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INDUSTRY TERMS & MEANINGS |
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Glossary of terms A B C D E F G H I J K L M N O P Q R S T U V W X Y Z ACTIVE BUYER: Buyers that have made a recent purchase. ACTIVE CUSTOMER: A term used interchangeably with "ACTIVE BUYER." ACTIVE SUBSCRIBER: One who has committed for regular delivery of magazines, books or other goods or services for a time period still in effect. BALANCE COUNT: The difference between what the mailer has used and what is available on the list. BASE RATE/PRICING: The main cost of the list before additional selections/fees and shipping charges are added. Rate is usually stated as a price per thousand names. BILL ENCLOSURE: An advertisement or promotion which is included in the envelope along with a routine bill or account statement. BROKER: A specialist who makes all necessary arrangements for one company to make use of the list(s) of another company. A broker’s services may include most or all of the following: helps expedite receipt of lists, merge-purge; research; selection; recommendation and subsequent evaluation. Also known as LIST BROKER. BULK MAIL: Mail prepared to USPS standards to qualify for a third class discount rate. BUSINESS LIST: Any list of individuals or companies based upon a business-associated interest, inquiry, membership, subscription or purchase. (usually at business address) BUSINESS REPLY MAIL: A card or envelope with the indicia of the company receiving the order or inquiry - allows inquirer or buyer to mail the card or envelope back postage-free. BUYER: One who orders and pays for merchandise or services. CARRIER ROUTE PRE-SORT: A subclass of third class bulk mail which qualifies for a substantial postal discount for mailers who code and sort mail to the individual carrier route. CARTRIDGE: Portable tape media which holds more information than a diskette and comes in a variety of different formats. CASH BUYER: A buyer who encloses payment with order. CATALOG: A book or booklet whose purpose is to show merchandise and descriptions, and offer said merchandise for sale via order form and/or telephone and/or retail outlets. CATALOG BUYER: One who has bought one or more products from a catalog. Also may refer to an individual who has paid for a catalog before buying any products. (see CATALOG REQUEST) CATALOG REQUEST (PAID OR UNPAID): One who sends for a catalog (prospective buyer). The catalog may be free, there may be a nominal charge for postage and handling, or there may be a more substantial charge which is often refunded or credited on the first order. CHESHIRE LABELS: Mailing labels (specially prepared paper - rolls, fanfold or accordion fold) which are prepared for use with automatic labeling machines. The machines affix the labels individually to the mailing envelope, letter, or order form. The word "cheshire" is derived from the name of the machine that affixes the labels to a mailing piece. These non-gummed labels are produced from a computer tape and may be 1- across north/south, 3 - across, 4 - across or 5 - across, perforated or non-perforated. CLEANING A LIST: The process of correcting and/or removing a name and address from a mailing list because it is no longer correct. Addresses may be corrected as a result of information furnished by the Postal Service or the individual. Removal may be affected as a result of the return of a mailing piece by the Postal Service. CLIENT: One who turns to another for professional or business services - either a mailer to a broker, broker to a list manager or a list owner to a list manager. CODE: A means to identify a specific promotional effort. Also known as a key code (key) or source code. This is a number, series of letters or other identifying device used to determine the source of an order or inquiry. (Other identifying devices may include: colors or other markings) It may appear on an order form or label, or within the return address or coupon or on a space ad. These codes are used to measure specific effectiveness of the media, lists, advertisements, offers, etc. COLD LIST: Outside list. A prospect list as yet untested by the mailer as opposed to his/her own house list. COMMISSION: A percentage of sale, by prior agreement, paid to the list broker, list manager, or other service arm (advertising agency) for their part in the list usage. COMPILED LIST: As opposed to a list of buyers of a certain product or service, a compiled list does not promise any sort of past buying activity. Rather, it