Total Cost of Goods Sold – The gross cost of goods sold plus alteration room and workroom and workroom net cost, if any, less each discount earned on purchases.
Total Revenue – The price per unit multiplied by sales volume and summed over all products and services.
Tracker – A model using three waves of survey data to predict 12-month test market sales for a new consumer nondurable product. The approach views potential customers as proceeding sequentially through stages of awareness, initial product trial, and repeat purchase. The overall prediction of sales overtime is constructed by predicting the time trend of these three quantities (awareness-trial-repeat) using the survey data (Blattberg and Golanty 1978). The effectiveness of the model’s product awareness predictions has been investigated by Mahajan, Muller, and Sharma (1984).
Trade Acceptance – A noninterest-bearing bill of exchange or draft covering the sale of goods, drawn by the seller on, and accepted by, the buyer.
Trade Allowance – A short-term special offer, made by marketers to channel members as an incentive to stock, feature, or in some way participate in the cooperative promotion of a product.
Trade Area – 1. (geography definition) a geographical area containing the customers of a particular firm or group of firms for specific goods or services. 2. (retailing definition) A geographic sector containing potential customers for a particular retailer or shopping center.
Trade Balance – A sub-balance of a country’s balance of payments showing the relationship between total exports and total imports for a given period of time.
Trade Card – A special card issue to the customer as successive purchase are made. It entitles the holder to a prize or purchase credit when a certain total is reached. it is also called a punch card.
Trade Coupon – A coupon that may only be redeemed at a particular store or group of stores.
Trade Credit – The supplying of goods (by wholesalers and manufacturers) on terms that are intended to permit sale by the retailer before payment is due.
Trade Deficit – The difference between the value of products exported to a country and the products imported from that country over a given period of time.
Trade Discount – The discount allowed to a class of customers (manufacturers, wholesalers, retailers) on a list price before consideration of credit terms. It applies to any allowance granted without reference to date of payment.
Trade Dress – The total appearance and image of a product including size, texture, shape, and color combination. Duplication of trade dress of another good is actionable under common law and the Lanham Trademark Act.
Trade Name – A trademark that is used to identify an organization rather than a product or product line.
Trade Premium – A prize, usually merchandise, given by jobbers’ retailers for their cooperation in achieving sales.
Trade Sales Promotion – Marketer’s activities directed to channel members to encourage them to provide special support or activities for the product or service.
Trade Salesperson – A salesperson employed by the manufacturing firm whose primary responsibility is to sell to channel members.
Trade Secret – According to the 1993 Restatement of Torts, a trade secret may consist of any formula, pattern, device, or compilation of information that is used in one’s business and that gives the person an opportunity to obtain an advantage over competitors who do not know or use it. A trade secret may be any commercially valuable information, whether in the form of an invention, an industrial or commercial idea, or a compilation of data. Trade secret law is common law doctrine and varies somewhat from state to state.
Trade Show – 1. (sales definition) An exhibition in which a number of manufacturers display their products. 2. (sales promotion definition) A periodic gathering at which manufacturers, suppliers, and distributors in a particular industry, or related industries, display their products, and provide information for potential buyers (retail, wholesale, or industrial.)
Trademark – A legal term meaning the same as brand. The trademark identifies one seller’s product and thus differentiates it from products and other sellers. A trademark also aids in promotion and helps protect the seller from imitations. A trademark may be eligible for registration, as it is in the United States through the Patent and Trademark Office of the Department of Commerce. If registered, the trademark obtains additional protection, mainly exclusive use, but special efforts are necessary to keep the registration and the exclusive use.
Trading Area – A district the size of which is usually determined by the boundaries within which it is economical in terms of volume and cost for a marketing unit or group to sell and/or deliver products. It is also referred to as shopping radius.
Trading Stamps – A type of continuity plan in which a consumer collects stamps or certificates issued with each purchase at participating retail stores. Stamps are generally redeemed for prizes from a catalog.
Trading-Up – 1. A seller’s practice of handling and promoting more expensive or higher-grade merchandise in order to elevate the prestige of the firm. 2. A salesperson’s effort to interest a customer in better-grade and more expensive goods than the customer expects to buy.
Traffic Audit Bureau – An organization that audits freight bills tendered to the buyer of the transportation service for accuracy. If inaccurate, a claim is filed by the payer of the transportation service to recover cost of overcharges.
Traffic (Customer) – When applied to retailing, this refers to those people who frequent the store (or shopping area) within a particular period of time. Traffic may be heavy, light or medium.