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documentaçã o comercial


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Objetivos e conteú dos................................................................................................................................................. 3

Documentaçã o comercial – inglês técnico.......................................................................................................... 4

Formas e normas documentais............................................................................................................................... 4

Documentaçã o comercial....................................................................................................................................... 18

Encomenda - Order................................................................................................................................................... 20

Fatura - Invoice........................................................................................................................................................... 21

Nota de débito e de crédito – Debit and credit note.................................................................................... 22


Recibo - Receipt ........................................................................................................................................................ 23

Cheque............................................................................................................................................................................ 23

Letra – A bill................................................................................................................................................................. 24

Terminologia específica.......................................................................................................................................... 25

Importaçã o/Exportaçã o.......................................................................................................................................... 25

Bill of Lading................................................................................................................................................................ 26

FOB /FAS....................................................................................................................................................................... 26

Embargo........................................................................................................................................................................ 27

Bank related terminology....................................................................................................................................... 27

FOB /FAS....................................................................................................................................................................... 26

Embargo........................................................................................................................................................................ 27

Bancos - Banks............................................................................................................................................................ 27

Encomendas - Orders............................................................................................................................................... 29

Vendas -Sales Terminology................................................................................................................................... 32

Transportation Terminology................................................................................................................................ 36

Discounts....................................................................................................................................................................... 59

Incoterms...................................................................................................................................................................... 36

Discounts....................................................................................................................................................................... 59

Payements.................................................................................................................................................................... 72

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Bibliography................................................................................................................................................................ 76
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 Identificar os documentos comerciais e redigi-los em inglês.

 Identificar a terminologia específica associada à atividade comercial.

Conteú dos:
 Documentaçã o comercial – inglês técnico
 Formas e normas documentais
 Documentaçã o comercial
 Encomenda
 Fatura
 Nota de débito e de crédito
 Recibo
 Cheque
 Letra

 Terminologia específica
 Importaçã o/Exportaçã o
 Bancos
 Encomendas
 Vendas
 Transportes
 Descontos
 Incoterms

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 Pagamentos
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Documentação comercial – inglês técnico

Formas e normas documentais

1 ad abbr. advertisement - advert abbr.

2 advertisement n. item of publicity for a product or service, in magazine, on TV etc

3 advertising agency n. company specialising in producing and placing advertisements for


4 AIDA abbr. Attention, Interest, Desire, Action - the objective of all


5 benefit n. advantage of a product or service, usually derived from its features

6 billboardUS n. signboard, usually outdoors, for advertising posters; hoardingUK

7 circulation n. average number of copies of a magazine sold in a particular period

8 classified ads n. small advertisements in magazine or newspaper categorised by subject

9 commercial n. paid advertisement on radio or TV

10 coupon n. part of a printed advertisement used for ordering goods, samples etc.

11 double-page n. advertisement printed across 2 pages in a magazine or newspaper


12 eye-catcherUS n. something that especially attracts one's attention - eye-catching adj.

13 features n. special characteristics of a product, usually leading to certain benefits

14 hoardingUK n. signboard, usually outdoors, for advertising posters; billboardUS

15 poster n. large sheet of paper, usually illustrated, used as advertisement

16 prime time n. hours on radio & TV with largest audience, esp. the evening hours

17 promote v. to (try to) increase sales of a product by publicising and advertising it

18 slot n. specific time in a broadcasting schedule, when a commercial may be

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19 target n. objective; what one is aiming at - target audience n.

20 U.S.P. abbr. Unique Selling Proposition; what makes a product different from

1 balance n. the difference between credits and debits in an account

2 bank charges n. money paid to a bank for the bank's services etc.

3 branch n. local office or bureau of a bank

4 checkbookUS n. book containing detachable checks; chequebookUK

5 checkUS n. written order to a bank to pay the stated sum from one's account; chequeUK

6 credit n. money in a bank a/c; sum added to a bank a/c; money lent by a bank - also

7 credit card n. (plastic) card from a bank authorising the purchasing of goods on credit

8 current account n. bank a/c from which money may be drawn at any time; checking accounts

9 debit n. a sum deducted from a bank account, as for a cheque - also v.

10 deposit account n. bank a/c on which interest is paid; savings accounts

11 fill inUK v. to add written information to a document to make it complete; to fill outUS

12 interest n. money paid for the use of money lent - interest rate n.

13 loan n. money lent by a bank etc. and that must be repaid with interest - also v.

14 overdraft n. deficit in a bank account caused by withdrawing more money than is paid in

15 pay in v. [paid, paid] to deposit or put money in to a bank account

16 payee n. person to whom money is paid

17 paying-in slip n. small document recording money that you pay in to a bank account

18 standing order n. an instruction to a bank to make regular payments

19 statement n. a record of transactions in a bank account

20 withdraw v. [-drew, -drawn] to take money out of a bank account - withdrawal n.

Company Structure
1 Accounts Dept. n. department responsible for administering a company's financial affairs

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2 A.G.M.UK abbr. Annual General Meeting of a company's shareholders
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3 board of directors n. group of people chosen to establish policy for and control a company

4 chairmanUK n. person who heads a Board of Directors; head of a company; chairperson

5 director n. a member of the board of directors

6 executive officerUS n. person managing the affairs of a corporation - chief executive officer n.

7 headquarters n. a company's principal or main office or centre of control

8 manager n. person responsible for day-to-day running of a dept.; executive officerUS

9 managing director n. senior director after the chairman responsible for day-to-day direction

10 Marketing Dept. n. department that puts goods on market, including packaging, advertising

11 organisation chart n. a table or plan showing a company's structure graphically

12 Personnel Dept. n. department responsible for recruitment and welfare of staff or employees

13 presidents n. the highest executive officer of a company; head of a company

14 Production Dept. n. department responsible for physical creation of product

15 Purchasing Dept. n. department responsible for finding and buying everything for a company

16 R & D n. department responsible for Research and Development of (new) products


17 reception n. the place where visitors and clients report on arrival at a company

18 Sales Department n. department responsible for finding customers and making sales

19 shareholder n. person who holds or owns shares in or a part of a company or


20 vice presidentUS n. any of several executive officers, each responsible for a separate division

1 agreement n. an arrangement between two or more people, countries etc.; contract

2 appendix n. additional or supplementary material at end of contract, book etc.

3 arbitration n. settlement of a dispute by a person chosen by both parties - to arbitrate v.

4 article n. a particular statement or stipulation in a contract etc; clause

5 clause n. a particular statement or stipulation in a contract etc; article

6 condition n. anything necessary before the performance of something else

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7 force majeure n. superior, power; unforeseeable event excusing one party from fulfilling
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8 fulfil v: to satisfy a condition; to complete the required task; to fulfillUS

9 herein adv: in here; in this (document etc.)

10 hereinafter adv: in the following part (of this document etc.)

11 hereto adv: to this (document etc.) [eg: attached hereto]

12 heretofore adv: up until now; until the present; before this

13 in behalf of in the interests of (person etc.); for (person etc.); on behalf ofUK

14 null and void invalid; without legal force; not binding

15 on the one on one side - on the other hand on the other side

16 party n. the person or persons forming one side of an agreement

17 stipulate v. to specify as an essential condition - stipulation n.

18 terms n. conditions or stipulations

19 warrant v. to give formal assurance; to guarantee

20 whereas conj: it being the case that; in view of the fact that [in introduction to contracts]

1 bill of lading n. list of goods and shipping instructions; waybill

2 c.&f. abbr. cost & freight: includes shipping to named port but not insurance

3 c.i.f. abbr. cost, insurance & freight: includes insurance and shipping to named

4 cargo n. goods or products that are being transported or shipped

5 certificate of n. a document that shows where goods come from


6 container n. huge box to hold goods for transport - container port n. to containerise

7 customs n. 1 government tax or duty on imported goods 2 officials who collect this

8 declare v. to make a statement of taxable goods - customs declaration form n.