is a group of names gathered from public records, registrations, etc. which share something in common, i.e. a compiled list of high school principals, doctors, nurses, etc. COMPILER: See LIST COMPILER. COMPUTER HOUSE: A firm which offers various computer services to the direct marketing industry and other industries including list computerization and maintenance, merge-purge, computer letters, etc. (Also see COMPUTER SERVICE BUREAU) COMPUTER PERSONALIZATION: Printing of letters or other promotional pieces by a computer using names, addresses, special phrases, or other information based on data appearing in one or more computer records. The objective is to make use of the information in the computer record in order to tailor the promotional message to a specific individual. COMPUTER RECORD: All of the information about an individual, company, or transaction appearing in a specific magnetic tape or disc. COMPUTER SERVICE BUREAU: An internal or external facility providing general or specific data processing services. (Also see COMPUTER HOUSE) CONSUMER LIST: A list of names (usually at home address) resulting from a common inquiry or buying activity indicating a general or specific buying interest. CONTINUATION: A mailing to the same list following a successful test. Usually a larger quantity of names than the original test. CONTINUITY PROGRAM: A promotion which has multiple parts - for example, a series of books, records, collector plates or recipe cards which are shipped on a monthly, semi-monthly or quarterly basis. The items are unified by a common theme and often by a common price per shipment. CONTROLLED CIRCULATION: A publication may distribute (at no charge) some or all of its print run to persons or firms which fit a certain profile which is pleasing to its advertisers. Typically, recipients are asked from time to time to verify the information that qualifies them to receive the publication. CO-OP MAILING: Two or more (usually non-competitive) offers combined in one envelope and sent to prospects to cut down the individual costs of mailing, postage, etc. COST PER INQUIRY (CPI): Total cost of mailing or ad divided by the number of inquiries received. COST PER ORDER (CPO): Total cost of mailing or ad divided by the number of orders received. COST PER THOUSAND (CPM): Total cost of mailing or ad divided by the number of thousands mailed. CPI: See COST PER INQUIRY. CPM: See COST PER THOUSAND. CPO: See COST PER ORDER. CREDIT CARD BUYER: One who charges his/her purchase to a bank credit card such as VISA or Mastercard or a Travel & Entertainment card such as American Express, Diners Club or Carte Blanche. They buy by phone or mail. CROSS SECTION: A group of names and addresses selected from a mailing list in such a way as to be representative of the entire list. DATABASE: A number of lists with a common interest merged into one master list eliminating duplicates. DECOY NAME: A "tip off" unique name inserted in a mailing list. Also known as a "seed name", or "salting the list". This assures the list owner that he/she will know when his/her list is being used and how. DELIVERY DATE: The date on which a specific list order is to be received from the list owner or computer house by the list user or a designated representative of the list user (i.e. computer house, lettershop, broker, etc.) DEMOGRAPHICS: Social and economic information about people or groups of people, including age, income, educational level, county, city, zip code, sectional centers. DIRECT MAIL: The use of the postal service to send a common message to persons selected by list, zip code or other means. DIRECT MAIL ADVERTISING: Any promotional effort using the Postal Service or other direct delivery service for distribution of the advertising message. DIRECT MARKETING: Also direct response. Selling or obtaining leads by means of a specific message to a specific prospective buyer or inquirer. DIRECT RESPONSE ADVERTISING: Advertising, through any medium, designed to generate a measurable response by any means (such as mail, telephone, television, cable TV, radio). DISKETTE: Portable media read by most pc’s. DMMA MAIL PREFERENCE SERVICE (MPS): A service provided by DMMA that enables individuals to have their names and addresses removed from mailing lists. These names are made available to both members and non-members of the Association. For those individuals who specify that they would like to receive more mail, special instructions for this purpose are forwarded. DONOR LIST: A list of persons who have given