Terms

GLOSSARY OF GENERAL BUSINESS TERMS

Above-the-line
In Marketing, relating to marketing expenditure on advertising in media such as press, radio, television, cinema, and the World Wide Web, on which a commission is usually paid to an agency.

Absorbed Account
An account that has lost its separate identity by being combined with related accounts in the preparation of a financial statement.

Absorbed Business
A company that has been merged into another company.

Absorbed costs
The indirect costs associated with manufacturing, for example, insurance or property taxes.

Absorption costing
An accounting practice in which fixed and variable costs of production are absorbed by different cost centers.

Abusive tax shelter
A tax shelter that somebody claims illegally to avoid or minimize tax

Accelerated cost recovery system
A system used in computing the depreciation of some assets acquired before 1986 in a way that reduces taxes.

Accelerated depreciation
A system used for computing the depreciation of some assets in a way that assumes that they depreciate faster in the early years of their acquisition.

Access bond
A type of mortgage that permits borrowers to take out loans against extra capital paid into the account, home-loan interest rates being lower than interest rates on other forms of credit.

Account
A record of a business transaction. A contract arrangement, written or unwritten, to purchase and take delivery with payment to be made later as arranged.

Accounting cost
The cost of maintaining and checking the business records of a person or organization and the preparation of forms and reports for financial purposes.

Accounting insolvency
A condition that a company is in when its liabilities to its creditors exceeds its assets.

Account balance
The difference between the debit and the credit sides of an account.

Accountant
One who is skilled at keeping business records. Usually, a highly trained professional rather than one who keeps books. An accoun­tant can set up the books needed for a business to operate and help the owner understand them.

Accounting period
A time interval at the end of which an analysis is made of the information contained in the bookkeeping records. Also the period of time covered by the profit and loss statement.

Accounts payable
Money which you owe to an individual or business for goods or services that have been received but not yet paid for.

Accounting rate of return
The ratio of profit before interest and taxation to the percentage of capital employed at the end of a period. Variations include using profit after interest and taxation, equity capital employed, and average capital for the period.

Accounts receivable
Money owed to your business for goods or ser­vices that have been delivered but not yet paid for.

Accounts receivable factoring
The buying of accounts receivable at a discount with the aim of making a profit from collecting them.

Accrual basis
A method of keeping accounts that shows expenses incurred and income earned for a given fiscal period, even though such expenses and income have not been actually paid or received in cash.

Actuary
A professional expert in pension and life insurance matters, particularly trained in mathematical, statistical, and accounting methods and procedures, and in insurance probabilities.

Administrative expense
Expenses chargeable to the managerial, general administrative and policy phases of a business in contrast to sales, manufacturing, or cost of goods expense.

Advertising
The practice of bringing to the public’s notice the good qualities of something in order to induce the public to buy or invest in it.

Agent
A person who is authorized to act for or represent another person in dealing with a third party.

Amortization
To liquidate on an installment basis; the process of grad­ually paying off a liability over a period of time.

Analysis
Breaking an idea or problem down into its parts; a thorough examination of the parts of anything.

Annual report
The yearly report made by a company at the close of the fiscal year, stating the company’s receipts and disbursements, assets and liabilities.

Appraisal
Evaluation of a specific piece of personal or real property. The value placed on the property evaluated.

Appreciation
The increase in the value of an asset in excess of its depreciable cost due to economic and other conditions, as distinguished from increases in value due to improvements or additions made to it.

Arrears
Amounts past due and unpaid.

Articles of Incorporation
A legal document filed with the state that sets forth the purposes and regulations for a corporation. Each state has different regulations.

Assets
Anything of worth that is owned. Accounts receivable are an asset.

Audiotaping
The act of recording onto an audiotape.

Audit
An examination of accounting documents and of supporting evidence for the purpose of reaching an informed opinion concerning their propriety.

Back-to-back loan
An arrangement in which two companies in different countries borrow offsetting amounts in each other’s currency and each repays it at a specified future date in its domestic currency. Such a loan, often between a company and its foreign subsidiary, eliminates the risk of loss from exchange rate fluctuations.

Back office
The administrative staff of a company who do not have face-to-face contact with the company’s customers.

Back pay
Pay that is owed to an employee for work carried out before the current payment period and is either overdue or results from a backdated pay increase.

Backup
A period in which bond yields rise and prices fall, or a sudden reversal in a stock market trend.

Bad debts
Money owed to you that cannot be collected.

Balance
The amount of money remaining in an account.

Balanced budge
A budget in which planned expenditure on goods and services and debt income can be met by current income from taxation and other central government receipts.

Balanced investment strategy
A strategy of investing in a variety of types of companies and financial instruments to reduce the risk of loss through poor performance of any one type.

Balance of payments
A list of a country’s credit and debit transactions with international financial institutions and foreign countries in a specific period.

Balance of trade
The difference between a country’s exports and imports of goods and services.

Balance sheet
An itemized statement that lists the total assets and total liabilities of a given business to portray its net worth at a given moment in time.

Ballpark
An informal term for a rough, estimated figure. The term was derived from the approximate assessment of the number of spectators that might be made on the basis of a glance around at a sporting event.

Bankcard:
a plastic card issued by a bank and accepted by merchants in payment for transactions. The most common types are credit cards and debit cards, although smart cards have been introduced. Bankcards are governed by an internationally recognized set of rules for the authorization of their use and the clearing and settlement of transactions.

Banker’s draft
A bill of exchange payable on demand and drawn by one bank on another. Regarded as being equivalent to cash, the draft cannot be returned unpaid.

Bank guarantee
A commitment made by a bank to a foreign buyer that the bank would pay an exporter for goods shipped if the buyer defaults.

Bank statement
A monthly statement of account, which a bank renders to each of its depositors.

Bankruptcy
The condition of being unable to pay debts, with liabilities greater than assets.

Barren money
Money that is unproductive because it is not invested.

Benchmarking
Rating your company’s products, services and prac­tices against those of the front-runners in the industry.

Bill of entry
A statement of the nature and value of goods to be imported or exported prepared by the shipper and presented to a customhouse.

Bill of lading
A statement of the nature and value of goods being transported, especially by ship, along with the conditions applying to their transportation. Drawn up by the carrier, this document serves as a contract between the owner of the goods and the carrier.

Bill of sale
Formal legal document that conveys title to or interest in specific property from the seller to the buyer.

Black market
An illegal market, usually for goods that are in short supply. Black market trading breaks government regulations or legislation and is particularly prevalent during times of shortage, such as rationing, or in industries that are very highly regulated, such as pharmaceuticals or armaments.

Board of directors
Those individuals selected to sit on an authoritative standing committee or governing body, taking responsibility for the management of an organization. Members of the board of directors are officially chosen by the shareholders, but in practice they are usually selected on the basis of the current board’s recommendations. The board usually includes major shareholders as well as directors of the company.

Board of Trustees
A committee or governing body that takes responsibility for managing, and holds in trust, funds, assets, or property belonging to others, for example, charitable or pension funds or assets.

Bookkeeping
The process of recording business transactions into the accounting records. The “books” are the documents in which the records of transactions are kept.

Bottom line
The figure that reflects company profitability on the income statement. The bottom line is the profit after all expenses and taxes have been paid.

Brand Development Index (BDI)
A measure of the relationship of a specific brand’s sales relative to the population in a specific geographic area. The BDI can be derived by dividing an area’s percent total US sales by that percent US population.

Brand
A design, mark, symbol or other device that distinguishes one line or type of goods from those of a competitor.

Brand name
A term, symbol, design or combination thereof that iden­tifies and differentiates a seller’s products or service.

Break-even
The point of business activity when total revenue equals total expenses. Above the break-even point, the business is making a profit. Below the break-even point, the business is incurring a loss.

Budget
An estimate of the income and expenditures for a future period of time, usually one year.

Business venture
Taking financial risks in a commercial enterprise.

Capital
Money available to invest or the total of accumulated assets available for production.

Capital account
The sum of a company’s capital at a particular time

Capital allowance
The tax advantage that a company is granted for money that it spends on fixed assets.

Capital appreciation
The increase in a company’s or individual’s wealth.

Capital asset
An asset that is difficult to sell quickly. For example, real estate.

Capital budget
A budget for the use of a company’s money.

Capital controls
Regulations placed by a government on the amount of capital residents may hold.

Capital equipment
Equipment that you use to manufacture a product, provide a service or use to sell, store and deliver merchandise. Such equipment will not be sold in the normal course of business, but will be used and worn out or consumed in the course of business.

Capital gains (and losses)
The financial gain made upon the disposal of an asset. The gain is the difference between the cost of its acquisition and net proceeds upon its sale.

Capital goods
Stocks of physical or financial assets that are capable of generating income.

Capital inflow
The amount of capital that flows into an economy from services rendered abroad.

Capitalism
An economic and social system in which individuals can maximize profits because they own the means of production.

Capitalist
An investor of capital in a business.

Capitalization
The amount of money invested in a company or the worth of the bonds and stocks of a company.

Cash
Money in hand or readily available.

Cash discount
A deduction that is given for prompt payment of a bill.

Cash flow
The actual movement of cash within a business; the analysis of how much cash is needed and when that money is required by a busi­ness within a period of time.

Cash receipts
The money received by a business from customers.

Centralization
The gathering together, at a corporate headquarters, of specialist functions such as finance, personnel and information technology. Centralization is usually undertaken in order to effect economies of scale and to standardize operating procedures throughout the organization. Centralized management can become cumbersome and inefficient and may produce communication problems. Some organizations have shifted toward decentralization to try to avoid this.

Certificate
A document representing partial ownership of a company that states the number of shares that the document is worth and the names of the company and the owner of the shares.

Certified Public Accountant
An accountant to whom a state has given a certificate showing that he has met prescribed requirements designed to insure competence on the part of the public practitioner in accounting and that he is permitted to use the designation Certified Public Accountant, commonly abbreviated as CPA.

Chamber of Commerce
An organization of business people designed to advance the interests of its members. There are three levels: national, state and local.

Chief Executive
The person with overall responsibility for ensuring that the daily operations of an organization run efficiently and for carrying out strategic plans. The chief executive of an organization normally sits on the board of directors. In a limited company, the chief executive is usually known as a managing director.

Chief Executive Officer
The highest ranking executive officer within a company or corporation, who has responsibility for over-all management of its day-to-day affairs under the supervision of the board of directors. Abbr. CEO

Chief financial officer
The officer of the organization responsible for handling finds, signing checks, the keeping of financial records, and financial planning of the company. Abbr. CFO

Choice
A decision to purchase that is based on an evaluation of alternatives.

Clicks and brick
A business strategy that involves combining the traditional retail outlets with online commerce.

Close corporation
A public corporation in which all of the voting stock is held by a few shareholders, for example, management or family members. Although it is a public company, shares would not normally be available for trading because of a lack of liquidity.