9 f.a.s. abbr. free alongside ship [includes delivery to quayside but not loading]

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10 f.o.b. abbr. free on board: includes loading onto ship
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11 freight n. goods being transported; cargo

12 irrevocable adj. that cannot be undone; unalterable - irrevocable letter of credit n.

13 letter of credit n. a letter from a bank authorising a person to draw money from another

14 merchandise n. things bought and sold; commodities; wares - also v.

15 packing list n. a document that is sent with goods to show that they have been checked

16 pro forma invoice n. an invoice or request for payment sent in advance of goods supplied

17 quay n. a solid, artificial landing place for (un)loading ships; wharf - quayside n.

18 ship v. to send or transport by land, sea or air - also n. shipment n.

19 shipping agent n. a person acting for or representing a ship or ships at a port

20 waybill n. list of goods and shipping instructions; bill of lading - air waybill n.

1 actuary n. a person who calculates risks for insurance companies

2 assessor n. a person who calculates the value of something [eg: a building, car etc.]

3 claim n. an application for payment under an insurance policy - to make a claim


4 comprehensive n. [of an insurance policy] all-inclusive; providing complete protection

5 consequential loss n. a loss that happens as a consequence of or as a result of another

6 coverUK n. the protection given by an insurance policy [eg: public liability cover]

7 employer's n. liability or responsibility of a firm for damage caused to one of its

liability employees

8 goods in transit n. property, merchandise or any goods in the process of being transported

9 insurance broker n. agent who arranges insurance; middleman between insurer &

10 liability n. 1 the state of being liable 2 anything for which a person is liable

11 liable adj. legally obliged to pay for damage, injury etc.; responsible - liability n.

12 loss n. death, injury, damage etc. that is the basis for a claim - to lose v.

13 loss adjuster n. a person who assesses the amount of compensation arising from a claim

14 policy n. a contract of insurance [eg: a product liability policy]

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15 policyholder n. the person to whom an insurance policy is issued

16 premium n. a payment, usually monthly, yearly etc., for an insurance policy

17 product liability n. liability or responsibility of a firm for damage caused by one of its

18 public liability n. responsibility of a firm for damage caused to a member of the public

19 reinsurance n. the insuring of risk by one insurance company with another - to reinsure

20 risk n. 1 chance or possibility of injury, loss etc. 2 person or thing causing risk

1 attorney n. 1 a person appointed to act for or represent another 2US lawyer

2 barristerUK n. a lawyer who pleads before a superior court

3 brief n. 1UK instructions to a barrister - also v. 2US written statement of facts

4 case n. statement of the facts in a trial, esp. the argument of one side

5 contract n. a formal agreement, usually in writing, between two or more parties

6 court of law n. the place where law cases are heard and decided; court - courtroom n.

7 evidence n. information presented to a court to prove or support a point in question

8 guilty adj. responsible for wrong; culpable - guilt n. not guilty adj.

9 judge n. official with authority to hear and decide cases in a court of law - also v.

10 jury n. a group of people chosen to hear the evidence of a case and give a

11 lawsuit n. a trial at court between two private parties

12 lawyer n. a person trained in law and who advises or represents others

13 plead v. 1 to defend a law case 2 to declare oneself to be guilty or not guilty - plea

14 sentence n. 1 decision of a court, esp. as to the punishment 2 the punishment - also v.

15 solicitor n. 1UK lawyer advising clients & briefing barristers 2US law officer for a city

16 sue v. to start legal action against someone in a court of law - lawsuit n.

17 sum up v. to summarise & review the evidence of a case - summing up n.

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18 trial n. a formal examination of a case in a court of law - to try v.
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19 verdict n. the formal decision or finding of a judge or jury

20 without without detriment or damage to a legal right or claim


1 brand n. a particular make of product - to brand v. - branded adj.

2 consumer n. the person who buys and uses a product or service - to consume v.

3 cost v. [cost, costed, costed] to estimate the price of making a product - costing n.

4 develop v. to create a new product or improve an existing one - product development


5 distribution n. the delivering of products to end-users, including advertising, storing etc.

6 end-user n. the person, customer etc. who is the ultimate (and so real) user of a product

7 image n. the concept or perception of a firm or product held by the general public

8 label n. small piece of paper, metal etc. on a product giving information about it

9 launch v. to introduce a new product, with publicity etc. - product launch n.

10 mail order n. the selling of goods by post - mail-order catalogue n.

11 market n. study of consumers' needs & preferences, often for a particular product

12 packagingUK n. the wrapping or container for a product

13 point of sale n. the place where a product is actually sold to the public - point-of-sale adj.

14 product n. something made to be sold; merchandise [includes services] - to produce v.

15 public relations n. creation and maintenance of a good public image - public relations officer

16 registered adj. registered or officially recorded as a trademark - ® abbr. - to register v.

17 sponsor n. firm supporting an organisation in return for advertising space - also v.

18 S.W.O.T. abbr. Strength, Weaknesses, Opportunities, Threats

19 total product n. the whole product, including name, packaging, instructions, reliability,
after-sales etc.

20 trademark n. special symbol, design, word etc. used to represent a product or firm - "

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1 A.G.M. documentaçã o administrativa
abbr. Annual General Meeting

2 A.O.B. abbr. Any Other Business [usually the last item on an agenda]

3 absent adj. not here; not at the meeting; not present

4 agenda n. a written programme or schedule for a meeting

5 apologies n. item on agenda announcing people who are absent; apologies for absence

6 ballot n. a type of vote, usually in writing and usually secret- secret ballot n.

7 casting vote n. a deciding vote (usually by the chairman) when the votes are otherwise

8 chairman n. the person who leads or presides at a meeting; chairperson; chair

9 conference n. formal meeting for discussion, esp. a regular one held by an organisation

10 conference call n. telephone call between three or more people in different locations

11 consensus n. general agreement

12 decision n. a conclusion or resolution to do something - to decide v.

13 item n. a separate point for discussion [as listed on an agenda]

14 matters arising n. item on agenda for discussion of what has happened as a result of last

15 minutes n. a written record of everything said at a meeting

16 proxy vote n. a vote cast by one person for or in place of another

17 show of hands n. raised hands to express an opinion in a vote

18 unanimous adj. in complete agreement; united in opinion

19 videoconference n. conference of people in different locations linked by satellite, TV etc.

20 vote v. to express opinion in a group by voice or hand etc. - also n. - to cast a vote

1 A.T.M. abbr. Automated Teller Machine; cash dispenserUK

2 banknote n: a piece of paper money; billUS

3 billUS n. a banknote; a piece of paper money

4 black market n. illegal traffic in officially controlled commodities such as foreign currency

5 bureau de n. establishment where currencies of different countries may be exchanged

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6 cash n. 1 coins or bank notes (not cheques); 2 actual money paid (not credit)

7 cash dispenserUK n: automatic machine from which clients of a bank may withdraw money;

8 cashier n. person dealing with cash transactions in a bank, store etc.

9 coin n: a piece of metal money

10 currency n. the money in general use or circulation in any country

11 debt n. money etc. owed by one person to another

12 exchange rate n. the rate at which one currency can be exchanged for another

13 foreign exchange n: the currency of other countries

14 hard currency n. currency that will probably not fall in value and is readily accepted

15 invest v. to put money for profit into business, land etc. - investment n.

16 legal tender n: currency that cannot legally be refused in payment of a debt

17 petty cashUK n. a cash fund for small, everyday expenses

18 soft currency n. currency that will probably fall in value and is not readily accepted

19 speculate v. (risky) buying of foreign currency, land etc. for rapid gain - speculation n.

20 transaction n. a (usually commercial) exchange; a deal - to transact v.

1 audience rapport n. relationship of presenter with audience, esp. when good

2 body language n. non-verbal communication through facial expressions, body

movements etc.

