Industry Glossary

Industry Glossary

Managing the entire Merchandising Supply Chain is complex. Between the concepts of Shopper Marketing and Contract Manufacturing live the real tools necessary to produce effective merchandising solutions.  These glossaries pull together the most commonly used terms in our industry to help you promote your brands more effectively at retail.

Shopper Marketing Terms
These terms will help you understand how your target consumers behave as shoppers in different channels and formats—and leverage this intelligence to benefit all your stakeholders, which include brands, consumers, retailers, and shoppers.

Shopper Marketing Glossary

3-D Shopping Environments

Realistic images of products and store aisles projected onto large-screen displays to create an immersive "shopping" environment. One of the oldest is Indiana University's Kelley School of Business Customer Interface Laboratory.

5-by-5 Rule

The theory that a product in a store should convey its value proposition within five seconds from at least five feet away from its position. Warehouse club operator Costco is generally credited with establishing the practice.

Accelerated Purchase

A specific goal set by a brand to have shoppers and retailers buy a product faster than expected or planned for.

Account Opener

A premium or incentive offered to a prospective buyer to secure purchase. The term is used most commonly in the financial services industry.

Account-Specific Promotion

Marketing activity that's customized by a product manufacturer for a specific retail partner. Typically used in reference to campaigns in which the retailer is not involved in development but simply accepts the product manufacturer's program.

Acrylics

Very popular display material because it has half the weight of glass but can withstand four times the impact. It resists most cleaning agents, and while it can be scratched, polishing can remove marks. Common uses in P-O-P: jewelry cases, lenses, edge-lit accents and faux glass shelves.

Action Aisle

A store aisle in which promotional items are displayed. Also referred to as a "power aisle."

Action Alley

A store's main thoroughfare, often the first sales area that customers see upon entering, and considered to be prime real estate for promotional merchandising. Originally used to denote Walmart's power aisles, the term is now often used generally. The alleys, in general, can be found up front, near checkout, or in the back of the store.

Activation

1. The implementation or execution of a marketing plan

2. A purchase action taken by a shopper that's triggered by an in-store marketing activity (display, discount, sign, promotion, impulse, etc.)

3. The translation of shopper insights into actionable marketing activity.

Affiliated Chain

A group of non-competing stores operating under an alliance to benefit from volume purchasing or to gain exclusive territorial rights to market certain products.

Affiliated Retailer

A retailer participating in an affiliated chain; or a retailer participating with other retailers in cooperative wholesale purchasing.

Affiliated Wholesaler

A wholesaler that hosts a group of affiliated retailers; or a wholesaler who is a member of an affiliated wholesaler group.

A-Frame

A style of corrugated shipper in which the structure of the display forms the shape of an "A."

Aggregation

Broadly defining and grouping a shopper segment under a universal concept or theme.

Aisle

A store corridor, flanked by fixtures carrying shelves of product.

Aisle Blocker

A movable merchandiser used to block a closed checkout lane.

Aisle Directory

Navigational signage that identifies the aisle's product assortment. Usually suspended from the ceiling or attached to an end-aisle display. It sometimes also carries brand-specific ad messages.

Aisle Jumper

A wire extending above an open aisle that sometimes carries branded flags and pennants.

Aisle Signage

Navigational signage that designates the aisle's product assortment. Typically deployed as ceiling hangers or at aisle ends. (See Aisle Directory.)

Aisle Violator

A sign hanging perpendicular to the shelf on which it is attached, thereby sticking out into ("violating") the aisle.

Alpha/Beta Testing

Two-pronged method of testing a new product's likelihood of success through internal (alpha) and marketplace (beta) tests.

Altruistic Display

A product display that contains products from outside parties that did not pay for its manufacture or placement. Also used to describe the inclusion of a non-participating product within a store-wide seasonal program or other campaign.

Apron

An area outside a gas station or other retail outlet in which merchandise displays are placed.

Arch

Signage running above an aisle from one gondola to another.

Assembly

1. The program through which certain items are ordered to be shipped by a vendor to a warehouse and then to a store.
2. Building a display from component parts.
3. The area of a P-O-P production facility devoted to assembling and kitting display components.

Assortment Display

A product display designed to give customers a choice -- color, size or other variable.

Attach-To-Merchandise Display

A display that attaches directly to the merchandise. The display usually provides some necessary informational messaging.

Audio Shelf Talker

A static sign attached to a shelf enhanced by the addition of customized audio capabilities, usually activated by push button or motion detection.

Audio-Video Display

A product display enhanced by electronic components that present audio and/or video messages to shoppers.

Audit

1. A survey of store conditions, usually conducted by third-party merchandising firms. Among the more common tasks performed are analysis of primary shelf position and conditions, price checks, audit of competitor product sets, and checks for the presence of specific secondary P-O-P displays and promotional materials.


2. The process of verifying retail compliance of shopper marketing activity through physical checks, typically in a representative sample of stores. Any observable condition can be measured, including location, copy, display activity, out-of-stocks, etc.


3. Customer profile and usage studies conducted via interviews with shoppers in or outside the store.

Automatic Distribution

A process through which the retailer's headquarters (or authorized wholesale grocer) approves and delivers new products, deals or special promotional stock to key stores without specific order from store managers.

Awareness

The ability of consumers to remember information about a brand, ad or promotion to which they were exposed. "Unaided awareness" refers to the ability to recall without assistance; "aided awareness" refers to cases in which the consumer's recall was prompted.

Backbar Display

A display designed for use on the counter or wall behind the bar in pubs, restaurants or other "on-premise" channels.

Backlit Display

A display that utilizes a fluorescent bulb or other lighting system to illuminate a film transparency or graphic from behind.

Back Tag

A product-identifier card for peg hooks or spring-loaded shelves that appears when the product is out of stock.

Banner

1. An in-store sign, generally produced from satin, poplin, poly-cotton and vinyl.


2. The name under which a retail chain operates; the name that appears on the outside of the store (e.g., Jewel is a banner of Albertsons).

Bar Code

A scannable line graphic on packaging that contains a product's Universal Product Code and other identifying information. (See UPC.)

Bar Code Scanner

A device that reads bar codes. Portable versions are sometimes referred to as "handhelds" or "wands."

Base Wrap

A roll of paper or corrugate featuring repeating graphics that can be cut to various lengths and used to decorate or conceal the bottom cases of a mass display.

Basket Ring

Somewhat muddled term for the amount spent by a shopper or shoppers, apparently referring to the accumulation of products and the sound of a cash register.

Benchmark

A performance measurement or standard that future activity can be measured against.

Benchmarking

(See Benchmark.) The process by which companies, following pre-established guidelines for disclosure, share best business practices with other companies. Generally focusing on one aspect of business (credit procedures, distribution procedures, etc.).

Benchmarking Study

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

B Flute Corrugated Paperboard

A specific wave shape (flute) in the inner portion of combined corrugated board. It measures 3/32 of an inch. Considered the most common corrugate for P-O-P.

Billboarding

Creation of a large branded presence through a display or other in-store marketing vehicle.

Bin

A merchandiser that carries loose or bulk product. More commonly referred to as a "dump bin."

Biodegradable

The ability of a material to be broken down into simpler compounds by microorganisms.

Blister Pack

A package with a translucent, molded plastic casing that covers a product and is attached to a piece of cardstock or other durable substrate.

Blow Molding

Manufacturing process utilized to produce lightweight, hollow parts, ranging in size from small to relatively large. Hollow parts require less plastic, and consequently shorter cooling time, producing a faster molding cycle.

Body Copy

Informational text on a display or promotional piece; smaller in size compared with a headline or subhead callout copy.

BOGO

Abbreviation for a "buy-one-get-one" offer, a type of price promotion in which the shopper gets a second (or third) item at special discount with purchase of the first. Often used to denote a "buy-one-get-one free" offer, which technically is a BOGOF.

BOGOF

Abbreviation for "buy-one-get-one-free."

Bonus Pack

A special package that contains additional product at no extra cost.

Bottle Glorifier

This display highlights a single bottle or bottles of liquor, wine or beer, often placed behind the counter in bars, restaurants and pubs. Many feature illumination and graphics to draw attention and generate trial of the product among bar patrons. (See Backbar Display.)

Bottle Hanger

Also called a "neck hanger." An ad sign or tag that hangs around the neck of a bottle. Largely seen in the wine and liquor industry.

Brand

The trademarked name of a product or group of products.

