Confused by Jargon?
Every industry uses specific words and phrases; the export industry is no exception.
Below, we’ve developed a glossary of terms and phrases to help navigate your export journey. They were originally published in Export and Expand.
We hope you find them useful. If we’ve missed anything, please get in touch!
Export Glossary
A&P – Advertising & promotion
AdWords – A Google product that places advertising copy next to search engine results
Aged stock – Inventory which is close to its sell-by-date
Airway bill – A contract between a shipper and an airline stating the terms and condition of transport
Aisle end display – The shelf display at the end of an aisle (passage) in a retail outlet
Ambient (products) – Dry grocery products which do not require special storage conditions
Authority to spend – An internal procedure delegating expenditure approval
Awareness – A benchmark used by marketers to measure consumer knowledge or familiarity with a brand or advertising campaign
B2C – Business to consumer. A business model involving companies selling products for consumer use
Back margin – The margins made by a trade customer in rebates, discounts, promotions and other incentives
Bank guarantee – A bond from a financial institution covering debt repayment to a pre-determined value
Benefits – The strong points of a brand or product which are relevant to consumers, shoppers or customers
Bill of lading – A contract between owner of the goods and the shipper stating the type, quantity and destination of the cargo
Blind test – A research technique to test consumer reactions to a product without revealing its name or packaging
Blind preference – Consumer evaluation of different products where the name or packaging was not revealed
Bounce Rate – the percentage of people who leave your website after visiting only a single page
Bottom-up – A micro approach to forecasting
Brand ambassador – Spokesperson for a product
Brand awareness – A measure of a product’s recognition amongst consumers
Brand positioning – A marketing practise to give a product clear and defined values, make it attractive to the target audience and unique
Brand story – The history of a brand, how it was developed and the consumer needs it satisfies
Brand switching – When shoppers change from buying one similar product to another
Branding – The creation, design and naming of a product to appeal to customers
Budgeting – To allocate sums of money for business operations and project expenses
Business development – Sales and other growth creation activities
Business model – The way a business operates to achieve sustainable competitive advantage
Business plan – A blueprint containing commercial strategy, key financial objectives and milestones
Call to action – A graphic or text which stimulates a response from a shopper
Case study – A practical example of a particular strategy or commercial activity and its effectiveness
Cash flow – The quantity of money being transferred in and out of a business
Category – A group of products with similar characteristics as seen by consumers, shoppers or trade customers
Category penetration – A measure of consumer usage of a particular group of products
Central distribution costs – The fees levied by a retailer for delivery to their own logistics centre
Certificate of analysis – A document stating the ingredients and processing conditions for a raw material or pharmaceutical product
(Trade) Channel– A group of customers with similar profile and characteristics
Check out – The register or place of payment in a shop, or online
CIF Cost insurance freight – The price of a product shipped to a named port in the export market
(Product) Claims – On pack statements concerning a product’s features and benefits
Close to capacity – When a manufacturing plant is hard pressed to produce additional volume
Commercial invoice – Bill of goods from the seller to the buyer
Compelling selling story – A convincing commercial proposal about a product or category shared with a customer
Concept – A new product or brand idea
Consignment – The exporter ships goods to the buyer agreeing to receive payment only when the buyer has sold them
Consumer – The person who ultimately uses a product
Consumer home panel – A market research process that tracks household purchase behaviour
Consumer loyalty – A measure of how bonded consumers are to a particular brand
Conversion funnel – the different stages in the shopper’s journey leading to a purchase
Core consumer and shopper targets – The most important consumers or shoppers an organisation is aiming to please
Corporate brand – Company name
Cost-plus – A pricing measure where a fixed profit margin is added to the cost
(Channel and customer) Coverage – A measure of which trade customers or channels are serviced either by a manufacturer, distributor or wholesaler
Credit terms – The number of days of credit given to a customer before payment is due
Cross promotion – A sales promotion mechanic linking the purchase of one product to another
Customs duties – A charge levied by customs for the importation of specific commodities
(Trade) Customer – A commercial entity that buys product from suppliers and sells on to shoppers
Days outstanding – A measure of how quickly a business collects money after a sale has been made
Data visibility – Continuous access to important information
Dead zone – An area in a retailer where there is low shopper traffic and the sales of all items merchandised are low
Desk research – Research undertaken using publicly available sources in libraries, specialist databases or on the Internet
