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Food Marketing Insitute - Glossary of Terms Category: Agriculture and Industry Date & country: 13/09/2007, USA Words: 1737

pharmacy
A place where prescription medicines are compounded and dispensed.

pharmacy only
A store that generates at least 95 percent of sales from prescription drugs.

physical distribution
The process of planning, storing, order picking, and shipping of products through the supply chain.

physical inventory
A written accounting of salable stock on hand as of a specified date, valued at actual or replacement cost.

pick ticket
A small label that warehouse selectors use to select items to be shipped.

pick to belt
Warehouse selectors select items or cases, apply price labels, place them on an automated conveyor to the dock to ship to a retailer.

pick to light
A lighting system that guides warehouse selectors to the correct products.

pick to pack
A selector at a warehouse finds, prices and packs small items in totes and transports them to the dock for shipping.

pickup (cash)
The removal of surplus cash from registers to prevent losses.

pickup allowance, CPU allowance
A manufacturer's discount offered to wholesalers who pick up orders at the manufacturing site or distribution center rather than having them delivered. See customer pickup.

pickups
An out-of-stock product purchased to complete scheduled orders or to fill a store shelf until a scheduled delivery arrives.

piece count
A receiving method for checking a load against the invoice by counting cases instead of each item.

piggyback
The transporting of a loaded truck trailer on a flat railcar. See trailer on flat car.

pilferage
Shoplifting, theft of money, or product tampering by employees or customers.

pilot store
A prototype store used to test management practices, systems and products.

pipeline
The stock flow s from producers to consumers necessary in all inventory locations throughout the channel to keep product on the retail shelf available for customers to purchase.

pitch book
A salesperson's loose-leaf notebook that lists prices, product specifications and other selling information.

placement
The initial selling and subsequent establishment of a product brand or pack on a store shelf that previously did not stock or purchase it; a 'new sale.'

placement allowance
A manufacturer's allowance for ordering new or promotional products.

planogram
A department, shelf, or display schematic for allocating products by the number of facings and/or the depth of the display.

plans committee
A management group that approves product mix, formulates advertising and merchandising programs and projects sales volume. See advisory board; buying committee; merchandising committee.

platter cart
A wheeled rack used to transport deli trays.

PLMA
Private Label Manufacturers Association.

PLU
Price look-up.

plus out
A forced distribution of products from the warehouse to the retail stores of a chain operation.

PM
Push money.

PM allowances
Promotional money paid by vendors for advertising allowances.

PMA
Produce Marketing Association.

PO
Purchase order.

point of sale (POS)
The place in a retail store where products are scanned through the register system, data is collected, and sales are tendered. POS also describes sales data generated by checkout scanners.

point-of-purchase
The locations within a retail store where a customer purchases products.

point-of-sale advertising
Signs, recorded messages or gimmicks in a store that direct attention to products on sale. They may be either supplied by a manufacturer and mention specific brand names, or they may have been made by the retailer himself to call attention to a special.

point-of-sale system
An electronic register system that scans purchases and collects data.

pole display
An advertising display that is mounted on a pole and placed above a product, e.g., produce displays, meat signs, coffin cases signs.

pool car
A rail car shipment of the same brand of products, shipped to one geographic area, but delivered to different retailers.

POP (P-O-P)
Point-of-purchase signage. See point-of-purchase.

POP radio
Advertising a particular product on radio.

portion pack
A product package of single-service portions.

POS
Point of sale.

posting bills
The entering of all transactions onto the proper receiving records at a store.

power wing
Gondola extensions used to display promotional products.

PPO
Preferred provider organization.