Brand Affinity

The goodwill that a brand has established among consumers.

Brand Block

Merchandising practice in which all of a brand's SKUs are stocked contiguously on the shelf, thereby creating a de facto billboard. Procter & Gamble's Tide is often noted for having one of the strongest brand blocks in the packaged goods world.

Brand Equity

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

Brand Manager

The person responsible for planning and coordinating all marketing activity for a specific brand.

Bright Ideas

A Walmart weekly program, introduced in 2009, that makes product sampling and demonstrations an integral part of the store experience. The program is managed by Shopper Events LLC, Bentonville, Ark.

Brown Goods

A term for consumer electronics, especially smaller items like clock radios. The term "white goods" can refer either to bedroom/bathroom linens or major kitchen appliances.

CAD (Computer Aided Design)

Computer software used widely for designing product displays and other marketing materials.

Campaign

A coordinated effort to market a product, often including an overview of advertising schedules and the various media and tactics to be employed.

Capacity Fixtures

Displays designed to carry fast-selling products.

Captive Brand

A product line sold exclusively through one retailer whose trade dress is not owned by that retailer, or whose manufacture is not specifically contracted by that retailer (and therefore doesn't classify as private label). (See private label.)

Cardboard

A generic, non-specific term for heavy-duty, paper-based product. Do not use as a synonym for corrugated.

Car Topper

A display designed to attach to the roof of a vehicle that can be used in a dealer showroom or for street marketing.

Cart Rail

The area at or near a store entrance in which shopping carts are stored, often also used to merchandise new, seasonal, or promotional merchandise.

Case Card

A header or riser attached to, or slotted into, a case of product to enhance its presence, or an easel card positioned on top of a case stack.

Case Divider

A cardboard or plastic strip designed to segment and organize products in display cases or freezers. The strip can carry a brand logo or other marketing message. Also known as "case organizer."

Case Rate

A calculation in which a brand's annual marketing budget is divided by the number of cases sold to represent the level of support the product received.

Case Stack

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 another open case as the items sell down. Case stacks are often enhanced with additional P-O-P elements, including signs set on top of the cases, affixed to poles near the cases (see pole topper), or with rolls of graphics (see case wrap) wrapped around the bottom cases.

Case Stacker

A plastic or rubber base used to add support for a case stack.

Case Strips

Cardboard or plastic materials that snap into the graphics channel of shelving units or food cases to present product information or a marketing message. (See Channel Strips).

Case Wrap

A roll of decorative paper or corrugate designed to surround the base of a case stack display. Also known as base wrap.

Cash Register Display

A rack or other type of display designed to mount onto or sit near a cash register. It typically is used to merchandise high-impulse products like candy or cigarettes; also refers to a sign designed to mount onto the cash register.

Category Captain

A product manufacturer who, through his size, market position or strength in delivering proven insights, is selected by the retailer to play a leading role in its category management activity.

Category Management

The practice of analyzing SKU selection, shelf merchandising, promotion and sales history to improve the business performance of a specific product group. The function is the responsibility of a retailer's category manager, with varying levels of support provided by relevant product manufacturers.

Category Management System

An in-line display designed to make a specific product category easier to stock and maintain and/or easier to shop.

CCR

Walgreens' "Customer-Centric Retailing" initiative, which involves new store layouts, re-focused product assortments, 30 different shopper trip types and five key shopper segments.

Ceiling Crasher

A display sometimes found in convenience stores that suspends from the ceiling to present the illusion that it is crashing through.

Center Store

Literally, the large middle portion of a supermarket in which the majority of packaged goods are merchandised (in contrast to the perimeter, which typically houses fresh-food departments). The term is also used to identify the categories and product merchandised there.

C Flute Corrugate

A specific wave shape in the inner portion of combined corrugated board that measures 9/64 of an inch in height. Used most widely for materials that require increased strength.

Channel Strip

A piece of molding that slides into or over the front edge of a shelf, often used to communicate brand messages, price or other information.

Clean Store Policy

Term used to describe the professed policy of some retailers to prohibit or severely restrict the acceptance of vendor-supplied P-O-P displays, in deference to easier store navigation and an overall cleaner appearance.

Clip Strip

A trademarked name owned by Clip Strip Corp. that has become the standard term for merchandising strip.

Closure Rate

The percentage of shoppers who buy a product versus all those who enter a store or specific category/department. If 100 shoppers walk down the laundry care aisle and 40 purchase a product, the closure rate is 40%.

Club Store

A retail channel in which chains charge annual membership dues and merchandise bulk items at discount prices within a warehouse environment. The three primary U.S. club stores are Costco, Sam's Club and BJ's Wholesale.

Collaborative Marketing

A broad term used to describe a wide variety of partnerships—retailer and product manufacturer, product manufacturer and product manufacturer, etc.—who combine resources to conduct mutually beneficial campaigns.

Co-Marketing

Strategic practice in which a retailer and product manufacturer combine their marketing resources and insights to create exclusive, mutually beneficial programs. It differs from account-specific programs, which typically involve much less involvement from the retailer; also sometimes used for collaboration between two product manufacturers.

Comparable Store Sales

The amount of total sales generated from stores that have been open for at least one year, or long enough to make comparisons based on historical data. Typically expressed as a percentage increase or decrease, comparable store sales exclude sales derived through acquisitions or newly opened stores and are often used by investors and analysts to determine a retailer's overall health. Also known as same-store sales.

Compliance

A 200-store chain approves or "accepts" an in-store marketing program from a CPG. Although accepted chainwide, the display was set up, or "executed," in only 140 of the chain's stores. The compliance rate, therefore, is 70%.

Consumer

Standard term for an individual who buys and uses products and services. Differs from a shopper in that the consumer is not actively considering a purchase.

Consumer Intercept

A research practice in which individuals are solicited in person to take surveys and provide information about their attitudes and behaviors.

Consumer Promotion

The name for a wide variety of marketing activities whose goal is to induce specific consumer action. Among the more common consumer promotion tactics are P-O-P displays, coupons, sweepstakes and events.

Containerboard

The materials that go into the manufacture of containers or boxes. They consist of facings called linerboard and the intervening fluting.

Continuity Program

1. A long-term promotion designed to induce repeat purchase of a product by offering ongoing rewards.
2. A retailer promotion designed to generate repeat traffic by offering new items in a set (dinnerware, books) on a periodic basis.

Controlled Store Test

A method of gauging the potential success of a product launch or in-store marketing campaign by testing in a small number of stores in which all potentially influential circumstances are closely monitored.

Control Store

In shopper marketing research, a store in which standard conditions are maintained in order to compare sales and other factors with those from a test store. Control stores are selected for their similarities to the test stores.

Convenience Store (C-store)

A small, easily shopped store that merchandises an extensive assortment of high-volume products, such as cigarettes, beverages and snacks, along with a limited selection of numerous other items. More than half of all c-stores sell gasoline, and an increasing number offer fresh coffee and prepared-food options. C-stores range in size from enclosed kiosks shopped from the outside to 5,000-square-foot, full-service locations. Some supermarkets and other larger retailers operate adjacent c-stores to capture more convenience trips.

Conversion

The act of turning shoppers into buyers.

Conversion Rate

A comparison of sales and shopper traffic totals for a store, department, category or product, usually expressed as a percentage. If 100 shoppers enter a store and 35 of them buy a product, the conversion rate is 35%.

Co-operative Advertising (or Co-op Advertising)

The practice of sharing the costs for mutually beneficial marketing activity among two or more parties.

Cost of Goods Sold

All expenses related to the manufacture, sales and distribution of consumer products. In the case of product manufacturers, it includes all promotional allowances paid to retailers. Some companies also classify the production and distribution of displays and signs as a cost of goods sold rather than as part of the marketing budget.

Counter Card

A standing sign used to deliver advertising messages, used most often at checkout or other type of service counter.

Counter Mat

A mat used to present advertising messages at the point of sale. Often protects the counter from looking worn.

Countertop Displays

Compact displays, typically carrying small amounts of product, designed to fit on a store's counter to drive impulse purchase without impeding work activity.

Coupon

A printed voucher distributed to consumers as a purchase incentive by offering a stated price discount or other type of deal. The discount typically is redeemable only for specific products or brands identified within the copy, although retailers sometimes offer coupons with broader redeemability (such as "20% off any single item in the store"). The coupon must be submitted by the consumer at the time of purchase.

