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Food Marketing Insitute - Glossary of Terms
Category: Agriculture and Industry
Date & country: 13/09/2007, USA
Words: 1740


ABC
Activity based costing.

ABM
Activity based management.

absolute-minimum pricing
The lowest possible price at which goods can be sold.

account
A manufacturers' term for a retailer or wholesaler that buys and resells the manufacturer's products.

account planning
A manufacturer's business review for retail accounts that lays out the timing and scope for product promotions, deals and allowances for a coming year.

account receivable
Bills or invoices for goods or services; money owed by a customer.

accounting and controls
Money management methods and procedures, which include inventories; budgeting; strategic and long-range planning; expense controls; taxes, including depreciation guidelines; direct product profit, among others. See specific commodities, such as produce.

accounts payable
A retailer's or wholesaler's unpaid bills and invoices; the money owed to vendors and suppliers.

accrued inventory
An estimate of current inventory that is determined by subtracting the costs of the current inventory and goods sold from the cost of the original inventory.

ACH
Automated clearinghouse.

activity based costing (ABC)
An accounting method that measures business profits and costs by taking into account both overhead and the cost of wasteful or inefficient practices two items that are not considered in conventional accounting methods.

activity based management (ABM)
A management strategy used in Efficient Consumer Response (ECR), based on principles of activity based costing. See activity based costing; Efficient Consumer Response.

actual ship date (ASD)
The actual date that products leave a manufacturer's plant or distribution center.

ACV
All commodity volume.

ad actuals
A calculation of exact profits or losses resulting from an advertisement.

ad group
A retailers' consortium that advertises together and shares costs.

ad projections
Estimates of sales and profits on all advertised items.

ad slick
Camera-ready print ads, such as illustrations, company logos and copy, provided by retailers and manufacturers for newspaper advertisements. Also known as slicks.

ADI
A Nielsen/Arbitron radio or television term that draws the boundaries of a station's area of dominant influence.

advance order
A retailer's order placed with a supplier for seasonal and new items before they are available.

advanced-shipping notice (ASN)
A communication using electronic data interchange (EDI) that manufacturers use to notify wholesalers or retailers about future shipments.

advertised brand
See national brand.

advertising
A paid, public notice that food retailers place in newspapers, on television and/or radio, on the Internet, in circulars, or on in-store signs and displays to promote products and prices.

advertising allowance
Money that a manufacturer pays a wholesaler or retailer to advertise a product, brand or line. See cooperative advertising; cooperative merchandising allowance.

advisory board
A group of consumers or retailers that provides ideas about items to stock and merchandise. New products are tested by consumers.

AFFI
American Frozen Food Institute.

affiliated wholesale grocer
A wholesaler that provides goods and services to retailers that belong to a cooperative association.

agent
A manufacturer's employee or a network of brokers that directly sells products to retailers and/or wholesalers. See master broker; direct sale.

AHW
Average hourly wage.

AIFD
American Institute of Food Distribution, Inc.

AIR
Average item retail.

air conditioning and heating
Systems used to cool and heat stores, warehouses and other facilities. They are often linked to refrigerators and lighting as part of energy management systems. See equipment and supplies; store construction; maintenance; energy management; and ecology.

air curtain
A buffer zone of air between rooms of different temperatures in a warehouse or between the inside and outside of a store.

aisle captain or aisle clerk
A supervisor or person responsible for full shelves, merchandising and ordering.

aisle closer
A mobile, merchandising unit used to close a checkout stand so that customers move to another checkout stand.

all commodity volume (ACV)
A retailer's total volume of sales, expressed as a percentage (or share) of the ACV; therefore a 30 percent ACV is a 30 percent share of the total market for that commodity.

allocate
A process that determines how much shelf space a product gets, using product movement and profitability as a guide.

allocation
A limit set by a manufacturer on the total amount of a retailer's or wholesaler's product order during a promotional period. See forced distribution.

allowance
A manufacturer's deal for wholesalers or retailers to advertise and/or merchandise specific product(s). Also known as a trade deal, promotion or a discount.

ambient
A recommended air temperature used to transport or to store perishable foods.

American Meat Institute (AMI)
1700 N. Moore St., Suite 1600 Arlington, VA 22209 (703) 841-2400 or P.O. Box 3556 Washington, DC 20007

AMI
American Meat Institute.

ANSI
American National Standards Institute.

apollo
A software program used to analyze shelf space and product movement in order to develop planograms for specific categories. See planogram; space management.

application identifier
A numeric prefix to a UCC/EAN-128 code that defines the encoded data to follow. Generally used as secondary codes to provide information not included in standard U.P.C. numbering, such as product dates, weights and lot/batch numbers. May also identify a UCC serial shipping container.

area of dominant influence (ADI)
An Arbitron or Nielsen measure of a market of television viewers. An ADI includes all jurisdictions within a metro area, which can receive the signal of a particular station. The United States has over 200 ADIs.

arrival notice
A sheet on a freight bill that notifies a recipient that a shipment has arrived at its destination.

as advertised
A sale price for an item featured in a weekly ad that is lower than the regular price.