DDP – Duty delivery paid. The price of a product delivered to the buyer at a named place in the export market
De-listing – When a retailer stops selling an item
Digital shelf – a measure of a brand’s online footprint
Direct marketing – A method of communicating directly with consumers
(Retail) Distribution – The number of shops (or other sales outlets) in a given area stocking a particular product
Distributor – A commercial organisation that buys goods from a manufacturer and sells them to retailers, hotels, restaurants and other trade customers. Some distributors have exclusive rights to sell a particular manufacturer’s products
Distributor agreement – A contract or business plan agreed between an exporter and a marketing partner
Due diligence – A detailed assessment of a business undertaken by a potential buyer prior to acquisition
E-Commerce – The sale of goods through the Internet
Eco – Environmentally friendly
Econometric model – A complex statistical formula used to forecast and predict business outcomes
Elevator pitch – A short introduction given to a new business partner about a company, its key products and their benefits
End customer – The final trade customer in a chain, typically a retailer or other outlet selling to shoppers
(Brand) Equity – The value of a product’s name, features, characteristics and personality as seen by consumers, shoppers and customers
Exclusivity – The sole rights to an activity
Ex-factory cost – The cost of a product as it leaves the place of manufacture
Extra-free pack – A product that contains additional volume to the standard pack but is sold at the same price
EXW Ex-works – The cost of a product as it leaves the place of manufacture
Export broker – An individual or company who facilitates international business transactions in return for a margin or commission
Export credit insurance – Risk management product to mitigate against non-payment
Export packing list – A document listing the seller, buyer, invoice number, date of shipment and quantity and size details
Export wholesaler – A commercial organisation based in the exporting country who sells and ships goods internationally
Facebook audiences – A tool allowing advertisers to target ads to specific groups of Facebook users
Factoring – A financial transaction where a company sells its debts to another party in return for immediate payment
Factory efficiencies – Reduction in production costs
Features – The physical attributes of a product
Financial depreciation – The sudden drop in value of a currency
Financial goals – Revenue, profit and cash flow objectives
FOB – Free on board. The cost of a product including delivery onto a vessel at the port of shipment (but excluding international freight)
Focus group – A research methodology involving in depth consumer discussion
Food service – A trade channel including hotels, restaurants, cafes, bars and other catering type customers
Forecast accuracy – The precision of preceding sales projections
Forecast variability – Uncertainty of a sales projection
FOREX – Foreign Exchange
Free stock – Goods supplied free-of-charge to a customer
“Front” margin – The difference between a retailer’s buying and selling prices
Fumigation certificate – A document proving the export goods have been disinfected
Functional (product) – Health products with specific or implied claims, often made from natural or unprocessed ingredients
GMO – Genetically modified organism
Goods and services – The product categories, brands and formats included in a sales agreement
Go-to-Market (model or strategy) – The way a business achieves competitive advantage regarding the distribution of its products
Gondola (display) – The shelf display at the end of an aisle (passage) in a retail outlet
Grey or parallel market – The legal trade of goods in distribution channels or countries which have occurred informally, without promotion by the manufacturer
GST – Goods and services tax
GTIN – Global Trade Identity Number. A product classification system
Halal – A product which is considered to be “clean” under Islamic law
Hanging unit – Display equipment containing product which is attached to a retailer’s shelf
Health certificate – A document used to verify the goods are fit for human consumption
Home market – The country where the exporter is based
HS codes – Harmonised system of product coding used by customs authorities to manage imports and exports
Import (Tariffs) – A tax paid on a particular class of goods
Importer – A commercial organisation who brings in products from overseas and sells them to third parties
Incoterms – Commercial trade terms agreed by the International Chamber of Commerce
Ingredients certificate – A document stating the full ingredients and processing conditions for a product
In outlet activation – The promotion of brands inside a retail store or other trade customer
In market study – Research conducted on the ground in an export destination
In store activity – Marketing activity carried out in a retail shop
Insurance certificate – A document verifying the goods are covered by insurance in the case of loss or damage
Intellectual property – Intangible assets like trademarks, patents and copyrights
Internal resource allocation – How monetary assets and staff are shared out within a company
International arbitrator – A person or body who resolves transnational disputes
Investment financing – The provision of capital to fund a business venture
Island displays – A large exhibit of product, usually found in the entrance or other high traffic flow area of a hypermarket or warehouse store