Coupon Dispenser

A small device that distributes coupons in store, most often 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 together for easy tear-off.

CPG

Commonly used acronym for "consumer packaged goods," which encompasses a wide variety of food, beverages and general merchandise pre-packaged for sale to consumers.

Cross-Merchandise

The practice of marketing or displaying products from different categories or store departments together to generate incremental purchase or, to a lesser degree, improve the shopper experience. Product selection most often is based on consumer usage patterns reflecting either specific meal solutions (peanut butter, jelly and bread is an obvious example) or a broader theme (such as the common seasonal grouping of outdoor grills, charcoal, beer and marshmallows).

C-Store

Commonly used abbreviation for convenience store.

Customer-Centric (or Shopper-Centric)

A strategy in which store designs and layouts, merchandising activity, product selection and/or marketing initiatives are developed to meet the needs of specific consumer groups.

Customer Centricity

A term made popular by Best Buy to express its strategy of basing store design, merchandising, marketing and even labor strategies on the needs of specific customer demographics.

Customer-Facing

Any retail operation, technology, service or program to which the shopper is exposed. Often contrasted with "back-office" activity.

Customer First

The business mantra used by Kroger to express its efforts to use a deep understanding of its shopper base as the foundation for all decision-making.

Customer Marketing

The practice among product manufacturers to devote personnel, money and other resources to the development of specific marketing and merchandising programs for key retailers, often in close collaboration with those accounts.

Customer Relationship Management (CRM)

Originally used specifically for computer-based methods of tracking customer interactions, the term now refers to the practice of efficiently managing all aspects of customer interaction and the use of purchase history and other data to develop targeted marketing offers. The underlying goal is to manage each customer based on individual preferences and needs over time rather than on isolated transactions or general behavioral assumptions.

Customer Segmentation

The practice of dividing a retailer's shopper base (or a brand's user base) into groups that reflect their demographics, lifestyle needs, purchase habits and shopping behaviors in order to develop more effective methods of marketing and merchandising and, ultimately, to engender deeper loyalties.

Cut Case

A shipping case in which the front portion has been torn off (or "cut"), thereby exposing the product and turning the case into a merchandiser. Commonly found stacked together as case stacks within aisles or on shelves (particularly in price-impact stores where labor is more scarce). Usually cut with box cutters, many now are designed to be self-opening.

Cut-in

The introduction of a new product into the shelf set, which involves a change to the existing planogram. A cut-in usually occurs between major shelf resets.

Dangler

A sign or small graphic attached to channels of shelving units with a thin strip of material. Also known as shelf "wobblers" due to their propensity to move with air currents. The term "ceiling dangler" is sometimes used to refer to signs hung from the ceiling.

Dealer's Privilege

A sign with advertising on one side and just a service message on the other, such as, "We appreciate your business."

Dealer Tie-in

Local support by a retailer for an advertiser's promotional program. Methods include in-store display materials, cooperative advertising, local contests, identification in media ads, etc.

Deal Pack

A special package design, like bonus packs, that typically carry the marketers' promotional pricing graphics.

Dedicated Space

A company purchases space in a store, where the space is used for displaying that company's product.

Demonstrator Display

P-O-P that shows how a product functions.

Department Store

Large-scale stores, sometimes multi-level, offering a mix of merchandise focused on fashion, apparel and home goods.

Design for Recycling

A design concept that encourages recycling by eliminating hazardous and non-recyclable components.

Die-Cut Inserts

Cardboard packaging that precisely fits and thus protects a part's contour.

Digital Advertising Network

A narrowcast network combining targeted entertainment and/or informational content with advertising. Distributed through digital networks and/or screens in place-based, out-of-home consumer venues such as retail, transit, malls, grocery, health clubs, medical offices, gas stations, office buildings and hotels.

Digital Display (Billboard)

Devices that display advertising-only messages via screens equipped with LED (light emitting diode) or LCD (liquid crystal display) technology, often changing, at predetermined times or through motion recognition technology, to feature multiple brands.

Digital Signage

A flat-screen digital display. The term covers both large screens (usually mounted on walls or ceilings) and small (a few inches in size, attached at the shelf edge), as well as single-screen displays and chain-wide narrowcast networks. They offer information, advertising copy, animation, and/or broadcast-quality content. Today, the screens are usually programmed and networked from a remote, central location. Also used synonymously with in-store TV; dynamic signage; digital out-of-home media and electronic signage.

Direct-Store Delivery (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.

Diversion

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.

Dollar Store

A small-footprint retailer offering a wide variety of merchandise but a limited number of SKUs in each. The name comes from the practice of selling all merchandise at $1 or less, although few chains actually adhere to it. Once viewed with disdain by product manufacturers as a place for diverted or damaged product, the channel has produced two significant players -- Dollar General and Family Dollar -- whose size and increasing sophistication have made them key accounts for a number of CPGs.

DSD

Commonly used acronym for "direct-store delivery."

Dump Bin

A merchandiser that carries loose or bulk product.

Easel Card

Flat signs or cards with a chipboard easel attached to the back, providing support for the display to stand on a counter, shelf, or case stack. Also a free-standing floor unit of wood, plastic or metal to support signs, large cards and frames.

EasySaver

The name of Walgreens' monthly rebate catalog.

ECR

Efficient Consumer Response (ECR) is a strategy in which a chain, distributor and vendors work together to take out cost from supply chains.

Edge Crush Test (ECT)

A test of corrugated board to determine the force that will crush standard board while standing on its edge. The test measures the stacking strength of corrugated boxes and fiberboard.

EDI

Electronic Data Interchange, which involves transmitting information directly by standardizing computer.

End-Aisle Display

Alternative term for endcap or endcap display.

Endcap

Merchandising space located perpendicular to and at the end of store aisles, used to prominently display products on sale or other special items. Space allocation is often negotiated between retail buyer and product seller. Endcaps are considered to be prime store real estate offering great potential for incremental sales.

Endcap Display

A singular product display built specifically for placement on a store endcap, or a collection of product and P-O-P materials set up to simulate a product display.

Engagement

Measure of a marketing vehicle's ability to capture, then hold, the attention of shoppers.

Environmentally Preferable Products

Products that have a lesser effect on human health and the environment when compared with competing products.

Exclusive Brand

A brand distributed through a single retailer but not directly owned or manufactured by that retailer.

Execution

The act of carrying out the various aspects of an in-store marketing program. Most commonly used in reference to store-level execution of brand campaigns.

Expandable Polystyrene (EPS)

Common name for this plastic is Styrofoam. Usable at sub-zero temperatures; can expand or blister at high temperatures.

Experiential Marketing

The practice of using various stimuli related to the five senses to immerse consumers in a physical representation of the brand message.

Extrusion Molding

The process of pushing heated plastic through a die, which is cut with the desired profile. (Think of the Play-Doh "Fun Factory.") Extruded parts are used when a shape with undercuts or long, continuous straight lengths of plastic are needed. Often called "profiles," these are commonly used in shelf-edge signage applications.

Facing

Term for each row of product stocked on a shelf or display. A brand's strength at retail is often based on the number of facings it commands on the shelf. Determining the number of optimal facings for each SKU is a key component of planogram development.

Factice

A giant replica of the product used most frequently in the display of class cosmetics.

First Moment of Truth

The now legendary phrase popularized by Procter & Gamble ceo A.G. Lafley, who in a 2002 letter to shareholders defined it as the moment "when consumers stand in front of a store shelf ... and decide whether to buy a P&G brand, or a competing product." The phrase has been widely interpreted both as an affirmation for the importance of in-store marketing and as an endorsement for the store as a viable brand-building medium. As such, it has become an oft-quoted battle cry among industry practitioners.

Floor Decal/Graphic/Cling

A plastic substrate that adheres to floors (and is easily removed) on which advertising graphics are printed. The tactic is used most often to draw attention to a product in close proximity, but is also utilized to direct shoppers from other areas of the store or to communicate retail messages.

Floorstand (or Floor Display)

A freestanding merchandiser designed to sit directly on the sales floor.

Four-way

A fixture that holds product on four sides. It is most commonly found at Walmart, which uses numerous four-ways in its Action Alley merchandising plan.

Freestanding Display

Any display designed as a stand-alone merchandising unit.

Front-End

The area including and surrounding checkout—upfront, near the entry doors—that attracts high traffic volume and is therefore considered a prime location for secondary merchandising.

