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Glossary
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authorization  A retailer's agreement to stock an item.
bottler  A local company that buys ingredients in large quantities and then mixes them, bottles them, and sells beverages to local stores.
buy-back allowance  A payment to buy back the current stock of a brand and replace it with a featured new product.
buyer  A person who purchases products for resale and selects which manufacturers' promotions to use.
channel marketing  (1) Advertising and promotion efforts directed at members of the distribution channel. (2) An integrated process that combines personal selling, trade promotions, and co-marketing programs to build relationships with retailers and other members of the distribution channel.
co-marketing  A customized joint effort by a manufacturer and a retailer to establish a mutually satisfying balance between price and image in local retail advertising of the manufacturer's brands.
cooperative (co-op) advertising allowance  The practice in which a certain percentage of everything a retailer buys is put into a special "co-op" fund.
dealer  A local company that buys an inventory of products from a manufacturer and assembles a mix of models for sale in a store or showroom.
dealer contest  A competition awarding dealers special prizes and gifts when sales reach a predetermined volume or a stated percentage increase of last year's sales.
dealer loader  A high-value premium given to a retailer in exchange for the purchase of a special product assortment or a specified dollar volume.
in-store demonstration  Paying a person to hand out product samples in-store.
loss leader  A brand promoted at or below its cost to the retailer in order to draw customers into a store.
merchandising  In-store promotion activities.
off-invoice allowance  A reduction in the wholesale price, with no restrictions, for a limited period.
off-shelf display allowance  An additional quantity of a brand located in a high-traffic area such as the end of an aisle.
on promotion  Selling at a reduced price.
performance allowance  A price reduction given to a retailer in exchange for the retailer agreeing to feature the brand in its advertising or in other promotion programs.
point-of-purchase  In-store advertising using displays that feature the product.
retailers  Stores that sell products and services to consumers.
shipper displays  Specially designed shipping cartons that when opened become display units complete with signage and a quantity of products ready for sale.
slotting allowance  A one-time, up-front fee for agreeing to stock a product.
trade promotions  Discounts and premiums offered to retailers in exchange for their promotional support.
wholesaler  A company that specializes in moving goods from manufacturers to retailers.







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