Close-end credit
A loan, plus any interest and finance charges, that is to be repaid in full by a specified future date. Loans that have real estate or motor vehicles as collateral are usually closed-end.

Collateral
Property or goods used as security against a loan and forfeited to the lender if the borrower defaults.

Co-signers
Joint signers of a loan agreement who pledge to meet the obligations of a business in case of default.

Commercial paper
Uncollateralized loans obtained by companies, usually on a short-term basis.

Commission
A percentage of the principal or of the income that an agent receives as compensation for services.

Contract
An agreement regarding mutual responsibilities between two or more parties.

Consumer Price Index (CPI)
Compares the current cost of purchasing a fixed set of goods and services with the cost of the same set at a specific base year. The resulting measures can be compared over time.

Controllable expenses
Those expenses that can be controlled or restrained by the businessperson.

Corporation
A voluntary organization of persons, either actual indi­viduals or legal entities, legally bound together to form a business enter­prise; an artificial legal entity created by government grant and treated by law as an individual entity.

Cost of goods sold
The direct cost to the business owner of those items, which will be sold to customers.

Credit
Another word for debt. Credit is given to customers when they are allowed to make a purchase with the promise to pay later. A bank gives credit when it lends money.

Credit line
The maximum amount of credit or money a financial insti­tution or trade firm will extend to a customer.

Current assets
Valuable resources or property owned by a company that will be turned into cash within one year or used up in the operations of the company within one year. Generally includes cash, accounts receivable, inventory and prepaid expenses.

Current liabilities
Amounts owned that would ordinarily be paid by a company within one year. Generally includes accounts payable, current portion of long-term debt, interest and dividends payable.

Debt
That which is owed. Debt refers to borrowed funds and is gener­ally secured by collateral or a co-signer.

Debt capital
The part of the investment capital that must be borrowed. Default: The failure to pay a debt or meet an obligation.

Deficit
The excess of liabilities over assets; a negative net worth.

Deficit financing
The borrowing of money because expenditures will exceed receipts.

Deficit spending
Government spending financed by borrowing rather than taxation.

Deflation
A reduction in the general level of prices sustained over several months, usually accompanied by declining employment and output.

Depreciation
A decrease in value through age, wear or deterioration. Depreciation is a normal expense of doing business that must be taken into account. There are laws and regulations governing the manner and time periods that may be used for depreciation.

Desktop publishing
Commonly used term for computer-generated printed materials such as newsletters and brochures.

Devaluation
A reduction in the official fixed rate at which one currency exchanges for another under a fixed-rate regime, usually to correct a balance of payments deficit.

Development capital
Finance for the expansion of an established company.

Differentiated marketing
Selecting and developing a number of offer­ings to meet the needs of a number of specific market segments.

Direct cost
Ma variable cost directly attributable to production. Items that are classed as direct cost include materials used, labor deployed, and marketing budget, and amounts spent will vary with output.

Direct mail
Marketing goods or services directly to the consumer through the mall. Direct mail is one tool that can be used as part of a marketing strategy. The use of direct mail is often administered by third-party companies that own databases containing not only names and addresses, but also social, economic, and lifestyle information. It is sometimes seen as an invasion of personal privacy, and there is some public resentment of this form of advertising. This is particularly true of e-mailed direct mail, known derogatively as SPAM.

Direct selling
The process whereby the producer sells to the user, ultimate consumer or retailer without intervening middlemen such as wholesalers, retailers, or brokers. Direct selling offers many advantages to the customer, including lower prices and shopping from home. Potential disadvantages include the lack of after-sales service, an inability to inspect products prior to purchase, lack of specialist advice, and difficulties in returning or exchanging goods.

Dirty price
The price of a debt instrument that includes the amount of accrued interest that has not yet been paid.

Discount
A deduction from the stated or list price of a product or service in relation to the standard price. A discount is a selling technique to encourage customers to buy and is offered for a variety of reasons: for buying in quantity or for repeat buying; as a special offer to move a slow-moving line or for paying by cash, etc.

Distribution channel
All of the individuals and organizations involved in the process of moving products from producer to consumer. The route a product follows as it moves from the original grower, producer or importer to the ultimate consumer.

Distributor
Middleman, wholesaler, agent or company distributing goods to dealers or companies.

Downsize
Term currently used to indicate employee reassignment, lay­offs and restructuring in order to make a business more competitive, effi­cient, and/or cost-effective.

Earnings
A sum of money gained from employment, usually quoted before tax, including extra reward such as fringe benefits, allowances, or incentives. In business, income or profit from a business, quoted gross or net of tax, which may be retained and distributed in part to the shareholders.

e-business
The conduct of business on the Internet, including the electronic purchasing and selling of goods and services, servicing customers, and communications with business partners.

e-commerce
The exchange of goods, information products, or services via an electronic medium such as the Internet. 

Enterprise
A venture characterized by innovation, creativity, dynamism, and risk. An enterprise can consist of one project, or may refer to an entire organization.

Entrepreneur
An innovator of business enterprise who recognizes opportunities to introduce a new product, a new process or an improved organization, and who raises the necessary money, assembles the factors for production and organizes an operation to exploit the opportunity.

Equal opportunities
The granting of equal rights. Privileges, and status regardless of gender, age, race, religion, disability, or sexual orientation. Equality in employment is regulated by law in most Western countries.

Equipment
Physical property of a more or less permanent nature ordi­narily useful in carrying on operations, other than land, buildings or improvements to either of them. Examples are machinery, tools, tracks, cars, ships, furniture and furnishings.

Equity
A financial investment in a business. An equity investment car­ries with it a share of ownership of the business, a stake in the profits and a say in how it is managed. Equity is calculated by subtracting the lia­bilities of the business from the assets of the business.

Equity capital
Money furnished by owners of the business.

Ergonomics
The study of workplace design and the physical and psychological impact it has on workers. Ergonomics is about the fit between people, their work activities, equipment, work systems, and environment to ensure that workplaces are safe, comfortable, efficient, and that productivity is not compromised.

Euro
The currency of 12 member nations of the European Union. The Euro was introduced in 1999, when the first 11 countries to adopt it joined together in an Economic and Monetary Union and fixed their currencies’ exchange rate to the Euro. Notes and coins were brought into general circulation in January 2002, although banks and other financial institutions had before that time carried out transactions in Euros. 


Exchange
The process by which two or more parties give something of value to one another to satisfy needs and wants.

Exchange controls
The regulations by which a country’s banking system controls its residents’ or resident companies’ dealings in foreign currencies and gold.

Exchange rate
The rate at which one country’s currency can be exchanged for that of another.

Excise duty
A tax on goods such as alcohol or tobacco produced and sold within a particular country.

Expense account
Amount of money that an employee or group of employees can draw on to reclaim personal expenses incurred in carrying out activities for an organization.

Expenses
Personal costs incurred by an employee in carrying out activities for an organization that are reimbursed by the employer.

Export agent
An intermediary who acts on behalf of a company to open up or develop a market in a foreign country. Export agents are often paid a commission on all sales and may have exclusive rights in a particular geographic area.

Exporting
The process of selling goods to other countries.

Facsimile machine (FAX)
Machine capable of transmitting written input via telephone lines.

Factor
A variable investigated in a statistical study.

Feasibility study
An investigation into a proposed plan or project to determine whether and how it can be successfully and profitably carried out.

Federal funds
A deposit held in reserve by the Federal Reserve System.

Feedback
the communication of responses and reactions to proposals and changes or to the findings of performance appraisals with the aim of enabling improvements to be made.

FIFO
FIRST IN FIRST OUT, a method of inventory control where the stock of a given product first placed in store is used before more recently produced or acquired goods or materials.

Finance
The money needed by an individual or company to pay for something, for example, a project or stocks.

Financial statements
Documents that show your financial situation.

Fiscal
Relating to financial matters, especially in respect to government collection, use. And regulation of money through taxation.

Fixed asset
A long-term asset of a business such as a machine or building that will not usually be traded.

Fixed expenses
Those costs which don’t vary from one period to the next. Generally, these expenses are not affected by the volume of business.

Float
The period between the presentation of a check as payment and the actual payment to the payee.

Floating rate
An interest rate that is not fixed and which changes according to fluctuations in the market 

Floor
A lower limit on an interest rate, price, or the value of an asset.

Flow chart
A graphic representation of the stages in a process or system or the steps required solving a problem.

Forecast
A prediction of the value of a variable in a statistical study

Forward pricing
The establishment of the price of a share in a mutual fund based on the next asset valuation.

Forward rate
An estimate of what an interest rate will be at a specified future time.

Franchise
An agreement enabling a third party to sell or provide products or services owned by a manufacturer or supplier. The franchise is regulated by a franchise contract, or franchise agreement, that specifies the terms and conditions of the franchise.

Franchise chain
A number of retail outlets operating the same franchise. A franchise chain may vary in size from a few too many thousands of outlets and in coverage from a small local area to worldwide.

Fraud
The use of dishonesty, deception. Or false representation in order to gain a material advantage or to injure the interest of others. Freebie: a product or service that is given away, often as a business promotion.

Free enterprise
The trade carried on in a free-market economy, where resources are allocated on the basis of supply and demand.

Free market
A market in which supply and demand is unregulated except by the country’s competition policy, and rights in physical and intellectual property are upheld.

Fulfillment
The process of responding to customer inquiries, orders, or sales promotion offers. 

Future
A contract to deliver a commodity at a future date. 

Futures market
A market for buying and selling securities, commodities, or currencies that tends to fluctuate in price over a period of time. The market’s aim is to reduce the risk of uncertainty about future prices.

Fundraising
Events staged to raise revenue.

Gap analysis
A marketing technique used to identify gaps in market or product coverage. In gap analysis, consumer information or requirements are tabulated and matched to product categories in order to identify product or service opportunities or gaps in product planning.

Gateway
E-Commerce: a point where two or more computer networks meets and can exchange data.

GDP
Gross domestic product, the total flow of services and goods produced by an economy over a quarter or a year, measured by the aggregate value of services and goods at market prices.

Globalization
The process of tailoring products or services to different local markets around the world.

GNP
Gross National Product, GDP plus domestic resident’s income from investment abroad less income earned in the domestic market accruing to noncitizens abroad.

Gross profit
The difference between the selling price and the cost of an item. Gross profit is calculated by subtracting cost of goods sold from net sales.

Growth capital
Funding that allows a company to accelerate its growth. For new startup companies, growth capital is the second stage of funding after seed money.

Growth rate
The rate of an economy’s growth as measured by its technical progress, the growth of its labor, and the increase in its capital stock. .

Guarantee
A pledge by a third party to repay a loan in the event that the borrower defaults.

Guarantor
A person or organization that guarantees repayment of a loan if the borrower defaults or is unable to pay.