3 Finally . . . Typical word used to signal the last of several points or subjects

4 flip chart n. a pad of large paper sheets on a stand for presenting information

5 For example . . . Typical phrase used to signal an illustration or sample of a particular point

6 handout n. anything (report, sample etc.) handed or given to people at a


7 In conclusion . . . Typical phrase used to signal the summing up or final part of a


8 Ladies & Polite phrase often used to address an audience of men and women

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9 marker n. whiteboard marker a pen with a broad, felt tip for writing on
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10 microphone n. electrical instrument that one speaks into for amplification of the voice

11 O.H.T. abbr. overhead transparency; sheet of film with image for o.h.p.

12 overhead projector n. device that projects an o.h.t. onto a screen - O.H.P. abbr.

13 pointer n. device (rod or electric torch etc.) for indicating things on a map, screen

14 screen n. large, flat, reflective white surface on which films, slides etc. are

15 signal v. to help the audience understand where one is in a presentation

16 slide n. small (usually 35mm) photographic transparency - slide projector n.

17 To start with . . . Typical phrase used to signal the beginning of a particular subject or topic

18 Turning now to . . . Typical phrase used to signal a change from one subject or topic to

19 visual aids n. things that one can look at in a presentation [eg: films, maps, charts

20 whiteboard n. large, flat, white surface or board on which to write or draw with

1 after-sales service n. service that continues after a product has been sold [eg: repairs etc.]

2 buyer n. 1 any person who buys anything 2 a person employed by a firm to buy

3 client n. a person who buys services from a lawyer, architect or other professionals

4 close v. to finalise a deal or sale; to make a sale

5 cold call v. to telephone a prospect without previous contact - also n.

6 customer n. a person who buys goods or services from a shop or business

7 deal n. a business transaction - also v. dealer n.

8 discount n. a reduction in the price; a deduction [usually expressed as a percentage


9 follow up v. to continue to follow persistently; to maintain contact [eg: after a lead]

10 guarantee n. a promise that a product will be repaired or replaced etc. if faulty - also v.

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11 in bulk in large quantity, usually at a lower price
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12 lead n. useful indication of a possible customer to be followed up

13 objection n. a reason given by a prospect for not buying - to object v. see overcome

14 overcome v. [-came, -come] to overcome an objection to show an objection is invalid

15 product n. something made and usually for sale - to produce v. see service

16 prospect n. a possible or probable customer; prospective customer

17 representative n. sales representative person who represents & sells for a firm; salesperson

18 retail v. to sell in small quantities (as in a shop to the public) - also n. see

19 service n. work done usually in return for payment - to serve v. see product

20 wholesale v. to sell in bulk (as to a shop for resale to the public) - also n. see retail

British and American Financial Terms

Here are some of the main differences between British and American financial terminology.

British American

Annual General Meeting (AGM) Annual Stockholders Meeting

Articles of Association Bylaws

authorised share capital authorized capital stock

barometer stock bellwether stock

base rate prime rate

bonus or capitalisation issue stock dividend or stock split

bridging loan bridge loan

building society savings and loan association

cheque check

company corporation

creditors accounts payable

current account checking account

debtors accounts receivable

gilt-edged stock (gilts) Treasury bonds

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labour labour
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Memorandum of Association Certificate of Incorporation

merchant bank investment bank

ordinary share common stock

overheads overhead

profit and loss account income statement

property real estate

quoted company listed company

retail price index (RPI) consumer price index (CPI)

share stock

share premium paid-in surplus

shareholder stockholder

shareholders' equity stockholders' equity

stock inventory

trade union labour union

unit trusts mutual funds

visible trade merchandise trade

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Documentação comercial

What Are the Different Types of Business Documents?

 The term “business documents” covers various documents, reports and statements
written by company executives and managers to improve operations, inform clients of
purchases and share budgets with investors and shareholders. Each type of business document
includes data, sections and visual graphs to illustrate the sales, annual income and internal
operations of the business. Business documents may be between one page long and several
hundreds of pages.

Business Plans and Goals

 The first document a business owner should write is a solid business plan. This
document outlines common goals and objectives of the business, along with a management
plan, marketing strategies and a financial budget. This document includes strategic goals and
provides a blueprint for the business, especially during the first few years of business.

Accounting Documents

 The accounting department of any given business must track all incoming and
outgoing funds. Several documents must be written to track all spending and sales income,
both on a daily and annual basis. Accountants must issue invoices for clients, maintain
monthly budgets for the company’s departments and write annual financial reports for
investors and shareholders. Whereas invoices are typically between one and two pages long,
an annual report may be upwards of 50 pages.

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Customer Service Documents

 Companies selling services and products directly to end customers often have a
customer service department that sells these products and services, as well as provide
support and answers for customers. Common business documents in the customer service
department include order forms, customer complaint forms and brochures with descriptions
of products and services.

Business Reports

 Business documents may also refer to business reports, which may be between 10
and hundreds of pages long. These reports may include annual sales report, annual budget reports
for production and monthly update reports from marketing departments and production lines.

Operational Documents

 Operational documents are pages or reports with information that may be written
on a daily, weekly or monthly basis. Examples of operational documents include meeting
minutes written during operational meetings and project proposals for internal and external
tasks that the business must complete. These tasks may include interior restructuring and an
external marketing campaign.

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Encomenda - Order

 Definition: A written sales contract between buyer and seller detailing the exact
merchandise or services to be rendered from a single vendor. It will specify payment terms,
delivery dates, item identification, quantities, shipping terms and all other obligations and
conditions. Purchase orders are generally preprinted, numbered documents generated by the
retailer's financial management system which shows that purchase details have been
recorded and payment will be made.

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Fatura - Invoice

 An invoice is a list of goods sent or services provided, with a statement of the sum due
for these; a bill.

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Nota de débito e de crédito – Debit and credit note

 A debit note or debit memorandum is a commercial document issued by a buyer to a

seller as a means of formally requesting a credit note. A seller might also issue a debit note
instead of an invoice in order to adjust upwards the amount of an invoice already issued.

 A credit note is a receipt given by a shop to a customer who has returned goods, which
can be offset against future purchases.

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Recibo - Receipt

 A receipt is a written acknowledgment that a specified article or sum of money has

been received. A receipt records the purchase of goods or service.

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 A cheque is an order to a bank to pay a stated sum from the drawer's account, written
on a specially printed form.

Letra – A bill

 A bill is a written order to a person requiring them to make a specified payment to the
signatory or to a named payee.

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Terminologia específica

Importação/Exportação – Import/Export

Every professional field has its own pertinent glossary that describes and defines its
functions and relative practices. The world of global trade is no exception. There is a
specific term for each aspect of the international trade business. With the easy reach we have
today to the nooks and crannies of the world at large, some of the basic terms have become
commonplace to us. Whether we have a need to use them for personal activities or encounter
them through allusive print or broadcast, they ring familiar.

However, unless we are actually employed in the area ourselves, familiarity doesn’t
necessarily give us a clear understanding of what certain terminologies mean. Defining them
may seem intimidating; it needn’t be. The comprehension of global trade terms is facilitated
by the fact that many of them are interconnected: the explanation of one often carries a
description or definition of another.

Try these on for size:

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Bill of Lading

 Lading is nothing more than loading, as in freight or cargo. A bill of lading is

merely a document that specifies the contractual terms between a shipper and the carrier that
will transport the shipper’s goods between designated points. Issued by the carrier, it serves
as a receipt for the handling of the shipper’s described freight and states the agreed-upon end
destination. The term “carrier” is a blanket one for plane, rail, truck or ocean vessel.

Letter of Credit

 This is literally a written letter that is internationally regarded as a risk

management tool. On a buyer’s behalf, the letter is issued by a bank and requests that other
banks turn over a certain amount of funds to the presenter of the letter. The presenter is
usually the seller or the seller’s agent. The bank’s term for that person is the “account party”
or “applicant.” The funds are charged against the buyer’s account.


