Consumer Goods/TPx - Glossary of Common Terminology and Acronyms

Abs Chg

The process of assessing the change to a number of variables across financial years.

Abs Dis

The monetary difference between a product’s regular sale price and the lower promotional price.

Abs Mp

The absolute lowest price a product can be sold for.

AC Nielsen Company/Nielsen IQ

ACN, or Nielsen, is a syndicated data supplier, now called NielsenIQ.

A customer-level fund; An Account Fund is a child of the company-level fund defines the amounts at the account level.

The recognition of revenues or expenses in a company's financial statements before the cash is actually received or paid. This is based on the accounting principle of matching revenues and expenses in the period in which they are incurred, regardless of when the cash transaction occurs.

Advertising Allowance

The amount of money a manufacturer pays a retailer to advertise and promote a product or brand.

Advertising Feature

A promotional tactic in which a manufacturer’s product is featured in an advertisement, either print or digital.

A metric used in the retail industry to measure the total sales dollars for a given geography (Total, Market, Retailer) - This measurement includes all products sold by the store.

All Commodity Volume Distribution Percentage

A measure used in the consumer packaged goods industry to assess the market presence or distribution of a particular brand or product across different retail outlets or channels. 

It indicates the percentage of total sales volume within a given market or category that is covered by a specific brand or product.

All Commodity Volume Merchandising Percentage

A method of measuring the breadth of merchandising support. Typically used to evaluate merchandising conditions like feature or display.

Refers to the collective or aggregate data, metrics, or information encompassing all outlets or retail locations.

The distribution of resources such as funds, manpower, or time towards various processes or campaigns.

A strategic and financial plan that outlines the goals, targets, and operational activities of a business for a specific fiscal year. 

Any Merchandising

Refers to any in-store merchandising activity, including features, displays, temporary price reductions, or any combination thereof.

Any Promotion

Same as any merchandising.

Application Programming Interface

A set of routines, protocols, and tools for building software and applications.

Approved Product List 

Items that a retailer has approved for sales in their stores.

AI involves the creation of computer systems capable of emulating human intelligence to perform a wide range of tasks. These tasks encompass various areas, including machine learning models, speech recognition, visual perception, decision making, language translators, and more.

Refers to the range or variety of products or items available for sale within a particular category or store. It encompasses the different options, variations, and choices offered to customers.

Refers to a specific characteristic or feature of a product.

Refers to systematic and independent examinations or inspections conducted to assess and verify compliance, accuracy, or adherence to established standards, procedures, or regulations.

Refers to the average number of unique products or items that a retailer or store carries in its inventory or assortment.

Average Items Selling refers to the average number of units or quantity of products sold per specified time period.

Average Price

Refers to the mean or typical price of a product or service. It is calculated by dividing the total revenue generated from sales by the number of units or items sold.

Average Retail Price per Unit

Refers to the average price at which a single unit or item of a product is sold to consumers in a retail setting.

The average price at which a company's products or services are sold over a specific period. ASP is calculated by dividing the total revenue generated from sales by the total number of units sold.

Refers to a specific brand, name, or label under which a group of stores or outlets operate.

A visual representation of data that consists of a series of parallel lines or patterns printed on products, packaging, or labels. It is used to uniquely identify and track products in a retail or supply chain environment.

Refers to the shelf price of a product before any discounts, promotions, or adjustments are applied. It represents the starting point or baseline value for pricing calculations.

The expected sales of an item in the absence of any type of in-store promotional activity. Base sales are typically projected by machine learning algorithms based on historical data.

Volume sold in the absence of a trade promotion.

The amount spent by customers, on average, on all items in one shopping trip.

A pre-negotiated amount for promotional activity that a retailer will bill a manufacturer back for, either directly or more commonly through deduction from an invoice for goods.

A list of all the components, parts, materials, and sub-assemblies required to manufacture or assemble a finished product.

In contrast to top-down planning, bottom-up account plans start at the customer or store level. These plans are more granular and are often aggregated to form a complete picture of company strategy.

A projection generated from aggregating individual customer forecasts, hence "bottom up", as opposed to a forecast generated for the entire business and spread down (top-down). Often both methodologies are employed and compared before a final forecast is settled on.

A sales forecasting and planning approach that starts with individual sales representatives or smaller business units. It involves aggregating their sales projections to create an overall sales plan for the organization.

Also known as branding agencies or brand consultancies, are companies or firms specializing in providing strategic and creative services to help businesses develop and enhance their brand identities.

A shelf management set used by retailers where all of a brand’s products are displayed in a block inside the shelf set, creating a strong visual impact.

Refers to the process of communicating and promoting a brand's value proposition, features, and benefits to potential customers or clients.

Overall consumer perception of a given brand.

Strategic process of creating and managing a unique and distinct identity for a product, service, or company.

Level of sales or revenue at which total costs (fixed and variable costs) are equal to total revenue, resulting in neither profit nor loss.

A business model where a company integrates offline (brick) and online (click) presence.

A person/company that buys and sells goods or assets for others. Some CPG manufacturers employ brokers to sell their products into channels and retailers that they typically could not get into on their own.

The financial outline that predicts both the costs and expected revenues associated with various marketing, manufacturing, and sales efforts. Budgets are often segmented by quarter, product line, or promotional campaign.

Refers to the financial resources allocated or set aside for specific purposes within an organization.

A common data visualization tool that displays base sales, incremental sales, and average price, effectively illustrating the "bump" in sales that occurs when prices decrease due to promotional activities.

Set of tools and methodologies that can analyze, manage, and deliver information which is relevant to the business.

It includes reporting/query tools and dashboard same as found in analytics. BI technologies provide previous, current, and upcoming views of the business operations.

Business sells to other businesses (CPG manufacturers are B2B since they sell product to retail outlets who sell to the end consumer).