Guerilla marketing
A marketing technique, the aim of which is to damage the market share of competitors.

Hard sell
A heavily persuasive and highly pressured approach used to sell a product or service.

Hedge fund
A mutual fund that takes considerable risks, including heavy investment in unconventional instruments, in the hope of generating great profits.

High end
Relating to the most expensive, most advanced, or most powerful in a range of things, for example, computers.

High-pressure
A selling technique in which the sales representative attempts to persuade a buyer very forcefully and persistently.

Holding company
A parent organization that owns and controls other companies.

Home page
The “table of contents” to a Web site, detailing what pages is on a particular site. The first page one sees when accessing a Web site.

Horizontal integration
The merging of functions or organizations that operates on a similar level. Horizontal integration involves the union of companies producing the same kinds of goods or operating at the same stage of the supply chain.

Hyperinflation
Very rapid growth in the rate of inflation so that money loses value and physical goods replace currency as a medium of exchange.

IMF
International Monetary Fund, the organization that industrialized nations has established to reduce trade barriers and stabilize currencies, especially those of less industrialized nations.

Impaired capital
A company’s capital that is worth less than the par value of its stock.

Import
A product or service brought into another country from its country of origin either for sale or for use in manufacturing.

Incentive program
An award or reward scheme designed to improve sales force or retail performance.

Income redistribution
A government policy that seeks to restrain increases in wages or prices by regulating the permitted level of increase. 

Income statement: A financial document that shows how much money (revenue) came in and how much money (expense) was paid out.

Income tax
A tax levied directly on the income of a person or a company and paid to the local, state, or federal government.

Income statement
A financial document that shows how much money (revenue) came in and how much money (expense) was paid out.

Index Basis
Comparative calculations that defines the relationship between two or more values by calling one value the standard with a value of 100 and all other values some percent over or under the base standard of 100. For example, if the standard is 20, a value of 30 would be expresses as 150.

Indirect channel
The selling and distribution of products to customers through intermediaries such as wholesalers, distributors, agents, dealers, or retailers.

Indirect cost
A fixed or overhead cost that cannot be attributed directly to the production of a particular item and is incurred even when there is no output.

Inflation
A sustained increase in a country’s general level of prices that devalues its currency, often caused by excess demand in the economy. 

Infomercial: a television or cinema commercial that includes helpful information about a product as well as advertising content.

Initial public offering
The first instance of making particular shares available for sale to the public.

Insolvency
The inability to pay debts when they become due. Insolvency will apply even if total assets exceed total liabilities, if those assets cannot be readily converted into cash to meet debts as they mature. Even then, insolvency may not necessarily mean business failure. Bankruptcy may be avoided through debt rescheduling or turnaround management.

Income statement
A financial document that shows how much money (revenue) came in and how much money (expense) was paid out.

Insurance
An arrangement in which individuals or companies pay another company to guarantee them compensation if they suffer loss resulting from risks such as fire, theft, or accidental damage.

Intellectual property
The ownership of rights to ideas, designs, and inventions, including copyrights, patents, and trademarks. Intellectual property is protected by law in most countries, and the World Intellectual Property Organization is responsible for harmonizing the law across different countries and promoting protection of intellectual property rights.

Interest
The rate that a lender charges for the use of money that is a loan.

Interest rate
The amount of interest charged for borrowing a particular sum of money over a specified period of time.

Income statement
A financial document that shows how much money (revenue) came in and how much money (expense) was paid out.   

Internet: The vast collection in inter-connected networks that provides electronic mail and access to the World Wide Web.

Inventory
A list of assets being held for sale, the stock of finished goods, raw materials, and work in progress held by a company.

Invest
To lay out money for any purpose from which a profit is expected.

Investment
The spending money on stocks, shares, and other securities, or on assets such as plant and machinery.

Invisible exports
The profits, dividends, interest, and royalties received from selling a country’s services abroad.

Invoice
A document that a supplier sends to a customer detailing the cost of products or services supplied and requesting payment.

Joint account
An account, for example, one held at a bank or by a broker that two or more people own in common and have access to.

Joint ownership
Ownership by more than one party, each with equal rights in the item owned. Joint ownership is often applied to property or other assets.

Junk bond
Bond with high return and high risk.

Keystone
Setting a retail price at twice the wholesale price.

Labor force
People of working age who are available for paid employment, including the unemployed looking for work, but excluding categories such as full-time students, careers, and the long-term sick and disabled.

Lapse
The termination of an option without trade in the underlying security or commodity.

Law of diminishing returns
A rule stating that as one factor of production is increased while others remain constant, the extra output generated by the additional input will eventually fall. The law of diminishing returns therefore means that extra workers, extra capital, extra machinery, or extra land may not necessarily raise output as much as expected.

Lemon
A product, especially a car that is defective in some way.

Letter of agreement
A document that constitutes a simple form of contract.

Letter of Credit
A letter issued by a bank that can be presented to another bank to authorize the issue of credit or money.

Leverage
A method of corporate funding in which a higher proportion of funds is raised through borrowing than share issue.

Liability
A debt that has no claim on a debtor’s assets or less claim than another debt.

Liability insurance
Risk protection for actions for which a business is liable.

License
A contractual arrangement, or a document representing this, in which one organization gives another the rights to produce, sell, or use something in return for payment.

Lifestyle
A pattern of living that comprises an individual’s activities, interests and opinions.

Limited partnership
A legal partnership where some owners are allowed to assume responsibility only up to the amount invested.

Liquid assets
Financial assets that can be quickly converted to cash.

Liquidity
The ability of a business to meet its financial responsibilities. The degree of readiness with which assets can be converted into cash without loss.

Loan agreement
A document that states what a business can and can­not do as long as it owes money to the lender.

Loan
Money lent with interest.

Long-term liabilities
The liabilities (expenses) that will not mature within the next year.

Ma and Pa shop
A small family-run business.

Macroeconomics
The branch of economics that studies national income and the economic systems of national economies.

Mail order
A form of retailing in which consumers order products from a catalogue for delivery to their home.

Management
The use of professional skills for identifying and achieving organizational objectives through the deployment of appropriate resources. The art of conducting and supervising a business.

Market
A set of potential or real buyers or a place in which there is a demand for products or services. Actual or potential buyers of a product or service.

Marketable
Possessing the potential to be commercially viable.

Market analysis
The study of a market to identify and quantify business opportunities.

Market development
Marketing activities designed to increase the overall size of a market through education and awareness.

Market demand
Total volume purchased in a specific geographic area by a specific customer group in a specified time period under a specified marketing program.

Market forecast
An anticipated demand that results from a planned marketing expenditure.

Marketing
One of the main management disciplines, encompassing all the strategic planning, operations, activities, and processes involved in achieving organizational objectives by delivering value to customers. Marketing management focuses on satisfying customer requirements by identifying needs and wants.

Market niche
A well-defined group of customers for which what you have to offer is particularly suitable.

Market positioning
Finding a market niche that emphasizes the strengths of a product or service in relation to the weaknesses of the competition.

Market share
A company’s percentage share of total sales within a given market.

Market targeting
Choosing a marketing strategy in terms of competi­tive strengths and marketplace realities.

Marketing mix
The set of product, place, promotion, price and pack­aging variables, which a marketing manager controls and orchestrates to bring a product or service into the marketplace.

Marketing research
The systematic design, collection, analysis and reporting of data regarding a specific marketing situation.

Markup
The difference between the cost of a product or service and its selling price.

Mass marketing
Selecting and developing a single offering for an entire market.

Merchandise
Goods bought and sold in a business. “Merchandise” or stock is a part of inventory.

Micro business
An owner-operated business with few employees and less than $250,000 in annual sales.

Micromarketing
Marketing to individuals or very small groups.

Middleman
A person or company that performs functions or renders services involved in the purchase and/or sale of goods in their flow from producer to consumer.

Multilevel sales
Also known as network marketing. Rather than hiring sales staff, multilevel sales companies sell their products through thou­sands of independent distributors. Multilevel sales companies offer dis­tributors commissions on both retail sales and the sales of their “down-line” (the network of other distributors they sponsor).

NASDAQ
National Association of Security Dealers Automated Quotation system, a screen-based quotation system supporting market making in registered equities.

Negotiation
A discussion with the aim of resolving a difference of opinion, or dispute, or to settle the terms of an agreement or transaction.

Net assets
The amount by which the value of a company’s assets exceeds its liabilities.

Net capital
The amount by which assets exceed the value of assets not easily converted to cash.

Net cash balance
The amount of cash that is on hand.

Net errors and omissions
The net amount of the discrepancies that arise in calculations of balances of payments.

Net fixed assets
The value of fixed assets after depreciation.

Net margin
The percentage of revenues that is profit.

Net operating income
The amount by which income exceeds expenses, before considering taxes and interest

Net proceeds
The amount realized from a transaction minus the cost of making it.

Net profit
Gross profit minus costs.

Net worth
The total value of a business in financial terms. Net worth is calculated by subtracting total liabilities from total assets.

Niche
A well-defined group of customers for which what you have to offer is particularly suitable.

No-load fund
A mutual fund that does not charge a fee for purchase or sale of shares.

Nondisclosure agreement
A legally enforceable agreement preventing present or past employees from disclosing commercially sensitive information belonging to the employer to any other party.

Nonrecurring
One time, not repeating. “Nonrecurring” expenses are those involved in starting a business, and which only have to be paid once and will not occur again.

Note: A document that is recognized as legal evidence of a debt.

Objective
An end toward which effort is directed and on which resources are focused, usually to achieve an organization’s strategy.

Obsolescence
The decline of products in a market due to the introduction of better competitor products or rapid technology developments.

Open-end credit
A form of credit that does not have an upper limit on the amount that can be borrowed or a time limit before repayment is due.

Open market
A market that is widely available.

Operating cash flow
The amount used to represent the money moving through a company as a result of its operations, as distinct from its purely financial transactions.

Operating costs
Expenditures arising out of current business activities. The costs incurred to do business such as salaries, electricity, and rental. Also may be called “overhead.”

Optimize
To allocate such things as resources or capital as efficiently as possible.

Option
A contract for the right to buy or sell an asset, typically a commodity, under certain terms.

Order
A contract made between a customer and a supplier for the supply of a range of goods or services in a determined quantity and quality, at an agreed price, and for delivery at or by a specified time.

Organizational market
A marketplace made up of producers, trade industries, governments and institutions.

Outsourcing
Term used in business to identify the process of sub-contracting work to outside vendors. The transfer of the provision of services previously carried out by in-house personnel to an external organization, usually under a contract with agreed standards, costs, and conditions.

Overdraft
The amount by which the money withdrawn from a bank account exceeds the balance of the account.