 Usually seen in lower case, it stands for “free on board.” It means the price of
traded merchandise after it’s loaded onto a ship but before shipping. Transportation and other
costs are not included. Essentially, this term releases a seller from further obligation once the
merchandise has been loaded over the ship’s rail. From that point on, the buyer assumes
responsibility for any damage to or loss of the cargo.


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 Relative to fob, fas denotes “free alongside ship.” Here, the seller’s obligation ends as
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soon as the cargo is placed on the quay or barge alongside the ship.


 This is a government order that prohibits export and import of specific products
or trade with designated foreign countries. The United States has imposed and maintained an
embargo on Cuba since 1960. However, the U.S. does allow the export of food supplies to Cuba
under strict licensing by the Commerce Department’s Bureau of Industry and Security.

 World Trade Organization: The WTO is the international body dedicated to the
promotion of world trade. It is also tasked with resolving disputes among its member nations;
157 as of August, 2012. Its existence is the result of seven years of negotiations concluding in
1994. It officially gained recognition and replaced the obsolete General Agreement on Tariffs
and Trade in January, 1995.

Bank related terminology

 AER – Annual earnings rate on an investment.

 Annuity – A life insurance product which pays income over the course of a set period.
Deferred annuities allow assets to grow before the income is received and immediate
annuities (usually taken from a year after purchase) allow payments to start from about a
year after purchase.

 APR – The annual percentage rate of interest, usually on a loan or mortgage, usually
displayed in brackets and representing the true cost of the loan or mortgage as it shows any
additional payments beyond the interest rate.

 Bank Statements – This is a statement from the bank giving details of transactions in
the relevant account. It can be requested at any intervals required, usually monthly.

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 Bear Market – A bear is somebody who believes that the market is falling and a bear
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market is a falling market. See bull market for the opposite.

 Bounced Cheque – when the bank has not enough funds in the relevant account or the
account holder requests that the cheque is bounced (under exceptional circumstances) then
the bank will return the cheque to the account holder. The beneficiary of the cheque will have
not been paid. This normally incurs a fee from the bank.

 Bonds – These are securities which pay interest at specified intervals and the principle
amount of the loan is paid at maturity.

 Bull Market – A bull is somebody who believes that the market is rising and a bull
market is a rising market. See bear market for the opposite.

 Cashback Mortgages – This is when the mortgage provider lends the money for the
mortgage and, in addition, a lump sum to pay for, for example, building work to be carried out.

 Central Clearing Time (in England and Wales) – This is the time that it takes for the
monies from a cheque to be taken out of the payee’s account and put into the payer’s account.
This is three working days in England and Wales, as long as the cheque was paid in before

 Certified Documents – These are photocopies of original documents that have been
signed by a professional i.e. a solicitor, accountant, teacher, doctor or bank official. The
professional also states, on the document, "original seen" since they must be able to verify
that these are genuine copies and therefore have to have seen the original, they also date the
document and put their full name, profession and their address.

 Charges – This is the money paid to the bank for services rendered. Charges include
overdraft fees, charges for bouncing cheques, interest on overdraft and any charges that a
business account might normally incur.

 Charge Cards – Cards which can be used like a credit card but the charge has to be
paid off on the due date. They usually have a high limit or no limit.

 Cheque Book – A small, bound booklet of cheques. A cheque is a piece of paper

produced by your bank with your account number, sort-code and cheque number printed on
it. The account number distinguishes your account from anyone elses, the sort-code is your

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bank’s special code which distinguishes it from any other bank. In times gone by, anything
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with the correct details and a verifiable signature could act as a cheque. Even an elephant was
once used!

 Cheque Clearing – This is the process of getting the money from the cheque-writer’s
account into the cheque receiver’s account.

 CHIP and PIN – A Chip is a small electronic insert placed into a cheque or credit card.
The PIN is a four digit personal identification number which is used with the card by the card-

 Clearing Bank – This is a bank that can clear funds between banks. For general
purposes, this is any institution which we know of as a bank or as a provider of banking


 Contract Hire – This is a way of hiring an item of large capital value where the
maintenance is the responsibility of the company that hires out the item. A fixed monthly
figure is paid and the item can be sold, usually to an unconnected third party.

 Credit Rating – This is the rating which an individual (or company) gets from the credit
industry. This is obtained by the individual’s credit history, the details of which are available from
specialist organisations (Equifax and Experian are the two big operators in the U.K.
www.equifax.co.uk and www.experian.co.uk).

 Credit Scoring – This is the process of assessing an individual’s credit-worthiness. The

process involves taking information from an individual on an application form (for example when
applying for a store card) and weighting the answers given. Certain responses will attract higher
scores than others and the total score will determine whether or nor the organization wants to do
business with the individual, or if they represent too high a credit risk.

 Credit-Worthiness – This is the judgement of an organization which is assessing whether

or not to take a particular individual on as a customer. An individual might be considered credit-

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worthy by one organisation but not by another. Much depends on whether an organization is
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involved with high risk customers or not.

 County Court Judgement – This is when a judge at a county or small claims court finds
against an individual and they have a county court judgement made against them. This is recorded
nationwide (and by the credit tracking organizations Experian and Equifax) so anyone wanting to
know the credit-worthiness of an individual will know that the county court judgement exists. Once
it is paid off then the record remains but it is shown as being paid which reduces the credit risk
associated with the person with the county court judgement.

 Direct Debit – An amount of money taken from a bank account, set up by the recipient and
can vary in amount and exact time that it is taken from an account. Mortgages are usually direct

 Endowment Mortgage – Interest only is paid over the term of this sort of mortgage and the
capital is repaid at the end of the term by using the monies from an endowment policy.

 Factoring – This is when a business sells its invoices to a specialist company or bank which
chases payment and pays a percentage of the invoice back to the original business. The business can
then continue with its work and problems from cash-flow are reduced by having money from
unpaid invoices up-front.

 Hire Purchase – When an item of large capital value is bought over time by paying a
deposit and fixing a period over which the loan will run (usually between 12 and 60 months) and
then paying fixed and equal repayments over this period.

 Identity Theft – This is when criminals use an innocent person’s details to open or use an
account to carry out financial transactions. It is very easy to do with an individual’s personal details,
which is why shredding confidential information is so important.

 Identity Verification – This is often used by financial institutions to verify the customer
and usually takes the form of a pass-word and the answer to an obscure personal question such as
the customer’s mother’s maiden-name.

 Interest – The amount paid or charged on money over time. If you borrow money interest
will be charged on the loan. It you invest money; interest will be paid (where appropriate to the
investment). Interest rates usually bear a close relationship to the Bank of England’s base rate. It is
expressed in per cent.

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 ISAs – This stands for Individual Savings Accounts. These are available to all UK residents
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over 18 (mini ISAs are available to 16 and 17-year-olds). Investment limits apply to the total
contributions made in any tax year, not to the total in the ISA itself. ISAs can be cash, stocks and
shares or life insurance.

 Lease Purchase – This is an agreement made on an item of high capital outlay (for
example, a car) where the ownership is transferred to the person who is leasing the item at the
end of the contract, providing all the terms and conditions of the purchase have been fulfilled.

 Money Laundering – This is when money gained from crime is put into a bank so that
it can be accessed safely by the criminals and terrorists. It makes the proceeds of illegal
activities easier to get to.

 Money Transfer – This is the movement of money from one account to another.

 Money Transfer Abroad – This is the movement of money from one account to
another, the second being in a different country from the first.

 Offsetting – This is when the credit balances in a current and savings account are
netted off against the account holders borrowings (typically a mortgage) so that the rate paid
on the borrowing is reduced as a result of the credit held in other accounts, which reduces the
amount that is being borrowed.

 Overdraft – This is when a person has a minus figure in their account. It can be
authorized (agreed to in advance or retrospect) or unauthorized (where the bank has not
agreed to the overdraft either because the account holder represents too great a risk to lend
to in this way or because the account holder has not asked for an overdraft facility).