Businesses that sell to consumers (Grocery stores are B2C, although B2C is becoming more popular for CPG manufacturers as well).

Buy One, Get One Half Off

A promotional offer where customers purchase one product at full price and receive another product of the same or lesser value at a 50% discount.

Buy Online, Pick Up In-Store

Also “Click and Collect” or “Order and Pick-Up” – an e-commerce term where the customer will collect the item in-store, as opposed to getting it delivered.

In a business context, a buyer is an individual or entity responsible for making purchasing decisions on behalf of an organization.

Also known as a Purchasing Committee or Procurement Committee, refers to a group of individuals within an organization who collectively evaluate and make purchasing decisions.

Refers to the number of units (or dollars) of a product that a consumer typically makes over a given period.

Occurs when the sales of a new product or promotion reduce the sales of another product within the same brand or portfolio. This typically happens when products target similar customer segments or fulfill similar needs, leading to a shift in demand rather than net growth.

A metric that measures the percentage of online shopping carts that are abandoned by customers without completing the purchase.

The distinct machine-readable numerical code displayed on a product’s casing and pallets.

A display technique used by retailers. Cases are stacked on top of each other, with consumers able to take products from the top cases.

A promotional deal for retailers, enabling them to buy multiple cases of a single product.

A type of wholesale trade model in which customers, typically businesses or retailers, purchase goods directly from a wholesale supplier or warehouse on a cash basis.

Refers to the movement of money into and out of a Cash business over a specific period.

Process of evaluating and analyzing the performance, trends, and consumer dynamics of a specific product category within a retail environment.

A discipline of managing a category of products in a retail outlet through data, analysis and consumer insights.

When a retailer evaluates their product categories (either en-masse or individually) with a view to assessing and improving performance.

Refers to a systematic and comprehensive collection of data or information about a specific population, group, or geographic area.

The center or middle section of a large retailer. Typically the packaged products that are ringed by perimeter categories such as produce, meat and dairy.

Terminology used to describe different types of customers. Examples include Retail, Food Service, Club, etc.

Retail chains are grouped by the type of stores they provide, typical channels are grocery, foodservice, mass, drug, dollar, natural, and club.

A promotional flyer or booklet distributed by retailers to advertise deals, discounts, and featured products for a specific period.

Order from a website and collect from the retailer’s physical location.

Retail chains that charge annual membership fees (such as Costco or BJ’s Wholesale), usually selling bulk items at cheaper or wholesale prices.

Also known as Co-op advertising when a retailer and product manufacturer work together to create marketing and advertising campaigns.

An advertising allowance offered by a vendor, payable upon proof of an ad having been run.

Short for co-packing fee, is a cost or charge incurred when a company outsources the production or packaging of its products to a co-packer.

Short for co-manufacturer or contract packager, is a third-party company that specializes in manufacturing, packaging, or both, on behalf of other companies.

Involves the coordination of various departments— sales, marketing, finance, supply chain, and more— working together in alignment with shared goals and data.

A legal document provided by a seller to a buyer that itemizes the goods or services sold.

Refers to the process of introducing a new product or service into the market and making it available for sale to customers.

Process of assessing and evaluating the strengths and weaknesses of competitors within a specific market or industry.

Competitive Retailer Marketing Area

Refers to a geographic region or market area, defined by a specific retailer, but including the retailer's competitors.

Refers to the changes in market dynamics caused by actions taken by competitors, like new product launches or pricing changes, and how these changes affect a company's strategic planning and operational performance.

When a product is sold through multiple distributors or a matrix of distributors and wholesalers.

An individual or organization that purchases goods or services to satisfy personal needs, desires, or business requirements.

Refers to the study of how individuals, groups, or organizations make decisions and engage in activities related to acquiring, using, and disposing of products, services, or ideas.

Refers to the application of data analysis techniques and tools to extract insights and derive actionable information from data related to consumer goods.

Refers to a cloud-based software platform or solution specifically designed for the consumer goods industry.

Consumer Packaged Goods

Refers to products that are consumed daily by individuals or households. CPG typically includes items such as food and beverages, personal care products, household cleaning products, over-the counter medications, and other products purchased and used on a regular basis.

Refers to marketing activities and strategies aimed at enticing and motivating consumers to purchase a particular product or service.

Forecast of sales that will be sold through the register (as opposed to a shipment forecast).

Refers to the agreed-upon price for a product or service as outlined in a contractual agreement between a buyer and a seller.

The difference between total sales revenue and total variable costs. The term is generally expressed as a percentage.

Refers to the ease, comfort, and practicality offered by a product, service, or retail experience in meeting customer needs or solving problems.

Convenience Channel

Also known as a convenience store channel or cstore channel, refers to a specific type of retail channel that specializes in providing a wide range of convenience products and services.

A metric that measures the percentage of visitors or potential customers who complete a desired action or goal, such as making a purchase, signing up for a newsletter, or filling out a form.

Cost of Goods Sold

Direct cost associated with producing or acquiring the goods that are sold by a company.

Cost per Increased Dollar

The cost of gaining and incremental dollar in sales.

Cost Per Incremental Unit

The cost of gaining an incremental unit in sales.

Cost broken out by each Fund/Channel/Account.

A voucher entitling the holder to discount a particular product.

Placing complementary products on the same display for a better customer experience and increased sales.

Cumulative Weighted Week

The reach and frequency of merchandising support is assessed over a given period of time.

Customer Experience

The impression the company makes on its customers. This includes direct interactions with the organization's stores and employees as well as the overall perception of the brand.

Customer Relationship Management

Refers to the strategies, practices, and technologies used by businesses to manage and analyze interactions with their customers. CRM often also refers to the software, such as Salesforce, used to manage the above.

Process of dividing a company's customer base into distinct groups or segments based on shared characteristics, behaviors, or demographics.

Placing a new product into a shelf set of existing products.