Gondola

A secure shelving unit for stocking products that accommodates shopping from at least two sides. It is the primary method of merchandising for most packaged goods retailers. It comes in two standard sizes: "high profile" gondolas are about 72 inches high, while "low profile" gondolas stand about 48 inches high.

Gravity Feed Display

A display slanted or otherwise designed so that merchandise automatically slides or is pushed forward as upfront items are removed from shelves.

Group Packaging/Secondary Packaging

A sustainable packaging/display term. P-O-P packaging that does not come in contact with the product and can be removed without affecting the product unit's characteristics. A toothpaste tube's carton and shipping case are examples.

HBA (HBC)

Commonly used abbreviation for "health and beauty aid," used interchangeably with HBC ("health and beauty care").

Header

A board that sits atop a display, fixture or case stack to communicate the primary points of communication. Differs from a riser in that a header is typically larger or more detailed.

Impulse Item (Product)

A product that derives a significant portion of its sales from unplanned purchases. Batteries, gum, magazines and other products merchandised at checkout are largely impulse items.

Impulse Purchase

Purchases made without prior planning or careful consideration, often triggered by in-store stimuli. The opposite of a planned purchase.

Impulse Sales

Retail sales resulting from impulse, or unplanned, purchases by shoppers.

Inflatable Display

A type of display that ships deflated and is filled with air or gas at the store to promote a product.

Injection Molding

Process that pushes liquid plastic at high pressures and temperatures into a machined, two-part mold. (Think model airplane parts or any plastic toy that snaps together.) As the plastic quickly cools and solidifies, the mold is opened, and the part is ejected. This type of molding is recommended not only for parts small and large, but also for parts that are complex, and intricately configured. Common uses in P-O-P: Gravity feed displays and wall merchandisers for mass cosmetics.

In-line

Within the standard shelf set or planogram.

In-line Display

A merchandising unit designed to fit into or attach to a retailer's larger shelf fixture or gondola.

Instantly Redeemable Coupon (IRC)

A coupon available within the store that can be redeemed for an immediate purchase. Distribution vehicles include packaging stickers, shelf dispensers, display tearpads and checkout receipts.

In-Store Marketing

All marketing activity carried out within a store, including tactics such as displays, merchandising, media advertising promotions, sampling, and coupons. Also, any marketing activity designed to drive traffic to stores to make specific purchases.

Integrated Marketing

The practice of planning and developing all forms of marketing communication—advertising, promotion, public relations, customer marketing, etc.—in a unified manner rather than in isolation. The goal is to create a clearer, more consistent and more effective message with maximum impact potential. Practitioners also often advocate a media-agnostic approach to campaign development in which marketing vehicles are selected for their potential effectiveness rather than because of any internal preconceptions or prejudices.

Interactive Display

A display that invites and often responds to interaction from shoppers via buttons, touchscreens, functioning product samples or other means.

Island Display

A freestanding floor display that merchandises product on all accessible sides.

J Hook

A "J" shaped hook extending from the shelf or pegboard from which merchandise is hung. Often used to spark impulse purchase.

KD

Abbreviation for "knocked down" display. (See below.)

Kitting

The act of putting in-store marketing materials together, as into kits.

Knocked-Down (KD) Display

Displays that are shipped flat and generally independent of the merchandise, in consideration of freight costs and logistical issues. They must be assembled and packed at the store.

Last Three Feet

A term used for all in-store marketing that illustrates its general proximity to the purchase decision, but refers specifically to the final step in the process when the shopper is considering a product on display.

Lenticular

A ridged sheet of plastic containing light properties that display different visuals at different angles, often creating a 3-D image.

Lift

The sales or revenue increase from an in-store marketing initiative that usually is short-term or promotional in nature.  Expressed as a percentage.  Also called "uplift."

Line Extension

A product marketed under an existing brand that offers a new flavor, formulation, scent, size or packaging shape to the portfolio. The product typically expands the brand's presence in an existing category (as opposed to a brand extension), ideally to attract new users. It also sometimes is used defensively to prevent the loss of brand sales to competing products, even though it may result in cannibalization of existing brand products.

Location-Based Marketing

The practice of targeting promotional offers and other marketing messages to the recipient's physical location, such as her proximity to a store or even a specific aisle within a store. If combined with loyalty-card information or other historical purchase data, the practice even makes consumer-specific targeting possible. The primary method of delivery is a personal smartphone, although in-store technologies theoretically could also be used.

Lock Bar

A system that allows an entire high-ticket product package to be seen and held while remaining safely secured to the fixture.

Loss Leader

A product offered to shoppers at cost or even below cost as a way of driving traffic to the store and gaining additional, profitable purchases.

Loss Prevention

The methodology a retail business employs to curb physical loss of property (from earthquakes, floods, hurricanes, and so forth), reduction in inventory (due to theft, damage, spoilage and so forth), and loss of money due to clerical error or theft (employee, customer, or vendor). Also known as "LP" or "Security."

Lug-on

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

Marketing at Retail Initiative (MARI)

A research project spearheaded by Point-of-Purchase Advertising International that is striving to develop industry standards for measuring shopper "engagement" (interaction) with in-store marketing materials.

Mass Merchant (Mass Merchandiser)

A large-format store carrying a wide variety of popular product categories, typically at discount prices. The most common examples are Walmart and Target.

Merchandising Strip

A long, narrow device made of plastic or metal with hooks or grooves used to merchandise individually wrapped packages of a product. The low-cost displays are typically used to provide secondary placement for relatively small packages of high-volume product, and are often used to facilitate cross-merchandising (such as batteries in the electronic toy aisle). Also commonly referred to as a "clip strip."

Mobile

A ceiling sign that uses counter-balanced elements to create motion in a current of air.

Modular Display

A display whose components can be constructed or combined in multiple ways to produce different sizes and shapes, thereby accommodating the requirements and/or needs of various retailers.

Motion Display

A display that features a moving component, usually battery-powered but sometimes requiring electricity. Used to attract more attention to the display.

NARMS

The National Association for Retail Marketing Services.

National Association of Convenience Stores (NACS)

A group for convenience store owners and operators.

Near Pack Display

1. A display made to merchandise a premium that will be given away with product purchase. It typically is placed near the product in question and delivers the promotional message.
2. A display shipped flat in a container, with the product still in shipping cases, and set up at retail.

Near Pack Premium

An ad specialty or other type of gift offered free with product purchase and typically displayed near the product or at checkout to help influence the purchase decision.

Neck Hanger

A P-O-P material that fits over the neck of a bottle to deliver a marketing message at the shelf. Also called a bottle hanger.

On-Pack (Premium)

A promotion or other marketing message delivered on the product's packaging; a free gift included as part of the product's packaging.

On-Shelf Studies

Research conducted to assess whether a CPG's merchandise is actually on a given shelf at a given store at a given time. The goal is to determine whether replenishment or out-of-stock issues at the store level are a major problem.

OTC

Abbreviation for "over-the-counter" medications, which require no prescription for purchase.

Overhead Merchandiser

A display that sits above a checkout counter, allowing the cashier to reach the product without abandoning his position. C-stores often use overhead merchandisers to stock cigarettes.

Packaged Good (or Package Good)

A consumer product pre-packaged for sale at retail that is relatively small, carries a low unit price and is consumed on a frequent basis. The term is used for all pre-packaged food and beverage, health and beauty, and general merchandise products. It does not include, as examples, apparel or consumer electronics.

Pack-Out Displays

Displays that are folded flat for shipment, but are included in the same box as the merchandise and assembled in stores.

Pallet Display

A type of display built on standard pallets for efficient shipping and rollout to sales floors with minimal effort. Pallet displays are typically pre-packed with product and shrink wrapped for shipping. Many contain additional graphic panels and structural elements for enhanced product 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 common, especially in larger stores where floor space isn't as tight, but half pallets and quarter pallets are also commonly used.

Pantone Colors

A standardized color system for printing patented by Pantone Inc. The Pantone Matching System (PMS) utilizes a palette of standard colors that can be mixed in precise combinations to recreate a wide range of colors consistently across different printing presses and substrates.

Path-to-Purchase

The route that shoppers take from discovery of a product/need to actual purchase of a product. May include several steps such as consulting research or product reviews on the Internet, discussing products with their friends, being exposed to media advertising, traveling to a store, and examining the product on shelf or display before buying.

