Tobacco Documents Online

Loss of Distribution -When a previously stocked product is discontinued in a store and is no longer available for consumer purchase. Mail-In - A promotion offer in which consumers participate by submitting a specified requirement (e.~., cash, box tops, etc.) to the company in order to receive a premA~m item or a refund by mail. Mailed Coupon - A coupon distributed in one or more forms of print media such as newspapers, Sunday Supplements, etc. Makegood - An advertisement run as a replacement for one that was scheduled but did not run or that ran incorrectly. Margin - The gross dollar profit expressed as a percentage cf the selling price. Marginal Brands - Low volume brands. Market - A specific political, geographical, economic or demographic area. Market Potential - That portion of a market that a company can hope to capture for its own product. Mark-Up - Gross dollar profit expressed as a percentage of the cost. Market Segments - Identifiable subgroup of purchasers with:n a market who share a common characteristic or special need, i.e., Black, vending, convenience stores, etc. Market Share (SOM) - The percentage of a category's sales, in terms of dollars or units, obtained by a brand, line, segment or company. Match Caddy - Holder for book-matches. The holder normally carries an advertising message. Mechanicals - Photostated elements of a design sealed in the desired position to illustrate the baslc design concept. Media - Any means of audio or visual advertising such as TV, radio, magazines, newspapers, billboards, direct mail, etc. Media Coupon - A coupon distributed in one or more forms of print media such as newspapers, Sunday Supplements, etc. -ll-

Media Weight - Total impact of an advertising campaign in terms of number of commercials, insertions, reach and frequency, advertising and dollars, etc. Metropolitan Statistical Area (MSA) - Population area with a large nucleus at the center and with adjacent areas that have a large degree of economic and social integration wlth the center. Min~-Module - A B&W package fixture which holds up to 25 packs of B&W cigarettes. Multiple Unit Purchase Offers - A promotion which requires multiple product purchases in order for the consumer to receive a special incentive. The objective of thls ~ype of event is usually to generate strong continuity-of- purchase. Near-Pack Promotion - A premium technique wherein the premium is given away or sold to consumers along wlth purchase of the sponsorlng product. It is u~ually packed in a nearby special display unit designed to provlde the focal point for a product display. Net Profit - The selling price minus the cost of an item and cost of doing business (salarles, .overhead, etc.). Nondirect Account - The business or supplier that does not purchase tobacco products direct from the factory. Offensive Spending - Advertising activity intended to secure new business. Overlay - A sheet posted over a billboard poster showing price, date, etc. Also called a "snipe." Package Fixture - A storage unit from which packages of cigarettes are sold to consumers. Palnted Bulletin - A billboard on which the advertising message and illustration is painted directly onto boards, walls, etc. It is 14' high by 48' wide. May also be billboard sheets posted on standard slze billboards. Panels - Regular and illuminated units of outdoor advertis- ing. -12-

Pen Pack - P.O.P. item that is a facsimile of a pack of cigarettes with a pen attached and normally placed at the point-of-sale. A gratis item. Permanent Advertising - Free P.O.P. items that are placed In a store for permanent exposure and usually have a store benefit. These are normally more expensive advertising items. Permanent Display - Product display for which a contractual agreement has been made to place and maintaln at point- of-sale. Pipeline Programs - Methods for getting a product into production and generatlng advertlsing. P.O.P./P.O.S. - Commonly used abbreviations for Point of Purchase/Point of Sale. It is simply the place in wh~c~ a cash transaction for product takes place. Thls Is a prime target for advertising placement. Poster - A printed paper advertisement, taped or tacked up ~n a public place, or an advertisement prlnted on sheets of paper to be displayed on billboards or 12' x 25' poster panels. Predictive Pretest (PPT) - A system to evaluate the ability of advertising to persuade taroet consumers. Premium - A merchandise item or gift offered to the trade as an incentive for performance of a specified requlrement. pre-Pack - Preassembled display unit for retail sale by the manufacturer or wholesaler. Price Reduction Offer (Price Pack) - A temporary reduction in the consumer's retail price, usually "flagged" to the consumer via a b~rst on the product's package or via in- store material. Pseudo Product Tests - Product tests in which respondents are unaware of the true objective of the evaluations. PVA Reports - Purchase Versus Allocation reports track wholesaler purchases from Rapid Distribution Allowance - Payment made to a customer for shipment of our product to retail trade in a specified period ~f time. Normally verified by count/recount.