The process of aligning data from various sources (both internal and external), and transforming it into one cohesive data set.

Database Administrator

Big data term related to a role which includes capacity planning, configuration, database design, performance monitoring, migration, troubleshooting, security, backups and data recovery. Responsible for maintaining and supporting the rectitude of content and structure of a database.

How retailers classify products that have never sold or have been in stock for a really long time.

Refers to a promotional package or bundle offered to customers as part of a marketing or sales promotion. It typically includes multiple products or services bundled together at a discounted price or with added value.

Also known as trade deductions or trade spend deductions, are reductions in the amount owed by a customer to a supplier or manufacturer due to promotional expenses, order shorts, spoilages, etc.

Typically a billback, lump sum or scanback payment that occurs after the promotion has been executed and goods are billed for. These are typically, but not always, paid in the form of a deduction from an invoice owed.

Refers to the total cost of a product or service, including the price of the item and any associated delivery or shipping charges.

An estimate or projection of the expected quantity or level of demand for a product or service over a specific period.

A comprehensive document or strategy that outlines how a company plans to meet anticipated customer demand for its products or services.

Depletion data captures the drawdown of product from a location, typically a distributor warehouse. Also called warehouse withdrawal or spin data.

An individual or entity responsible for purchasing products directly from manufacturers or suppliers on behalf of a company.

A distributor or retailer that purchases product directly from a manufacturer.

Direct Store Delivery

A distribution model where manufacturers or suppliers bypass traditional distribution centers and deliver products directly to retail stores or outlets.

Direct to Consumer

Refers to a business model in which companies sell their products or services directly to end consumers without involving intermediaries such as retailers or distributors.

Refers to price reductions or reductions in the cost of goods or services.

Any arrangement or presentation of products that are designed to draw attention, engage customers, and drive sales. In the context of the grocery industry it is typically a secondary location away from the main shelf set.

Refers to the implementation and arrangement of product displays in retail environments.

A facility used by companies to store, manage, and distribute their products to retailers, wholesalers, or directly to end customers.

Refers to the pathway or route through which products or services move from the manufacturer to the end consumer.

A company or entity that purchases products from manufacturers or suppliers and resells them to retailers, other distributors, or end consumers.

Also known as private label or store brand, refers to a brand that is owned or developed by a distributor or retailer rather than a manufacturer.

Percentage reduction or price reduction from shelf price offered on a product.

Measures the profitability of each additional unit (or case) sold over base, as a result of a specific promotional activity. It takes into consideration the costs and revenue associated with selling that additional unit.

Dollar sales can be express in retail or shipment dollars, and is units*price where price is either retail or list price.

A retailer that typically (although not exclusively) sells their products for $1.

Refers to a warehousing and logistics practice in which pallets or containers are stacked vertically on top of each other to maximize storage space or transportation efficiency.

Type of consumer good whose use goes over an extended period of time and on many occasions.

A promotional discount or incentive offered to retailers or customers who place orders or make purchases ahead of a specific deadline or early in a promotional period.

Electronic Commerce

E-commerce, short for electronic commerce, refers to the buying and selling of goods and services over the internet or through electronic platforms.

Electronic Data Interchange

Computer-to-computer exchange of business documents in a standardized electronic format.

Electronic Point of Sale

Refers to the electronic way for shoppers to pay.

Electronic Retailing

Also known as e-tailing or online retailing, refers to the process of selling products or services to consumers through electronic platforms such as websites, mobile apps, or other digital channels.

A type of display where the shelving at the end of an aisle, facing the perimeter, is used to showcase products, typically products that are hgh impulse items.

Enterprise Resource Planning

A process of managing crucial day-to-day activities and other parts of business. It s often assisted by software and technology.

Physical volume of product sold at retail expressed in a common unit relevant to the category such as ounces or pounds. Useful when comparing products of different sizes.

A special promotion, off-price sale, show, store wide sale, or merchandise import fair.

Everyday Low Price

Refers to the long-term discounted retail price.

Everyday Shelf Price

The retail price of a product in the absence of in-store merchandising discounts.

eXtended All Outlet Combined

Standing for “eXtended All Outlet Combined” – a Nielsen term. The measurement includes all retail channels with the exception of convenience stores (see also: MULO).

Extract, Transform and Load

These three functions are combined into one tool to move them from one database to another.

Refers to the number of identical products that the consumer has in front of him on a shelf, on a single or several levels.

Fast Moving Consumer Goods

Products that are sold quickly and at a relatively low cost. FMCG products are typically consumed or used on a daily or frequent basis, and include items such as food and beverages, personal care products, cleaning supplies, and household goods.

An advertisement of a product in a printed or electronic flier.

A retail merchandising event that combines feature and display on the same products, in the same stores at the same time.

First Contact Resolution

A customer service metric that measures the ability of a customer service team or contact center to address and resolve customer issues or inquiries during the initial contact with the customer.

First-In, First-Out

An inventory management method used to track and manage the flow of goods based on their acquisition or production dates.

A fund with a fixed amount (lump sum). A fixed fund is like a bank account that starts with a lump sum deposit at the beginning of the year based on the years budgeted spend amounts.

Refers to a set or predetermined price that remains constant and does not change regardless of market conditions, demand, or other external factors.

Refers to a predetermined or fixed amount of money allocated by a manufacturer or supplier for trade promotions, incentives, or marketing activities with retailers or trade partners.

Food/Drug/Mass excluding Walmart

The combination of Food, Drug and Mass Merchandiser Channels when evaluated in aggregate, excluding Walmart (which is often not available for data sharing purposes).

Food/Drug/Mass-Merchandise

The combination of Food, Drug and Mass Merchandiser Channels when evaluated in aggregate.

How closely a sales forecast matches actual sales. Accurate sales forecasts are important for making decisions about spending, inventory and logistics.

