Path to Purchase GLOSSARY 2014 p2pi.org Special Pullout! Guide to Merchandising Essentials Page 24 A Supplement to: A Supplement to: -Tenn Shared Services, LLC, Norcross, GA. All rights reserved. 4 Rock ©201 More in Store. Less Out-of-Pocket®. A RockTenn display delivers more of the wow factor. Like with this award-winning pallet display that turns shoppers into stoppers and browsers into buyers for the Simply Asia®/Thai Kitchen® brands. As the leading producer of in-store displays, we bring you better insights, more innovative technologies and greater effi ciencies than anyone else. Maybe we can help you stand out in store? Kathy McGowan-Carnes | 855-229-2163 www.rocktenndisplays.com 57406_SM_Glossary_Inside_Cover_SimplyAsia_Ad_7x10_5_r1_Final.indd 1 11/25/13 5:17 PM p2pi.org ockTenn is proud to sponsor a key part of P2PI’s ongoing educational programming, the 2014 Path to Purchase Glossary. In this, the Glossary’s fifth edition, you’ll find nearly 700 terms drawn from a variety of fields including Rproduct merchandising, consumer and trade promotion, digital marketing, e-commerce, display manufacturing, media advertising, research, packaging and retail 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 vendor members. (RockTenn execs have recommended* many terms over the years. You should too.) In addition to this print version, the 2014 Glossary will be accessible on the Path to Purchase Institute’s websites at www.p2pi.org/glossary and www.shoppermarketingmag.com. It also will become part of the “Shopper Marketing Peter Breen App,” which can be downloaded at either www.apple.com/itunes or https://play.google.com/store. RockTenn supports initiatives like the Path to Purchase Glossary because we believe that education is foundational to all good customer relationships. That’s why we created the RockTenn Merchandising University. The curriculum is built around intensive, two-day sessions at our Winston-Salem, N.C., campus that offer brand and retail marketing executives a wealth of ideas that are ready for real-world implementation. Currently, we’re offering three tracks: n Merchandising Essentials, in which you’ll learn how to use the most effective, up-to-date techniques and processes. n The Retail Experience, in which you’ll discover how to align your customers’ needs with your shopper marketing programs. Tim Binder n Innovation Workshop, in which you’ll learn how to translate insights into P-O-P that stops shoppers and turns browsers into buyers. For a preview of RockTenn’s curriculum, please turn to the special “Quick Start Guide to Merchandising Essentials” inserted between pages 24-25 of this glossary. There’s also a “P-O-P Quiz” that I guarantee even veteran merchandising executives will find challenging. Enjoy the 2014 Glossary and, above all, learn from it. Craig Gunckel Anne Downes Executive Vice President & General Manager RockTenn Merchandising Displays * To suggest a term, visit www.p2pi.org/glossary-request Path to Purchase Institute Managing Director, Platforms & Publishing Chuck Bolkcom, (773) 992-4420 Editorial and Executive Offices Rob Mahoney 8550 W. Bryn Mawr Ave., Suite 200 Director, Platforms & Publishing Chicago, IL 60631-3731 Craig Hitchcock, (773) 992-4422 Phone: (773) 992-4450 • Fax: (773) 992-4455 Director, Market Development & Sales (East) www.p2pi.org Rob Hanson, (773) 992-4423 Director, Market Development & Sales (West) PATH TO PURCHASE GLOSSARY Rich Zelvin, (773) 992-4425 Writers Peter Breen, Tim Binder, Anne Downes, Rob Mahoney, Patrycja Malinowska, William Schober PATH TO PURCHASE INSTITUTE Patrycja Malinowska Underwriter CEO & Executive Director RockTenn Peter W. Hoyt, (773) 992-4456 Art Directors COO & Chief Financial Officer Sonya Lundquist, Ed Ward Chris Stark, (773) 992-4444 We are proud to print this report entirely on Forest Stewardship Council™ certified paper. FSC™ certification ensures that the paper in this publication contains fiber from well-managed forests and other responsible sources that meet strict environmental and socioeconomic standards. William Schober Cover printed on Porcelain Gloss ECO paper. Body printed on Influence Gloss PCW paper. 4 PATH TO PURCHASE GLOSSARY 1-D BAR CODE ACCELERATED PURCHASE ACCRUAL FUND A one-dimensional represen- A specific goal set by a brand to Promotional payments that build tation of data, such as a UPC have shoppers and retailers buy up over time based on purchase (“universal product code”). a product faster than expected or volume and can be “redeemed” planned for. in a future period. 