 Payee – The person who receives a payment. This often applies to cheques. If you
receive a cheque you are the payee and the person or company who wrote the cheque is the

 Payer – The person who makes a payment. This often applies to cheques. If you write a
cheque you are the payer and the recipient of the cheque is the payee.

 PEP – Personal Equity Plans have been replaced by ISAs. Existing PEPs can be retained
but, since April 1999, no new ones can be opened.

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 Phishing – This is when a criminal uses the internet to try to fraudulently obtain
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details of peoples accounts so that they can use these accounts themselves, usually to take
money out of.

 Repayment mortgage – This is a mortgage where the sum borrowed is paid off by the
end of the mortgage term. It involves monthly repayments which consist of the interest on the
loan plus some of the capital borrowed.

 Security for Loans – Where large loans are required the lending institution often needs to
have a guarantee that the loan will be paid back. This takes the form of a large item of capital outlay
(typically a house) which is owned or partly owned and the amount owned is at least equivalent to
the loan required.

 Standing Order – A regular payment made out of a current account which is of a set
amount and is originated by the account holder.

 Tessas – Tax Exempt Special Savings Accounts.

Vendas -Sales Terminology

 Selling is a wonderful profession when approached ethically, constructively and

helpfully. Happily much sales development theory takes this positive direction. The origins of
the word 'sell' provide a useful reminder of its purest meaning.

Selling is a wide subject, covering many selling methods, sales theories, models and sales
training methods.

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Glossary of sales and selling terms

This list is not exhaustive, and is not meant to be an endorsement of any of these techniques
or terms. See the notice at the foot of the page.

 Accompaniment visit/accompaniment report - when a manager or supervisor or

trainer accompanies a sales person while working on the sales territory, usually while
meeting prospects or customers. Typically the manager would complete an accompaniment
visit report on the performance of the sales person, which would be discussed, and suitable
follow-up actions or training agreed.

 Account - a customer, usually a business-to-business organization; a major account is a

large organization; a national account is a customer with branches or sites that constitute a
nationwide coverage, which typically requires special pricing and senior sales attention.

 Active listening - term used to describe high level of listening capability and method,
in which the sales person actively seeks to understand how the speaker feels, and what their
issues are, in which the type of listening extends far beyond common inattentive listening.
Related to empathy and Stephen Covey's principles of seeking to understand before
attempting to be understood.

 Added value - the element(s) of service or product that a sales person or selling
organization provides, that a customer is prepared to pay for because of the benefit(s)
obtained. Added values are real and perceived; tangible and intangible. A good, reliable,
honest, expert, informed sales person becomes a very significant part of the selling
organization's added value, as perceived by the customer, if not by the selling organization.

 Advantage - the aspect of a product or service that makes it better than another,
especially the one in-situ or that of a competitor.

 Advertising/advertising and promotion/A&P - the methods used by a company to

publicise and position its products and services to its chosen market sectors, including
product launches, image and brand building, press and public relations activities,
merchandising (supporting and promoting the product in retail and wholesale outlets),

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special offers, generating leads and enquiries, and incentivising distributors, and agents, and
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arguably sales people. A&P methods are sometimes described as above-the-line (media
advertising such as radio, TV, cinema, newspapers, magazines) or below-the-line (non-'media'
methods or materials such as brochures, direct-mail, exhibitions, telemarketing, and PR);
advertising agencies generally receive a commission (discount 'kick-back') from above-the-
line media services, but not from below the line services, in which case if asked to arrange any
will seek to add a mark-up. See the marketing page.

 Appointment - a personal sales visit to a prospect, usually arranged by phone. See the
appointment-making process.

 Benefit - the gain (usually a tangible cost, but can be intangible) that accrues to the
customer from the product or service.

 Buyer - most commonly means a professional purchasing person in a business; can

also mean a private consumer. Buyers are not usually major decision-makers, that is to say,
what they buy, when and how they buy it, and how much they pay are prescribed for them by
the business they work for. If you are selling a routine repeating predictable product,
especially a consumable, then you may well be able to restrict your dealings to buyers; if you
are selling a new product or service of any significance, buyers will tend to act as influencers
at most. See decision-makers, and the buying techniques page.

 Buying facilitation® - also known as facilitative buying, generally attributed (and

registered) to sales guru Sharon Drew Morgen. Extremely advanced form of personal selling,
in which the central ethos is one of 'helping organizations and buyers to buy', not selling to
them. See collaboration and partnership selling at the end of the section.

 Buying signal - a buying signal is a comment from a prospect which indicates that he is
visualising to whatever extent buying your product or service. The most common buying
signal is the question: "How much is it?" Others are questions or comments like: "What
colours does it come in?", "What's the lead-time?", "Who else do you supply?", "Is delivery
free?" "Do you use it yourself?", and surprisingly, "It's too expensive."

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 buying warmth - behavioural, non-verbal and other signs that a prospect likes what
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he sees; very positive from the sales person's perspective, but not an invitation to jump
straight to the close.

 Call/calling - a personal face-to-face visit or telephone call by a sales person to a

prospect or customer. Also referred to a sales call (for any sales visit or phone contact), or
cold call (in the case of a first contact without introduction or notice in writing).

 Call centre - also called a contact centre (US = center) - a department for outgoing
and/or incoming (outbound/inbound) telephone calls to/from customers, commonly now
extending to email communications also if useful for customer service, but not extending to
email marketing. Call centres can be primarily reactive (inbound) or proactive (outbound -
covering telemarketing, telesales, and research), or both. Call centres can be in-house, part of
the employed organization, or external, effectively a contractor or an agency. Most modern in-
house or long-term out-sourced call centres are effectively customer service centres or
departments, containing staff dedicated to telesales and customer services activities. Other
types of call centre activities and operations can be concerned more with short-term telesales,
telemarketing or market research campaigns. Run well a call/contact centre is a wonderful
function. Run poorly call centres are a nightmare for staff and customers alike. Since the
1990s when the call centre function became de-humanised and obsessively cost-driven by
many large corporations the nightmare scenario largely applies. Some call/contact centres are
now such vast business units that they warrant being 'off-shored' (outsourced to countries
with lower costs), which generally equates to corporate own-foot-shooting on a truly huge
scale. A call centre which is inherently liable to upset customers due to inadequate levels of
customer empathy and service is quite obviously utterly self-defeating. Staff turnover is
unsurprisingly a major challenge in call centres.

 Canvass/canvassing - cold-calling personally at the prospect's office or more

commonly now by telephone, in an attempt to arrange an appointment or present a product,
or to gather information.

 Close/closing - the penultimate step of the 'Seven Steps of the Sale' selling process,
when essentially the sales-person encourages the prospect to say yes and sign the order. In
days gone by a Sales person's expertise was measured almost exclusively by how many closes
he knew. Thank God for evolution. See the many examples of closes and closing techniques in

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the Seven Steps section, but don't expect to kid any buyer worth his salt today, and using one
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might even get you thrown out of his office. Use with great care.

 Closed question - a question which generally prompts a yes or no answer, or a

different short answer of just two possible options, compared to open questions, which
typically begin with who, what, where, when, etc., and which tend to invite much longer

 Cold calling - typically refers to the first telephone call made to a prospective
customer. More unusually these days, cold calling can also refer to calling face-to-face for the
first time without an appointment at commercial promises or households. Cold calling is also
known as canvassing, telephone canvassing, prospecting, telephone prospecting, and more
traditionally in the case of consumer door-to-door selling as 'door-knocking'. See the cold
calling page.

 Collaboration selling - also known as collaborative selling and facilitation selling -

very modern and sophisticated, in which seller truly collaborates with buyer and buying
organization to help the buyer buy. A logical extension to 'strategic' or 'open plan' selling. See
collaboration and partnership selling at the end of the section.

