets shoppers buy products on- SLIDING tion or a website link that an line and pick them up at stores A loss prevention term referring NFC-enabled phone can read near their homes. to the act of a cashier passing when in close proximity. merchandise around the cash register barcode scanner with- SMARTPHONE out actually scanning the item. A mobile phone that can handle data as well as voice SLIPPAGE signals, has advanced comput- The tendency for consumers to ing ability and connectivity, fail to redeem a promotional and lets user install and run offer for which they qualify. advanced applications. Marketing plans will often in- clude a projected slippage rate. SMARTPHONE APPS Most commonly used in the Unique, interactive smart- discussion of rebates, for which phone software that provides slippage rates can be signifi- some type of functional ser- cantly (and profitably) high. vice. The “poster child” of brand apps is Kraft Foods’ iFood As- sistant, which delivers a “Recipe of the Day” to hundreds of thousands of users. PATH TO PURCHASE GLOSSARY 57

SPECTACULAR SPONSORED SEARCH A large display that REFERRAL frequently combines A hyperlink referral to a web- multiple display for- site originating from within the mats (shippers, stacked paid “sponsored” search results merchandise, inflat- section of an online search ables, signage, lights, site such as Google, Yahoo! or audio, etc.) and prod- Bing. Referrals are generated ucts to achieve greater by matching keywords entered impact. Spectaculars in the search form to those are commonly built purchased by advertisers. Spon- around seasonal or sored referrals are often mea- event themes, such as sured both by the number of Halloween, the Super times the links appear in search Bowl or the holidays, results and the number of times and are positioned in they are clicked by searchers. store lobbies or perim- See also Organic Search Refer- eters due to the large ral and Paid Search. amount of floor space they require. STANCHION A freestanding sign frame that allows for easily changeable SMARTSOURCE SO-LO-MO graphics and messages. Brand name for News America A digital marketing term that STANDEE Marketing’s in-store media blends the words Social, Local business, which runs a national and Mobile when discussing A lifesize photographic cutout, network of advertising oppor- digital marketing strategy. usually of a character or celeb- tunities for product manufac- rity, mounted on a backer such turers in supermarkets, drug- SPEARFISHING as corrugated. stores, dollar stores and mass The common practice among merchants. Also, the name for online shoppers of searching News America’s weekly co- for one or two specific items to operative free-standing insert buy rather than conducting a program. more comprehensive shopping trip. SOCIAL MEDIA Digitally enabled networks that SPINNER RACK let users communicate with A freestanding display that each other through text and positions products around a visual data. Although originally rotating center pole, allowing launched as social facilitators, shoppers to spin the display some of the more popular and shop all sides while re- services such as Facebook and maining stationary. Twitter are emerging as effec- tive marketing channels. SPLASH PAGE An introductory page that SOCIAL NETWORKS appears as a precursor to a STAND-ALONE FSI Online groups of intercon- website’s home page and often A free-standing insert contain- nected users that can be involves a marketing message. ing ads for a single consumer leveraged by marketers either It appears as an image the product manufacturer that is to build communities of brand website is loading, and some- distributed separately from the enthusiasts or attract poten- times is used as an introduc- standard weekly co-op inserts. tial customers. Leading social tion to the site. Also referred to Procter & Gamble distributes a networks such as Facebook as “splash screen.” monthly stand-alone FSI called (500 million-plus worldwide brandSaver through the Valas- members) and MySpace have sis network. also become popular media for paid advertising. 58 PATH TO PURCHASE GLOSSARY

STRATEGIC COLLABORATION (IN SHOPPER MARKETING) As used by the Retail Commis- sion on Shopper Marketing, the process through which a key manufacturer partner will help a retail partner develop its overarching shopper marketing strategy (see Strategy Develop- ment). Such partnerships would imply an important, ongoing role for the manufacturer in the retailer’s marketing and mer- chandising activity.