ASN
Advanced shipping notice.

assembly of components
Food purchased to combine into an in-store product, which is sold fresh or frozen, ready-to-cook, or ready-to-eat. The process requires skilled labor and equipment for food safety, but is not as demanding as a 'scratch/on-site' operation.

asset
Items or resources used to facilitate or add value to a company's operation. See assets; assets, fixed.

assets, current
Cash, securities or resources (CDs, T-Bills, accounts receivable or inventory) that can be readily converted into cash in a year.

assets, fixed
Items or resources, such as equipment, vehicles and buildings, used to finance a company's operations,

assets, frozen
A creditor's lien on terms or resources.

ATM
Automated teller machine.

audience, target
Advertising designed to reach a certain group of people.

authorized items
Products that a company's headquarters authorizes for distribution to retailers or stores.

authorized list
A list of company-approved vendors and products.

authorized stock item
A product that company headquarters must approve for retailers or company stores to stock.

automated clearinghouse (ACH)
A company that electronically transfers monies between financial institutions. See ACH card.

automated clearinghouse card
An electronic transfer of funds between bank accounts.

automated teller machine (ATM)
An electronic banking system that uses cash/credit cards to process customer's transactions, such as a deposit or withdrawal from a bank account.

automatic distribution
A chain stores' and wholesale grocers' method to determine how many products and the amount of a product to deliver to retail stores, based on the retailers' market share and profitability, whether or not the retailer has a specific order. See forced distribution.

automatic ordering
A retail ordering method that automatically replenishes fast-moving items.

automatic vending
The sale of merchandise through a coin-operated machine.

average hourly wage (AHW)
An averaging of total wages that is derived by dividing the total wages paid by the total hours worked.

average inventory on hand
A calculation of the worth, expressed in dollars, of the inventory in a store that is determined by dividing the costs of goods sold by the number of retail/wholesale turns.

average item retail (AIR)
The computed, average retail price of all products sold in a store.

average order
The amount of money a customer spends on each shopping trip.

averaging cost
A calculation that determines a product's current cost by adding a product's current cost to its replacement cost and dividing that sum by two.

AVO
Avoid verbal orders.

avoid verbal orders (AVO)
A management system that requires written notice of changes in policies and procedures.

AWMA
American Wholesale Marketers Association.

back order
Out-of-stock items that cannot be shipped with a customer's original order and are sent to the customer as soon as available.

back-up merchandise
Products kept in a backroom for convenient restocking of the sales floor.

backhaul
A transportation practice used to defray costs by picking up products from a manufacturer after delivering products to a store.

backroom
A storage area for excess products, kept on hand to restock the sales floor as needed.

backstock
Extra products stored in a backroom to restock shelves between deliveries.

backup
A copy of current computer files saved to a computer disk or magnetic tape in case of a computer system failure.

backup tape
A removable tape used to back up computer data.

bag stuffer
An ad circular placed in a customer's grocery bag during bagging.

bagger
A retail clerk or associate who bags customers' purchases at the checkstand.

bagging
A process of properly, carefully packing customer 's purchases in plastic or paper bags to suit customers.

bagging shelf
A platform on which bags are placed when bagging customers' orders.

bake-off
An in-store baking process using frozen doughs and products to prepare fresh products, i.e., fresh rolls, bread, doughnuts or other pastries.

bake-off bakery
Prepared dough baked in a store to provide fresh products, such as rolls, breads or doughnuts.

bakery control sheet
A daily record used to maintain and ensure proper inventory and production levels in the Bakery Department.

balance sheet
A financial statement of a business, which lists assets, liabilities and net worth at a specified date.

balanced features
A marketing and/or merchandising program that features and/or displays short-profit and long-profit products together as a combination sale. See related items.

bale
A large bundle of cardboard that is recycled.

baler
A device used to compact and bind corrugated cardboard into bales for recycling.

ballasts
A transformer-like device in a fluorescent light fixture.

bandwidth
The data transfer rate of an electronic communications system.

banner
An in-store advertising sign or display used to identify in-store locations, sale items and products.

bar code
A unique identification code on products, pallets and coupons. The code is read by an electronic scanner for receiving, ordering and inventory control purposes. See UCC/EAN-128.

base price
A price calculated by taking a product's suggested retail price and subtracting a percentage.

base wrap
A wrap at the base of a merchandising display to provide continuity or a decorative touch to displays.

basic items
Necessary, common, everyday household items, which customers expect to find in a grocery store.

basic stock list
A wholesalers' listing of products and brands. See rotation list.

bass scanning (price verification)
The process of verifying retail prices and item descriptions in the Point of Sale System (register system), using the BASS FM unit.