PDQ Display

A display that facilitates "pretty darn quick" stocking at the store by arriving pre-packed with product in a shelf-ready container. In Walmart's parlance, all shelf trays are PDQs.

Perimeter

The borders of a store's interior, encompassing the walls and adjacent areas. In stores with a racetrack layout, the perimeter is often the most heavily trafficked area of the store. In the traditional supermarket format, the perimeter is the location for fresh food and service departments such as deli, bakery and meat, and therefore has become a shorthand way of referring to those departments.

PETG

A low cost substitute for polycarbonate. It has higher impact strength than acrylic. PETG is available in clear and opaque formulations and can be injection molded, vacuum formed or extruded. A PETG sheet is easily die-cut and is a good material for screenprinting. Common uses in P-O-P: lenticular signage, clear shelving, lenses and signs.

Planogram

A schematic diagram used to direct the exact placement of specific SKUs on store shelves. Planograms typically are created for product categories and sub-categories.

Point-of-Purchase (P-O-P or POP)

The site of a consumer transaction, most commonly used to denote the retail environment.

Point-of-Purchase Advertising

Marketing strategies and tactics executed within the store environment, including (but not limited to) displays, signs and proprietary audio and video networks.

Point-of-Purchase Display

A product merchandiser designed to hold product and influence purchase at retail.

Point-of-Sale (POS)

Often used as an alternative term for point-of-purchase, although some practitioners make a distinction by using POS in reference to checkout/cash register technology and P-O-P for anywhere else in the store.

Pole Topper

Signs communicating an ad message that are mounted on paper or plastic poles. The poles usually are set at the floor by a corrugate pedestal or wire stand, with the product stacked around them. They most commonly are used in beverage merchandising.

Polycarbonate

Another popular substitute for glass, polycarbonate has 45 times the high-impact strength of acrylic, is stain resistant, rigid, and can withstand a wide range of temperatures. However, it scratches more easily than acrylic. Common uses in P-O-P include corner brackets, food containers and unbreakable lenses.

Polyethylene (PE)

The most frequently used thermoplastic in the world. There are hundreds of formulations of PE available, resulting in different properties for different uses. The varieties most commonly used in point-of-purchase advertising are high density (HDPE), and low density (LDPE). Common uses in P-O-P include polybags, product facsimiles, flexible hinges, promotional flags and snap-to-fit parts.

Polypropylene

A plastic material commonly used in tire stands, shelves, bases and other P-O-P materials.

Polystyrene (PS)

A versatile thermoplastic used in foam packaging and plastic cups. Common uses in P-O-P include signs, vacuum-formed trays, menu-boards and shelves. Available in three different grades: general purpose polystyrene (GP); high-impact polystyrene (HIPS); and high expandable polystyrene (EPS).

Polyurethane

Often combined with other materials to produce a liquid foam that's poured into rubber-lined molds to make special parts and character shapes. Common uses in P-O-P: dimensional signs, imitation wood, beer-tap knobs and dimensional trim.

Polyvinyl Chloride (PVC)

The most widely used member of the vinyl family. It is chemically inert and resistant to water, corrosion, weather and dents. Common uses in P-O-P: graphics, price channels, edge molding and banners.

POPAI

Point of Purchase Advertising International, a global trade association for practitioners of marketing at retail.

P-O-P Producer

A company involved in the design, manufacture and supply of displays, signs, and other in-store marketing materials to product manufacturers, retailers, and marketing agencies.

Post-Consumer Materials

Materials that have already served their intended use and have been recycled as a raw material.

Post-Industrial Material

Material that's generated by manufacturers, such as overruns or waste, and incorporated back into the manufacturing process.

Powder Coating

A type of coating that's applied as a free-flowing, dry powder. The coating is typically applied electrostatically and is then cured under heat. Used to create a hard finish on aluminum and other metals. MDF board can be powder coated by pre-heating the board and making it conductive.

Power Wing

A product display designed to hang from a store fixture, most often on the sides of endcap displays. (See Sidekick.)

Pre-Consumer Materials

Materials destined for disposal had they not been diverted from the waste stream for reuse or recycling.

Pre-Pack Display

One of the more popular display types. A product merchandiser that is filled with product at the plant and shipped as a single unit rather than separately. The practice reduces labor demands at the store, and therefore generally is believed to improve execution. Sometimes used synonymously with "shipper display," although that term usually denotes less elaborate, lower-cost units.

P.R.I.S.M.

The more commonly used acronym for "Pioneering Research for an In-Store Metric," a research initiative undertaken in 2006 to develop a formula for measuring store traffic at the category level using sales data and other known variables.

Private Label

A line of products exclusive to a single retail entity whose brand and trade dress is owned by that retailer (as opposed to an exclusive brand). Private label products are either manufactured by the retailer or outsourced to another party.

Project Impact

Walmart's multi-year chain modernization initiative that involves nearly every aspect of the store, from SKU counts, product assortments and category adjacencies to merchandising tactics, in-store communications and customer services.

Promotion

1. Marketing strategies and tactics whose goal is to directly stimulate consumer action.
2. In the retail community, a special price offer.

Promotional Display

A display produced and distributed for use during a specific time frame, often in conjunction with a particular consumer promotion.

Promotion Allowance

A rebate, discount or other monetary reward given by a manufacturer to a retailer in exchange for special marketing or merchandising consideration. In theory, they serve as reimbursements for expenses incurred by the retailer when performing certain tasks. In practice, however, they often have become "pay to play" charges for planogram facings, secondary display space, circular ads and other marketing activities.

Purchase Behavior

The habits and tendencies exhibited by a shopper when buying products.

Purchase Decision

The consumer's act of choosing to buy a product.

Purchase Influence

A factor, either tangible or intangible, that affects a shopper's decision to buy a product or not.

Purchase Intent

A consumer's predisposition to buy a product, or the likelihood that she will buy.

Purchase Trigger

A stimulus that inspires a purchase decision.

Qualitative Research

In broad terms, anecdotal research. The analysis of narrative feedback derived from a handful of consumer focus groups is an example of qualitative research.

Quantitative Research

In broad terms, data-driven research. The analysis of scanner data to forecast sales is an example of quantitative research.

Quarter-Pallet Display

A display whose footprint accommodates shipment and, if desired, display on a quarter pallet. Sometimes shipped four to a pallet for use as a full pallet in some locations or to be broken down in others.

Racetrack

A continuous aisle that runs in a circle or oval around the entire store with products merchandised on either side.

Rack

A floorstand, usually constructed of wire or metal, used for displaying certain products or a group of related products.

Radio Frequency Identification (RFID)

A technology in which the location of a specific pallet, display, shipping case or individual SKU can be verified by an attached data chip called an electronic product code. The chip emits radio waves that continuously broadcast its data to nearby readers, which can be attached to a door, forklift, shelf or hand-held device. To date, the technology’s advancement in the retail industry has been driven largely by Walmart and its efforts to track product shipments to stores. Walgreens has been testing its capabilities for determining in-store marketing effectiveness for several years.

Recyclable

The ability of a product to be diverted from the solid-waste stream.

Recycled

A product that includes materials diverted from the solid-waste stream.

Related Display

A display or other unit carrying different products that have seasonal, functional or other similarities. Also called a "cross-merchandising display" when the products being promoted are from different categories or manufacturing sources.

Reset

1. A major change or revision to an existing planogram, section, department or entire store undertaken to accommodate new product lines, packaging or fixtures, or an improved configuration as determined by the retailer.
2. The realigning or adjusting of dies or tools during a production run; not to be confused with the operation setup that occurs before a production run.

Retail Commission on Shopper Marketing

Sponsored by Coca-Cola and run by The Partnering Group and the In-Store Marketing Institute, the commission of retailers and brands formed to enhance the shopping experience, increase same-store sales and boost profit performance through the design of a next-generation model for retailer/manufacturer collaboration. The group's goal is to do for shopper marketing what was done for category management decades ago.

Retail Link

Walmart's online data information network, a best-in-class system that gives product vendors near real-time access to sales data. (See "Marketing at Walmart.")

Retailtainment

Term for in-store events and other marketing activities that enhance 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).

RFID

See Radio Frequency Identification.

RFP

More commonly used acronym for "request for proposal," a request by a potential client for suppliers to submit bids on a project. Product manufacturers often require RFPs from marketing agencies and P-O-P suppliers.

RFQ

Acronym for "request for quotation." Some use it synonymously with RFP (see above).

