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


proof box
A piece of equipment, in which heat and humidity are controlled in order for dough to rise in preparation for baking.

proof of performance
A retailer's certification to a manufacturer that promotional performance requirements were met and allowances should be paid.

proof of purchase
Evidence used by a customer to verify the purchase of a product and mailed to a manufacturer to receive a premium, refund or rebate.

proofing-rise
A fermentation stage in the baking process in which dough rests after kneading and before baking.

proportionate shelving
A space management procedure that utilizes share of sales to determine the number of facings for a product on a shelf.

pull date
The date by which a product must be either sold or pulled from a shelf.

pull down
Organizing merchandise so lower product layers are full on the shelf.

purchase allowance
A manufacturer's deal to retailers and wholesalers to lower the case price if an order is received during a promotional time period.

purchase order (PO)
A form used to order products.

purchasing power
A measure of a family's or individual's disposable income.

push items
Products that receive maximum marketing and merchandising attention to increase their sales volume.

push money (PM)
A manufacturer's incentive to wholesalers to actively market their products. Usually payments are based on the number of cases sold. Also called promotion money or a spiff.

push-pull
A marketing concept in which product is 'pushed' by a manufacturer with a special promotion (advertising, merchandising) and 'pulled' out of the store through customers' demand created by the promotion.

put-away
Reshelving items not purchased by customers in a store.

pyramid
A hand-stacked, triangular display.

QR
Quick response.

qualifying ad
A retailer's newspaper or radio ad placed to meet a manufacturer's performance requirement.

quality discount
A promotional discount offered to wholesalers and retailers in which progressively lower prices are available for progressively larger orders.

quantity discount
A manufacturer's or wholesaler's discount based on the quantity of cases purchased in a single order or over a specified time period. See bracket pricing.

quick response (QR)
A partnership strategy in which manufacturers and retailers work together to respond rapidly to fill a product order on demand and within a short period of time.

quota
A benchmark used to establish the quantity of product expected to be sold during a promotion.

rack
A floor or counter display unit with shelves and hooks for merchandise.

rack jobber
A wholesaler or vendor that orders and delivers product and services a non-food department in a food store on a contract basis, e.g., health and beauty care (HBC).

railcar
A railroad car.

raincheck
A chit that stores give customers for sales items that are sold out. It allows the customer to return at a later date and purchase the item at the sale price.

random weight
Perishable, bulk products priced and sold by the pound. Also called variable weight.

RBA
Retailer's Bakery-Deli Association (formerly, Retail Bakers of America).

RDA
Retail display allowance.

RDI
Reference daily intake.

re-wraps
Products that are removed, reconditioned (if salable) and displayed with limited sell- by dates.

reach-in case
A refrigerated display case with a self-service door used for perishable products.

ready-to-eat (RTE)
A product designed and processed to be consumed at the time of opening the package.

rebate
An advertising allowance or refund that reduces a retail price for a product if a customer mails a proof-of-purchase. See floor stock.

rebuyer
A person in a distributor's organization responsible for routine reorders of product.

receivable
See account receivable.

receiver
An authorized associate of a warehouse or retail store who receives and checks deliveries for condition and an accurate amount. The first handler of the delivery receipt or invoice.

receiving
A door or dock of a warehouse or store designated for receiving merchandise from a supplier. The procedure for physically and legally accepting a shipment of product.

receiving clerk
See receiver.

receiving door
See receiving.

receiving log
The record or listing of products received with appropriate entries.

reclaimed goods
Unsalable product at the time of delivery that is returned to a wholesaler/vendor for reclamation.

reclamation center
A distribution center department that sorts and processes damaged or outdated products, sent by stores, for reimbursements.

recondition
To repair or restore a product's appearance, e.g., trimming, re-crisping, taping on labels or other method.

reconstitution program
A bakery shrink program that makes efficient use of unsold products.

redemption
To cash coupons or return bottles to obtain money or discounts.

redemption center
A manufacturer's clearinghouse for coupon reimbursements.

reduced product
An item reduced in price for quick sale that must be sold by the indicated date or properly discarded.

reefer
A refrigerated trailer used to ship perishable products.

reference daily intake (RDI)
The standardized daily vitamin and mineral intake needed by the average adult diet.

refrigerated case liner
A disposable sheet placed under Vexar, which helps keep a case clean and aids in housekeeping.