2-D BAR CODE A two-dimensional representa- ACCENT LIGHTING ACH tion of data in a geometric pattern A touch of lighting that is used Automated Clearing House. that is easy for mobile-phone cam- to emphasize part of a shopper eras to read. Code types include marketing display. ACRYLICS QR (“quick read”) and GS1 2D. Very popular display material ACCEPTABLE PRICE RANGE because it has half the weight Product prices that buyers and of glass but can withstand four shoppers are willing to pay. times the impact. It resists most cleaning agents. While it can be ACCEPTANCE scratched, polishing can remove The retailer’s agreement to sup- marks. Common uses in P-O-P: port a manufacturer’s marketing jewelry cases, lenses, edge-lit ac- program. cents and faux glass shelves. A ACCOUNT OPENER ACTION AISLE A-BOARD A premium or incentive offered A store aisle in which promo- A sign in which two sides are to a prospective buyer to secure tional items are displayed. Also joined at the top by a cross brace purchase. The term is used most referred to as a “power aisle.” to form an “A” shape. Often used commonly in the financial at curbsides or outside store services industry. entrances. ACCOUNT-SPECIFIC A-FRAME PROMOTION A style of display in which the Marketing activity that’s structure forms the shape of an “A.” customized by a product manufacturer for a specific retail partner. Typically used in reference to cam- paigns in which the retailer is not involved in development ACTION ALLEY but simply accepts the product A store’s main thoroughfare, manufacturer’s program. often the first sales area that customers see upon entering, and considered to be prime real estate for promotional merchan- dising. Originally used to denote Walmart’s power aisles, the term ABOVE-THE-LINE is now often used generally. The ADVERTISING alleys, in general, can be found up front, near checkout, or in the Any form of advertising for back of the store. which a commission or fee is paid to a recognized advertising agency operating on behalf of a client. The term most commonly refers to mass media advertising ACCRUAL through television, radio and Promotional allowances ac- print; it also is used to compare cumulated by manufacturers brand-building advertising strat- or suppliers for their retail or egies with sales-driving promo- wholesale customers. Typically tional tactics, or below-the-line calculated as a percentage of the advertising. product invoice price. PATH TO PURCHASE GLOSSARY 5 ACTIVATION ADD-ON ADVOCACY ADVERTISING (1) The implementation or Additional, secondary merchan- Ads supporting or opposing a execution of a marketing plan. dise that can be included in a sale. social or political issue. (2) A purchase action taken by a shopper that’s triggered by an ADI in-store marketing activity (dis- An acronym for “area of domi- play, discount, sign, promotion, nant influence,” which defines impulse, etc.). (3) The translation designated market areas based of shopper insights into action- on media coverage. able marketing activity. ADJACENCIES Product categories on-shelf or product departments located next to each other within a retail store. ADVANCED PREMIUM An up-front reward or takeaway AFFIDAVIT presented to a new customer as Legitimate proof of posting by a means of generating goodwill the vendor that the advertiser’s ACTUAL WEEKLY REACH and enticing future purchases. message ran as scheduled. The number of people, con- AFFILIATED CHAIN firmed by audit, reached through ADVERTISED BRAND marketing activity. A nationally advertised brand. A group of non-competing stores operating under an alliance to ACV (ALL COMMODITY ADVERTISING ALLOWANCE benefit from volume purchasing VOLUME) A payment made by the product or to gain exclusive territorial The total annual dollar volume manufacturer to the retailer in rights to market certain products. in a given geography expressed exchange for delivering advertis- AFFILIATED RETAILER as a percentage (or share) of the ing opportunities to a specific total market for that commodity. product or brand. A retailer participating in an affiliated chain, or a retailer AD IMPRESSIONS ADVERTISING SPECIALTY participating with other retail- Historically used in TV and Inexpensive branded toys or ers in cooperative wholesale other mass media to express the gifts such as key rings, pens, purchasing. number of viewers exposed to an T-shirts, etc., used as premiums. AFFILIATED WHOLESALER advertising vehicle (one impres- Less commonly referred to as sion equals one view). “Unique “advertising novelty.” A wholesaler that hosts a group impressions” factors out multiple of affiliated retailers, or a whole- views by the same people. ADVERTISING saler who is a member of an affili- SUBSTANTIATION ated wholesaler group. AD REPRINT HOLDER A Federal Trade Commission AFFINITY MARKETING A frame or other device used to regulation that requires adver- encase reprints of circular pages tisers to document claims made The practice of marketing to the or other advertisements. These in ads. interests of specific demographic are typically displayed on table- or shopper groups. tops or stanchions. ADVERTISING WEIGHT The amount of media advertis- AFTERMARKET AD SLICK ing supporting a brand over a Secondary sales related to Product or promotion graphics particular time period, usually repairs, replacement parts or provided by marketers to retail- measured in gross rating points.