Riser

1. The topmost shelves of a gondola, often too high to be shoppable and frequently used to store overstocks.
2. A graphic panel or card attached to the top of a display.

Rollback

A marketing term used by Walmart to identify products whose prices have been deeply discounted for periods of at least 90 days and, most often, for six months or more. Items in the rollback program are identified as such through signage, circular features and, occasionally, media advertising.

Rotational Molding

Manufacturing process used to produce hollow parts, ranging in size from medium to large. A common example is the "Big Wheels" toy. In P-O-P applications, a rotationally molded part can be hollow, making it lightweight for shipping yet structurally sound for service on a sales floor. Sometimes, sand or water is poured into the part on-site to help anchor a display. The downside is slow production cycles.

Rounder

A circular fixture for clothing.

Sampling

Promotional tactic in which a full or smaller version of the product is given free to consumers. Often used for new product launches to induce trial.

Secondary Display

Placement of product in a location separate from its primary shelf position; or, the actual display on which a product receives the additional merchandising.

Secondary Research

Existing data; the analysis and synthesis of existing data to inform new learning.

Self Shipper

Alternative term for pre-pack shipper or shipper.

Sell Down

The gradual purchase of product from a display.

Sell In

The process of gaining retail approval to conduct an in-store marketing campaign.

Sell Sheet

A printed sheet or brochure with detailed information about a product's available pack sizes, display options and promotional offerings, typically used by product manufacturers to sell in programs to retailers. Also sometimes called a "one sheet."

Sell Through

The purchase of product by shoppers, discussed in terms of quantity and duration; also used synonymously with "sell down."

Semi-Permanent Display

A display designed to remain in place for an extended period of time, usually between two and six months.

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 attention on a product or product category.

Shelf Label

A label placed on shelves or in shelf channels containing information such as price, product size, bar codes or temporary sales offers.

Shelf Life

The length of time a product can safely remain on display before it spoils or deteriorates in quality.

Shelf Organizer

A formed mat or base that helps to keep products neatly arranged on shelves or displays.

Shelf Talker

A small sign affixed to a shelf edge, typically used to highlight temporary promotions, new product introductions or other advertising messages.

Shipper

A display that includes prepacked merchandise and the display structure all in one carton, usually designed for quick and easy set-up in the store.

S Hook

A hook shaped like an "S" often used to hang merchandising strips or other displays.

Shop-Alongs

A popular research technique in which a trained moderator accompanies a consumer on a shopping trip to observe tendencies and reactions to in-store stimuli.

Shopfitting/Shopfitters

The term, used primarily in the United Kingdom, for designing and building store interiors. The more common U.S. term is "store design."

Shoppability

Evaluation of a store's ability to satisfy shoppers by making their experience fast, easy, informative and pleasant.

Shopper

A consumer who is actively involved in considering products to purchase.

Shopper-Centric (or Customer-Centric)

A strategy in which store designs and layouts, merchandising activity, product selection and/or marketing initiatives are developed to meet the needs of a specific consumer segment.

Shopper Insights

Data-driven learning that leads to an actionable understanding of shopper behavior and purchase influences.

Shopper Intercept

Research practice of interviewing consumers before or after their shopping trip (usually outside the store) to gain an understanding of their attitudes and behavior.

Shopper Marketing

The use of strategic insights into the shopper mindset to drive effective marketing and merchandising activity in a specific store environment. Key elements of effective shopper marketing include:

• an organizational culture that embraces shopper insights as a key component of the marketing strategy;

• strong collaboration between retailer and brand marketer, in which both sides work toward mutually beneficial objectives;

• the development of programs that, in addition to driving sales, can build brand equity for both product and retailer by engaging shoppers in relevant ways.

Shopper Segmentation

Techniques retailers use to identify key customer segments, usually with a special nomenclature. For example, until recently Best Buy would target a soccer mom-type it named "Jill," and an affluent professional it named "Barry."  CVS looks for "Sophie," an older empty-nester, "Caroline," a young, single working woman, and "Vanessa," who's married with children. Walmart doesn't name names, but looks for "brand aspirationals," "price value shoppers," and "trendy quality seekers."

Shrink/Shrinkage

The amount of merchandise lost due to shoplifting, employee theft, spoilage or other factors after the retailer receives it.

Sidekick

A small display designed to hang on the sides of an endcap or fixture. Most sidekicks ship prepacked for quick set up. Many retailers have permanent endcap hardware to house prepacked sidekicks from manufacturers. Some sidekicks ship with a temporary base that lets retailers use the display as a floorstand. The term is often used synonymously with power wing, although this term refers primarily to larger displays.

Sintra

Brand name for a rigid PVC (i.e. plastic) sheet product used quite frequently in permanent display and signage applications. Very popular because it is offered in a wide variety of colors. The name is sometimes improperly used to describe any colored plastic sheet.

Site to Store

Term used by Walmart and other retailers for a service that lets shoppers buy products online and pick them up at stores near their homes.

SKU

The more commonly used acronym for "stock keeping unit," a numerical identification tag given by a retailer to a specific product, brand, flavor, variety and/or package size. Rhymes with "flu."

SKU Rationalization

1. Taking a cold, hard look at the sales and profit performance of specific products and deciding if they should continue to be offered for sale in a store.
2. The systematic evaluation of product performance, usually intended to reduce the number of SKUs offered in a specific category.

Slatwall

A wall display in which particle board or other paneling material is fitted with linear slots, facilitating the installation of bracketed shelves, hooks or other devices on which to stock product. Slatwalls often have modular capabilities, allowing them to be easily reconfigured and/or changed out. Commonly used to merchandise footwear.

Sliding

A loss prevention term referring to the act of a cashier passing merchandise around the cash register barcode scanner without actually scanning the item.

Slippage

The tendency for consumers to fail to redeem a promotional offer for which they qualify. Marketing plans will often include a projected slippage rate. Most commonly used in the discussion of rebates, for which slippage rates can be significantly (and profitably) high.

Slotting Allowance

A fee paid by a manufacturer to a retailer to provide shelf space—or, a "slot"—for a new product. The payment ostensibly covers the administrative and labor-related costs of adding a new item to the system, as well as the potential lost sales involve din making room for an unproven product.

SmartSource

Brand name for News America Marketing's in-store media business, which runs a national network of advertising opportunities for product manufacturers in supermarkets, drugstores, dollar stores and mass merchants. Also, the name for News America's weekly co-operative free-standing insert program.

Spectacular

A large display that frequently combines multiple display formats (shippers, stacked merchandise, inflatables, signage, lights, audio, etc.) and products to achieve greater impact. Spectaculars are commonly built around seasonal or event themes, such as Halloween, the Super Bowl or the holidays, and are positioned in store lobbies or perimeters due to the large amount of floor space they require.

Spinner Rack

A freestanding display that positions products around a rotating center pole, allowing shoppers to spin the display and shop all sides while remaining stationary.

Stanchion

A freestanding sign frame that allows for easily changeable graphics and messages.

Stand-Alone FSI

A free-standing insert containing ads for a single consumer product manufacturer that is distributed separately from the standard weekly co-op inserts. Procter & Gamble distributes a monthly stand-alone FSI called brandSaver through the Valassis network.

Standee

A freestanding cut-out, typically made of corrugate and most often depicting a person or animated character that communicates a brand's promotional activity or celebrity endorsement. Standees usually are distributed as one component of a broader display program, but often are used distinctly.

Stock Keeping Unit (SKU)

A numerical identification tag given by a retailer to a specific product, brand, flavor, variety and/or package size.

Stock-Up

A common store trip in which the shopper purchases a large number of grocery and general merchandise items to satisfy her needs over a period of time. Also known as pantry load.

Store Brand

A private-label brand marketed under the retailer's name; often used as a synonym for private-label brand.

Store Check

A visit to a retail location to observe general conditions and/or gather specific information. Often used in the context of measuring compliance for an in-store campaign.

Store Clusters

Groups of stores that cater to similar shopper segments, or have other compatible operating characteristics, and therefore are managed collectively by the retailer.

Store of the Community

Walmart's strategy of tailoring store layout and product selection to match the needs of local shoppers.

Store Within a Store

Branded area of a store designed as a distinct shopping destination. It most commonly is used to identify literal co-branding partnerships, such as Dunkin' Donuts restaurants inside Walmart stores or Staples aisles in Stop & Shop supermarkets; also often used interchangeably with "vendor shop," or to describe a retailer's own merchandising initiative, like Best Buy's Magnolia Home Theater departments.