STRATEGY DEVELOPMENT STORE WITHIN A STORE (IN SHOPPER MARKETING) Branded area of a store designed as a distinct shopping destina- As used by the Retail Commis- tion. It most commonly is used to identify literal co-branding part- sion on Shopper Marketing, the nerships, such as Dunkin’ Donuts restaurants inside Walmart stores creation of a clearly articulated or Staples aisles in Stop & Shop supermarkets; also often used vision for shopper market- interchangeably with “vendor shop,” or to describe a retailer’s own ing that permeates from top merchandising initiative, like Best Buy’s Magnolia Home Theater management throughout an departments. organization and is incorpo- rated into all other business planning. STOCK KEEPING UNIT STORE CHECK (SKU) A visit to a retail location to ob- STREET MONEY A numerical identification tag serve general conditions and/ Promotional allowances of- given by a retailer to a specific or gather specific information. fered directly to the retail store. product, brand, flavor, variety Often used in the context of and/or package size. measuring compliance for an SUBSCRIBE & SAVE in-store campaign. The name for an emerging STOCK-UP e-commerce loyalty program A common store trip in which STORE CLUSTERS in which shoppers who sign up the shopper purchases a large Groups of stores that cater to to receive automatic replenish- number of grocery and general similar shopper segments or ment of frequently (or peri- merchandise items to satisfy have other compatible operat- odically) purchased products her needs over a period of ing characteristics, and there- receive significant discounts time. Also known as pantry fore are managed collectively and reduced shipping fees. load. by the retailer. SUBSTRATE STORE BACK STORE OF THE The base material upon which A marketing “mindset” pos- COMMUNITY printing may occur. Typical ited by Procter & Gamble that Walmart’s strategy of tailor- substrates include paper, card champions the idea of evalu- ing store layout and product stock and some plastics or ating the effectiveness of all selection to match the needs metal. marketing plans based on their of local shoppers. ability to resonate within the SUPPLY CHAIN store environment. The network of entities and processes involved in the STORE BRAND production and distribution A private-label brand marketed of a commodity. It comprises under the retailer’s name; often of vendors, producers, ware- used as a synonym for private- houses, distribution centers label brand. and retailers. PATH TO PURCHASE GLOSSARY 59

SUSTAINABILITY T TEMPORARY DISPLAYS The development of environ- Displays typically made of cor- mentally sound business prac- TETHERS rugated board and designed tices and products. Both the Retractable tethers allow for for a life span of one week to term and the movement be- display samples to be used and three months. Most temporary hind it have been driven largely tested while securing them to displays are produced from “E” by the actions of Walmart. retail fixtures, preventing theft. flute corrugate, which provides The retractable feature brings a smooth surface for direct SWEEPSTAKES the product back to its original printing or applying a lithogra- A chance drawing in which display position after use. phy label. “E” flute also is easy winners are selected at ran- to fold for assembly. dom from among all entrants. T-SCOPE RESEARCH Very common promotion Shorthand for “tachistoscopic” TEMPORARY PRICE tactic that seeks to attract con- research, a technique used to REDUCTION (TPR) sumer attention through the measure packaging or advertis- A price discount of short dura- allure of the prize pool. Federal ing recognition. A shopper is tion most often facilitated by a and state laws require that “no exposed to a series of scenes at product manufacturer’s trade purchase is necessary” to enter brief time intervals (often less promotion funds. a sweepstakes, which is why than a second) and asked to that phrase typically is used so identify what he or she saw. 10 FOR $10 prominently in marketing com- Common promotional tactic munication. TABLE TENT employed by supermarkets in A small sign that ships flat recent years that offers a variety SWEETHEARTING but can be folded in half to of packaged goods for $1 each A form of theft, whereby a form a tent-shaped display for when 10 units are purchased. cashier fails to charge or rings use on tables or countertops. up only one item of a multiple Frequently used in bars and TEST MARKET purchase for friends, co-work- restaurants to advertise tempo- A limited, controlled geo- ers and/or customers. rary drink or food specials. graphical area in which a new product or marketing plan is TEARPADS launched as an experiment. Small pads of coupons or Results from the launch are product information that can carefully monitored in order be torn-off as individual sheets. to revise and develop plans for Also called “take-one pads,” expansion into other markets. tearpads are often attached to displays or shelving near the TEST STORE products they promote. A retail outlet used to test new products, marketing concepts or merchandising strategies to gauge their effectiveness.

TFT-LCD An abbreviation for “thin film transistor liquid crystal display,” a technology used on interac- tive touchscreen applications.