Overdraft facility
A credit arrangement with a bank, allowing a person or company with an account to use borrowed money up to an agreed limit when nothing is left in the account. 

Overdrawn
in debt to a bank because the amount withdrawn from an account exceeds its balance.

Outsourcing
Term used in business to identify the process of sub-contracting work to outside vendors

Overhead
A general term for costs of materials and services not directly adding to or readily identifiable with the product or service being sold.

Overprice
To set the price of a product or service too high, with the result that it is unacceptable to the market.

Partnership
A legal business relationship of two or more people who share responsibilities, resources, profits and liabilities.

Passive investment management
The managing of a mutual fund or other investment portfolio by relying on automatic adjustments such as indexation instead of making personal judgments.

Patent
A type of copyright granted as a fixed-term monopoly to an inventor by the state to prevent others copying an invention, or improvement of a product or process.

Payable
Ready to be paid. One of the standard accounts kept by a book­keeper is “accounts payable.” This is a list of those bills that are current and due to be paid.

Payment gateway
A company or organization that provides an interface between merchant’s point-of-sale system, acquirer payment systems, and issuer payment systems.

Payment-in-kind
An alternative form of pay given to employees in place of monetary reward but considered to be of equivalent value. A payment in kind take the form of a car, purchase of goods at cost price, or other nonfinancial exchange that benefits an employee.

Pay Pal
A Web based service that enables Internet users to send and receive payments electronically. To open a Pay Pal account, users register and provide their credit card details. When they decide to make a transaction via Pay Pal, their card is charged for the transfer.

Perception
The process of selecting, organizing and interpreting infor­mation received through the senses.

Performance appraisal
A face-to-face discussion in which one employee’s work is discussed, reviewed, and appraised by another, using an agreed and understood framework.

Petty cash
A small store of cash used for minor business expenses.

Phantom income
Income that is subject to tax even though the recipient never actually gets control of it, for example, income from a limited partnership.

Pink slip
Get your pink slip to be dismissed from employment

Piracy
Illegal copying of a product such as software or music.

Placement fee
A fee that a stockbroker receives for a sale of shares.

Planning
The process of setting objectives, or goals, and formulating policies, strategies, and procedures to meet them.

Poaching
The practice of recruiting people from other companies by offering inducements.

Point of purchase
The place at which a product is purchased by the customer. The point of sale can be a retail outlet, a display case, or even a legal business relationship of two or more people who share responsibilities, resources, profits and liabilities.

Postdate
To put a later date on a document or check than the date when it is signed, with the effect that it is not valid until the later date.

Prebilling
The practice of submitting a bill for a product or service before it has actually been delivered.

Prepaid expenses
Expenditures that are paid in advance for items not yet received.

Prepaid interest
Interest paid in advance of its due date.

Prepayment penalty
A charge that may be levied against somebody who makes a payment before its due date. The penalty compensates the lender or seller for potential lost interest.

Price
The exchange value of a product or service from the perspective of both the buyer and the seller.

Price ceiling
The highest amount a customer will pay for a product or a service based upon perceived value.

Price control
Government regulations that set maximum prices for commodities or control price levels by credit controls.

Price discrimination
The practice of selling of the same product to different buyers at different prices.

Price floor
The lowest amount a business owner can charge for a prod­uct or service and still meet all expenses.

Price planning
The systematic process for establishing pricing objec­tives and policies.

Price war
A situation in which two or more companies each try to increase their own share of the market by lowering prices.

Principal
The amount of money borrowed in a debt agreement and the amount upon which interest is calculated.

Probability
The quantitative measure of the likelihood that a given event will occur.

Probation
a trial period in the first months of employment when the employer checks the suitability and capability of a person in a certain role, and takes any corrective action.

Producers
The components of the organizational market that acquire products, services that enter into the production of products and services that are sold or supplied to others.

Product
Anything capable of satisfying needs, including tangible items, services and ideas.

Product life cycle (PLC)
The stages of development and decline through which a successful product typically moves.

Product line
A group of products related to each other by marketing, technical or end-use considerations.

Product mix
All of the products in a seller’s total product line.

Profit and Loss Statement
A list of the total amount of sales (rev­enues) and total costs (expenses). The difference between revenues and expenses is your profit or loss.

Profit
Financial gain, returns over expenditures.

Profit margin
The difference between your selling price and all of your costs.

Pro-forma
A projection or estimate of what may result in the future from actions in the present. A pro forma financial statement is one that shows how the actual operations of the business will turn out if certain assumptions are achieved. a document issued before all relevant details are known, usually followed by a final version.

Pro-forma invoice
An invoice that does not include all the details of a transaction, often sent before goods are supplied and followed by a final detailed invoice.

Promotion
The communication of information by a seller to influence the attitudes and behavior of potential buyers.

Promotional pricing
Temporarily pricing a product or service below list price or below cost in order to attract customers.

Psychographics
The system of explaining market behavior in terms of attitudes and life styles.

Publicity
Any non-paid, news-oriented presentation of a product, ser­vice or business entity in a mass media format.

Qualification payment
An additional payment sometimes made to employees of New Zealand companies, who have gained an academic qualification relevant to their jobs.

Qualified lead
A sales prospect whose potential value has been carefully evaluated through research

quality
All the features and characteristics of a product or service that affect its ability to meet stated or implied needs.

Questionnaire
A data-gathering form used to collect information by a personal interview, with a telephone survey or through the mail.

Random sampling
An unbiased sampling technique in which every member of the population has an equal chance of being included in the sample. Based on probability theory, random sampling is the process of selecting and canvassing a representative group of individuals from a particular population in order to identify the attributes or attitudes of the population as a whole.

Rate of interest
A percentage charged on a loan or paid on an investment for the use of the money.

Rate of return
An accounting ratio of the income from investment to the amount of investment, used to measure financial performance. 

ratio
The relationship of one thing to another. A “ratio” is a short-cut way of comparing things, which can be expressed as numbers or degrees.

Rebating
Sales promotion technique in which the customer is offered a rebate for reaching volume targets.

Receivable
Ready for payment. When you sell on credit, you keep an “accounts receivable” ledger as a record of what is owed to you and who owes it. In accounting, a receivable is an asset.

Recession
A stage of the business cycle in which economic activity is in slow decline. Recession usually follows a boom, and precedes a depression. It is characterized by rising unemployment and falling levels of output and investment.

Recurring payments
An electronic payment facility that permits a merchant to process multiple authorizations by the same customer either as multiple payments for a fixed amount or recurring billings for varying amounts.

Redemption
The purchase by a company of its own shares from shareholders.

Redundancy: dismissal from work because a job ceases to exist. Redundancy occurs most frequently when an employer goes out of business necessitating a cutback in the workforce, or relocates part, or all, of the company.

Refinance
To replace one loan with another, especially at a lower rate of interest.

Refund
The reimbursement of the purchase price of a good or service, for reasons such as faults in manufacturing or dissatisfaction with the service provided.

Reinsurance
A method of reducing risk by transferring all or part of an insurance policy to another insurer.

Resources
Anything that is available to an organization to help it achieve its purpose.

Response marketing
In e marketing, the process of managing responses or leads from the time they are received through to conversion to sale.

Response rate
The proportion of subjects in a statistical study who respond to a researcher’s questionnaire.

Retail
Selling directly to the consumer.

Retailing
Businesses and individuals engaged in the activity of selling products to final consumers.

Revenue
Total sales during a stated period.

Revolving fund
A fund the resources of which are replenished from the revenue of the projects that it finances

salary
A form of pay given to employees at regular intervals in exchange of the work they have done.

Sales
The activity of selling a company’s products or services, the income generated by this, or the department that deals with selling.

Sales channel
A means of distributing products to the marketplace, either directly to the end costumer, or indirectly through intermediaries such as retailers or dealers.

Sales force
A group of sales people or sales representatives responsible for the sales of either a single product or the entire range of an organization’s products.

Sales forecast

A prediction of future sales, based on past sales performance. Sales forecasting takes into account the economic climate, current sales trends, and company capacity for production, company policy, and market research.

Sales network
The distribution network by which goods and services are sold.

Sales outlet
A company’s office that deals with customers in a particular region or country

Sales promotion
Activities, usually short-term, designed to attract attention to a particular product and to increase its sales using advertising and publicity.

Sales quota
A target set for the sales force stating the number and range of products or services that should be sold.

Sales representative
A salesperson selling the products or services of a particular organization or manufacturer. Sales representatives are sometimes employed directly by a company as part of the sales force or they may work independently and be employed by contract. Sales reps often represent more than one product line from more than one company and usually work on commission.

Sample
A limited portion of the whole of a group.

Security
Collateral that is promised to a lender as protection in case the borrower defaults on a loan.

Seasonal business
Trade that is affected by seasonal factors, for example, trade in goods such as suntan products or Christmas tress.

Seed money
A usually modest amount of money used to convert an idea into a viable business. Seed money is a form of venture capital.

Self-employment
Being in business on one’s own account, either on a freelance basis, or by reason of owning a business. And not being engaged as an employee under a contract of employment.

Self-liquidating
Providing enough income to pay off the amount borrowed for financing. 


Service business
A retail business that deals in activities for the benefit of others.

Service charge
A gratuity usually paid in restaurants and hotels; a fee for any service provided, or additional fee for any enhancements to an existing service.

Settlement
The payment of a debt or charge.

Setup costs
The costs associated with making a workstation or equipment available for use.

Share
One of the equal parts into which the ownership of a corporation is divided. A “share” represents part ownership in a corporation.

Short-term notes
Loans that comes due in one year or less.

Sole proprietorship
Business legal structure in which one individual owns the business.

Stock
An ownership share in a corporation; another name for a share. Another definition would be accumulated merchandise.

Suppliers
Individuals or businesses that provide resources needed by a company in order to produce goods and services.

Survey
A research method in which people are asked questions.

Take-home pay
The amount of pay an employee receives after all the deductions, such as income tax, social security, or pension, contributions.

Takeover
The acquisition of one company by another.

Talent
People with exceptional abilities, especially a company’s most valued employees.

Target market
The specific individuals distinguished by socio-economic, demographic and interest characteristics, which are the most like­ly potential customers for the goods and services of a business.

Target marketing
Selecting and developing a number of offerings to meet the needs of a number of specific market segments.

Tariff
A government duty imposed on imports or exports to stimulate or dampen economic activity.

Tax
A governmental charges that is not a price for a good or service.

Taxable
Subject to tax.

Tax bracket
A range of income levels subject to marginal tax at the same rate.

Tax incentive
A tax reduction afforded to people for particular purposes, for example, sending their children to college.

Tax refund
An amount that a government gives back to a taxpayer who has paid more taxes than were due.

Tax return
An official form on which a company or individual enters details of income and expenses, used to assess tax liability.

Tax shelter
A financial arrangement designed to reduce tax liability.