Kosher – Food or premises which meet the requirements of Jewish law
Key account management (KAM) – A function within the sales organisation responsible for managing major trade customers
Keywords – words or short sentences typed into a search engine or retailer’s ecommerce site to uncover information
KPI – Key performance indicator. Benchmarks used by management for control
Landing page – the entry point for a website or a particular section of a website
LC – Letter of credit. An official letter from a financial institution guaranteeing payment for a specified amount and date
Lead times – The time taken from receipt of an order to delivery
Legal description (on a product) – A statement describing a product’s key features, usually printed on the packaging
License or franchise – The grant of usage rights to a third party for an organisation’s brand name, design, recipe, manufacturing technology or sales system for a fee
Listing (or slotting) – The agreement by a retailer to stock a particular product
Local operating company – A subsidiary company in an overseas country
Long – An expectation that an asset will rise in value
(Brand) Loyalty – A measure of how bonded consumers are to a particular brand
M&A – Merger and acquisition. The buying, selling and integration of companies
Main category shelf – The aisle or location in a store where a particular group of products are merchandised
Margin – The difference between the buying and selling price
Market returns – Goods delivered to a trade customer for sale but not accepted (usually for quality reasons)
Market share – Sales of given brand divided by the category total. A measure of brand strength
Marketing – The discipline of promoting and selling products
Marketing expenses/spend/support – Advertising and promotional expenditure
Merchandising – The activity of promoting goods specifically through their display in retail and foodservice outlets
MBA – Masters in Business Administration
MNC – Multinational Corporation
Mock up – A prototype product or packaging
Modern trade – Large, centrally run, chain retail groups, often present in multiple countries
Money back – A sales promotion mechanic offering the product free if the shopper is dissatisfied
National brand – A famous trademark product sold across the entire country
Net gain – The overall sales improvement after both positive and negative effects have been included
Net profit margin – A measure profit generation as a percentage of the selling price
Net promoter score – A market research technique to assess product satisfaction
Objectives – The commercial or financial goals of an organisation
OEM – Original equipment manufacturer; a contract manufacturer
Off-take – A measure of how often a product is purchased by shoppers
Open account – The exporter sends goods to the customer before payment is due
Opinion leader – A person or customer whose views are held in high esteem
Out-of-stock – Non-availability of product
OTC – Over the counter. Medicines sold directly to the shopper without a prescription
Packaged goods – Grocery products that are packed for sale
Period of agreement – The length of a contract
Performance rebate – A discount paid by a supplier to a customer on achievement of a sales target
Planogram – A shelf layout indicating what products are stocked and where they are displayed
PO – Purchase order
POS data – Point of sale data. Sales data which is sometimes shared by retailers with suppliers
Portfolio – Product range belonging to a company
POSM – Point of sale material. Signage placed in a shop or other trade outlet to advertise a product
PR – Public relations
Pre-registration (of imports) – Obtaining prior approval to import
Press release– A document issued (by a company) to the media (announcing a new product launch)
Price discounting – Reducing the shelf price of a product
Price per kg/ml – A measure of price relative to weight or volume
Price sensitive – A measure of how shopper purchasing behaviour shifts in response to price adjustments
Private label (or Own label) – A product sold by retailers with their own brand name or label
Pro forma invoice – An invoice prepared by the seller before shipment detailing the goods to be sold, their specifications and value
Product appeal – The evaluation of a commodity’s physical characteristics
Product benchmarking – The process of comparing similar products to identify differing ingredients, claims and manufacturing process
Product brand – The name or trademark of a commodity
Product description – The features of a commodity, for example flavour or aroma
Product efficacy – A measure of a commodity’s performance or satisfaction as seen by consumers
Product lifecycle – The commercial lifespan of a particular item
Product proposition – The key features and benefits of an item
Product push – Selling what the manufacturer can make, not necessarily what customers want
Product satisfaction – A measure of a commodity’s performance or satisfaction as seen by consumers
Product sourcing – Management of where commodities are produced and purchased
Product specification – The physical parameters of a commodity as designed by its manufacturer
Promotional activity – Tactics undertaken by a manufacturer to stimulate product purchase
Promotional advisors – In store demonstrators or sales staff
Prompt to purchase – The stimulation of a shopper to buy an item
Purchase frequency – A measure of how often a product is bought
Purchase intent – The probability of an item being bought
Qualitative research – focus group or in depth research technique that allows open ended questions; useful for understanding ‘why?’