30-30 RADIO Co-operative advertising practice in which a product manufacturer will purchase 60 seconds of air time and provide the second 30 seconds to a key retail partner free of charge. Used as an incentive for retailer SWEEPING participation in the program, as When thieves (often professionals operating in teams) “sweep” mer- well as to direct consumers to chandise off a shelf or simple peghook into their pockets, bags or a specific point of sale. specially made clothing. One way to thwart sweeping is to employ a gravity-fed display design. 60 PATH TO PURCHASE GLOSSARY

THREE- WAY SELL U DISPLAY UNAIDED AWARENESS Allows Refers to the consumer’s ability product to to remember an advertising be displayed message without prompts from the from an interviewer or survey front, left and question. right sides. UNPLANNED PURCHASE A purchase decided upon after entering the store. Although largely used synonymously with “impulse purchase,” the terms sometimes differ in the level of spontaneity involved: a shopper who buys deodorant after in- store stimuli remind him that he needs some (or that the product he usually buys is on sale) has 30-DAY RULE TIP-IN made an “unplanned purchase,” An FTC rule that requires sup- A pre-printed advertising page while a shopper who buys an pliers to ship mail-in offers for or card inserted into a periodi- energy beverage for the first which consumers have submit- cal whose regular page size is time after noticing a display has ted payment within the time larger. made an “impulse purchase.” promised, or within 30 days if a time is not specified. The rule TIP-ON UPC (UNIVERSAL PRODUCT requires suppliers to notify the A coupon, sample or reply CODE) consumer if a shipment cannot card glued by one edge to a The unique number assigned be made within the required page of advertising. A special to a product for identifica- time and offer an opportunity card attached to a display to tion purposes, printed on the to cancel the order. call attention to a sale or other product’s packaging with an feature. accompanying barcode so that 3-D SHOPPING it can be optically scanned at ENVIRONMENTS TOUCHPOINT checkout to automatically log Any opportunity for a brand the sale. Retail point-of-sale to expose a consumer to the systems align UPCs with pricing marketing message. information so the correct price will be charged (and recorded). TRADE PROMOTION The name for a wide variety of UPFRONT MARKET marketing activities that are The annual spring period in funded by brand marketers in which television networks sell order to have their products advertisers air time for the fall merchandised and promoted season. Walmart has adopted by retailers, thereby increas- the “upfront” concept in selling Realistic images of products ing sales. Among the more ad space on Walmart TV. and store aisles projected onto common practices are feature large-screen displays to cre- advertising in weekly circulars, ate an immersive “shopping” display placement in stores, and V environment. One of the oldest temporary price reductions. is Indiana University’s Kelley VALUE ADD An enhancement or addition School of Business Customer TRIGGERED CONTENT Interface Laboratory. to a product or its presenta- A special message or informa- tion that increases its value in tion that overrides scheduled TIE-IN PROMOTION the eyes of the consumer and content. Triggers may be the A single promotional event often is marketed as a free selection of certain items off a bonus. intended to encourage the sale shelf, the presence of shoppers, of more than one product or an RFID signal or smart card. brand. An entertainment tie-in. PATH TO PURCHASE GLOSSARY 61

VAR (VALUE-ADDED VIP (VALUE IMPROVEMENT ate 3-D simulations of product RESELLER) PROGRAM) categories and store depart- A VAR packages applications An initiative launched in 2006 ments with high-resolution and services for re-sale. by Ahold USA’s Stop & Shop graphics suitable for larger and Giant-Landover chains to screens; high-quality, full-store VENDOR MANAGED move their pricing policy from 3-D simulations with special INVENTORY (VMI) high-low to EDLP. technology requirements. An business model in which a P-O-P producer is responsible VIRAL MARKETING VISUAL MERCHANDISING for maintaining the in-store- Leveraging the word-of-mouth Arranging products in a marketing inventory levels for nature of the internet and manner that considers visual its CPG brand or retailer clients. other digital media to spread aesthetics and/or merchandis- The P-O-P producer has access marketing communications ing effectiveness. Also known to the client’s inventory data from person to person. as “visual presentation.” and is responsible for generat- ing purchase orders to replen- VIRTUAL RETAILING/ VLOG ish the inventory. SIMULATIONS/REALITY The use of computer- VENDOR PAD driven store simulation Another term for “vendor shop.” technologies to conduct market research and VENDOR-SUPPLIED achieve other key business FIXTURES objectives. Practitioners are Merchandising units provided employing an array of tools to retailers by manufacturers or that include: visually basic distributors. but highly functional two- dimensional and video- VIOLATOR based simulations of shelf (1) A sign attached perpen- sets and small-scale store dicular to the shelf, thereby environments that can run sticking out and “violating” the on any computer; visually aisle. (2) A visual device affixed basic 3-D simulations with to packaging graphics used to predetermined shopping paths Video blog. Often used of- promote a special feature. and limited durations that are ficially for training purposes, an online-compatible; intermedi- even more common applica- tion is for shoppers to create a V-log or vlog documenting a shopping trip, especially in the fashion and consumer elec- tronics channels.