Tax subsidy
A tax reduction that a government gives a business for a particular purpose, usually to create jobs.

T-Bill
A debt instrument of the U.S. government. (Treasury bill)

Team player
Somebody who works well within a team.

Teamwork
Collaboration by a group of people to achieve a common purpose.

Telebanking
Electronic banking carried out by using a telephone line to communicate with a bank.

Telecommute
To work without leaving your home by using telephone lines to carry data between your home and your employer’s place of business.

Telemarketing
Marketing goods or services directly to the consumer via the telephone.

Telephone survey
A research technique in which members of the public are asked a series of questions on the telephone.

Tender
To make or submit a bid to undertake work or supply goods at a stated price. A tender is usually submitted in response to an invitation to bid for a work contract in competition with other suppliers.

Terms of sale
The conditions concerning payment for a purchase.

Terms of trade
A ratio to determine whether the conditions under which a country conducts its trade are favorable or unfavorable.

Test marketing
The use of a small-scale version of a marketing plan, usually in a restricted area or with a small group, to test marketing strategy for a new product.

Think tank
An organization or group of experts researching and advising on issues of society, science, technology, industry, or business.

Trade barrier
A condition imposed by a government to limit free exchange of goods internationally.

Trade credit
Permission to buy from suppliers on open account.

Trade-fair:
A commercial exhibition designed to bring together buyers and sellers from a particular market sector.

Trademark:
An identifiable mark on a product that may be a symbol, words, or both, that connects the product to the trader or producer of that product.

Turnkey contract
Immediately. An agreement in which a contractor designs, constructs, and manages a project until it is ready to be handed over to the client and operation can begin he conditions concerning payment for a purchase

Unbalanced growth
The result when not all sectors of an economy can grow at the same rate.

Unbundling
Dividing a company into separate constituent companies, often to sell all or some of them after a takeover.

Uncertainty analysis
A study designed to assess the extent to which the variability in an outcome variable is caused by uncertainty at the time of estimating the input parameters of the study.

Undervalued
Used to describe an asset that is available for purchase at a price lower than it is worth.

Underwrite
To assume risk, especially for a new issue or an insurance policy.

Underwriter
A person or organization that buys an issue from a corporation and sells it to investors.

Unearned income
Income received from sources other than employment

Unit
A collection of securities traded together as one item.

Unit of trade
The smallest amount that can be bought or sold of a share of stock, or a contract included in an option.

Unlimited liability
Full responsibility for the obligations of a general partnership.

Unsecured debt
Money borrowed without supplying collateral.

Up sell
To sell customers a higher-priced version of a product they have bought previously.

Used credit
The portion of a line of credit that is no longer available.

Value added
Originally, the difference between the cost of bought-in materials and the eventual selling price of the finished product.

Value-added tax
A tax added at each stage in the manufacture of a product. It acts as a replacement for a sales tax in almost every industrialized country outside North America.

Variable
An element of data whose changes are the object of a statistical study.

Variable annuity
An annuity whose payments depend either on the success of investments that underlie it, or on the value of the index.

Variable cost
A cost of production that is directly proportional to the number of units produced.

Variable interest rate
An interest rate that changes, usually in relation to a standard index, during the period of the loan.

Variance
The square of a standard deviation; a measure of the difference between actual performance and forecast, or standard, performance.

Venture capital
Money used to finance new companies or projects, especially those with high earning potential and high risk.

Venture funding
The round of funding for a new company that follows seed funding provided by venture capitalists.

Venture management
The collaboration of various sections within an organization to encourage entrepreneurial spirit, increases innovation, and produce successful new products more quickly.

Verbal contract
An agreement that is oral and not written down. It remains legally enforceable by the parties who have agreed to it.

Vertical market
A market that is oriented to one particular specialty, for example, plastics manufacturing or transportation engineering.

Viral marketing
The rapid spread of a message about a new product or service in a similar way to the spread of a virus.

Virtual organization
A temporary network of companies, suppliers, customers, or employees, linked by information and communications technologies, with the purpose of delivering a service or product.

Virus
A computer program designed to damage or destroy computer systems and the information contained within them.

Vision statement
A statement giving a broad, inspirational image of the future that an organization is aiming to achieve.

Voting rights
The rights that shareholders have to vote on matters affecting a corporation    volume: An amount or quantity of business; the volume of a business is the total it sells over a period of time.

Vulture capitalist
A venture capitalist who structures deals on behalf of an entrepreneur in such a way that the investors benefit rather than the entrepreneur.

Wages
A form of pay given to employees in exchange for the work they have done.

Waiver of premium
A provision of an insurance policy that suspends payment of premiums, for example, if the insured suffers disabling injury.

Walk
To resign from a job.

Wallet technology
A software package providing digital wallets or purses on the computers of merchants and customers to facilitate payment by digital cash.

Wall Street
The U.S. financial industry, or the area of New York City where much of its business is done.

Waste management
A sustainable process for reducing the environmental impact of the disposal of all types of materials used by businesses.

Wealth
Physical assets such as a house or financial assets such as stocks and shares that can yield an income for their holder.

Web marketing
The process of creating, developing, and enhancing a Web site in order to increase the number of visits by potential customers.

Weighted average
An average of quantities that have been adjusted by the addition of a statistical value to allow for their relative importance in a data set.

Whistle blowing
Speaking out to the media or the public on malpractice, misconduct, corruption, or mismanagement witnessed in an organization.

Wholesale price
A price charged to customers who buy large quantities of an item for resale in smaller quantities to others.

Wholesaling
Businesses and individuals engaged in the activity of selling products to retailers, organizational users or other wholesalers. Selling for resale.

Withholding tax
The money that an employer pays directly to the U.S. government as a payment of the income taxes on the employee.

Word of mouse
Word-of-mouth publicity on the Internet. Owing to the fast-paced and interactive nature of online markets, word of mouse can spread much faster than its offline counterpart.

Working capital
The excess of current assets over current liabilities. The cash needed to keep the business running from day to day.

_____________________________________________________________

GLOSSARY OF GENERAL MEDIA TERMS

Advertising Impressions
The audience delivery of media vehicles, programs or schedules. Usually expressed as thousands (000).

Advertising Research Foundation (ARF)
A non-profit organization of advertisers, agencies and the media for promoting advertising effectiveness through objective research.

Advertising Weight
The level of advertising support over a period of time, expressed in gross rating points, impressions, target audience reached, etc.

Aided Recall
A research technique where the respondent is given aid to help remember all or parts of advertising.

As It Falls
A testing method whereby the media test market receives the same media weight, purchased locally, as it would receive from a national theoretical plan.

Average Frequency
The number of times the average person or household is exposed to an advertising schedule. It is always derived from Gross Rating Points and Reach.

Barter
A term used to indicate that advertising was paid for by the advertiser using goods and services rather than cash.

BDI (Brand Development Index)
a measure of the strength of a brand’s sales in a particular geographic area indexed to the national sales average.

CDI (Category Development Index)
A measurement of a brand’s sales potential using sales of all brands within a category in a specific market indexed to national sales average.

Clutter
The term given to the proliferation of advertising messages aimed at consumers. In TV, it refers to all nonprogram minutes, such as commercials, station promotions, billboards, public service announcements, etc.

Cost Per Rating Point (Cost Per Point, CPP, Cost Per GRP)
The cost to reach one percent of the universe, households or individuals, in a given market or geographic area.

Cost Per Thousand (CPM)
The cost to reach 1,000 units of audience, households or individuals, for advertising. Used as a measure of efficiency among media and media schedules.

Coverage Area
The specific geography where a media vehicle has its coverage. In broadcast, coverage usually describes the area to which the station’s signal extends. In print, coverage usually means the circulation area.

Cume (Cumulative Audience)
Another way of expressing reach. The total number of different people or households exposed to advertising at least once during the media schedule.

Direct Response Advertising
Any advertising message that calls for a prompt response to purchase a product or request more information.

Duplication
The number or percent of the target audience in one media vehicle also exposed to another vehicle.

Efficiency
The ratio of cost to size of audience used to compare media vehicles, plans or schedules.

Exclusivity
An agreement whereby a media vehicle agrees to run no advertising directly competitive to the advertiser purchasing the media vehicle or program.

First Refusal
The opportunity for an advertiser to extend sponsorship rights of a program or vehicle before it is offered to another advertiser.

Fixed Position
An advertising position which remains fixed over time, such as the inside cover of a magazine.

Flighting
A technique for extending advertising dollars using periods of media activity interspersed with periods of inactivity.

Flow Chart
A calendar which dimensionalizes media activity over time, usually a year.

FY
An abbreviation for Fiscal Year.

Gross Impressions
The combined audiences of several media vehicles or several announcements within a vehicle, leaving in the duplication among the audiences.

Gross Rating Points (GRP’s)
The sum of individual ratings in a media plan.

Guarantee
A commitment to the advertiser by a medium that should audience delivery fall short of what was estimated, the advertiser will receive bonus advertising to meet the expected CPM or GRP’s.

Heavy-up
An increase in advertising activity for a limited period of time.

Hiatus
A scheduled period of inactivity between advertising flights.

Little America (or Little U.S.)
Refers to the method of media testing where a national campaign might be tested first in markets that are most similar demographically to the total country.

LNA (Leading National Advertisers)
A syndicated research source reporting advertisers’ spending in media: network and spot TV, network radio, magazines, newspaper supplements and outdoor.

Mail-Order Advertising
Type of advertising in which the complete sales transaction takes place through the mail.

Makegood
Comparable unit of advertising offered at no charge when the original spot or ad did not run or ran incorrectly.

Mediamark Research Inc. (MRI)
A syndicated research source measuring print and broadcast media audiences and product/brand usage profiles.

Net Cost
Advertising rates which do not include advertising agency commission and/or include discounts.

Penetration
The degree to which a medium or vehicle has coverage in a specific area. Can also refer to the effectiveness of advertising’s impact on consumers.

Per Inquiry (P.I.)
Agreement between a media owner and an advertiser where the advertiser pays the owner for advertising on the basis of the number of inquiries or completed sales from the advertising.

Psychographic
Describes consumers on the basis of some psychological trait, characteristics or life style.

Quintile
The division of the audience or sample into five equal groups ranging from heaviest to lightest amount of exposure to any medium.

Rate Card
A statement by a medium showing advertising costs, issue dates, program names, closing dates, requirements, cancellation dates, etc.

Rating
An estimate of the size of an audience expressed as one percent of the total population.

Reach
The unduplicated percent of a potential audience exposed to advertising one or more times during a given period.

Roll Out
An advertising technique where advertising is expanded to cover more and more markets as distribution/ product sales are also expanded.

Share
The percent of an audience tuned to a particular program at a given time.

Share of Voice (SOV)
A brand’s percent of the total advertising weight in its product category.