 Commodities/commoditised (products and services) - typically a term applied to

describe products which are mature in development, produced and sold in vast scale,
involving little or no uniqueness between variations of different suppliers; high volume, low
price, low profit margin, de-skilled ('ease of use' in consumption, application, installation, etc).
Traditionally the 'commodities' term applies to the 'commodities markets' which trade and
set prices for fundamental commodities such as coffee, grain, oil, etc., however in a more
generic sales and selling sense the term 'commoditised' refers to a product (and arguably a
service) which has become mass-produced, widely available, easy to make, de-mystified, and
simplified; all of which is almost invariably associated with a reduction in costs, prices and
profit margins, and which also has massive implications for the sales distribution model and
methods for taking the product or service to market. Commoditised products are amenable to
mass-market and large-scale sales distribution methods and models, as opposed to
specialised or high-complexity products, which tend to require closer customer support and
greater expertise and advice at the point of selling and installation, and commissioning and
application, if appropriate. An electric battery torch is a commoditised product that is freely
available, at competitively low price, 'off-the-shelf' at any supermarket (or via the internet);

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whereas a holographic projector is only available via a specialised supplier, at relatively high
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cost and profit margin, potentially without a similar competing product, and requires a
significant degree of technical advice and support, and possibly user-training. Similarly, a
microwave oven is a commoditised product, widely available, inexpensively, off-the-self from
a retail store (or via the internet); whereas an integrated commercial kitchen is a specialised
system, requiring a high level of sales and selling expertise, support and installation.
Commoditised products sell by the millions; specialised products might only sell in hundreds
or less. All consumer products and services become commoditised over time. Virtually all B2B
products and services become commoditised over time. Colour TV's are cheaper than they
were thirty years ago because they've become commoditised. Same can be said for mobile
phones, home security systems, computers; even motor cars are becoming genuinely
commoditised. In our lifetimes perhaps so too will houses and buildings.

 Concession - used in the context of negotiating, when it refers to an aspect of the sale
which has a real or perceived value, that is given away or conceded by seller (more usually) or
the buyer. One of the fundamental principles of sales negotiating is never giving away a
concession without getting something in return - even a small increase in commitment is
better than nothing. See the negotiation section.

 Consultative selling (consultation selling) - developed by various sales gurus

through the 1980s by David Sandler among others, and practiced widely today, consultative
selling was a move towards more collaboration with, and involvement from, the buyer in the
selling process. Strongly based on questioning aimed at gaining useful information.

 Consumer - in the context of selling a consumer typically refers to a private or

personal customer or user, as distinct from a business or organizational, or trade customer.
Notably we see this term in the acronym B2C, which means 'business-to-consumer', which
describes the type of business in which the transaction and relationship is between a business
and a private 'domestic' customer. A household insurer, or an estate agent, are examples of
B2C sales organizations. Retail is by its nature consumer business. A holiday company is a B2C
business. B2B describes 'business-to-business' - which is trade and selling between

 Customer - usually meaning the purchaser, organization, or consumer after the sale.
Prior to the sale is usually referred to as a prospect.

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 Customer relationship management (CRM) - CRM is now a commonly used term to
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describe the process of managing the entire selling process within a department or
organisation. Computerised CRM systems enable management of prospect and customer
details, contacts, sales history and account development. Well known examples of CRM
computerised systems are Sage's ACT!, which claims (as at 2006) to be the world's most
popular CRM system, and Front Range's Goldmine. Chief elements of a CRM system (or
strategy, since the term is used to describe the process and methodology as well as the
system) are:

 compilation and organisation of data (prospects, customers, product, sales, history,

 planning, scheduling and integrating customer development activities and
 analysis and reporting of all sales related activities and data

Good CRM strategy and systems are generally considered necessary for modern organisations
of any scale to enable effective planning and implementation of sales (and to an extent
marketing) activities.

 Cycle - see sales cycle.

 Deal - common business parlance for the sale or purchase (agreement or

arrangement). It is rather a colloquial term so avoid using it in serious company as it can
sound flippant and unprofessional.

 Decision-maker - a person in the prospect organization who has the power and
budgetary authority to agree to a sales proposal. On of the most common mistakes by sales
people is to attempt to sell to someone other than a genuine decision-maker. For anything
other than a routine repeating order, the only two people in any organization of any size that
are real decision-makers for significant sales values are the CEO/Managing
Director/President, and the Finance Director. Everyone else in the organization is generally
working within stipulated budgets and supply contracts, and will almost always need to refer
major purchasing decisions to one or both of the above people. In very large organizations,
functional directors may well be decision-makers for significant sales that relate only to their
own function's activities. See influencer.

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 Deliverable(s) - an aspect of a proposal that the provider commits to do or supply,
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usually and preferably clearly measurable.

 Demonstration/'demo'/'dem' - the physical presentation by the sales person to the

prospect of how a product works. Generally free of charge to the prospect, and normally
conducted at the prospect's premises, but can be at another suitable venue, eg., an exhibition,
or at the supplier's premises.

 Demographics - the study of, or information about, people's lifestyles, habits,

population movements, spending, age, social grade, employment, etc., in terms of the
consuming and buying public; anyone selling to the consumer sector will do better through
understanding relevant demographic information.

 Discipline - within the context of an organization this is similar to function, i.e., job
role, although a discipline can refer more generally to a capability or responsibility, for
example 'financial disciplines', or 'customer service disciplines', or 'technical support
disciplines'. Discipline can of course mean separately 'control', others or oneself, which is
certainly relevant to sales and selling, but not the reason for its inclusion in this glossary. In
business-to-business selling of a complex strategic nature looking at disciplines (capabilities
and responsibilities) can help to explore the different ways that people are affected by a
change or proposition, which generally accompanies the sale of a product or service.

 Distribution/sales distribution - the methods or routes by which products and

services are taken to market. Sales distribution models are many and various, and are
constantly changing and new ones developing. Understanding and establishing best sales
distribution methods - routes to market - are crucial aspects of running any sales
organisation, and any business organisation too. Sales distribution should be appropriate to
the product and service, and the end-user market, and the model will normally be defined by
these factors, influenced also by technology and social trends. For example, commoditised
mass-market consumer products (FMCG - fast-moving consumer goods, household electrical,
etc.) are generally distributed via mass-market consumer distribution methods, notably
supermarkets, but also increasingly the internet. A lesson in changing sales distribution
models, and the need for manufacturers and sellers to anticipate changes is found in the
switching of book sales and CD sales from retail store distribution to websites, with the
resulting demise of many retailers in those sectors. Future changes in sales distribution will
see for example music transferring increasingly via online downloads, thus threatening those

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involved with or dependent upon physical shipping of products. B2B (business-to-business)
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sales distribution models have their own shape, again dependent on products and services,
customer markets, technology, plus other influences such as economic trends, environmental
and legislative effects, etc. Examples of B2B sales distribution models are franchising, direct
sales forces (employed), direct sales forces (sales agents), telephone sales (call-centres, out-
bound and in-bound), the internet (online website businesses), distributors (independent
sellers who carry products and services of other manufacturers and 'principals'), and channel
partners and partnering arrangements (prevalent in telecoms and IT sectors).

 Empathy - understanding how another person feels, and typically reflecting this back
to the other person. The ability to feel and show empathy is central to modern selling
methods. See the Empathy page. See also NLP (Neurolinguistic Programming).

 Ethics/ethical selling/ethical business - this would not have appeared in a selling

glossary a few years ago, because the line between right and wrong was a mile wide. To
certain leaders and companies it still is, although gradually, slowly business and selling is
becoming more civilised. Honesty, morality and social responsibility are now crucial elements
in any effective selling method, and for any sustainable business. In Spring 2008 someone left
a message on my answerphone. The person said he was from 'central government', working
on a 'policy piece' about e-learning, and could I give him a call back. I duly called back. After
several sidesteps, the 'seller' eventually clarified that the purpose of the contact was to sell me
some advertising in a directory, supposedly endorsed or approved by a 'government
department'. This is a fine example of unethical selling, and unethical business too, since the
seller was clearly following a company script and set of tactics designed to deceive. Unethical
business and selling have always been wrong, but nowadays they carry far greater risks for
those who behave badly. Consumers are wiser and better informed. Authorities and the courts
are less tolerant and more sensitive to transgressions. In all respects today poor ethics
guarantee personal and business failure. See ethical management and leadership.