Rating - The percentage of "TV homes" tuned to a particular program. Reach - Usually a percentage of individuals in a given market area exposed to an outdoor program during a specific time perlod. Reach/Frequency (R/P) - The standard method of reportlng the coverage (effectiveness) of an advertising schedule. A schedule with a reach of 65 and a frequency of 4.0 (65/4.0) means that 65% of total homes saw B&W's message, on the average, 4.0 times during a four-week period. Readership - The total number of individuals who read a given publication. The figure includes secondary or "pass- along" readership and is usually 2-3 times greater than actual circulation. Registration/Trademark Brands - Brands placed in the marketplace in required quantltles to protect a deslraDle name. Reintroduction - Product is currently shown in the system as being in distribution but is not avallable for consumer purchase and must be "resold" to the store. Return Goods - Outdated or damaged B&W stock to be returned to B&W. Return Per Dollar Invested - The amount of profit realized on each dollar invested on inventory. Also referred to as Return Dn Investment (ROI). Rev Weights - Relative expected value of certain magazines (based on nu~er of readers who are smokers) to B&w for placing ads. Rotation - Painted bulletins physically moved periodically to new locations throughout the market. Locations are selected to meet particular marketing objectives. Run-Of-Press (Run-Of-Paper, Run-Of-~ublication, ROP) - A newspaper advertisement positioned anywhere and run at the newspaper's discretion. Also a generlc term used to define newspaper advertising. Run of Station (ROS) - Commercials which are bought by the advertiser and can be run at any available time during the day at the station's discretion. This type of buy -14-

is less expensive than requesting to be in a specific show or at a specific time. Sample Probes - Research projects targeting certain geograph- ical locations and problng for informatlon, such as number of smokers within a given area. Self-Liquidating P-O-P Unit - A unit for which the retailer wholly or partially pays. Self-Liquidator - A premium promotion in which the entire cost of the premium (generally offered as a mail-in) passed on to the consumer. Selllng Samples - Small versions of product that are given the sales force to hand out to the trade (wholesalers) to acqualnt them with a soon-to-be-distrlbuted produc~. Share of Space (SOS) - SOS is usually an allocation of retailer shelf based on each brand's share of the market. Single Unit Marketing Model (SUM~) - A model that determines whlch characteristic(s) of a brand should be advertised to consumers in order to increase the probablllty tha~ they will buy that brand. Spectacular Unit - This unit measures over 16' x 50' and is the next size up from a paint unit. Sp~ll-In (Spill-Out) - The degree to which programming is viewed in adjacent ADI or DMA areas. 5pot Television - Television which is purchased and aired on a market-by-market basis. Spot television commercials are usually aired in a cluster around the network program. Spotted Map - A map showing the locations of the outdoor units comprising an outdoor ad campaign. Store Door - A store door of 80% for VICEROY means that VICEROY is found in 80% of all stores carrying clgar- cites. Sub-Jobber - Supplier who buys tobacco products direct from a wholesaler for resale to retail stores. Sub-Trading Area - Portion of a trading area. -15-

Sweepstakes - A promotion which awards prizes purely on the basis of chance. Product proof-of-purchase cannot be required as a condition of entry. However, facsimiles (~, the word "Windex" printed on a 3" x 5" piece of paper) may often be used as an acceptable substltute. TA-455's - Monthly comparative sales analysis by customer which shows average sales and purchases to date. Supplied to managers. Tabloid - A newspaper of less than standard page size, normally 14%" high by 12" wide. Tackers - Metal or heavy piece of cardboard/paper advertlslng used on a store front or counter. Tape-On - Giveaway item attached to products to stimulate consumer purchase. Tax Stamp - Ink or decal indiGia which is affixed to product to indicate that state tax has been pald by the wholesaler. 1040 - A freestanding B&W package fixture that holds 1,040 packs of cigarettes. Test Market - A geographical area in which a test of an alternate marketing plan variable or new product is con- ducted. 1300 - A freestanding B&W package fixture that holds 1,300 packs of cigarettes. Thirty Sheet - An outdoor advertising space providing a copy area measuring 10'5" high by 22'8" wide, usually covered with a single poster printed in sections on 12 paper sheets. 30/60 Counter Display - A permanent, contracted counter display which accommodates elther 30 or 60 packs of c~garettes. Tlp-Ins - Regional ads that are cut in over national ads or promotional items (~_~, sweepstakes coupons) that are pasted in. Tobacco Merchandiser - Freestanding floor fixture for the purpose ofdisplaying tobacco products. -16-

Topper - Permanent piece of advertising normally placed on top of cash registers. Trading Area - A cluster of adjacent counties in which the wholesale "ship-to" address corresponds closely with the retail consumption pattern. Transit Advertising - Advertising associated with public transportation placed inside and outside vehicles and ~n their stations. Trial - The usage penetration of a category or brand. 12M Case - A container that holds 60 cartons or 12,000 cigarettes. ~enty-Four Sheet Poster - An outdoor advertising structure 25' long and 12' high to which outdoor posters are pasted. Twelve-Wide Carton Fixture - Designed to hold twelve rows of "cigarette cartons to a shelf. Twenty-Wide Carton Fixture - Designed to hold 20 rows of cigarette cartons to a shelf. Unique Selling Proposition (USP): The 'selling concept behlnd a product (e.~., "Finally, the fresh taste of menthol and genuine tobacco flavor in one cigarette"). Unit - A single poster panel or painted bulletin. Universal Sign - A B&W advertising sign for placement in highly visible locations. Vending Easel - Small easel placed on top of a vending machine. Wall Hanger - A B&W package fixture that holds 130 packs of cigarettes. Window Streamer - A strip of advertising posted in a store window. Wrap-Around Merchandising - Alternate method of displaying cartons facing the end of a shelf rather than the front on a carton fixture. laeu\list\adglosry.lst -17-