Short Rate
The cost difference between the discounted contract rate and the higher rate actually earned by an advertiser if he fails to fulfill the contracted amount of advertising.

Sponsorship
Purchase of all or part of a TV program or all pages of a magazine.

Standard Rate & Data Service (SRDS)
Monthly reports of publications’, TV and radio stations’ rate cards and supporting technical information arranged by state and market.

Starch
A research company providing print advertising readership information.

Telmar
A computer system offering various media planning systems for reach and frequency, as well as cross tabulation of data from Simmons and MRI.

Vehicle
Anything capable of exposing advertising to customers.

_______________________________________________________

GLOSSARY OF INTERNET MEDIA TERMS

Bookmark
A routine that allows you to save a reference to a site or page that you have already visited. At a later point in time, you can use a bookmark to return to that page. It commonly refers to a feature of Netscape Navigator (a web browser) that allows you to collect and organize bookmarks of your favorite web sites.

Browser
An application used to view and navigate the World Wide Web and other Internet resources.

Browser war
A catch phrase that refers to the battles between Netscape and Microsoft for dominance of the web browser market. Both sides seek to maximize their product’s marketshare and mindshare in cyberspace. The battles are marked by short product development cycles, publicity campaigns, provocative public statements, appeals for federal intervention, and a general desire to crush the other side.

Bug
Problem with computer software or hardware that causes it to malfunction or crash.

Bulletin Board System (BBS)
An open computer system that members can dial into in order to send email, join discussion groups, and download files. Since the 1970s, BBS’s have provided an early means for home users to get online. Originally, BBS’s were freestanding local systems, but now many provide access to Internet email, telnet, FTP, and other Internet services.

Chat
A form of interactive online communication that enables typed conversations to occur in real-time. When participating in a chat discussion, your messages are instantaneously relayed to other members in the chat room while other members’ messages are instantaneously relayed to you.

Chat History
A transcript of a chat session.

Commercial Online Service
A computer network that supplies its members with access to chat rooms, bulletin boards, and other online content on a monthly fee basis. Commercial online services include America Online, CompuServe, The Microsoft Network, and Prodigy. In addition to their own proprietary content, most commercial online services also provide access to the Internet.

Congestion
A state occurring in a part of a network when the message traffic is so heavy that it slows down network response time.

Connection
When two computers have established a path through which the exchange of information can occur.

Cookies
Small files that are downloaded to your computer when you browse certain web pages. Cookies hold information that can be retrieved by other web pages on the site. Some cookies are programmed with an expiration date so that they are automatically deleted after a period of time.

Copy Protection
A software lock placed on a computer program by its developer to thwart piracy. This preventative measure was widely used in the mid-1980s but later abandoned by many developers because of numerous customer complaints.

Cracker
A malicious hacker who breaks (or cracks) the security of computer systems in order to access, steal, or destroy sensitive information. “Hacker” is often incorrectly used instead of cracker, especially by the media. See also hacker.

Crossload
To send an attached file via email. See also upload and download.

Domain Name
The official name of a computer connected to the Internet. Domain names are derived from a hierarchical system, with a host name followed by a top-level domain category. The top-level domain categories are com (for commercial enterprises), org (for non-profit organizations), net (for network services providers), mil (for the military), and gov (for government).

Domain Name System (DNS)
A database system which looks up host IP addresses based upon domain names. For example if you ask for “www.thisismyhost.com” it will return 123.45.67.89. Copies of the Domain Name System are distributed through the Internet.

Download
To transfer data from a larger “host” system to a smaller “client” system’s hard drive or other local storage device. See also upload.

Download Charges
Monetary charges associated with downloading a file from a commercial online service. This method of information exchange is not very popular.

Ecash
Electronic money designed to be used over a network or stored on cards similar to credit cards. Ecash is still more of an idea than a practical reality, largely due to security concerns.

Eform
An electronic form that is filled out by a user and sent over a network. They are typically used to place orders or provide feedback. Eforms can be placed on web pages or in Java applets and usually contain text boxes, buttons, and other components.

Emoticon
A cute sideways face created by using special characters on the keyboard. Used to express emotions without words. For example, this winking face ;-) indicates “I’m joking”, this sad face :-( expresses sadness or “I’m sulking”. If this makes no sense, turn your head sideways and look again. Also known as a “smiley”.

Encryption
A procedure that renders the contents of a message or file unintelligible to anyone not authorized to read it. PGP (Pretty Good Privacy) is a commonly-used encryption program.

Eyeballs
A viewing audience for a WWW site.

Facilitated Chat
In a facilitated chat, a host or facilitator controls the messages that appear on the chat screen. Usually used when there is a guest speaker. Facilitated chats provide an orderly environment for the guest speaker and ensure that she is not overwhelmed with dozens of questions all being asked at once. See also chat.

FAQ
Acronym for Frequently Asked Questions. A reference document created for particular topic or group that answers to common beginners’ questions. It is considered poor Netiquette to ask a question without first reading the FAQ.

Flame
A public post or email message that expresses a strong opinion or criticism. Flames can be fun when they allow people to vent their feelings, then return to the topic at hand. Others are simply insulting and can lead to flame wars.

Flame Bait
An inflammatory post that is designed to provoke a flame war or flame responses.

Flame on/Flame off
Notifiers that surround a flame message and let readers know that the message they are reading is a flame. Although you don’t see these as much as you used to, they would most commonly be used by an individual known to a particular online group who wishes to do a little ranting and then return to the topic at hand. Note that the original usage of “flame on” was derived from Marvel Comics’ Human Torch character.

Flame War
A series of public posts in which people flame one another rather than contribute useful information.

Flash Session
A feature of America Online that automatically performs online tasks at a designated time. Flash sessions are often used to send/receive email and download large files.

Forum
A topically-focused discussion group or area. From the traditional Roman forum.

Go Word
The word associated with a forum or area on a commercial online service that allows you to get to that place quickly.

Hacker
An expert programmer who likes to spend a lot of time figuring out the finer details of computer systems or networks, as opposed to those who learn only the minimum necessary. See also cracker.

Handle
A nickname used in online communications.

Hit
A single user accessing a single file from a web server. A unit of measure often used erroneously to evaluate the popularity of a web site.

Home Page
A web page that is topically the main source of information about a particular person, group, or concept. Many people on the web create home pages about themselves for fun; these are also known as vanity pages.

Host
A computer that allows users to communicate with other host computers on a network.

Hyperlink
A highlighted word or picture within a hypertext document that when clicked takes you to another place within the document or to another document altogether.

Hypertext
Text that includes links or shortcuts to other documents, allowing the reader to easily jump from one text to related texts, and consequentially from one idea to another, in a non-linear fashion. Coined by Ted Nelson in 1965.

Hypertext Markup Language (HTML)
The tag-based ASCII language used to create pages on the World Wide Web. See also hypertext.

Hypertext Transfer Protocol (HTTP)
The protocol used by the World Wide Web to transfer HTML files.

Icon
A small graphic image that represents a file or application and when clicked upon produces a programmed result. Use of this mnemonic convention originated at Xerox PARC and was subsequently popularized by the Apple Macintosh. Producing an effective icon is non-trivial because of size and color restraints. See iconographer.

Iconographer
A skillful designer who elevates icon design to an art form.

Identity Hacking
Posing as someone else. Posting anonymously or pseudonymously, usually with the intent to deceive.

Infobahn
A variant of information superhighway. An unimplemented proposal by Vice President Al Gore to wire the US for hundreds of cable television channels. Now synonymous with the Internet.

Integrated Services Digital Network (ISDN)
A technology offered by telephone carriers that allows for the rapid transfer of voice and data.

Internet
A worldwide network of networks that all use the TCP/IP communications protocol and share a common address space. First incarnated as the ARPANET in 1969, the Internet has metamorphosed from a military internetwork to an academic research internetwork to the current commercial internetwork. It commonly supports services such as email, the World Wide Web, file transfer, and Internet Relay Chat. The Internet is experiencing tremendous growth in the number of users, hosts, and domain names. It is gradually subsuming other media, such as proprietary computer networks, newspapers, books, television, and the telephone. Also known as “the net”, “the information superhighway”, and “cyberspace”. See also domain, and Domain Name Service.

Internet Explorer
A free web browser application from Microsoft.

Internet Relay Chat (IRC)
A chat network that operates over the Internet. Originally evolved from the UNIX talk program, IRC is similar to the chat systems found on commercial online services.

Internet Service Provider (ISP)
A business that delivers access to the Internet, usually for a monthly fee. PSI, UUNET, and Netcom are examples of established ISPs but there are thousands of smaller ones all around the world.

Internet Society (ISOC)
To quote its home page at http://info.isoc.org: “The Internet Society is a non-governmental International organization for global cooperation and coordination for the Internet and its internetworking technologies and applications.”

InterNIC
The InterNIC is the entity that controls the registration of most domain names on the Internet. The InterNIC is a cooperative activity between the National Science Foundation, Network Solutions, Inc. and AT&T. Its home page is at http://internic.net/

Interoperability
The ability of software and hardware on multiple machines from multiple vendors to communicate meaningfully.

Intranet
A private network that uses Internet-related technologies to provide services within an organization.

IP address
A string of four numbers separated by periods (such as 111.22.3.444) used to represent a computer on the Internet. The format of the address is specified by the Internet Protocol in RFC 791. When a PC accesses the Internet through an ISP, it sometimes receives a temporary IP address.

Jack In
To log in to a machine or connect to a network. Derived from cyberpunk fiction.

Java
An object oriented programming language created by Sun Microsystems. Java is a device independent language, meaning that programs compiled in Java can be run on any computer. Java programs can be run as a free-standing application or as an applet placed on a web page. Applets written in Java are served from a web site but executed on the client computer. Java applets have a built-in security feature which prevents them from accessing the file system of the client computer. See also applet. Here is the Java version of “Hello World!”: class HelloWorld {public static void main (String args[]) {System.out.println(“Hello World!”); }}

JavaScript
A scripting language that allows lines of Java code to be inserted into HTML scripts.

Joint Photographic Experts Group (JPEG)
An image compression standard for still photographs that is commonly used on the web.

Kermit
A protocol used for transferring files over a dial-up connection that is commonly used on BBS systems.

Kill File
A file used by some USENET reading programs that filters out unwanted messages, usually from a particular author or on a particular subject. If you add someone to your kill file, you arrange for the person to be ignored by your news reader.

Leased Line
A permanently established connection between computers over a dedicated phone line which is leased from a telephone carrier.

Line Noise
Static over a telephone line that interferes with network communications.

Link
A highlighted word or picture within a hypertext document that when clicked bring you to another place within the document or to another document altogether. See also hyperlink.

List Server
An automated mailing list distribution system. List servers maintain a list of email addresses to be used for mass emailing. Subscribing and unsubscribing to the list is accomplished by sending a properly formatted email message to the list server.