 FABs - features advantages benefits - the links between a product description, its
advantage over others, and the gain derived by the customer from using it. One of the central,
if now rather predictable, techniques used in the presentation stage of the selling process.

Feature - an aspect of a product or service, eg., colour, speed, size, weight, type of
technology, buttons and knobs, gizmos and gadgets, bells and whistles, technical support,
delivery, etc.

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 Feel-felt-found - old-style persuasive push/pressure technique for objection handling,
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dating back to the 1980s and probably earlier, based on the sales-person using a response
built around the three 'feel felt found' elements: "I understand how you feel/why you feel
that...//Other customers have felt just the same/that...//But (or 'And') when... they have found
that..." The technique seeks first to empathise, then in stage two to move the objection into
neutral area avoiding direct one-to-one (2nd person, 'you must change your mind')
confrontation, and creating an artificial sense of majority experience and opinion, where in
the third stage the objection can be countered and the benefits reinforced with supposed
large-scale evidence, persuading the buyer that he/she (if failing to buy) is isolated and
deprived of the benefits others are enjoying. The method had limited effectiveness a
generation or two ago but now the tactic mostly insults people and makes the sales-person
look like an idiot.

 Field - means anywhere out of the sales office. Field sales people or managers are
those who travel around meeting people personally in the course of managing a sales
territory. To be field-based is to work on the sales territory, as opposed to being office-based.

 Forecast/sales forecast - a prediction of what sales will be achieved over a given

period, anything from a week to a year. Sales managers require sales people to forecast, in
order to provide data to production, purchasing, and other functions whose activities need to
be planned to meet sales demand. Sales forecasts are also an essential performance quantifier
which feeds into the overall business plan for any organization. Due to the traditionally
unreliable and optimistic nature of sales-department forecasts it is entirely normal for the
sum of all individual sales persons' sales annual forecast to grossly exceed what the business
genuinely plans to sell. See targets.

 Function - in the context of an organization, this means the job role or discipline, eg.,
sales, marketing, production, accounting, customer service, delivery, installation, technical
service, general management, etc. Understanding the functions of people within
organizations, and critically their interests and needs, is very important if you are selling to
businesses or other non-consumer organizations.

 Gestation period - sale gestation period typically refers to the time from enquiry to
sale, the Sales Cycle in other words, (see Sales Cycle). Awareness and monitoring of Sale
Gestation Period/Sales Cycle times are crucial in sales planning, forecasting and management,
for individuals sales teams and sales organizations.

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 Hard contacts - a networking term (differentiating from 'soft contacts') - 'hard
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contacts' may refer to members of networking groups whose purpose is mutual referral of
sales prospects. See 'soft contacts' and fuller definitions in the networking situations of the
business networking article.

 Hard sell - aggressive forceful selling technique, popular in 1960s, and since then
among advocates/practitioners of old-fashioned one-way sales methods, using high pressure
and cynical tactics to cajole customers to buy. Rarely successful and never sustainable.
Contrasts with 'soft sell'.

 Influencer - a person in the prospect organization who has the power to influence and
persuade a decision-maker. Influencers will be generally be decision-makers for relatively low
value sales. There is usually more than one influencer in any prospect organization relevant to
a particular sale, and large organizations will have definitely have several influencers. It is
usually important to sell to influencers as well as decision-makers in the same organization.
Selling to large organizations almost certainly demands that the sales person does this. The
role and power of influencers in any organization largely depends on the culture and politics
of the organization, and particularly the management style of the two main decision-makers.
See decision-makers.

 Intangible - in a selling context this describes, or is, an aspect of the product or service
offering that has a value but is difficult to see or quantify (for instance, peace-of-mind,
reliability, consistency). See tangible.

 Introduction - the word introduction has two different main meanings in selling:
Introduction refers either to first stage of the face-to-face or telephone sales call (see the
Opening stage in the Seven Steps of the Sale), or the term means a personal introduction -
also called a referral - of the sales person to someone in the buying organisation by a mutual
friend or contact. Personal introductions of this sort tend to imply endorsement or
recommendation of the seller, and since they are made by an existing contact they help
greatly in establishing initial trust. The value and potency of a personal introduction generally
reflects the importance of the introducing person and the strength of their relationship with
the buying contact. Networking is essentially based on using (sometimes several quite
informal) introductions, to connect a seller with a buyer.

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 introductory letter - a very effective way to improve appointment-making success,
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and to open initial dialogue, especially for selling to large organisations. See the introductory
letters structure and template examples.

 LAMP® - Large Account Management Process - sales acronym and methodology for
major accounts management developed by Robert Miller, Stephen Heiman and Tad Tuleja in
their 1991 book Successful Large Account Management (see the books at the foot of this
page). Note that LAMP® and Strategic Selling® methods and materials are subject to
copyright and intellectual property control of Miller Heiman, Inc. Also note that LAMP® and
Strategic Selling® methods and materials are not to be used in the provision of training and
development products and services without a licence. See LAMP® and Strategic Selling®
copyright details below.

 Lead-time - time between order and delivery, installation or commencement of a

product or service.

 Listening - a key selling skill, in that without good listening skills the process of
questioning is rendered totally pointless. See the Levels of Listening on the Empathy page.

 Major account - a large and complex prospect or customer, often having several
branches or sites, and generally requiring contacts and relationships between various functions
in the supplier and customer organization. Often major accounts are the responsibility of
designated experienced and senior sales people, which might be formed into a major accounts
team. Major accounts often enjoy better discounts and terms than other customers because of
purchasing power leveraged by bigger volumes, and lower selling costs from economies of

 Marketing - perceived by lots of business people to mean simply promotion and

advertising, the term marketing actually covers everything from company culture and
positioning, through market research, new business/product development, advertising and
promotion, PR (public/press relations), and arguably all of the sales functions as well. It's the
process by which a company decides what it will sell, to whom, when and how, and then does
it. See the marketing section.

 Margin/profit margin - the difference between cost (including or excluding operating

overheads) and selling price of a product or service. Percentage margin is generally deemed

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to be the difference between cost and selling price, divided by the selling price ex tax (eg
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something that costs £1 and is sold for £2 plus tax produces a 50% margin - gross margin that
is - net margin is after overheads are deducted).

 Mark-up - this is the money that a selling company adds to the cost of a product or
service in order to produce a required level of profit. Strictly speaking, percentage mark-up
refers to the difference between cost and selling price as a factor of the cost, not of the selling
price. So a product costing £1 and selling for £2 has been given a mark-up of 100%; (at the
same time it produces a margin of 50%).

 Needs-creation selling - a selling style popularised in the 1970s and 80s which
asserted that sales people could create needs in a prospect for their products or services even
if no needs were apparent, obvious or even existed. The method was for the sales person to
question the prospect to identify, discover (and suggest) organizational problems or potential
problems that would then create a need for the product. I'm bound to point out that this is no
substitute for good research and proper targeting of prospects who have use of the products
and services being sold.

 Negotiation/negotiating - the trading of concessions including price reductions,

between supplier and customer, in an attempt to shape a supply contract (sale in other
words) so that it is acceptable to both supplier and customer. Negotiations can last a few
minutes or even a few years, although generally it's down to one or two meetings and one or
two exchanges of correspondence. Ideally, from the seller's point of view, negotiation must
only commence when the sale has been agreed in principle, and conditionally upon
satisfactory negotiation. However most sales people fall into the trap set by most buyers -
intentionally or otherwise - of starting to negotiate before the selling process have even
commenced. See the section on negotiation for negotiating theory, rules and techniques.