money to one or more charitable organizations. (See CONTRIBUTOR LIST) DUMMY NAME: Another name for a decoy or seed. DUMP: A printout of a few hundred records of a given tape. A dump should accompany any tape delivery along with a description of the file, and a "tape layout." DUPLICATE: Two or more name and address records which are found to be equal under the list user’s basis of comparison (match code, mathematical formula, etc.). DUPLICATE ELIMINATION: The process through merge-purging, by which duplication is removed from a list or group of lists. EXCHANGE: As opposed to a list rental, an exchange takes place when two list owners agree to trade a certain number of names with each other, instead of paying for the usage. EXPIRE: A former customer who has let the subscription/membership run out without renewing. The expired subscription name usually may be rented at a lower rate. FILE: Another name for a list. FILE MAINTENANCE: See LIST MAINTENANCE. FIRST CLASS MAIL: Mail which may or may not contain individual messages, but which is afforded priority treatment. FIRST-TIME BUYER: One who buys a product or service from a specific company for the first time. FLAT CHARGE: A fixed cost for a rental list, usually applies to smaller lists (or may refer to the magnetic tape charge). FORMAT: The location of each item of data on each record of a mailing list. FORMER BUYER: One who has bought one or more times from a company with no purchase in the last 12 months. FORMER SUBSCRIBER: When a magazine ceases publication the subscriber then becomes a former subscriber. FREQUENCY: Along with recency and dollars spent (monetary), one of the three main criteria for judging the qualification of a buyer or group of buyers on a list. Frequency refers to the number of times the customer has purchased within a given period. FULFILLMENT: All activities to get in the mail stream performed after printed pieces and mailing lists are delivered to the mailing service plant; also can refer to the physical handling of an order, or an information request, a premium, or refund. FUND RAISING LIST: Any list of individuals or companies based on a known contribution to one or more fund raising appeals. GEOGRAPHICS: Any method of subdividing a list, based on geographic subdivisions (zip codes, sectional centers, countries, states, regions). GIFT BUYER: One who buys a product or service for another. GUARANTEE: There is no "guarantee of results or response" in direct mail. HOTLINE: Names on a list which are especially recent, and thus command a premium price from the list owner, i.e. monthly, quarterly (three months) or six month hotline names. HOUSE LIST: Any list of names owned by a company as a result of inquiry or buyer action, or acquisition that is used to promote that company’s products or services. INQUIRY: One who has asked for literature or other information about a product or service. Unless otherwise stated, it is assumed no payment has been made for the literature or other information. (Note: A catalog request is, generally, considered a specific type of inquiry.) INTRA-LIST DUPLICATES: Duplication of name and address records within a given list. INVALID RECORD: Any record on a computer tape or disc which is mechanically unacceptable, which doesn’t conform to the list owner’s editing rules, or which doesn’t meet the list user’s specifications. KEY CODE: A means utilized to identify a given promotional effort so response can be identified, tracked, and measured. (see CODE) LABEL: A piece of paper (may be pressure-sensitive or not) which carries the name and address (and possibly a code) of a prospect or previous buyer. It is affixed to an order form, letter or outer envelope for mailing purposes. (see PRESSURE SENSITIVE LABEL or CHESHIRE LABEL) LETTERSHOP: The firm which handles labeling order cards/envelopes, insertion and mailing of direct mail solicitations. Also known as a MAIL HOUSE. LIST (MAILING LIST): the names and addresses of prospects and/or customers who have something in common, whether it be previous buying habits, occupation, or other attributes. LIST BROKER: See BROKER. LIST BUYER: Usually used to identify one who orders mailing lists for one-time use (a list user or mailer). LIST CLEANING: See CLEANING A LIST. LIST CLEARANCE: Permission from the list owner to use his/her list on a specified mailing date, at a specified price for a specified offer. LIST COMPILER: One who develops lists of names and addresses from directories, public records, sales slips, trade show registrations and other