Refers to the process of estimating or predicting future events, trends, or outcomes based on historical data, statistical models, and relevant information.

When a retailer purchases more than they expect the consumer sell through to be during a promotion.

Products given for free (or “sold at no charge”) to retailers – usually to encourage distribution and future sales with a specific store.

Free on Board

FOB destination is a pricing term indicating the buyer is responsible for all costs associated with the delivery of the goods to the buyer's designated destination. The seller is responsible for the cost of the goods, but not for the cost of delivering the goods to the buyer's destination.

Free Standing Display Units

Standalone displays that present specific available products. They re used in the retail industry to influence buying patterns.

Free Standing Insert

A manufacturer coupon, included in a printed coupon insert, for use at retail, typically found in Sunday newspapers.

A standardized classification system used in the transportation industry to categorize and determine the shipping rates for different types of freight.

A company or intermediary that specializes in arranging and coordinating the transportation of goods on behalf of shippers or importers.

Frequent Shopper Program

Also known as a loyalty program or rewards program, is a marketing initiative implemented by retailers or businesses to encourage customer loyalty and repeat purchases.

Refers to the process of completing an order or request for goods or services.

Full Truck Load

A mode of transportation where the entire capacity of a truck is utilized by a single shipment or cargo.

A Parent/Company level fund that defines the funding mechanisms i.e. Variable or Fixed Fund, Tactics, Spend Types and Brands that can spend from the fund.

The level of product hierarchy where funding will be planned at.

This term refers to identifying shortfalls between targeted and actual performance metrics and implementing strategies to close those gaps, whether they relate to sales, market share, or other KPIs.

The complete financial story of a company it s the master record that contains all of the company s accounts and every financial transaction that occurs. For consumer goods companies, this includes everything from the cost of raw materials to the money received from selling products to retailers.

A detailed record that tracks all financial transactions for a specific category of a company's business. Some examples include revenue accounts, Costs of Goods Sold, and Trade Spending. Trade spend accounts are typically 7000 numbers and might include accounts for slotting feeds, display allowances, etc.

Non-food packaged goods most often products with high sales volume and comparatively low prices.

Artificial intelligence capable of generating specific content using large language models (LLMs).

Also known as a store brand or private label, refers to a product that is marketed and sold under the retailer's own brand name rather than a well-known or national brand.

A promotional activity or event where items or prizes are given away for free to participants.

Global Food Safety Initiative

A worldwide collaborative initiative that aims to enhance food safety and promote harmonization of food safety standards across the global food industry.

Scenarios built at higher levels on the account hierarchy, i.e. by total business or channel. Allows wargaming of different strategies with a quantification of the impact on sales, spend and profit.

A financial metric that measures the profitability of a company's products or services.

It is calculated by subtracting the cost of goods sold (COGS) from the revenue generated by sales and expressing the result as a percentage of revenue.

The money left over after you subtract the direct costs of making your products from the revenue you earn selling them. For a consumer goods company, it's what remains after you deduct costs like raw materials, packaging, and factory labor from your sales revenue. Think of it as the 'first level' of profit before you account for other business expenses like trade costs.

Also known as gross margin percentage, is a financial metric that indicates the percentage of revenue that remains after deducting the cost of goods sold (COGS).

Reveals the efficiency with which a company translates its sales into gross profit. It's calculated as the difference between sales revenue and the cost of goods sold, expressed as a percentage.

Refers to the total revenue generated by a company from the sale of goods or services before deducting any costs, expenses, or taxes.

A financial metric that represents the total value of goods or services sold or transacted on a platform or marketplace.

Refers to a marketing strategy where multiple brands or companies collaborate to share advertising costs, resources, or promotional activities.

Harmonized System Code

An internationally standardized system of product classification used for customs and trade purposes.

A marketing technique where a high retail price is set for a product, and then typically promoted with a deep discount.

A product bought on a spur-of-the-moment decision, rather than a planned purchase. This is often triggered by in-store displays. Items like candy and gum are placed near the check-out lane to capitalize on their high impulse characteristic.

A discount offer that appears directly within a retailer's advertising circular or promotional materials (like weekly store flyers, newspaper inserts, or digital ads). Unlike manufacturer coupons that can be used at any store, in-ad coupons are specific to the retailer who published them and can only be redeemed at their stores during the promotional period.

Coupons collected within the store, for instance via POS systems, via shelf dispensers, kiosks or directly on packaging.

Revenue generated from incremental sales due to a specific activity (like a marketing campaign or promotion), minus the costs associated with that activity.

The bump in sales over base (see definition for base sales above) driven by merchandising activity such as temporary price reductions and displays. Mathematically: Incremental Sales = Total Sales - Base Sales, and can be expressed in dollars, units or equivalized units.

The additional revenue generate by product sales due to promotional activity either in-store or online.

Refers to the additional or extra sales generated as a result of a specific marketing activity, promotion, or initiative. Incremental sales in POS syndicated data specifically refers to the extra sales generated by in-store trade promotion events.

Often expressed as an amount or percentage, measures the increase in sales directly attributable to a specific marketing campaign, promotion, or intervention.

The additional quantity or units of a product sold due to promotional activity either in-store or online.

A retailer that sells products purchased from a distributor or wholesaler, rather than directly from the manufacturers.

Refers to a sales approach where products or services are sold through intermediaries or thirdparty channels rather than directly to end customers.

Information Resources, Inc

IRI is a syndicated data supplier.

Coupons usually found on packaging, designed for immediate use by consumers. IRC's are typically used to spur immediate trial or move excess inventory through the register.

Or “Industrial Buyers” – organizations such as schools, cafes and restaurants. Industrial buyers may purchase directly from manufacturers or through specialized distributors. Sysco is an example of a large, food service distributor.

The process of overseeing and controlling the flow, storage, and availability of goods or products within a company or organization.

