Reverse Logistics – The process of returning products in a physical channel. In many logistics systems, there are two way flows of product and service. In some systems, products must be returned to a central location for repair and refurbishing. In other systems, products may be recalled and returned to a central processing area.
Reverse Marketing – A proactive, market-oriented approach to procurement.
Revolving Credit – A consumer credit plan that combines the convenience of continuous charge account and the privileges of installment payment. It is commonly used for purchase of merchandise on a nonsecured basis.
Risk Analysis – As a stage in the preparation of strategic plan, internal vulnerabilities of the business and external threats need to be identified. The risks with the highest probability of occurring and/or those that would cause the most damage need to be identified in order that appropriate action may be taken. the importance of any specific risk factor is equal to the negative (or positive) consequences of the factor multiplied by the likelihood of its occurrence.
Roadrailer – A transportation innovation that allows a truck chassis to be outfitted with a set of rail trucks (wheels) that allows the truck to be used directly on the rails. This provides significant intermodal flexibility and service improvement.
Role Set – The set of people who have vested interest in how the salesperson performs the job. These people include the individual’s immediate superior, other executives in the firm, purchasing agents and other members of customers’ organizations, and the salesperson’s family. They all try to influence the salesperson’s behavior, either formally through organizational policies, operating procedures, training programs, and the like, or informally through social pressures, rewards, and sanctions.
Rough- A dummy of a print advertising layout or an early version of a television storyboard prepared by art directors and copywriters to help them realize the advertising idea and discuss it with others in the advertising agency and sometimes with clients.
Routine Call Pattern – A method used by salespeople to schedule sales calls regularly on customers.
Routing – 1. (physical distribution definition) A process of directing either an employee or a vehicle along some predesignated path. The path is usually designed to minimize cost or effort given some overall objective of the system. 2. (sales definition) A plan describing how a salesperson will travel through the salesperson’s sales territory.
Rule of Reason – 1. (economic definition) A principle for determining the legality of business practices. Illegality is determined by evidence concerning the country, competitors, and consumers. 2. (legislation definition) A standard applied to the Sherman Antitrust Act that interprets it to prohibit only “unreasonable restraints of trade” rather than every restraint of trade. The courts have consistently defined the term “unreasonable”.
Run of Press Coupon (ROP) – The positioning of ads anywhere within the pages of a newspaper or magazine as the staff of the publication prepares the various pages for printing. This contrasts with advertisers paying premium prices for ads that are to be paced in specific locations in a magazine or newspaper.
Run-of Press Color – The use of color ink for ads printed during the regular printing process for a publication. This contrasts with color preprint advertising in which color ads are printed separately and inserted between the pages of a publication during the regular printing process.
Safety Stock – A measurement used in inventory management. It is the average amount of inventory on hand when a new shipment arrives. Higher levels of safety stock to protect against out of stock condition require additional dollar investment in inventory.
Safety Stock Merchandise – Inventory used as a safety cushion for cycle stock so the retailer won’t run out of stock if demand exceeds the sales forecast.
Sale-Leaseback – The practice of retailers building new stores and selling them to real estate investors who then lease the buildings back to the retailers on a long-term basis.
Saleable Sample – A regular or specially sized quantity of the product offered at a low price to induce trial.
Sales Analysis – A procedure involving the gathering, classifying, comparing, and studying of company sales data. it may simply involve the comparison of total company sales in two different time periods. Or it may entail subjecting thousands of component sales (or sales related) figures to a variety of comparisons among themselves, with external data, and with like figures for earlier periods of time.
Sales Aptitude – The overall limit of an individual’s ability to perform a given sales job. Sales aptitude is a function of such enduring personal and psychological characteristics as physical factors, mental abilities, and personality characteristics.
Sales Budget – The portion of a firm’s total marketing budget allocated for sales force training, compensation, travel, entertainment expenses, and the costs of sales force administration.
Sales Call – A meeting between a customer and a salesperson who engages in selling.
Sales Call Allocation Grid – A method used to classify customers and determine the sales effort to direct toward them. The dimensions are the strength of the firm’s position with customer and the customer’s sales potential.
Sales Contest – 1. (sales definition) A short-term incentive program designed to motivate sales personnel to accomplish specific sales objectives. Comment: In general, a sales contest is used by firms to stimulate extra effort for obtaining new customers, promoting the sales of specific items, generating larger orders per sales call, etc. 2. A short-term incentive program designed to motivate salespeople to accomplish very specific sales objectives. . Although a contest should not be considered part of the firm’s ongoing compensation plan, it does offer salespeople the opportunity to gain financial as well as nonfinancial rewards. Contest winners often receives prices in cash or merchandise or travel to have monetary value. Winners also receives nonfinancial rewards in form of recognition and a sense of accomplishment.