PPUM
Price per unit measure.

pre-built display
See prepack.

preorders
Future advertised items that are ordered in advance from the warehouse.

prepack
A shipping container designed to display products on a retail sales floor. Also called a shipper, pre-built display or display case.

prepackaging
A manufacturer's packaging and pricing of products before delivery to the retail store. e.g., display-ready packs of produce and meat.

prepricing
Items priced by a manufacturer before delivery to the retail store, e.g., produce and meat.

preprint order form
A printed inventory guide for a warehouse that lists current inventory available to retailers for ordering.

prescription drugs
Medicines that can be obtained only by means of a physician's written order.

price book
A manufacturer's or a wholesaler's printed current list of products and correct prices.

price brand
A featured brand of product on sale to attract customers.

price card
Display signs indicating the cost of a featured product.

price changes
The reduction or increase in the selling price of a product.

price discrimination
Discounting a product's price for one customer and not for others within a trading area.

price fixing
An illegal practice among competitors of setting the same price for a product. Also known as price gouging.

price leader
A brand of product featured at a low price point to increase sales volume.

price list
A manufacturer's listing of all products by UPC and price.

price look-up (PLU)
Codes assigned to products that are normally not bar-coded, such as fast-moving items and weighed produce, to allow for fast and accurate pricing.

price maintenance
The upkeep of a central pricing database to ensure accurate and consistent pricing.

price marking
Placing the retail price on a package using labels, stamps or other means.

price per unit measure (PPUM)
A label used on items stocked on shelves. Used for ordering and to help customers compare prices.

price protection
A manufacturer, wholesaler or retailer agreement to maintain a product's price for a set period of time.

price verification
A cross check of a product's shelf price compared with the scanned price at the register.

price war
A price war among retailers designed to retaliate against each other for price reductions.

price zones
Price categories in an area that reflect a local market's competition and local warehouse costs.

pricing integrity
A matching of the price of a product and the price charged on the electronic scanner at the checkout.

pricing office
An area in-store where scanning coordinators change prices, enter new items, maintain the item file on the computer database and generate reports.

pricing zones
See zone pricing.

private label
A product line exclusively distributed by a wholesaler/ retailer, which may be manufactured under contract for the private label user. See controlled brand; franchised label; house brands.

processor
A company that produces consumer products from raw goods or materials. Also known as a packer.

produce
Fresh fruits and vegetables.

Produce Marketing Association (PMA)
1500 Casho Mill Rd. Newark, DE 19714-6036 (302) 738-7100

producer
A grower or processor.

product liability
A legal term in tort law that means consumers can sue manufacturers, distributors or retailers for defective or unsafe products

product line
A group of products with similar uses and characteristics.

product lookup number
A number assigned to a coupon or produce product that, when entered into the register, retrieves a product's name and price.

product mix
A variety and size of products comprising the total assortment of products that a retailer offers for sale.

product movement
An item's rate of sale.

product movement record
Data showing the volume of each product's sales by day, week, period and/or quarter.

product recall
The mandatory withdrawal for public safety reasons of a product that is for sale.

product sampling
A consumer promotion in which small sizes of products, usually new, are sold at a low price to encourage consumers to try them. Free tastings or demonstrations to introduce consumers to a new item.

productive labor
An accounting term used for the hours charged to the normal operation of the store.

productivity measures
Standards or benchmarks used to improve productivity, business processes and organizational performance.

profit and loss statement (P&L)
A financial statement of gains and losses for a specific time period.

profit items
Products that have a high profit margin.

profit opportunity
Products that enjoy a higher gross margin. Creative displays of such items will return a larger than average margin of profit.

profit sharing
A company's incentive program whereby employees share a percentage of net profits.

profit, gross
See gross profit.

profit, net
See net profit.

profitability
A calculation of the profit of a product by the number of product turns and gross profit.

Progressive Grocer
A monthly magazine for the food industry, published by

Progressive Grocer Associates, LLC
23 Old King's Highway, South Darien, CT 06820

projections
The process of determining what and how much product will be sold at what price during a predetermined time period.

promotion
A marketing campaign to increase sales through advertising, merchandising, signage, and special events.

promotion allowance
A discount offered by manufacturers to wholesalers and retailers to advertise, reduce the price of, or provide a special display of a product during a sales promotion period. See advertising allowance.

promotion money
See push money.

promotional business
A product that is sold under promotional allowances or other price considerations as a buyer's incentive to support a specific merchandising program. See turn business.

promotional licensing
A marketing agreement between a manufacturer and a celebrity to use his or her image in promoting a product.

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