The number of times during a given period that the average inventory on hand is sold and replaced.

Commercial documents that provide a detailed record of a transaction between a seller and a buyer.

A productivity metric used in various industries, particularly in logistics, warehousing, and retail operations.

A collaborative approach to business planning and strategy development between two or more companies, typically a supplier and a retailer.

Key Account Manager

A field representative, also known as a field sales representative or field service representative, is an individual who represents a company or organization in the field.

Key Performance Indicator

A measurable metric used to track and evaluate the performance of an individual, team, department, or organization in achieving specific objectives or goals.

Pricing method of marketing merchandise for resale to an amount that is double the wholesale price or cost of the product (50% gross margin on the sale of the product).

A process in which individual items or components are gathered, assembled, and packaged together as a single kit or set.

The amount a distributor charges for picking up and delivering products, including all freight charges.

Latest estimate is used for updating forecasts throughout the current year to account for actuals that have occurred. It is a combination of year-to date actuals plus year-to-go forecast.

Outdated applications that a company continues to use, often because they are deeply integrated into its past business processes and operation models.

Refers to a mode of transportation where shipments do not require the use of a full truckload but are combined with other shipments to fill a truck.

The recognition of financial obligations that are expected but have not yet been billed. These could be pending rebates, incentives, or discounts that will have to be paid out but have not yet been accounted for.

The percentage of increased sales, calculated by dividing baseline sales by incremental sales, and multiplying the result by 100.

Refers to the introduction of new products or variations within an existing product line or brand.

A marketing strategy that involves offering samples, trials, or promotions of a product line to encourage consumers to try and experience the products.

The price at which the manufacturer will sell an item to a retailer or distributor. List prices will be marked up by distributors and retailers when setting a retail price.

Products that are priced at or below cost a technique used by retailers to encourage in-store visits and additional purchases with higher profit margins.

A type of promotional funding that is not conditional on the amount of volume sold. A lump sum could be charged for an ad or display fee or to secure placement in a retailer's warehouse (slotting fee).

A component of artificial intelligence, is a computer science field that makes use of statistical strategies to provide the facility to “learn” with data on the computer. Machine learning is used for exploiting the opportunities hidden in big data.

Manufacturer Charge Back

A billing process where retailers claim reimbursement from product manufacturers for promotional discounts or programs they've run on the manufacturer's products. When a retailer offers special pricing or promotions to customers, they 'charge back' the difference to the manufacturer who agreed to fund these promotions.

Refers to the process of monitoring and managing the profit margins of products or services.

The process of collecting and analyzing data and information about a specific market, industry, or target audience.

The share of the overall category that a brand, product line or individual product has, mathematically = Item Sales/Category Sales, expressed as a percent. Can be calculated in dollars, units or equivalized volume.

The increase or decrease in a brand or product's share of sales within a specific market or category over a defined period, often compared to competitors. It provides insight into the relative performance of a brand in its category.

Refers to the combination of marketing tactics and strategies that a company uses to promote its products or services.

A common type of retailer, offering a large assortment of food (and non food) products. Examples of Mass Merchandisers include Walmart and Target.

Also known as a shipping carton or case pack, is a larger container used for shipping and storing multiple individual units or products.

The breadth and depth of the products carried by retailers. Also known as product mix.

A person or role responsible for planning, managing, and promoting the sale of products or goods within a retail or wholesale setting.

Refers to the activities and strategies undertaken to promote and sell products effectively.

Terms agreed between manufacturers and retailers, where manufacturers pay retailers to promote their product. The four most common conditions are: Temporary Price Reduction (TPR), Feature and Display (F&D), Feature without Display, or Display without Feature.

The percentage of volume sold during a promotion that is incremental, mathematically Incremental Sales/Total Promoted Sales and can be expressed in dollars, units or equivalized units.

Minimum Order Quantity

The lowest quantity of a product that a supplier or manufacturer is willing to sell in a single order.

Multi-Outlet

Refers to a data set that combines sales data from multiple retail channels or outlets. It provides a comprehensive view of sales performance across various retail channels, such as grocery stores, drugstores, mass merchandisers, and convenience stores.

Multi-Outlet-C

All MULO retail channels as well as convenience stores.

Multidimensional Database

A kind of database which is optimized for OLAP (Online Analytical Processing) applications and data warehousing. MDB can be easily created by using the input of relational database.

Refers to a specific distribution channel or retail segment that specializes in natural, organic, and health focused products.

Refers to the total amount of an invoice after deducting any discounts, allowances, or rebates.

The selling price of a product after all trade promotions, discounts, and allowances have been subtracted. It provides a clearer picture of the actual revenue realized from a product sale after accounting for promotional costs.

A customer loyalty and satisfaction metric used to assess the likelihood of customers recommending a company, product, or service to others.

Represents the total revenue earned by a company after deducting any discounts, returns, allowances, and sales-related expenses.

Net Revenue Management 

Also known as revenue growth management, it is the discipline of growing revenue profitably through understanding and analytics of shopper behavior related to pricing, price pack architecture, cost management, product mix optimization, trade spend optimization, new product development and lifecycle management.

Indicates the number of consumers who purchased a brand's product for the first time during a given period. This is typically expressed as an increase in household penetration (% of households purchasing).

Settlements that need to be paid or accounted for but do not have a corresponding Event planned.

Refers to a type of data or measure in business intelligence and data analytics that cannot be aggregated or calculated by simple addition.

The price paid for a product (by consumers) when there are no in-store promotions occurring.

Refers to the volume or revenue generated by a product or brand without any specific promotional activities or marketing interventions.

Also known as a nutrition facts sheet or nutrition label, provides detailed information about the nutritional content of a food or beverage product.

Refers to a type of trade promotion or discount that is applied directly to the invoice or sales transaction at the time of purchase.

