Key Terms*

Glossary of Key Terms

Items in italics are other terms defined in this glossary.

BRAND

The parent company, the one selling the product to the next line of distribution.

• Examples: Warmies, Nike, Logitech

COGS

"COGS" stands for Cost of Goods Sold. It's the amount of money it costs to produce or buy the products that are being sold. These are the expenses directly tied to making or purchasing the products, like materials and manufacturing costs, but don't include indirect expenses such as sales and marketing costs.

MSRP

"MSRP" stands for Manufacturer's Suggested Retail Price. It's the price that the brand recommends that retailers charge for a product. A guideline for how much the product should sell for in stores to ensure a fair price for everyone.

PO

"PO" is an abbreviation for Purchase Order. A PO Number is a unique identifier assigned to a Purchase Order (PO) by the retail store. It is used by the stpre to track and reference the specific order throughout the purchasing and payment process, ensuring clear communication between the store and the seller (the brand).

PRODUCT

The item or items that the brand wants to promote and sell more of. The program's activities are all about getting more attention and boosting sales for this product in stores.

PROGRAM

A promotional campaign designed by a brand to be executed by retailers. These programs aim to enhance brand visibility and increase sales. Programs typically include specific tasks such as uploading receipts or photos, following promotional guidelines, and completing other actions required to effectively run the promotional campaign.

RETAILER

The company that sells the brand. This is the parent company, the highest level. A retailer has one or more stores.

• Examples: Walmart, Target, Walgreens

RETAILER REWARD

An incentive given by the brand to the retailer for successfully participating in a program. These rewards are designed to motivate retailers to complete the tasks and achieve the program's goals. It's like a thank-you gift for participating and doing a good job. Rewards could be discounts, bonuses, free products, or other perks that benefit the retailer.

SKU

“Stock Keeping Unit” (SKU) is a unique code that stores and brands use to identify each specific item they sell. It's like a barcode or a label that helps them track stock and manage their inventory, ensuring they can quickly determine what needs to be restocked and what is not selling well. Each SKU is different for every item. For example, a red medium-sized shirt and a blue medium-sized shirt will have different SKUs because despite being the same style and size, their colors make them different products in the system.

STORE

A physical location of a Retailer that sells merchandise. The store could also be an online presence (an online store) that sells merchandise. A retailer could have one store or could have many stores.