Quantitative product tests – Testing a commodity using a large sample size so the results are statistically significant
R&D – Research and development
Raw materials – Ingredients and packaging costs
Rebate – An incentive payment from a manufacturer, distributor or wholesaler to a trade customer, like a retailer
Receivables – Sums of money owed by customers
Regional operating unit – A company or group of companies established in an overseas market to manage business operations, usually across a defined geographic area
Repeat purchase/rate – Secondary or subsequent purchase of a product by a shopper
Representative office – A subsidiary company in an overseas country that just exists to conduct research. A representative office cannot invoice customers
Retail – The sale of goods through shops or online
Retail audit – A market research process that tracks shopper purchase behaviour in retail stores or online
Retail selling price – The price paid by the shopper
Risk management – Action to mitigate against business uncertainty
ROI – Return on investment. A measure of profitability
Sales forecasting – The process of predicting future purchases from customers
Sampling and demonstrations – A sales promotion activity conducted to drive trial purchase of a product
Secondary placements – Additional displays of a product in a retailer, besides those on the main shelf
Segmentation – The process of classifying customers into distinctive groups for the purpose of deciding who to target
Sell by date – The expiry date marked on a product
Sell-thru – The on-going purchase and use of product in the market by shoppers and consumers
Sense check – Validate through cross reference or comparison
Sensory (test) – A research technique to evaluate a product’s physical properties like aroma, taste, flavour and after-taste
SEO – Search Engine Optimisation. Increasing the internet traffic to your web site or product page on an ecommerce site
Service offerings – Solutions and systems offered by a supplier in addition to the products sold
Shelf life – The length of time on a product before it expires
Shelf placement – The place and position on a retailer’s shelf where a product is merchandised
Shelf strips – Markings or branding on a retailer’s shelf designed to attract shopper’s attention
Shelf visibility – The measurement of a product’s standout on shelf
Shopper – The person who buys a product
Shopper marketing – The discipline of promoting and selling products across sales channels and store formats
Shopper trial – A measure of what percentage of shoppers initially purchase an item
SKU – Stock keeping unit. A single product item
SMART – Specific, Measurable, Ambitious, Realistic, Timely
SME – Small, medium enterprise
Social media – Websites and applications that allow users to share content continuously
Steal or cannibalisation – The negative impact on a company’s existing SKUs when a new line is launched
Stock and order system – A method of inventory management and replenishment
Stock cover ratio – A measure of inventory compared to the forecast
Stock up – Buying product that will not be consumed (or sold on) immediately
Stock management – The process of controlling inventory levels
Stock out – When there is a shortage of product to sell
Strategy – The key activities a business follows to achieve defined objectives
Supply chain – The processes involved in manufacturing, distributing and selling a product
Target (audience) – The group for whom a product is intended
(Sales) Targets – The commercial objective(s) agreed between two parties
Template – A file which serves as a starting point for a new document. A business plan template for example has sections on financial objectives and key strategies
Territory – The countries, regions, cities, channels and customers covered in a sales agreement
Test market – Trial sales period for a new product in one or more outlets
Top down – A macro approach to forecasting and budgeting
Trade-ables – A list of requirements prepared in advance of a negotiation
Trade distribution (or penetration) – A measure of how many outlets stock a particular brand or product
Trade finance – Monetary instruments for supporting business transactions
Trade price list – A document issued by a manufacturer to trade customers listing product costs
Trademark – Words or symbols which have been legally registered to represent a company or product
Traditional (trade) channels – Old style retail and catering outlets that are typically independently owned and sometimes family run
Traditional media (or Mainstream advertising) – TV advertising, magazines, newspapers or billboards
Trial (purchase) – First time for a shopper to select and buy a new product
Trial sized packs – Smaller unit size products designed for trial purchase
U&A – User and Attitude. A market research process that explores consumer or shopper consumption or buying habits
Up-front payment – A payment made by a customer before receiving the goods
Up-selling – Encouraging the purchase of a higher priced item
URL – Uniform resource locator. Web site address
USP – Unique selling proposition. The distinctive features of a brand
Usage occasion – The reason(s) for consuming a particular product
Users – Consumers who have tried and use a particular brand
Value chain – The major activities and costs of bringing a product to market
Value for money – Customer’s assessment of whether a product is worth the money spent on it
Variables – A list of potential concessions prepared in advance of a negotiation
VAT – Value added tax
Visual identity – How a business presents itself internally and externally
Weight certificate – A document certifying the gross weight of a shipment
Wet market – A traditional market with many vendors selling meat, seafood, fruit and agricultural produce
Wholesaler – A commercial organisation that buys goods from a manufacturer and sells them to retailers, hotels, restaurants and other trade customers. Wholesalers typically do not have exclusive rights to sell a particular manufacturer’s products.
Wobbler – A small piece of point of sales material on shelf which moves to attract shopper attention
Working capital – Capital of a business tied up in daily operations for example inventory
Write off – When the value of excess goods, materials or packaging are absorbed by the business as an expense