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Attendance Awards:
An employee incentive in which awards are given on the basis of attendance.
Business-to-Business Gift:
A gift to a customer, stockholder, employee or supplier as an expression of appreciation.
Buy-in:
An incentive travel program allowing participants to purchase a portion of the trip.
Catalog House:
A company that puts premiums in specially created merchandise catalogs that are offered to end-users as turnkey promotion
programs.
Closed-end Program:
A sales, trade or employee incentive in which only a set number of people win-as opposed to an open-ended campaign.
Commission:
Pre-determined percentage of sale which is paid for services rendered.
Container Premium:
Product is packed inside a special, reusable container that is different from the product's standard packaging.
Contest:
A competition based on skill in which prizes are offered. Proof-of-purchase is usually required with entry.
Continuity Program:
A self-liquidating or profit-making plan offering a set of related items-one a week for a pre-established period-most often
used by supermarkets.
Corporate Gift:
A gift to a customer, stockholder, employee or supplier as an expression of appreciation.
Cost of Goods Sold:
The direct costs incurred in producing goods or services.
Cost of Operations:
The direct costs incurred in producing goods or services.
Cost Plus:
Pre-determined percentage of profit added to the total cost of an incentive program.
Coupon Plan:
An ongoing program offering a variety of premiums in exchange for labels, coupons or other tokens from one or more product
purchases. Items redeemable for coupons are often shown in special catalogs.
Credit Card Offer:
Direct-mail offer to a credit card holder.
Dealer Incentive:
Premium or other reward given by manufacturers to retailers or distributors in return for a specified bulk purchase, increase
in sales, increase in shelf space, etc.
Debit Card:
A personalized card loaded with incentive award points that correspond to a dollar amount, enabling a winner to make a
purchase and have the funds immediately deducted from that special account.
Destination Management Company:
A local service organization that provides creative itineraries and logistics management based on an in-depth knowledge of
the destination and incentive travel. Works in conjunction with the end-user and/or incentive company.
Direct Premium:
Any item given directly to the consumer at the time of purchase. No wait for fulfillment.
Drop Shipping:
Individual packaging, addressing and delivery of the premium to a specific address.
Drop Shipping Charge:
Dollar amount the supplier adds to the price of his premium for shipping it directly to the consumer. Includes labeling,
handling, packaging and postage.
Employee Award:
An incentive to a non-sales employee for safety, quality control, suggestions, attendance or productivity achievement.
Factory-Pack:
A direct incentive attached to a product-includes in-packs, on-packs and container premiums.
Free:
A magic word with some strings attached. Conditions on which a free offer is made should be clearly stated.
Free Mail-In:
Consumer offer of incentive by mail or proof-of-purchase-in most cases, a sum for postage and handling is required.
Frequent Buyer Plan:
Based on airline frequent flyer programs, this offer gives consumers the ability to accumulate points redeemable for free or
discounted awards.
Fulfillment House:
Service firm that processes recipient orders for premiums, then packages and mails the items. Fulfillment houses provide a
number of services, including warehousing, accounting and coupon redemption management.
Full Service Incentive Company:
An incentive company that offers all aspects of motivational services, including promotion and administration, as well as
travel and merchandise awards.
Gain sharing:
An incentive plan in which groups of employees receive awards based on increased profits, productivity or efficiency.
Game:
A chance promotion, employing a bingo-type card, matching device or rub-off card.
Giveaway:
A low-cost item handed out freely, often to promote a grand opening, special sales event, product sampling, etc.
Gross Margin:
Profit margins before operating expenses are deducted.
Hard Objective:
A measurement criteria with specific results.
Incentive:
Merchandise, travel, cash or service offered to consumers, distributors, salespeople and other employees as a reward for
purchase or performance.
Incentive Representative:
A specialized manufacturers representative serving premium buyers; and independent, commissioned salesperson representing
several different manufacturers.