Sometimes known just as “On-Pack” – coupon offers or marketing messages attached directly to product packaging.

Refers to the ability to deliver goods or services to customers within the agreed-upon or expected timeframe. It is a measure of reliability and fulfillment of delivery commitments.

Online Analytic Processing

It is the process by which analysis of multidimensional data is done by using three operators – drill-down, consolidation, and slice and dice.

A financial metric that indicates the profitability of a company's core operations.

Refers to the activities and processes involved in running and managing a business.

Also known as order acquisition, is the process of collecting and recording customer orders or purchase requests.

Refers to the complete process of receiving, processing, and delivering customer orders.

Also known as demand predictions or order forecasting, are estimates or projections of future customer demand for products or services.

An item that is authorized to sell in a store and has shelf space, but no product is available.

Medication that doesn't need a doctor's prescription to buy.

The simultaneous application of multiple promotional activities on the same product during the same time period.

In the context of inventory management or production planning, refers to the situation where more products or materials are pulled from inventory or produced than what is actually needed.

Refers to the materials and design used to enclose, protect, and present products.

A specific type of display constructed on standard pallets, allowing for ease of shipping and installation in stores.

Refers to the processes and activities involved in receiving and processing payments from customers.

The percent of households that have purchased a product in a specified period of time, typically measured through household panel data.

The percentage difference between one period vs another, often used to measure performance this year vs. last. (period 2 value - period 1 value)/period 1 value.

A method of tracking and managing inventory in real-time. It relies on technology, such as barcode scanning or RFID (radio frequency identification), to continuously monitor inventory levels, stock movements, and product information.

A presentation or slide deck used to provide an overview of a business idea, product, or company to potential investors, partners, or stakeholders.

Also known as slotting fees or listing fees, is a payment made by manufacturers or suppliers to retailers for securing favorable product placement within retail stores or on retailer websites.

A visual representation or diagram that illustrates the placement and arrangement of products within a retail space, such as a store shelf or display area.

The setup where retailers plan and execute the promotion of specific products, in the case of brick and-mortar stores, it's often near the place where transactions are completed.

While POS is literally the point where the consumer purchases the product, in this context it typically refers to the data set of sales through the register, or sell-out data.

The process of reviewing and evaluating the outcomes of a promotional event after it has occurred.

The practice of using data, statistical algorithms, and machine learning techniques to analyze historical and current data in order to make predictions or forecasts about future events or outcomes.

Refers to a reduction in the selling price of a product or service.

Can apply to retail pricing, the percentage the consumer price is reduced by, or at other levels of the distribution network where discounts are used to drive sales or encourage certain activities like distribution.

A measure of the relationship between a change in the quantity demanded of a particular good and the change in its price.

A statistical approach that estimates how sensitive customer demand is to changes in price. This model helps businesses set optimal pricing strategies to maximize revenue or market share.

Price per Equivalized Unit

The amount paid by consumers per equivalized unit (can be measured as pounds, ounces, etc.).

Refers to the price of a product or service per individual unit or item. It represents the cost of purchasing one unit of the product, regardless of its packaging or presentation.

Involves creating different pricing models to see how each would impact various aspects of the business, such as sales, customer retention, or profitability.

Breaks down the factors driving changes in revenue. "Price" refers to changes in revenue due to adjustments in selling price, while "Mix" reflects changes resulting from the sales mix of different products or variants.

The process of determining the appropriate selling price for a product or service. It involves considering various factors such as costs, market demand, competition, perceived value, and business objectives.

A brand owned by a retailer or supplier.

The process of creating, designing, and bringing a new product or service to the market. It involves activities such as research, ideation, concept development, prototyping, testing, and commercialization.

Represents the stages that a product goes through from its introduction to the market until its eventual decline.

A concept that describes the alignment between a product or service and its target market. It refers to the degree to which a product satisfies the needs and demands of a specific market segment.

The total collection of products offered by a company, including all product lines, varieties, and sizes. In consumer goods, it represents the complete range of products a company manufactures and sells.

A grouping of products based on similar pricing characteristics, cost structures, or market positioning. It allows companies to manage pricing, promotions, and profitability across related product lines more systematically.

Personalized suggestions or recommendations made to customers based on their preferences, past purchase behavior, browsing history, or other relevant data.

The rate at which inventory is sold and replaced within a specific period, typically measured annually. It indicates how quickly a company sells and restocks its product inventory.

The financial gain realized when total revenue exceeds total expenses. It represents the money a company earns after subtracting all costs associated with producing and selling its products.

Profit & Loss

A financial statement that summarizes a company's revenues, costs, and expenses over a specific period of time, typically a quarter or a fiscal year.

Profit expressed as a ratio to gross revenue.

Also know as forecast, it is the calculated or modeled estimation of future sales, spend or profit.

The average retail price (ARP) paid by consumers per product unit, where promotional activity took place.

The sales that occur when there is retailer merchandising, typically in the form of some combination of temporary price reduction, display, feature ads or in store coupons.

Marketing strategies designed to increase product sales, attract customers, and generate short-term revenue through temporary pricing, advertising, or incentive offers.

A monetary figure (usually in the form of rebates or discounts) given by manufacturers to retailers, in exchange for promoting their products.

Refers to whether the paid for and agreed-upon activities occurred on the retailer side.

Involves using analytics and insights to improve the effectiveness of a promotional campaign. By analyzing variables like customer response, time, and resources spent, companies can refine future promotions for better ROI.

Outlines the strategy and tactics for promoting a product, including discount rates, timing, and desired sales outcomes.

Promotion planning and execution involve the strategic development, implementation, and management of promotional campaigns and activities.

Putting product in a secondary location away from the regular shelf set to encourage an increase in sales.

Refers to the incremental or additional sales generated as a result of a specific promotion or marketing activity compared to baseline sales without the promotion.