Substrate

The base material upon which printing may occur. Typical substrates include paper, card stock, and some plastics or metal.

Sustainability

Briefly, the development of environmentally sound business practices and products. Both the term and the movement behind it have been driven largely by the actions of Walmart.

Sweeping

When thieves (often professionals operating in teams) "sweep" merchandise off a shelf or simple peghook into their pockets, bags or specially made clothing.

Table Tent

A small sign that ships flat but can be folded in half to form a tent-shaped display for use on tables or countertops. Frequently used in bars and restaurants to advertise temporary drink or food specials.

Tearpads

Small pads of coupons or product information that can be torn-off as individual sheets. Also called "take-one pads," tearpads are often attached to displays or shelving near the products they promote.

Temporary Displays

Displays typically made of corrugated board and designed for a life span of one week to three months. Most temporary displays are produced from "E" flute corrugate, which provides a smooth surface for direct printing or applying a lithography label. "E" flute also is easy to fold for assembly.

Test Market

A limited, controlled geographical area in which a new product or marketing plan is launched as an experiment. Results from the launch are carefully monitored in order to revise and develop plans for expansion into other markets.

Test Store

A retail outlet used to test new products, marketing concepts or merchandising strategies to gauge their effectiveness.

Tethers

Retractable tethers allow for display samples to be used and tested while securing them to retail fixtures, preventing theft. The retractable feature brings the product back to its original display position after use.

"The Three R's"

The EPA's trilogy of Reduce (minimize the amount of trash), Reuse (refurbishing and repairing products for longer life) and Recycle (buying products with recycled content and diverting more materials from the solid-waste stream).

Three-Way Sell Display

Allows product to be displayed from the front, left side and right side.

Tie-in Promotion

1. A single promotional event intended to encourage the sale of more than one product or brand.
2. An entertainment tie-in.

Tip-on

1. A coupon, sample, or reply card glued by one edge to a page of advertising.
2. A special card attached to a display to call attention to a special sale or other feature.

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 made an "unplanned purchase," while a shopper who buys an energy beverage for the first time after noticing a display has made an "impulse purchase."

UPC

Universal Product Code (UPC): The unique number assigned to a product for identification purposes, printed on the product's packaging with an accompanying barcode so that it can be optically scanned at checkout to automatically log the sale. Retail point-of-sale systems align UPCs with pricing information so the correct price will be charged (and recorded).

Upfront Market

The annual spring period in which television networks sell advertisers air time for the fall season. Walmart has adopted the "upfront" concept in selling ad space on Walmart TV.

VAR (Value-Added Reseller)

A VAR packages applications and services for re-sale.

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.

Vendor-Supplied Fixtures

Merchandising units provided to retailers by manufacturers or distributors.

Violator

1. A sign attached perpendicular to the shelf, thereby sticking out and "violating" the aisle.
2. A visual device affixed to packaging graphics used to promote a special feature.

VIP (Value Improvement Program)

An initiative launched in 2006 by Ahold USA's Stop & Shop and Giant-Landover chains to move their pricing policy from high-low to EDLP.

Viral Marketing

Leveraging the word-of-mouth nature of the Internet and other digital media to spread marketing communications from person to person.

Virtual Retailing/Simulations/Reality

The use of computer-driven store simulation technologies to conduct market research and achieve other key business objectives. Practitioners are employing an array of tools that include visually basic but highly functional two-dimensional and video-based simulations of shelf sets and small-scale store environments that can run on any computer; visually basic 3-D simulations with predetermined shopping paths and limited durations that are online-compatible; intermediate 3-D simulations of product categories and store departments with high-resolution graphics suitable for larger screens; high-quality, full-store 3-D simulations with special technology requirements.

Visual Merchandising

Arranging products in a manner that considers visual aesthetics and/or merchandising effectiveness. Also known as "visual presentation."

VMI (Vendor Managed Inventory)

Letting a vendor or supplier have the authority to re-order 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.

VPI (Value Producing Item)

A Walmart program in which store managers, as well as corporate executives, select products with high sales potential to support with additional merchandising activity. Formerly called "volume producing," the program's name was changed to reflect consideration of products that also bring non-sales benefits, such as environmentally sustainable items. Product marketers lobby extensively to earn the designation.

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.

Wall Banner

A large sign hung in the center of a store or on a wall. Proper mounting is essential so it does not shift or rock with air movement and distract shoppers below.

Wall Display

A display designed for attachment to a store wall or a wall (such as a slatwall) that itself is a product merchandiser.

Warehouse Club

A retail format in which shoppers pay an annual membership fee. Club stores cater to both small business owners and individual consumers, offering a wide variety of product categories but limited SKU selection within them. These no-frills retail environments accommodate little in-store marketing. In the U.S., three chains dominate: Costco, Sam's Club and BJ's Wholesale.

Warehouse Store

Any large store that sells merchandise on oversized racks, giving the impression that the customer is buying "direct" at lower prices. The format was pioneered and mastered by chains like The Home Depot. Today, the format is so ubiquitous that even luxury goods are sold in this manner.

Waterfalls

A fixture in which the merchandise hangs down at an angle, creating layers or tiers.

White Goods

A term for either bedroom/bathroom linens or major kitchen appliances. The term "brown goods" refers to consumer electronics, especially smaller items like clock radios.

Wholesale Club

Alternative term for "Warehouse Club."

Window Display

Traditionally seen on urban department stores with pedestrian traffic.

Wing Display

A wing is a small, temporary display—sometimes called a "sidekick"—that is mounted onto the side of an endcap. Sometimes wings are even attached to the sides of other wings. (See Sidekick.)

Wire Feet

At its simplest, two sections of straight wire, bent at an angle to form an interlocking base with four "legs" that insert into a rolled paper tube. Commonly used to hold up pole toppers.

Wobbler

Also called a "dangler," a very small, lightweight sign that hangs from a shelf or wire.

Word of Mouth

The spread of information about a product or store through common human conversation 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 materials—typically on single-face corrugate—used to decorate a display. Base wrap is most commonly used around beer case stacks. (See Base Wrap.)

Zoning

Maintaining or housekeeping a product set so that it conforms to the current planogram.

Contract Manufacturing Terms
These terms describe the external contract packaging and manufacturing services available for consumer packaged goods companies looking to outsource these services.

Contract Manufacturing Glossary

3PL

A third-party logistics provider (abbreviated 3PL or sometimes TPL) is a firm that provides a one-stop-shop service to its customers of outsourced (or "third party") logistics services for part or all of their supply chain management functions.

Assembly

The process whereby product and packaging materials are reconfigured to form a value-added commodity.  It commonly incorporates manual operations and requires a larger labor force for successful execution.

Automatic Case Sealing

The process that utilizes automated equipment to apply one or more strips of tape simultaneously to a corrugated container.

Bagging

A packaging process whereby products and other loose materials are combined into a polybag and sealed with a hot wire or impulse sealing system.

Blister Pack

A packaging process that combines a thermoformed rigid shell containing product or other saleable materials to a coated back card by means of heat and pressure.

Bundle Wrapping

A very popular method of packaging heavier items such as cases on juice, vegetables, soda, etc. The film is cut to size and is shrunk around product leaving a bull's eye at each end of the package. This works great with high volume orders.

Cartoning

The process where either by hand or by means of an automated piece of equipment, a flat, pre-printed carton is erected, loaded with product and glued or tucked closed.

Centralized Project Control

A term referring to the process whereby complete responsibility for the planning, material movements, assembly and delivery of finished goods are overseen by Rand Diversified to ensure a successful program execution.

Chip Boards

These boards are produced only on combination or cylinder board machines. They are low in cost and are primarily manufactured from recycled fiber.

Clamshell

A custom thermoformed PVC tray that is typically designed with two halves connected with a hinge. A more expensive option, this package is chosen by companies which have a heavy or expensive retail item that requires tamper-proof protection. These packages can be designed with a hang hole or with a foot for a stand-alone option.

Club Store Packaging

Normally pallets of product packaged to conform to Club Store requirements. A lot of Club Store packaging consists of volume buys or variety type packaging.

Coding/Marking

The term used to describe the process whereby a specified code or expiration date is permanently affixed to an assembled package.  This process can be accomplished through hot stamping, ink transfer or inkjet coding methods.