VMI (VENDOR MANAGED INVENTORY) Letting a vendor or supplier have the authority to reor- der or manufacture parts or products as needed. Some P-O-P producers maintain VMI relationships with their clients for display programs that take many years to deploy and/or involve replacing parts in the field on an ongoing basis.

VENDOR SHOP An area of the store devoted to a single brand or product vendor and featuring branded, vendor-specific displays and signs. Also referred to as a store within a store. 62 PATH TO PURCHASE GLOSSARY

WALL DISPLAY A display designed for attach- ment to a store wall or a wall (such as a slatwall) that itself is a product merchandiser.

WAREHOUSE CLUB A retail format in which shop- pers pay an annual member- ship fee. Club stores cater to both small business owners and individual consumers, of- fering a wide variety of product VIRTUAL REALITY categories but limited SKU Virtual Reality (VR) typically involves donning a special headset to selection within them. These close off the real world and enter a computer-generated, simu- no-frills retail environments lated world. VR can provide an immersive experience that will vary accommodate little in-store in detail and realism depending on the viewer that’s used. These marketing. In the U.S., three range from cardboard viewers that retail for less than $20 up to chains dominate: Costco, Sam’s mixed-reality electronic headsets that can cost north of $600. It is Club and BJ’s Wholesale. expected that in the near future, headsets won’t be as bulky but more like eyeglasses. Right now the primary consumer uses for WAREHOUSE STORE virtual reality involve gaming. For the CPG industry, the primary use Any large store that sells mer- is to assist retailers and brands with store planning through the chandise on oversized racks, testing of store layouts, display concepts, category sets and other giving the impression that the retail strategies. Shopper-facing uses include the Lowe’s Holoroom. customer is buying “direct” at See also augmented reality (AR). lower prices. The format was pioneered and mastered by chains like The Home Depot. VPI (VALUE PRODUCING WALL BANNER Today, the format is so ubiqui- tous that even luxury goods are ITEM) A large sign hung in the center sold in this manner. A Walmart program in which of a store or on a wall. Proper store managers, as well as mounting is essential so it does corporate executives, select not shift or rock with air move- WARES which products with high sales ment and distract shoppers The World Alliance for Retail potential the chain will support below. Excellence & Standards. For- with additional merchandising merly called NARMS. activity. Formerly called “vol- ume producing,” the program’s name was changed to reflect WATERFALLS consideration of products that A fixture in which also bring non-sales ben- the merchandise efits, such as environmentally slopes or hangs sustainable items. Product down at an angle, marketers lobby extensively to creating layers or earn the designation. tiers.

W WALK-AROUND DISPLAY A merchandiser holding product on four sides. Differs from a spinner rack in its lack of mobility. Not accepted by many retailers because of the large amount of floor space it requires. PATH TO PURCHASE GLOSSARY 63

WING DISPLAY WOBBLER A wing is a relatively narrow, Also called a “dangler,” a very temporary display — some- small, lightweight sign that times called a “sidekick” or a hangs from a shelf or wire. “power wing” — that is mount- ed onto the side of an endcap. WORD OF MOUTH Sometimes wings are even The spread of information attached to the sides of other about a product or store wings. See Sidekick. through common human con- versation and interaction. The concept became a marketing “discipline” when companies began attempting to trigger word-of-mouth buzz about their products. Also known as “viral marketing,” especially in the context of digital media.