Incremental:
The results achieved above expected levels, these are results that would not have occurred without the incentive program.
"In-the-Mail" Price:
Actual cost of item plus drop-shipping fee, charged by the supplier.
In-Pack:
A direct incentive enclosed inside a product package.
Keeper:
A premium offered via direct mail as an incentive for the consumer to try a new product or service, or complete an enclosed
research questionnaire. The consumer keeps this premium even if the trial item is returned.
Mail-In:
Any incentive offered upon mail request-either a self-liquidator or a free-offer for multiple proof-of-purchase tokens.
Management Fees:
The fees charged by an incentive company or planner to coordinate the incentive program. These fees are usually established
as a percentage of the incentive budget but they can be a fixed fee.
Motivation:
The stimulation of a consumer's, salesperson's, employee's or dealer's innate desires and personal objectives by a program of
recognition or achievement through merchandise or travel techniques-an incentive program.
Near-Pack:
A direct incentive offered to the consumer on a display adjacent to the product if accompanies.
Net Rate:
A given price for a product/service reduced by the standard commission and any applicable taxes.
Net Sales:
The gross operating income, less the cost of returned goods and allowances.
On-Pack:
A direct incentive attached to the exterior of a product package.
Operating Margin:
Net income after all operating costs have been deducted.
Open-ended Program:
A sales, trade or employee incentive in which everyone who reaches a predetermined goal wins an award-as opposed to a
closed-end campaign.
Per Diem Rate:
The price charged per day.
Plateau Program:
A type of incentive campaign in which participants achieve increasingly large awards based on reaching pre-specified sales or
quota levels or "plateaus".
Premium Jobber/Distributor:
A company that buys premium merchandise from various manufacturers, often warehouses the products, then sells the items to
users for premium/incentive campaigns of all types.
Promotional Product:
Generally a low-cost item bearing a printed advertising message, and/or the company's name, address and telephone number,
given freely without condition of purchase. They are usually sold through local promotional product distributors.
Proof-of-Purchase:
A box-top label, trademark, coupon, UPC symbol or other token from a product that qualifies a consumer to receive a premium.
Quality Awards:
Incentive programs in which employees are recognized for achieving quality standards.
Referral Premium:
Merchandise given to a customer who refers the seller to a friend who may be prospective customer.
Return on Investment (ROI):
The ROI is how much "return," usually profit or cost saving results from an incentive program.
Revenues:
Gross taxable receipts from the sale of a product or service.
Rules Structure:
The criteria and specific requirements (including disclaimers) which govern an incentive program.
SG&A Expenses:
Selling, General and Administrative expenses such as labor costs, marketing costs, postage, utilities, etc.
Safety Awards:
Incentive programs in which employees receive rewards for accident-free performance.
Sales Incentive:
An award to a salesperson to recognize performance-exceeding a quota, signing new accounts, reopening accounts, selling
specific products or other stated objectives of the company.
Self-Liquidator:
A consumer premium offered for proof of purchase and an amount sufficient to cover the award cost plus handling and postage.
Soft Objective:
A measurement criteria that is subjective in nature, i.e. level of customer satisfaction
Sprint:
A brief campaign within a longer sales incentive program designed to maintain interest and excitement.
Suggestion Systems:
A program where employees receive awards for making suggestions.
Sweepstakes:
A promotion, which awards prizes, based on chance drawings. No skill is involved.
Tape Plan:
A supermarket program offering one or several premiums in return for a number of register tapes that when added together
totals a specified minimum amount. Usually that amount is large enough to make the promotion self liquidating.
Tiered Program:
A type of incentive campaign in which participants achieve increasingly large awards based on reaching pre-specified sales
or quota levels or "plateaus".
Traffic Builder:
A low-cost premium offered free to consumers as an inducement to visit a store. Often used in grand openings or other special
promotions.
Travel Incentive:
An individual or group trip usually offered to salespeople or dealers
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