THE ULTIMATE CPG DICTIONARY

The percentage of stores with merchandising support (feature, display, or price reduction).

An outside company that handles warehousing, fulfillment, and shipping on behalf of your brand.

An experimental method where two versions (A and B) are tested against each other to measure which performs better.

Comparing two versions of an ad, webpage, or offer to see which performs better.

A measure of product distribution showing the percentage of total retail sales your product is available in.

A measure of product availability weighted by store sales volume, showing the percentage of total market sales where a product is sold.

A measure of product availability weighted by the total sales volume of the stores where the product is sold.

The lingering effect of advertising after the campaign ends.

The % of product detail page (PDP) visits that result in an add-to-cart action.

Consumer awareness of a brand when prompted with the brand name.

A measure of the total sales volume of stores carrying a product, expressed as a percentage of all possible sales volume in the market.

The average price at which products are sold. Instacart often has lower ASP items (groceries), so ad returns may look weaker than higher ticket categories.

A set of rules determining how credit for conversions is assigned across multiple media touchpoints.

The time period in which a conversion (e.g., purchase) is credited to an ad interaction.

The average amount spent each time a customer places an order.

Using the return trip of a delivery truck to move goods, reducing empty mileage.

An order for a product that is out of stock but will be delivered once inventory is replenished.

Expected sales without promotion.

Average spend per purchase occasion.

A detailed list of all raw materials and components needed to manufacture a product.

A promotional allowance where retailers bill manufacturers after running ads, in-store promotions, or discounts.

Post-event payments retailers request from brands to cover discounts or promotions.

A continuous section of shelf space dedicated to one brand for visual impact.

A common trade promotion where consumers receive an additional product for free (or at a discount) with purchase.

Brand sales in a market vs. national average.

When consumers change their purchase from one brand to another within the same category.

Products damaged in transit or storage and unsellable.

A sales agent who represents your brand to retailers and distributors.

How quickly cash is being spent, often in relation to available budget.

Average purchase per buying household.

The percentage of shoppers who move from awareness or trial to becoming repeat purchasers.

Determining the production output needed to meet demand.

The percentage of online shoppers who add items to their cart but don’t complete checkout.

The number of units in a wholesale case.

A retailer-defined grouping of similar products.

Households that purchased the category at least once during the measurement period.

A brand chosen by the retailer to help manage a product category.

Category sales in a market vs. national average.

Percentage of sales by channel (e.g., Grocery, Club, eComm).

A fee retailers impose when vendors fail to meet compliance requirements (e.g., late delivery).

The rate at which customers stop buying your product.

The % of clicks a brand receives in relation to total category clicks (esp. on Amazon/Walmart).

A strip hung in-aisle with small impulse items clipped on.

A cost-sharing arrangement where manufacturers and retailers jointly fund advertising campaigns.

Contract manufacturers that make and/or package products for brands.

When more than one person views a piece of media content (such as a TV program or streaming ad) together.

The total cost to produce or purchase a product, including materials, manufacturing, and freight.

The temperature-controlled supply chain for perishable products.

The percentage of stores that execute a merchandising plan or promotion as intended.

End-consumer sales, usually from POS data.

The percentage of shoppers who take a desired action after engaging with marketing.

A promotional tool offering consumers a discount on a product purchase, either paper-based or digital.

The cost of acquiring one new customer through advertising or marketing.

The price paid for each click on a digital advertisement.

Everyday goods consumed quickly and replaced often.

The cost to show an ad 1,000 times.

The cost of reaching 1,000 people (impressions) with an ad.

The cost to reach 1% of a target audience, used in TV/radio planning.

The cost of each completed video view.

Moving products directly from inbound trucks to outbound trucks with little or no storage time.

Joint promotion of two products, often from different brands.

The percentage of people who click on your ad after seeing it.

A retail location that doesn’t serve walk-in customers but fulfills online orders.

How many days current inventory will last at the current sales rate.

Unsold inventory that’s unlikely to be sold.

Retailer chargebacks against manufacturer invoices, often related to promotions, damaged goods, or compliance issues.

Forecasting future demand to ensure supply matches customer needs.

Sell-out data measuring what distributors/wholesalers sell through to retail accounts.

Percentage reduction in price during promotion.

A post-purchase discount delivered via apps or digital platforms, requiring proof of purchase such as a receipt upload.

A distribution method where manufacturers deliver products directly to retail stores, bypassing the retailer’s distribution centers.

A payment or incentive given by manufacturers to retailers to secure in-store product displays.

A warehouse storing goods before shipment to retailers or customers.

A geographic region that represents a specific television or media market.

A heavily discounted product meant to draw in shoppers.

The number of stores selling your product.

How long it takes a product to be stocked after arriving at a store.

Smaller brands not only have fewer buyers, but those buyers also purchase less frequently.

Shipping directly from the supplier to the customer without going through a retailer’s warehouse.

Side Platform) A technology platform that allows advertisers to buy digital ad space programmatically (automated, data-driven buying across websites/apps). Amazon and Walmart both now offer DSPs.

A large floor bin filled with loose product for promotional sales.

Brands in the same category share customers in proportion to their size; smaller brands’ buyers are more likely to also buy larger brands.

Selling products online via owned sites or marketplaces.

The automated exchange of business documents like purchase orders and invoices between companies.

A consistent low-price strategy.

A pricing strategy where a brand or retailer offers products at a consistently low price rather than relying on promotions or discounts.

A product display located at the end of an aisle, typically high visibility and premium placement.

A product display at the end of an aisle, offering premium visibility.

Standardizes product volume into a common unit for comparison across different pack sizes.

A qualitative research method where researchers observe consumers in their natural environment to understand behaviors, routines, and product usage.

The date goods leave the manufacturer’s facility.

A product positioning strategy where items are placed at consumer eye level to increase visibility and sales.

Number of units wide product appears on shelf.

The number of product units visible to the consumer on the shelf.

A measure of promotional support: Feature = inclusion in flyers/circulars, Display = secondary in-store placement.

An inventory method where the oldest stock is sold first.

The percentage of customer demand met without stockouts.

Party Data Data a retailer collects directly from its own customers (purchase history, loyalty card info, site browsing behavior). Highly valuable because it’s privacy-safe and accurate.

Customer data collected directly by your brand.

Moving Consumer Goods) Everyday products like packaged foods, beverages, toiletries, and cleaning supplies that sell quickly and at relatively low cost.