sources of identifying groups of people or companies with something in common. LIST CONVERSION: See REFORMATTING. LIST EXCHANGE: See EXCHANGE. LIST MAINTENANCE: The regular updating of list to make sure that addresses are current and buyers are as recent as they should be. LIST MANAGER: One who, as an employee of a list owner or as an outside agent, is responsible for the use, by others, of a specified mailing list(s). The list manager generally serves the list owner in several (or all) of the following: list maintenance (or advice thereon), list promotion and marketing, list clearance and record keeping, collecting for use of the list by others. LIST OWNER: One who, by promotional activity or compilation, has developed a list of names having something in common - or one who has purchased (as opposed to rented, reproduced, or used on a one-time basis) such a list from the developer. (See OWNER) LIST RENTAL: A one-time usage agreement between the owner of a list and an outside source. The owner may be paid x-dollars per thousand names (or net names) rented, or a royalty to be agreed between the parties. LIST ROYALTY: Payment to the list owner for the privilege of using his/her list(s) on a one-time basis. LIST SAMPLE: See LIST TEST. LIST SEGMENTATION: See LIST SELECTION. LIST SELECTION: The process of obtaining from a list, file or data only those records with desired criteria, i.e. hotline, credit card buyers, monetary, state, zip, SCF, gender, etc. Although very small, select groups may be very desirable and may substantially improve response, the cost of the list increases. LIST SEQUENCE: The order in which names and addresses appear in a list. LIST SORT: The computerized process of putting a list in a specific sequence (from another sequence or no sequence). The changing of a given sequence of a list to a different sequence. LIST TEST: An arrangement whereby a list renter makes his/her offer to a small, randomly-selected segment of a list universe to determine its viability. Also known as LIST SAMPLE. LIST USER: One who uses names and addresses on someone else’s list as prospects for the user’s product or service. (See MAILER) LIST USER’S AGREEMENT: A form requiring the list user (renter) to sign an agreement that will include various policies, such as names will be mailed to only once and for the offer pre-cleared. MAGNETIC TAPE: A storage device for electronically recording and reproducing (by use of a computer) defined bits of data. MAIL DATE(S): The day agreed upon between list renter and list owner as the "drop date" for a specific mailing at the post office. The mailer may request a revised date, but only with permission of the list owner. MAIL-ORDER BUYER: One who orders and pays for a product or service through the mail. MAILER: One who uses the mail to promote a product or service using lists of others or house list(s) or both. See LIST USER. MAILING LIST: See LIST. MAILING PACKAGE: See PACKAGE. MANAGER: See LIST MANAGER. MATCH CODE: An abbreviation of data extracted from name and address records, attempting to simplify the sequencing of records in a list and/or the identification of duplicate records. A reliable match code depends upon good editing rules and procedures. MATERIAL: The method of output desired for the list, i.e. pressure sensitive labels, magnetic tape, cheshire labels. MEDIA: Vehicles used to transmit an advertising message (direct mail, radio, television, telephone, catalogs, package inserts, magazines, newspapers, among others). MERGE: Combining of two or more lists (or two or more segments of the same list) - usually in a predetermined sequence. MERGE-PURGE: A computer process whereby lists may be "merged" together to facilitate zip code sequencing and testing segments, and "purged" of duplicate names, pander names, and other undesirable names or names which are to be saved for later mailing. MINIMUM QUANTITY: A required amount of names to be rented on each list rental order. MONETARY: Refers to the amount of money spent by a customer. MULTIPLE BUYER: Also multi-buyer. A person who has purchased more than once from a firm, on different occasions. May be called a repeat buyer. NIELSEN COUNTY: A categorization of counties by density of population ranging from urban (A) to (D) being most rural. OFFER: The merchandise, subscription, etc. that would be sent to the people on a given list which is being rented. ONE-TIME BUYER: A buyer who has not ordered a second time from a given company. ONE-TIME USE: The usual arrangement for list rental - an