Collating

The assembly or sorting of items to match a prescribed order of arrangement.

Contract Assembly

A term referring to a service that specializes in the assembly of a product through the use of manual labor, fixturing or automation.

Contract Packaging

A general term referring to a service that is performed on a product utilizing various assemblies and / or packaging techniques intended for the enhancement of a product.

Contract Supplier

A source that performs a manufacturing service for a customer.

Contract Warehousing

A term referring to a service that specializes in material handling, storage, inventory control and distribution of a company's product or products, for contract packaging.

Direct Mail

This service provides clients with a mail merge solution by utilizing client supplied address lists to print onto label format, which is then used for solicitation. Labels can be applied and shipped if needed.

Direct Ship

The process whereby Rand Diversified—at the request of the client—is authorized to arrange and execute the transfer of Finished Goods directly from our facility to the retailer, bypassing the normal distribution process.

Display Pack Out

The process whereby a promotional display vehicle such as a Powerwing, Floorstand or Pallet Display is assembled and loaded with product in a prescribed format ready for the retail floor.

Distribution

The process whereby Finished Goods are routed from Rand Diversified to either the client’s warehouse or retailers’ distribution centers.

Domestic & International Sourcing

The process whereby materials that are required for a program's execution are sourced by Rand Diversified based on specifications issued by the client.  Having sourced materials globally for a number of programs, we are uniquely qualified to locate materials that meet the requirements for use and price.

Electronic Data Interchange

The structured transmission of data between organizations by electronic means.  It is used to transfer electronic documents or business data from one computer system to another computer system without human intervention.

Fin Seal/Flow Wrapping

A packaging process whereby the product is encapsulated in a “bag” and contains a characteristic folded/sealed “fin” running the length of the enclosure, with additional seals located at the ends running perpendicular to the fin.

Fulfillment

The overall logistics associated with a product or products, including but not limited to material handling; collation; incoming inspection; order processing and tracking; inventory control; warehousing; assembly; and transportation.

Gift Sets

The assembly of various pieces of retail products that are inter-related or used together, usually arranged in a highly decorated box and offered at retail for a special promotional price.  These are commonly seen in the fragrance and cosmetic industries.

GMP

Good Manufacturing Practices (as established by the FDA).

Hand Assembly

Tasks that are completed by human hands or manual labor.

Hangtag

A device attached by means of a permanent adhesive to a retail-ready product allowing the product to be displayed on a hook or by means of a clip strip.

Heat Sealing

A process whereby heat is introduced to two substrates to seal them together. Heat sealing is a generic term and is part of many packaging processes, but it mainly refers to the closure of polybags.

High Speed Labeling

The automated application of pressure-sensitive labels at a high rate of speed and with precision placement.

Hot Melt Gluing

The process whereby two substrates are joined together by the application of a heated adhesive. This heated adhesive application results in a strong bond that “sets” quickly during the assembly process.

Inspection

The process whereby materials are visually inspected for compliance standards set by the client. This inspection results in the elimination of sub-standard material.

Kitting

The process whereby individually separate but related items are grouped, packaged, and supplied together as one unit.

Labeling

A process in which a label is applied to a product manually or automated on any surface needed.

Micro-Jet

Type of equipment used for printing text or codes on to packaging.

Outsourcing

The act of physically sending out a product to a contract supplier for assembly, packaging or manufacturing.

Package Design

The art and technology of designing retail product packaging.

Pack Out

This method and quantity is associated with the last step in handling a product that needs to be shipped out.

Pick & Pack

This is part of the order fulfillment process which includes the physical locating or picking of a part out of inventory, and then packing the part into a box for shipment.

Pneumatc Stitching

The application of "staples" through various substrates to secure or combine materials used in the assembly process by means of an applicator driven by compressed air.

Polybagging

The placement of a product or products into a polybag and then heat sealing the bag closed.

P-O-P Display

An acronym for Point-of-Purchase, this is a product merchandiser designed to hold product and influence consumer purchase at retail.

P-O-P Display Design & Manufacture

Rand Diversified designs and manufactures a variety of Point of Purchase displays for the retail environment ranging from complex permanent displays comprised of mixed materials to simple corrugated vehicles.  Our market-driven design team has its hand on the pulse of the retail environment.

Premium Insertion

Sales promotion technique in which two or more complementary products are sold together. Also refers to adding a coupon to an existing product.

Primary Package

The first-level product packaging such as the bottle, can, jar, tube, etc., that contains the item sold.

Print On Demand

Similar to Direct Mail, this service provides the client a mail-merge solution by downloading names and addresses from a disk onto a form letter, which is then used for solicitation.

Product Development

The term used to describe the complete process of bringing a new product launch to market.

Refridgerated Storage & Production

Rand Diversified has over 70K square feet of refrigerated storage and production space for your temperature sensitive product requirements.  All receiving, assembly, shipping and storage functions are contained within this dedicated space to protect the integrity of your products.

Relabeling

This is a task that may include either applying a label over an existing label, removing an existing label prior to applying a new label or just applying a label to an original product or box.

Repackaging

The process whereby old and obsolete packaging is removed from "good" product and refreshed into new updated materials reflecting current labeling requirements.

Returns/Culling/Rework

Rand Diversified offers a variety of services to assist clients with sub-standard product caused by transportation damages, mixed lots codes, defective components and the like.  All inspections are performed according to the client’s criteria, with defective materials removed and, where possible, replaced to refresh the product for redistribution.

Reverse Logistics

The total processing involved with taking in returned goods from the field and reworking or repackaging them to conform to the standards of original goods.

RF Sealing

The process whereby flanges of a clamshell package are mechanically joined together by means of radio frequency energy, resulting in a permanently sealed, tamper-evident package.

Secondary Operation

A manufacturing step that comes after the initial process because it cannot be done in line or simultaneously.

Shrink Banding

The process whereby two or more items are combined to one another by means of a heat-shrinkable film that is passed through a heat tunnel causing the film to shrink and conform to the shape of the products.  The process is generally used in the formation of Buy One Get One Free promotional packages.

Shrink Labeling

The process whereby a printed heat shrinkable film is applied to a container and passed through a steam tunnel causing the film to shrink and conform to the shape of the container.  This process can be used to decorate containers with their primary labeling or for promotional packages containing complex graphics.

Shrink Wrapping

The process whereby a heat shrinkable film is sealed around the product, forming a loose bag.  The bag containing the product is then passed through a heat tunnel causing the film to shrink and conform tightly to the shape of the product contained inside, resulting in a pilfer-resistant package.

Skin Packaging

A packaging technique whereby a film is sucked down over a product and onto a preprinted skin card. As heat is introduced, the adhesive coating on the card and the Surlyn film adhere together. This is an attractive packaging option and is preferred for retail, because the product is displayed clearly yet is protected by the transparent covering. It is a cost-effective solution for higher volume runs.

S.K.U.

Stock Keeping Unit.

Solid Dose Packaging

The packaging of pills or tablets in to blisters, cartons and bottles.

Sorting

The process of separating products or materials from one another based on established criteria and usually accomplished through a visual inspection process.

Stretch Packaging

A packaging technique that allows a product to be encapsulated between two halves of a hinged header card, with a Surlyn or clear film which is part of the card but acts as a window for the item. Following the heat sealing of the outer card together, the film in the window is then heated to shrink around the geometry of an item. This method is a combination of blister, skin, clamshell and shrink wrapping. It is an attractive option, but more expensive than some of the other methods. Batteries and Pharmaceuticals are commonly stretch packaged.

Subcontract

The act of outsourcing a product or service to another company.

Thermoforming

A plastic-forming process whereby a thermoplastic sheet is heated to a pliable temperature and then molded into a finished shape by means of heat or pressure.

Tip-Ons

The application of one or more items onto a card by means of automated application equipment and a removable adhesive.  Cards are transferred onto a conveyor belt where a removable adhesive is applied.  The item to be adhered or "tipped" is then applied over the removable adhesive and the card folded for packing.

Vacuum Forming

A forming process in which a heated sheet of plastic is molded by causing it to flow by reducing the air pressure on one side of the sheet.

Value Added

An additional operation or service performed by a supplier that provides the customer a more complete solution for his product.

Vision Systems

Systems that use different types of technology to inspect and sort for quality assurance. This is done by using cameras, sensors, and lighting.

Warehousing

Process of storing large amounts of goods in an organized way.

*Lists of terms from In-Store Marketing Institute

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