A discount or price reduction provided by a manufacturer or supplier to a retailer or customer as an incentive to purchase a product.

The number of times, on average, that households have purchased a product in a specified period of time, typically measured through household panel data.

The average quantity of product purchased per household in a specified period of time, typically measured through household panel data.

Refers to the activities that generate the highest promotional lift. In the context of syndicated POS data, this is generally Features and Displays.

A derivation of Cume Weighted Weeks (CWW), where the reach and frequency of merchandising support is assessed over a given amount of time. For QWW, only weeks where products have Feature or Display (excluding TPR only) would be included.

The total number and variety of products a retailer or manufacturer offers within a specific product category. It represents the breadth and depth of product selections available to consumers.

A partial refund or return of a portion of the purchase price provided to customers after they have made a qualifying purchase.

To reconcile means to ensure that two sets of records are in agreement. In CPG, this often means verifying that promotional spending matches up with budget allocations, or that inventory levels align with shipment records.

The process of comparing and aligning two sets of records or accounts to ensure accuracy and consistency. In the context of trade promotion management, it refers to the financial settlement of a short payment or deduction.

Percentage of promotional offers that consumers actually redeem when purchasing a product.

Refrigerated Freight

Refers to the transportation of goods that require temperature-controlled environments during transit.

A geographic area defined by where the retailer has stores, but only includes competitors in that area.

When major changes are made to existing planograms or department layouts – usually to incorporate new product lines, fixtures or design updates.

Refers to the process of selling goods or services directly to consumers for personal use or consumption.

A systematic examination of product placement, pricing, inventory, and promotional activities within retail stores to evaluate market performance and compliance with brand standards.

Refers to the different avenues or methods through which products or services are made available to consumers in the retail market.

Promotional activity at a retailer aimed at increasing consumer pull.

A business or individual that sells products or services directly to consumers. Retailers are the final link in the supply chain and play a critical role in making products available to the public.

Retailer Margin is calculated as a percentage of the product s selling price. For example, if a retailer purchases a product from a supplier for $50 and sells it to a customer for $100, the Retailer Margin would be $50 or 100% of the cost.

Also known as “Trading Area (TA) – a geographic area (used for reporting) created in relation to individual retailers and defined by where they have stores.

A financial metric used to measure the profitability of an investment or project, (Net Profit / Cost of Investment) x 100.

Refers to the percentage of products or purchases that are returned by customers to a retailer.

Revenue Growth Management

A strategic approach that aims to optimize a company's revenue growth by maximizing the sales and profitability of its products or services. RGM typically includes pricing optimization, promotion effectiveness, product mix analysis, and trade spend optimization.

Revenue broken out by each Fund/Channel/Account.

This is the periodic evaluation of various metrics and KPIs (Key Performance Indicators) to assess the effectiveness and ROI (Return on Investment) of a campaign, strategy, or overall business operation.

The way a retailer provides the products to the target demographic at the right time. It’s the channel or model of distribution that allows companies to sell their products to shoppers.

Sales and Operations Planning

A cross functional business process that aligns sales forecasts, production plans, inventory levels, and other operational activities to meet customer demand while optimizing resources and minimizing costs.

The process of estimating or predicting future sales levels, typically within a specified time period. It involves analyzing historical sales data, market trends, customer behavior, and other relevant factors to forecast the expected sales volume and revenue.

Sales per Million

A metric used to measure the sales performance of a product or brand normalized for distribution.

Sales per Point of Distribution

The average number of units, dollars, or equivalized units sold per distribution point.

The distribution or provision of free product samples to potential customers or target audiences.

An agreed upon rate to fund a promotion discount that is paid on the number of units that are scanned through the register during the promotional period.

The process of using barcode scanners or other scanning devices to capture product information at the point of sale.

A strategic management technique used to explore and prepare for potential future events or situations that could impact a business.

The fluctuation of natural demand based on the time of year (candy has seasonal peaks around Halloween, Christmas and Easter).

When a product is placed in another location as well as its primary shelf position.

A sales sheet or product sheet, is a marketing tool that provides key information about a product or service to potential buyers or customers.

Sales that go directly from a manufacturer to a retailer or distributor.

Purchase by consumers, typically measured by point of sale (POS) data collected as items scan at the register.

The percentage of inventory sold compared to the amount of inventory received from a manufacturer or distributor during a specific period.

Percentage of retail stores or outlets that carry and sell a particular product.

Consumer goods that have a moderate lifespan, typically lasting between disposable and durable products. They can be used multiple times but eventually wear out or become less functional. Examples include clothing and kitchen linens.

The financial process of reconciling payments, trade promotions, and financial obligations between manufacturers, distributors, and retailers.

A measurement or analysis of a brand's or product's presence and visibility on retail shelves compared to competing brands or products.

The retail price of a product as displayed or listed on a store shelf or in-store display.

Signs attached to the edge of shelves, used to communicate something specific to the shopper.

A predictive model that estimates the quantity of goods to be shipped over a certain period.

A complete display delivered in one carton, including all packaged merchandise. Shippers are designed to be constructed quickly and efficiently in-store, although due to their disruption to traffic flow are sometimes not allowed by retailers.

Promotional activities specifically aimed at customers within store environments.

An inadequate supply of a product to meet customer demand or fulfill orders.

A manufacturer’s budget for securing shelf space for new and promotional products.

A fee paid to a retailer to purchase a slot in their warehouse for a specific item. For non-direct store delivered items, this is typically required to gain distribution.

Small to Medium-Sized Businesses

Companies that fall within a certain range of size and revenue, typically smaller than large enterprises but larger than micro-businesses or sole proprietorships.

Software as a Service

SaaS allows vendors to host an application and then make this application available over the internet. The SaaS services are provided in the cloud by SaaS providers.

A specific distribution or retail channel that focuses on niche or specialized products within a particular industry or market segment.