arrangement whereby a list owner furnishes names to a mailer on a one-time basis, unless otherwise specified in advance. OWNER: See LIST OWNER. PACKAGE: The entire direct mail solicitation including outer envelope, letter, brochure, order card, business reply envelope, and other elements that fulfill the request for information. PACKAGE INSERT: A promotional offer which is included in the shipment of a product. It may be from the firm which is shipping the product, or it may be from a different firm, via a fee or royalty. PAID CANCEL: One who completes a basic buying commitment, or more, before cancelling a commitment. PAID SUBSCRIBER: A list of individuals who have paid to receive a publication. PANDER NAMES: The names of persons who have indicated that they do not wish to receive direct mail solicitations. These are on file at the computer houses so they can be removed during the merge-purge process. PANEL: A group of people of similar interests used for research purposes. PENETRATION: The number or percentage of names on a list in relation to a total - i.e. the "penetration" of a city, state, zip code, SIC code, etc. PRESSURE SENSITIVE LABEL: A Peel-And-Stick type of label which can be attached by hand to a mailing piece or may be cut and glued to a mailing piece so that the recipient can remove it and re-use it on the reply form. PRICE/M: The cost for every thousand names. PROSPECT: The name of a person who is seen as a potential buyer for a product, but who has not yet inquired or purchased. PSYCHOGRAPHICS: Life style or attitude characteristics (i.e., reading, hobby habits, opinions, social roles, etc.) as opposed to the merely statistical indicators of demographics. PURGE: The process of eliminating duplicates and/or unwanted names and addresses from one or more lists. QUALIFIED SUBSCRIBER: A list of subscribers who receive a publication free of charge because of special qualifications, such as job title, occupation or industry affiliation. QUANTITY: The number of names available on a given list. On a list rental order form this indicates the actual number of names to be ordered. RECENCY: Along with frequency and dollar volume (monetary), one of the three indicators of a name’s propensity to buy. Recency indicates the latest purchase date from a certain company. RECIPROCAL RENTAL: Both mailer and list owner agree upon a mutual quantity of names and pricing terms for the use of each other’s names. RECORD: See TAPE RECORD. RECORD FORMAT OR LAYOUT: See TAPE LAYOUT. REFORMATTING: Changing a magnetic tape format from one arrangement to another more usable one. RENTAL: See LIST RENTAL. RENTAL INSTRUCTIONS: These are on the actual orders for list rentals. Used to indicate all details pertaining to a given order. All information must be specific and must be self-explanatory so that all concerned may process the order without difficulty. REPLY CARD: Also called "business reply card" or "BRE." An order card or inquiry card which may be dropped right in the mail, since it bears the sender’s address and postal indicia. RESPONSE RATE: Percentage of return from a mailing. If you received 2 replies per hundred, the response rate would be 2%. ROLL OUT: If a list test is successful, and if a subsequent, larger test validates the test results, a "roll out" is scheduled by which the remaining names in the list universe are mailed. RUNNING CHARGES: The fee set by a list owner for names run but not used by a specific mailer. When such a charge is made it is usually made to cover processing costs. This arrangement must be predetermined. SALTING: Same as seed name, decoy or dummy names. (see DECOY NAME) SAMPLE PACKAGE OR MAILING PIECE: A piece of copy or package submitted to a list owner to indicate what will be mailed to his/her list under a proposed list rental or exchange agreement. This allows the list owner to screen out undesirable or overly-competitive offers. SECTIONAL CENTER FACILITY (SCF): A Postal Service distribution unit comprising different post offices whose zip codes start with the same first three digits. SELECTION: The process of obtaining from a list, file, or data bank only those records with desired criteria. Often one select is within another, as $50 buyers, female, who have purchased in the last six months. SELECTION CRITERIA: Definition of characteristics that identify segments or subgroups within a list. SELF-MAILER: A one-piece direct mail piece which is not a catalog, but which does not come in an envelope. SERVICE BUREAU: See COMPUTER SERVICE BUREAU. SHIP TO/VIA: Address