WRAP AROUND Often called “base wrap,” a roll of continuously printed materi- als — typically on single-face corrugate — used to decorate a display. Base wrap is most commonly used around beer case stacks. See Base Wrap. WEB-BASED STUDIES WIDGET Type of research that allows for A specially coded “applet” that Z quantitative feedback (numeri- can be downloaded to a user’s cal data) from larger sample computer desktop or embed- ZERO MOMENT OF TRUTH sizes, used when a potential ded into a web page to provide (ZMOT) change is evolutionary and/or a specific function (such as A play on Procter & Gamble’s qualitative research has already weather reports) or direct ac- “First Moment of Truth” and been conducted. cess to a website. coined by Google, the term refers to all of the marketing WEBROOMING WINDOW DISPLAY stimuli to which a consumer The act of researching informa- Traditionally seen on urban is exposed online, at home, in tion and comparing prices for a department stores with pedes- transit or near/inside a store product online before ulti- trian traffic. before the “First Moment” at mately making a purchase at a the shelf. brick-and-mortar retailer. WIRE FEET At its sim- ZONING WHITE GOODS plest, two Maintaining or housekeeping a A term for either bedroom/ sections of product set so that it conforms bathroom linens or major straight wire, to the current planogram. kitchen appliances. The term bent at an “brown goods” refers to con- angle to form sumer electronics, especially an interlock- smaller items like clock radios. ing base with four “legs” WHITE LABEL that insert Term for a product, service or into a rolled system made by one company paper tube. for sale or license to other par- Commonly ties that are allowed to brand it used to hold as their own. up pole top- pers. WHOLESALE CLUB Alternative term for “ware- house club.” 64 PATH TO PURCHASE GLOSSARY

Join us at these upcoming events JANUARY 2017 JULY 2017 24-25 | League of Leaders Winter Meeting Forum of Merchandising Executives Westin Nashville • Nashville, TN Westin O’Hare • Rosemont, IL FEBRUARY 2017 SEPTEMBER 2017 7-8 | Forum of Merchandising Executives 26-28 | Path to Purchase Expo Westin O’Hare • Rosemont, IL A three-day event filled with symposiums, seminars, exhibits and awards dedicated to integrating the wide MARCH 2017 variety of solutions, tools and expertise needed to 27-29 | Shopper Marketing Summit influence decision-making along the entire path to An educational forum defining the future of consumer purchase. marketing with best practices, strategies and insights Donald E. Stephens Convention Center that drive shopper-centric thinking and an improved Rosemont (Chicago), IL shopper experience. Path2PurchaseExpo.com Grand Hyatt Hotel • New York City 27 | Design of the Times shoppersummit.com The leading industry awards competition and ceremony 28 | Shopper Marketing Effie Awards held in conjunction with the Path to Purchase Expo Produced in partnership with Effie Worldwide and held that celebrates the most inspiring and creative in-store in conjunction with the Shopper Marketing Summit, the activation tactics, displays and campaigns of the year. Effies honor outstanding strategic shopper marketing Donald E. Stephens Convention Center campaigns that engage the shopper and guide her Rosemont (Chicago), IL purchase process. dot-awards.com Grand Hyatt Hotel • New York City 27 | P2PI’s Women of Excellence effie.org The Institute is proud to recognize a deserving 28 | Hall of Fame Induction group of female executives who have distinguished An induction ceremony held in conjunction with the themselves in the industry through their leadership and Shopper Marketing Summit honoring the shopper involvement in influencing shoppers along the path to marketing industry’s best and brightest. purchase. Grand Hyatt Hotel • New York City Donald E. Stephens Convention Center shoppersummit.com Rosemont (Chicago), IL Path2PurchaseExpo.com MAY 2017 4-5 | StratConn: Digital Shopper Marketing StratConn will match providers of digital shopper marketing services with qualified teams of executives from leading manufacturers, agencies and retailers who THROUGHOUT 2017 are in search of digital solutions and platforms that drive • Path to Purchase Leadership University shopper impact and activation. This event focuses on Professional development courses for shopper connecting buyers with sellers of tools and strategies marketing executives. Online and in-person for mobile marketing, social engagement, sampling, course options are available. couponing and digital media. p2pi.org/leadershipu Hyatt Rosemont • Rosemont, IL stratconn.org • I-Seminars Industry webinar presentations. See the JUNE 2017 website for topics and schedules. 20-21 | League of Leaders Spring Meeting p2pi.org/iseminars Westin O’Hare • Rosemont, IL Partner with a winner.

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