Spend broken out by each Fund/Channel/Account.

Monetary bonuses (paid by manufacturers to sales representatives) to reward success. as incentive for a specific result.

Standard Operating Procedure

A written document that outlines the steps, procedures, and guidelines for performing a particular task or process.

A research methodology in consumer goods where the same group of consumers is repeatedly surveyed over time to track consistent buying behaviors, preferences, and consumption patterns.

The maximum amount or volume of goods or products that can be held or stored by a business or organization at a given time.

Stock Keeping Unit

SKUs are comprehensive descriptions of purchasable items, encompassing all attributes like size, color, and other relevant data crucial for tracking a store's inventory. These SKUs are identified and labeled using UPC codes, providing a unique and standardized way to track products across the supply chain.

Structured Query Language

SQL is a standard programming language that is used to retrieve and manage data in a relational database. This language is very useful to create and query relational databases.

The percent of promoted volume that would have been sold if there were no promotion, i.e. promoted volume that is also base volume.

Suggested Retail Price

A figure recommended by manufacturers, for how much a product should cost in store.

The interconnected network of organizations, individuals, activities, resources, and processes involved in the production, distribution, and delivery of goods or services to end customers.

Refers to practices that aim to meet present needs without compromising the ability of future generations to meet their own needs.

Sustainably Distributed Consumer Goods

Refers to consumer goods that are produced, distributed, and consumed in a manner that aligns with sustainable principles.

A promotional campaign or contest in which participants have the chance to win prizes through a random drawing or selection process.

IRI/Nielsen POS data. Provides consumer purchases, both non-promoted and promoted, with a merchandising audit of various promotion tactics.

A specific sales or performance goal set by manufacturers, retailers, or sales teams to measure and drive business performance.

A sale price indicated by a shelf tag in store, where the price is reduced for a specific period of time.

A type of trade spend encompassing spending that is not visible to the consumer in the form of promotions and discounts. Some common types of terms include Spoils allowance, EDLC, Fees.

A marketing strategy that involves linking the sales or promotion of one product or service to another related product or service.

Tier Index and Height Index

Used in logistics and supply chain management to indicate the stacking configuration or placement of products on pallets or containers.

A pricing strategy in which the price of a product or service varies based on different tiers or levels, typically determined by the volume purchased.

Two distinct approaches to developing plans or strategies within an organization where you either push a topline number down through the product and geography hierarchy, or build a plan from aggregating from the lower levels. Most companies emply both.

A planning approach that starts at the highest organizational level, where executives set the overarching goals and strategies. Lower-level managers then align their objectives and tactics accordingly.

Total Distribution Points

The total number of distribution locations or points where a product or brand is available for purchase or distribution.

An increase of consumer demand with marketing strategies at the channel, account or store level. Or the department within a consumer goods organization that manages the above.

Trade Promotion (x includes TPM, TPO and effectiveness analytics)

According to the Promotion Optimization Institute (POI), TPx is inclusive of trade promotion management, trade promotion optimization, trade promotion effectiveness and analytics.

Trade Promotion Management

The process of budgeting, allocating, promotional planning and execution, reconciliations, and creating financial accruals.

Trade Promotion Optimization

A process that involves using data and analytics to optimize trade promotions to maximize their impact on sales and profitability.

The ratio of trade spend to gross revenue expressed as a percent.

The funds or investments made by manufacturers or suppliers in promotional activities, incentives, and marketing support provided to retailers or trade partners.

A defined geographic or demographic region in which a retailer or business operates or targets its marketing efforts.

Uniform Communications System

A standardized electronic ordering system used in the retail industry for placing product orders with suppliers or manufacturers.

The physical volume of products sold in retail stores, usually expressed in packages.

Universal Product Code

A special code printed on product packaging that allows for the identification of a particular item. It consists of two components—a unique series of black bars, which serves as a machine-readable barcode, and a 12-digit number placed below it.

A spur of the moment purchase-decision made by consumers in-store, also referred to as impulse purchase.

An allowance based on a per unit or per case basis, it is variable in that the more that is sold the higher the allowance is.

A fund with a variable amount based on percentage of sales. A variable fund is like a bank account that builds over time based on a % of actual sales.

The portion of trade spending or promotional investments where spend is generated per unit sold, the total spend varies based on volume.

The speed at which a product is sold in a given retail location, indicating how quickly a product is moving off the shelves and reflecting the level of consumer demand for that product; it's a key metric for understanding sales performance and optimizing distribution strategies.

Refers to a dedicated retail space or area within a larger store or online marketplace that is specifically designated for a particular vendor or supplier.

Refers to interactions or engagements with customers, clients, or prospects. It could include sales visits, customer service visits, marketing visits, or any other type of planned or scheduled interactions.

The break down of product volume into Base and Incremental, with an understanding of he key drivers of each.

Volume broken out by each Fund/Channel/Account.

A dedicated facility or storage space used for storing and managing inventory or goods.

The process of managing, storing, and handling goods within a warehouse.

A record or documentation of sales activities, transactions, and performance on a weekly basis.

A measurement used in distribution which gives more “credit” for distribution to larger stores than smaller retail outlets.

Business to business entities, they operate in between manufacturers of goods and the end retailer.

A temporary display feature (also known as a “sidekick”) affixed to the side of an end cap. An end cap is one of the most prominent merchandising spaces, located perpendicularly to the end of store aisles.

Year Ago

YAG refers to the same period from the prior year used as a benchmark in data analysis to assess performance trends and seasonal patterns.

Year to Date

Refers to a period of time from the beginning of the current fiscal or calendar year up to the present day.

A data compression or storage technique used to eliminate or reduce the storage of zero values in a dataset or database.

A budgeting approach in which each budget cycle starts from a baseline of zero, requiring all expenses and activities to be justified and approved from scratch.