where the list rental order is to be shipped and the method it is to be sent (i.e. UPS Blue, Federal Express Priority 1, etc.) SIC (STANDARD INDUSTRIAL CLASSIFICATION): Classification of businesses, as defined by the U.S. Department of Commerce. SOURCE: The media (general or specific) used to generate names on a mailing list; i.e. direct mail, space, TV, etc. SOURCE CODE: Same as code or key code. (see CODE) SOURCE COUNT: The number of names and addresses, in any given list, for the media (or list sources) from which the names and addresses were derived. SPLIT TEST: Two or more samples from the same list - each considered to be representative of the entire list - used for package tests or to test the homogeneity of the list. STANDARD INDUSTRIAL CLASSIFICATION (SIC): See SIC. STATE COUNT: The number of names and addresses, in a given list, for each state. STATEMENT INSERT: The insertion of another company’s advertising in the list owner’s statements. STATEMENT STUFFER: See BILL ENCLOSURE. STUFFER: An enclosure in a package, statement, newspaper or other medium for the purpose of selling a product. SUBSCRIBER: See ACTIVE SUBSCRIBER ,EXPIRE, and QUALIFIED SUBSCRIBER. SUBSCRIPTION FULFILLMENT: The company that provides labels and mails magazines to subscribers. They are also responsible for collecting subscription revenue and mailing renewal efforts. TAPE: Refers to MAGNETIC TAPE. TAPE DUMP: A printout of data on a magnetic tape for checking correctness, readability, consistency, etc. TAPE FORMAT: See TAPE LAYOUT. TAPE LAYOUT: A simple "map" of the data included in each record and its relative, or specific location. TAPE RECORD: All of the information about an individual or company contained on a specific magnetic tape. TEST PANEL: A term used to identify each of the parts or sample in a split test. TEST/TESTING: Preliminary mailing which determines the relative chances of success of a given proposition in a given medium. Usually refers to initial list rental order on a given list. THIRD-PARTY MAILING HOUSE: A lettershop or facility that is not an in-house facility. TITLE: A designation before (prefix) or after (suffix) a name to more accurately identify an individual. (Prefixes: Mr., Mrs., Dr., etc.; suffixes: President, Sales Manager, etc.) TRADE PUBLICATION: Magazines which are intended for those who are involved in a specific trade or profession. TRAFFIC BUILDER: A direct mail piece which does not have solicitation of a direct order as its main goal. Rather, it is meant to bring customers into a retail store. TRIAL BUYER: One who buys a short-term supply of a product, or buys the product with the understanding that it may be examined, used, or tested for a specific time before deciding whether to pay for it or return it. TRIAL SUBSCRIBER: One who orders a publication or service on a conditional basis. The condition may relate to delaying payment, the right to cancel, a shorter than normal term and/or a special introductory price. UNIQUE NAMES: After a merge/purge process has been done, the names that have appeared on one list only. A unique name differs from a duplicate name in this respect although each is used one time only in a particular mailing. UNIVERSE: The total number of people who fit a certain set of characteristics. Also the total number of people on a specific mailing list. UPDATE: Adding recent transactions and current information to the master (main) list to reflect the current status of each record on the list. UPSCALE: A market which by virtue of its income level, lifestyle and interests, is a good field for luxury or discretionary income-related offers. Can be responsive or compiled. VALIDATION: A mailing which takes place after an initial test to verify the test results before a roll-out. ZIP + 4: The U.S. Postal Service designation for the nine-digit zip code. Zip + 4 codes can identify a particular block or range of blocks, a building or floor within a building, apartment, or business firm. ZIP CODE: A group of five digits used by the U.S. Postal Service to designate specific post offices, stations, branches, buildings or large companies. ZIP CODE COUNT: The number of names and addresses in a list, within each zip code. ZIP CODE SEQUENCE: Arranging names and addresses in a list according to the numeric progression of the zip codes in each record. This form of list formatting is mandatory for mailing at bulk third-class mail rates based on the sorting requirements of the Postal Service regulations. |
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