Local Area Network (LAN)
A group of computers at a single location (usually an office or home) that are connected by phone lines or coaxial cable.

Mailbomb
The act of sending massive amounts of email to a single address with the malicious intent of disrupting the system of the recipient. Mailbombing is considered a serious breach of Netiquette and is probably illegal.

Mailing List
A discussion group that occurs via mass email distributions. Mailing lists are usually maintained by individuals utilizing list server software. List servers maintain a list of email addresses to be used for the mailing list. Subscribing and unsubscribing to the list is accomplished by sending a properly formatted email message to the list server.

Mirror Site
A server which contains a duplicate of another WWW or FTP site. Mirror sites are created when the traffic on the original site becomes too heavy for a single server. Often mirror sites are located in different geographic areas allowing users to choose the site closest to them.

Nanosecond
A measurement of time. There are 1,000,000,000 nanoseconds in a second.

Navigator
A web browser application from Netscape.

Net Lingo
The slang commonly used on the Internet.net.police. Those who feel it’s their appointed role to flame perceived violations of Netiquette.

Net Surfing
Browsing or exploring a network or the World Wide Web to find places of interest, usually without a specific goal in mind. Analogous to channel surfing with a TV remote control.

Netiquette
Network etiquette, or the set of informal rules of behavior that have evolved in Cyberspace, including the Internet and online services.

Netlag
A condition that occurs on the Internet in which response time is greatly slowed due to heavy traffic.

Netnews
The content of USENET.

Network
A group of computers or devices that are connected together for the exchange of data and sharing of resources.

Newsgroup
A public place where messages are posted for public consumption and response. The most available distribution of newsgroups is USENET which contains over ten thousand unique newsgroups covering practically every human proclivity. The names of newsgroups are comprised of a string of words separated by periods, such as “rec.humor.funny” or “misc.jobs.offered”. The first word (i.e. “rec” or “misc”) represents the top level category of newsgroups. The second word (in these examples “humor” and “jobs”) represents a subcategory of the first level, and the third word a subcategory of the second.

Non-Disclosure Agreement (NDA)
A contract commonly used by computer companies to protect the confidentiality of unreleased products. Software developers, reporters, and sometimes beta testers are often required to sign these before they are given access to either information about upcoming products or the product itself.

Offline
As an adjective, not connected to a computer network.
As an adverb, not here or not now, as in “Let’s take this discussion offline.” Often used to indicate that a topic should be discussed privately rather than in a public forum.

Online
Currently connected to a host, opposite of offline. Or referring to anything connected to a computer network.

Password
A secret code that you utilize along with your user ID in order to log on to a network.

Path
The hierarchical description of where a directory, folder, or file is located on your computer or on a network

Post
To send a message to a public area like a BBS or newsgroup where it can be read by many others.

Postmaster
The name given to the person in charge of administrating email for a particular site. According to convention, mail sent to postmaster@foo.com should be read by a real live person. Protocol|A series of rules and conventions that allow different kinds of computers and applications to communicate over a network.

Query
A general question posed to a person or group over the Internet. Internet users are generally so helpful that if one asks an appropriate query to the correct discussion group, one will often receive many useful responses. One caveat: it is necessary to find and read the appropriate FAQ document first. Failure to do so would be considered a waste other people’s time and bandwidth.

Random Access Memory (RAM)
The working memory of the computer into which application programs can be loaded and executed. It helps to have more of this “working space” installed when running advanced operating systems and applications.

README File
A text file included with an application that contains important (and often last minute) information about installing and using the application.

Read Receipts
An optional email feature that notifies you when a recipient has opened the email message you sent him. See also delivery receipts.

Refresh
To clear the screen or part of the screen and redraw it again.

Remote Login
Operating a remote computer over a network as if it were a local computer. This can be accomplished via one of several protocols, including telnet and the UNIX program rlogin.

Response Time
A measurement of the time between a request for information over a network and the network’s fulfillment of that request. “Overall response time” is an aggregate or average measurement of various response times over a particular network or through a particular host.

Search Engine
A program or web site that enables users to search for keywords on web pages throughout the World Wide Web. For example, Google is a popular search engine located at http://www.google.com/

Security
Ensuring that private information remains private in an atmosphere where all other information is free. Security also means that viruses are prevented from infecting people’s systems.

Server
A computer that provides information to client machines. For example, there are web servers that send out web pages, mail servers that deliver email, list servers that administer mailing lists, FTP servers that hold FTP sites and deliver files to users who request them, and name servers that provide information about Internet host names.

Shareware
Software that you can download from a network and “try before you buy.” If you like the software and decide to use it beyond the trial period, you must register with the author and pay a registration fee.

Shouting
TYPING IN ALL CAPITAL LETTERS IS CONSIDERED SHOUTING IN ONLINE COMMUNICATIONS. Avoid this unless you really mean to shout.

Snail Mail
Regular postal mail, as opposed to email. Pejorative when implying postal mail’s slowness relative to email.

Sneakernet
The transfer of electronic information by physically carrying disks, tape, or some other media from one machine to another. Used ironically.

Spam
To send a message (usually an advertisement) to many discussion groups (bulletin boards, mailing lists, and/or newsgroups), without regard for its topical relevance.

Telecommunications
The science of sending signals representing voice, video, or data through telephone lines.

Telecommuting
To work at home and use a computer and modem to communicate with the office.

Telnet
A protocol which allows you to sign onto a remote UNIX computer from a another computer located anywhere on the Internet. To telnet into a remote computer, you usually need to supply a user ID and password that is recognized by the remote system.

Thread
A series of postings on a particular topic. Threads can be a series of bulletin board messages (for example, when someone posts a question and others reply with answers or additional queries on the same topic). A thread can also apply to chats, where multiple conversation threads may exist simultaneously.

Toggle
A switch that is either on or off.

Traffic
The load of packets carried by a network or portion of a network. Heavy traffic slows down the response time of the individual packets.

Triple-dub
An abbreivated way to say “WWW” when reciting a URL.

Upload
To send a file to a network. See also download and crossload.

Virtual
A commonly used adjective that means having all of the properties of x while not necessarily being x. For example, “virtual Friday” in a workplace is the last day of work before a break, that is to say it is like Friday but may or may not actually be Friday. A “virtual reality” is an artificial environment that appears to be its own reality. On a mainframe, a “virtual machine” gives the user all of the properties and “feel” of a separate personal computer.

Virus
An insidious piece of computer code written to damage systems. Viruses can be hidden in executable program files posted online.

Webliography
A listing of source World Wide Web sites.

Webmaster
The person in charge of administrating a World Wide Web site. By convention, the webmaster of Internet domain foo.com can be reached at the email address webmaster@foo.com.

World Wide Web (WWW)
A distributed hypertext system invented by Tim Berners-Lee on a NeXT Computer. Currently, one of the most popular services offered on the Internet. Web pages are viewed using browsing software like Netscape Navigator, Sun Microsystems Hot Java, or Microsoft Internet Explorer. See also browser, Hypertext Markup Language, net surfing, and triple-dub.

Worm
An insidious and usually illegal computer program that is designed to replicate itself over a network for the purpose of causing harm and/or destruction. While a virus is designed to invade a single computer’s hard drive, a worm is designed to invade a network. The most infamous worm was created by Robert Tappan Morris in November 1988; it infiltrated over 6,000 network systems around the globe.

GLOSSARY OUT-OF-HOME (OOH) TERMS

Billboard
An outdoor advertising display. Also, in broadcast, a short 5 or 10 second announcement indicating advertiser sponsorship of a program.

Facing
In outdoor, the number of billboards at a location facing in the same direction. In marketing, the number of units facing the shopper on a shelf in a grocery, drug, discount store. etc.

Poster Panel
The standard outdoor advertising display unit, usually 25′ x 12′.

Showing
A group of outdoor boards which provide a certain percent coverage of a market, usually purchased in increments of 25 (e.g. a #25 showing, a #50 showing, a #75 showing, a #100 showing).

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GLOSSARY OF BROADCAST TERMS

Adjacency
An advertising pod positioned next to a particular TV or radio program. Also called commercial break positions.

Affidavit
A statement, usually notarized, accompanying station invoices which confirms that the commercial actually ran at the time stated on the invoice.

Affiliate
A station associated with a network by contract to broadcast the network’s programs.

Air Date
The first broadcast of a commercial; also refers to the exact date of a particular TV or radio program.

Audilog
The diary used by household members in Nielsen’s local rating sample which records what stations and programs they viewed during a week’s time.

Audimeter
Nielsen’s device for electronically recording TV viewing in sample households. Has been replaced nationally by the People Meter, but still being used in selected markets.

Availability (“avails”)
Unsold units of time available for broadcasters to sell to advertisers. Also refers to a station’s submission of programs and rating estimates for advertising planning and buying.

Average Quarter-Hour Rating
The audience estimate reported by Nielsen and Arbitron for television and radio. It provides the average number of persons or households who watched/listened for at least 5 minutes of the 15 minute segment being reported.

Bonus Spot
Additional TV or radio spot provided to an advertiser at no charge to raise the overall audience delivery of the schedule.

Break Position
A broadcast commercial aired between two programs instead of in the middle of one program.

Broadcast Calendar
An industry-accepted calendar used mainly for accounting and billing purposes. Weeks run Monday-Sunday, and each month is four or five weeks long.

Cable TV
TV programming that is delivered by coaxial cable rather than over the air for the purposes of improved reception and delivery of additional program choices beyond the local stations.

Clearance
A station’s agreement to carry a particular program.

Cut-In
A commercial inserted by the local station that covers the commercial airing at the same time on the network at the advertiser’s request. Useful for testing different copy in a limited geography.

Daypart
One of the time segments into which the day is divided by broadcast media, determined by type of programming and who provides it (network or local).

Designated Market Area (DMA)
Nielsen’s term for geographical areas made up of exclusive counties based on which home market stations receive the predominant share of viewing.

Diary
An instrument for measuring viewing, listening or reading of media vehicles kept by people in a sample.

Drive Time
The dayparts used in radio to signify primary listening being done in cars. Generally considered to be Monday-Friday 6- 10 a.m. and 3-7 p.m. HUT-(Households Using Television) – a broadcast research term indicating the percent of homes with sets on during a specific time period.

ID
Station identification of its call letters and location, channel or frequency. Also refers to any commercial message less than ten seconds long.

Infomercial
A long (more than two minutes) commercial providing extensive product/service description and sales information.

Log
Chronological record of a station’s program and commercial exact air times.

Network
Two or more stations joined by a line to broadcast the same program from a few original studios simultaneously.

Network Affiliate
A television or radio station that designates a portion of its air time for network programs.

O & O Station
A station owned and operated by a network.

O.T.O.
One time only, usually referring to a TV or radio special program.