refund
A consumer promotion in which the purchase of a product entitles a consumer to a cash refund, a discount or a coupon good for a discount on a next purchase.

refund offer
A manufacturer's promotion that reimburses a customer for all or part of a product's retail price with a proof-of-purchase.

regional chain
A group of retail stores owned and operated by the same company, and located in the same area of the country.

register
A cash register that adds up the sales of goods, holds money, and provides a display of the sales for the customer.

register balance
To verify a cashier's till amount against the register reading.

regular stock
Normal inventory carried to maintain store conditions and sales volume. See authorized stock item; overstock.

related item tie-in
Merchandising compatible products together that are often consumed or used together to encourage the sale of both items, e.g., pie shells and canned fillings, tortilla chips and salsa. See cross-merchandising.

related items
Products consumed or used together, e.g., wine and cheese. See related item tie-in.

remodel
To modify or enlarge a retail store or department, i.e., expansion, new equipment, new sign package.

reorder point
The inventory level established to trigger a buyer's replenishment order.

repack
To use loose items to make up a case of products.

repeat
A customer's repeat purchase of a product.

reps
Manufacturer's representatives, food brokers or vendors selling products on commission.

resale price maintenance
Using a manufacturer's suggested price as the retail price.

reserve stock
Product that is not on display and is instead stored in the cooler, freezer or back room.

reset
To totally remerchandise a category or department according to a planogram.

restock
To fill or replenish a product to the normal stock level.

restricted items
Products restricted from sale in a state or location and sold legally in another state.

retail audit system
A retail computer system that tracks and analyzes store conditions, e.g., pricing, stock levels, out-of-stocks.

retail cooperative
A group of retailers that purchase, warehouse and advertise together to achieve economies of scale.

retail display allowance (RDA)
Monies paid by a manufacturer to have their products on display, usually in a certain location.

retail representative
A manufacturer's marketing employee that provides services to retailers, including promotional deals, ordering, merchandising techniques, etc.

retail unit
The typical product size offered for sale.

retail value
A product's regular retail price.

retailer
A store owner or operator who sells products directly to customers, sets or implements retail policies and procedures and is responsible for store conditions and profitability.

retailer-controlled brands
Brands and/or private label products exclusively sold by a retailer in a market area.

retailer-owned wholesale grocer
See co-op wholesaler.

Retailer's Bakery Association (RBA)
(formerly, Retail Bakers of America) 14239 Park Center Dr. Laurel, MD 20707 (301) 725-2149

retailers' service program
A wholesaler's marketing program designed to assist retailers with economies of scale resembling a chain operation, e.g., advertising, deal promotions, merchandising.

retarder
The equipment into which dough is placed and allowed to thaw or slack out. Conditions must be controlled to 36 degrees to 38 degrees and 80 percent relative humidity.

return on assets (ROA)
A ratio in dollars of a company's net profit in relation to its net worth, calculated by dividing the company's net profit after taxes by its net worth.

return on equity
Earnings divided by net assets.

return on investment (ROI)
The total gross profit that one dollar, initially invested in inventory as it is depleted, will return during a period of time. Computed by dividing the total Gross Profit generated by the item by the amount of the initial investment in inventory.

returns
Unsold, damaged, or defective merchandise sent to a supplier or distributor for credit or refund.

returns (to warehouse)
An authorization by the warehouse to return merchandise on a certain date indicated.

rework
Perishables

RF
Radio frequency.

ribbon
A shelf merchandising technique of arranging size, color, flavor and/or brand vertically on a shelf. See billboard.

ring
Scanning a product or tabulating a retail price on a register system.

ring up
To scan and complete a customer's transaction at the front end.

riser
A shelf that extends above the normal top shelf to give a higher profile.

ROA
Return on assets.

Robinson-Patman Act (1936)
Federal legislation that prohibits discrimination through price discounts, special terms or services, or other means, e.g., false brokerage payments; promotion allowances for certain customers.

roccal
A chlorine-based agent to sanitize sink and food preparation areas.

ROI
Return on investment.

ROII
Return on inventory investment.

roll-out
A marketing campaign to introduce a new product.

roller
A conveyer that moves merchandise cases.

rolling stone
A food store on wheels from which a retailer sells merchandise house-to-house. Usually found in rural areas.

rotation
A shelf-stocking procedure that ensures first-in, first-out by pulling older stock forward and placing newer stock at the back during restocking. See stock rotation.