Overnights
Audience data provided by Nielsen or Arbitron to metered market clients the day after the broadcast.

Pay Per View
A type of Pay TV where viewers are charged each time they watch the special event or movie being broadcast.

Pay TV
A TV system providing programs which are available only to the households who subscribe, usually transmitted via coaxial cable or telephone lines. Also called “premium channels” on cable, such is HBO, Cinemax, Showtime, Disney Channel, etc.

Persons Using Radio (PUR)
The percent of the area’s population listening to radio at a specific time.

Piggyback
Back-to-back scheduling of two or more brand commercials of one advertiser in network or spot positions.

Pilot
A sample of a proposed television series.

Pocketpiece
Nielsen’s weekly reports providing audience estimates for all network and syndicated programs.

Pre-emption
The substitution of one advertiser’s local TV commercial by another advertiser paying a higher price for the spot, or by a different program of interest.

PVT/PUT (Persons Viewing or Using Television)
The percent of individuals viewing all television stations during a specific time period, indicating total viewing to TV in general, not to a specific program or station.

Roadblocking
A scheduling technique where a brand’s commercial airs at approximately the same time on all three networks or on all stations in a given market.

R.O.S. (Run Of Schedule or Run Of Station)
A broadcast schedule, similar to R.O.P. where specific programs and air times have not been requested by the advertiser.

Simulcast
Broadcast of the same program at the same time on both AM and FM radio stations. Can also refer to a radio station simultaneously broadcasting the audio portion of a TV program.

Spill-In
The amount of programming viewed within a market area to stations that are licensed to an adjacent market.

Spill-Out
The amount of viewing to local stations outside the home market area.

Strip
A program scheduled at the same time each day, typically Monday-Friday.

Superstation
An independent station whose signal is transmitted to many markets via a satellite.

Sweeps
The four 4-week periods when all TV markets are measured by Nielsen and Arbitron for station viewing and demographic information. Sweep months are February, May, July and November.

Syndicated Program
A program bought by a station or advertiser from an independent organization, not a network.

TAP (Total Audience Plan)
A radio schedule consisting of equal distribution of commercials across all major dayparts.

Turnover
The ratio of a cumulative audience to the average audience for a given period of time. Indicates how loyal a given audience may be for specific stations or programs.

Upfront
A term indicating that an advertiser has purchased advertising for the coming broadcast year in an early buying season, typically for the benefit of lower rates and CPM guarantees.

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GLOSSARY OF PRINT TERMS

Audit Bureau of Circulations (ABC)
Organization of publishers, advertising agencies and advertisers for verifying the circulation statements of member publications.

Advertising Checking Bureau (ACB)
A company which provides advertisers and agencies with newspaper tear sheets of ads which have run.

Agate Line
A unit of measurement for newspaper advertising which measures one column wide with 14 agate lines per inch.

Bleed
A term used for print advertising that extends all the way to the edge of the page with no margin. Many magazines charge a premium for the bleed, usually 15%.

Business Publication Audit of Circulation (BPA)
An organization for auditing the circulation of business (trade) publications.

Checkerboard
Magazine advertising that uses diagonal quarter or half page ads alternating with editorial.

Checking Copy
A copy of a publication sent to the advertiser and the agency as proof the ad ran as ordered.

Circulation
The total number of distributed copies of a publication at a specified time. Also, in broadcast, the total number of households within the station’s coverage area. In outdoor, the number of people passing the billboards who have an opportunity to see the advertising.

Closing Date
The date by which all advertising must be ordered from the specific media vehicle in order to secure the dates/times/positions requested.

Column Inch
A unit of newspaper space one column wide and one inch deep (14 agate lines).

Direct Mail Advertising
Any printed material sent through the mail directly to prospective customers.

Double Truck
A newspaper ad unit that uses two facing full pages, including the gutter or fold.

Gutter
The blank space between margins of facing pages of a publication.

Insertion Order
Written instructions from the advertiser or agency authorizing a publication to run a specific advertisement in a specific issue. Also specifies cost per ad and size of ad, as well as any request for special position in the publication.

Island Position
A print advertisement surrounded completely by editorial.

Line Rate
The cost per agate line for newspapers.

Magazine Supplement
The magazine section of a Sunday newspaper produced either locally or nationally.

Net Paid Circulation
A term used by ABC for the circulation of a publication for which at least 50% of the subscription or newsstand price has been paid.

PBW, P4C
Abbreviations for Page Black & White and Page Four Color.

Pass-along Audience
Readers of magazines or newspapers who did not purchase the publication. Also called Secondary Audience.

Publishers Information Bureau (PIB)
A syndicated source of monthly reports on advertising activity in major consumer magazines, reported by product or service category.

Publisher’s Statement
A notarized statement from the publisher of total circulation, geographic distribution, method of getting subscriptions, etc.

Readers Per Copy
Average number of readers for one copy of a newspaper or magazine.

Regional Edition
An edition of a national publication’s circulation that falls in a certain geographic area for which advertising may be purchased separately, usually at a cost premium.

Remnant Space
Magazine space sold at reduced prices at the last minute when another advertiser’s materials do not arrive or to fill out regional editions.

Run Of Press or Run Of Paper (ROP)
A newspaper insertion for which an exact position is not requested but left to the newspaper’s discretion.

Split Run
Scheduling two or more executions of an advertising message in alternate copies of a magazine’s circulation in a given issue.

Tabloid
A newspaper measuring about 5-6 columns wide by 200 lines deep, about 2/3 the size of a standard newspaper.

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GLOSSARY OF SIGN TERMS

ANIMATED SIGN
A sign depicting action, motion, light or color changes through electrical or mechanical means.

AWNING SIGN
A building mounted sign that provides additional functionality as shelter.

BANNER
A sign composed of lightweight material. Promotional banners include those used to announce open houses and grand openings, make special announcements, or communicate events. Ornamental banners use images or colors of a decorative nature

BENCH SIGN
A sign located on the seat or back of a bench or seat placed on or adjacent to a public right-of-way. A type of street furniture

BUILDING MOUNTED SIGN
A sign that is applied or attached to a building.

CABINET SIGN
A sign structure consisting of the frame and face(s), not including the internal components, embellishments or support structure.

CANOPY SIGN
A building-mounted sign functioning as a marquee or a sign mounted on a marquee or canopy.

CHANGEABLE COPY PANEL
A section of a sign that functions like a changeable copy sign.

CHANGEABLE COPY SIGN
A variable message sign composed of individual letters panel-mounted in or on a track system.

CONFORMING SIGN
A sign that is legally installed in accordance with federal, state, and local laws and ordinances.

CUSTOM SIGN
A sign designed, manufactured and installed to meet the requirements of a specific location.

DIRECTIONAL SIGN
Signs designed to provide direction to pedestrian and vehicular traffic

DIRECTORY SIGN
A sign that identifies the names and locations of tenants in a multi-tenant building or in a development made up of a group of buildings.

DOUBLE-FACED SIGN
A sign with two parallel opposing (back-to-back) faces. ELECTRIC SIGN: Any sign containing or using electrical wiring.

ELECTRONIC MESSAGE CENTER
A variable message sign that utilizes computer-generated messages or some other electronic means of changing copy. These signs include displays using incandescent lamps, LEDs, LCDs or a flipper matrix.

EXTERIOR ILLUMINATED SIGN
A sign that is illuminated by a light source that is directed towards, and shines on the face of a sign. Also called direct illumination. FACE: The surface area on a sign where advertising copy is displayed.

FASCIA SIGN
A building mounted sign

FLASHING SIGN
A sign with an intermittent or flashing light source. Generally, the sign’s message is constantly repeated, and the sign is most often used as a primary attention-getting device. Government highway departments frequently use flashing signs to improve highway safety.

FREESTANDING SIGN
A sign that is not attached to a building

INTERIOR SIGNS
Signs that are located inside a building or other facility.

INTERNALLY ILLUMINATED SIGN
A sign that is illuminated by a light source that is contained inside the sign.

MARQUEE SIGN
1) a sign mounted on a permanent canopy, 2) a traditional industry term for the variable message section of a canopy sign, 3) an integral sign and permanent canopy

MENU BOARD
A variable message sign that allows a retailer to list products and prices.

MESSAGE CENTER
An electronically or mechanically variable message sign enabling changes to be made from locations other than at the sign.

MOBILE SIGN
A portable sign mounted on a trailer.

MONUMENT SIGN
A ground sign with low overall height.

NEON SIGN
A sign manufactured utilizing neon tubing, which is visible to the viewer

ON-PREMISE SIGN
A communication device whose message and design relates to a business, an event, goods, profession or service being conducted, sold or offered on the same property as there the sign is erected.

PAN FACE SIGN
A plastic sign face molded into a three dimensional shape. Also called molded face, molded and embossed face, molded and debossed face.

PARAPET SIGN
A sign mounted on top of the parapet (low, protective wall along the edge of a roof, bridge, or balcony.) of a building.

PERMANENT SIGN
A sign attached to a building, structure, or the ground in a manner that enables the sign to resist environmental loads, such as wind, and precludes ready removal or movement of the sign.

POINT-OF-PURCHASE SIGN
Signage that advertises a product at its point of sale, or “point of purchase” location.

POLE OR PYLON COVER
An enclosure for concealing and/or for decorating poles or other structural supports of a ground sign

POLE SIGN
A freestanding sign with visible support structure

PORTABLE SIGN
A sign not permanently attached to the ground or building, with a power-cord for connection to an electrical source, and readily removable using ordinary hand tools

POST AND PANEL SIGN
An unlighted sign fabricated by using one or more visible posts to support the sign body

PROJECTING SIGN
A building mounted sign with the faces of the sign perpendicular to the building fascia

REGULATORY SIGN
A sign having the primary purpose of conveying information concerning rules, ordinances or laws.

ROOF SIGN
A building mounted sign erected on the roof of a building.

SIDEWALK/SANDWICH SIGN
A moveable sign not secured or attached to the ground or surface upon which it is located, but supported by its own frame and most often forming the cross-sectional shape of an A.

SIGN
Any visual display with words or symbols designed to convey information or attract attention.

SIGNAGE
A system of signs.

SINGLE-FACE SIGN
A sign with only one face plane.

STATIONARY SIGN
A sign with a power-cord for attachment to a source of electrical power that is not readily moveable or portable.

TEMPORARY SIGN
Any sign not intended for permanent installation, such as banners and signs at construction sites. They may be incidental or miscellaneous in nature, such as political and real estate signs.

UNDER-CANOPY SIGN
A sign designed to be mounted underneath a canopy. VARIABLE MESSAGE SIGN: A sign that includes provisions for message changes. Also called changeable copy panel, changeable copy sign, time and temperature sign, electronic message center, menu board.

WINDOW SIGN
A sign that is displayed in a window.

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