 NLP (Neurolinguistic Programming) - A very accessible branch of psychology

developed by Bandler and Grinder in the 1960s. NLP involves language, thinking and
communications, and is therefore immensely useful and often features in sales training. See
the NLP page.

 Networking - an increasingly popular method of developing sales opportunities and

contacts, based on referrals and introductions - either face-to-face at meetings and gatherings,

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or by other contact methods such as phone, email, social and business networking websites,
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etc. See the business networking guide.

 Objection/overcoming objections - an objection is a point of resistance raised by a

prospect, usually price ("It's too expensive.."), but can be anything at any stage of the selling
process. Overcoming objections is a revered and much-trained skill in the traditional selling
process, but far less significant in modern selling. Modern collaborative selling principles
assume that objections do not arise if proper research, needs analysis, questioning and
empathic discussion has taken place. Also the notion of using techniques or pressure to
overcome what may be legitimate obstacles is contrary to principles of modern selling.
Modern selling methods tend to identify objections much earlier in the process, and either to
filter out the prospect at that stage and abandon the approach, or where objections arise from
multiple decision influencers within the buyer organization, to agree collaboratively a
strategy with the main contact at the prospective customer for dealing with objection(s)

 Open/opening - the first stage of the actual sales call (typically after preparation in
the Seven Steps of the Sale). Also called the introduction.

 Opening benefit statement/OBS - traditionally an initial impact statement for sales

people to use at first contact with prospect, in writing, on the phone or face-to-face - the OBS
generally encapsulates the likely strongest organizational benefit typically (or supposedly)
derived by customers in the prospect's sector, eg., "Our customers in the clothing retail sector
generally achieve 30-50% pilferage reduction when they install one of our Crooknabber
security systems..." - N.B. The OBS is a relatively blunt instrument for modern selling - use it
with extreme care for fear of looking like a total twerp.

 Open plan selling - a modern form of selling, heavily dependent on the sales person
understanding and interpreting the prospect's organizational and personal needs, issues,
processes, constraints and strategic aims, which generally extends the selling discussion far
beyond the obvious product application; (in a way, it's rather like combining selling with
genuinely beneficial, free, expert consultancy). In 'open plan selling' the seller identifies
strategic business aims of the sales prospect or customer organization, and develops a
proposition that enables the aims to be realised. The proposition is therefore strongly linked
to the achievement of strategic business aims - typically improvements in costs, revenues,
margins, overheads, profit, quality, efficiency, time-saving and competitive strengths areas.

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There is a strong reliance on seller having excellent strategic understanding of prospect
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organization and aims, market sector situation and trends, and access to strategic decision-
makers and influencers. Open Plan Selling is also underpinned by strong ethical principles,
notably honesty and the premise that persuasion and influence are unhelpful, and in this
respect the methodology relates somewhat to modern ideas of facilitating and helping, as
primarily featured in Buying Facilitation. The term Open Plan Selling was coined (to the best
of my knowledge) by British consultant and trainer Stanley Guffogg.

 Open question - a question that gains information, usually beginning with who, what,
why, where, when, how, or more subtly 'tell me about..' - as distinct from a closed question, for
example beginning with 'Is it...?' or 'Do you...?' etc., which tend to glean only a yes or no

 Package - in a selling context this is another term for the product offer; it's the whole
product and service offering at a given price, upon given terms.

 Partnership selling - very modern approach to organizational selling for business-to-

business sales - see collaboration and partnership selling.

 Perceived - how something is seen or regarded by someone, usually by the prospect or

customer, irrespective of what is believed or presented by the seller, i.e. what it really means
to the customer.

 Positioning - more a marketing than sales term, although relevant to experienced and
sophisticated sellers, and related to targeting - positioning refers to how a
product/service/proposition is presented or described or marketed in relation to the market
place - with reference to customers, competition, image, pricing, quality, etc. Positioning
basically refers to whether a proposition is being sold appropriately - in the right way, to the
right people, at the right time, in the right place, and at the right price. A potentially brilliant
business can fail because its products are not positioned properly, which typically manifests
as sales people being unable to sell successfully. There might be little or nothing wrong with
the sales people and their skills, and the product/service, but the venture fails because the
positioning is wrong. Conversely, good positioning can rescue a less than brilliant

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product/service. Effective selling is not only about quality and skills - it’s about suitability of
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 Preparation - in the context of the selling process this is the work done by the sales
person to research and plan the sales approach and/or sales call to a particular prospect or
customer. Almost entirely without exception in the global history of selling, no call is
adequately prepared for, and sales that fail to happen are due to this failing.

 Presentation/sales presentation - the process by which a sales person explains the

product or service to the prospect (to a single contact or a group), ideally including the
product's features, advantages and benefits, especially those which are relevant to the
prospect. Presentations can be verbal only, but more usually involve the use of visuals,
commonly bullet-point text slides and images on a computer display or projected onto a
screen. Can incorporate a video and/or physical demonstration of the product(s). See the
presentation training section.

 Product - generally a physical item being supplied, but can also mean or include
services and intangibles, in which case product is used to mean the whole package being

 Product offer - how the product and/or service is positioned and presented to the
prospect or market, which would normally include features and/or advantages and also imply
at least one benefit for the prospect (hence a single product can be represented by a number
of different product offers, each for different market niches (segments or customer
groupings). One of the great marketing challenges is always to define a product offer concisely
and meaningfully.

 Proposal/sales proposal - usually a written offer with specification, prices, outline

terms and conditions, and warranty arrangements, from a sales person or selling organization
to a prospect. Generally an immensely challenging part of the process to get right, in that it
must be concise yet complete, persuasive yet objective, well specified yet orientated to the
customer's applications. An outline proposal is often a useful interim step, to avoid wasting a
lot of time including in a full proposal lots of material that the customer really doesn't need.

 Proposition - usually means product offer, can mean sales proposal. The initial
proposition means the basis of the first approach.

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 Professional selling skills - see PSS
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 PSS - 'Professional Selling Skills' - highly structured selling process pioneered by the
US Xerox (and UK Rank Xerox) photocopier sales organization during the 1960s, and adopted
by countless business-to-business sales organizations, normally as the 'Seven Steps of the
Sale', ever since. PSS places a huge reliance on presentation, overcoming objections and
umpteen different closes. Largely now superseded by more modern 'Open Plan' two-way
processes, but PSS is still in use and being trained, particularly in old-fashioned paternalistic
company cultures. The regimented one-way manipulative style of PSS nowadays leaves most
modern buyers completely cold, but strip it away to the bare process and it's better than no
process at all.

 Prospect - a customer (person, organization, buyer) before the sale is made, ie a

prospective customer.

 Puppy dog sale/puppy dog close - a method of selling or closing a deal whereby you
let the customer try the product or service for free without commitment, for a limited period,
in the confidence that once they live with it they won't want to give it up - just like giving
someone have a puppy for a day. These days the puppy dog approach would ideally extend to
giving the prospective customer some education and support about looking after the puppy so
that they understand and are prepared for the changes that come with a new puppy.

 Questioning - the second stage of the sales call, typically after the opening or
introduction in the Seven Steps of the Sale, but also vital to modern selling methods too,
notably collaborative/facilitative selling. A crucial selling skill, and rarely well
demonstrated. The correct timing and use of the important different types of questions are
central to the processes of gathering information, matching needs, and building rapport and
empathy. Questioning also requires that the sales person has good listening, interpretation
and empathic capabilities. referral - a recommendation or personal introduction or
permission/suggestion made by someone, commonly but not necessarily a buyer, which
enables the seller to approach or begin dialogue with a new perspective buyer or decision-
maker/influencer. Seeking referrals is a widely trained selling technique, in which the seller
asks the buyer (or other contact) at the end of a sales call for referrals, i.e., details of other

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people who might be interested in the seller's proposition, or who might be able to make their
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own introductions/referrals. This latter scenario effectively equates to networking.

 Rem - common slang for remainder or remnant in any business which deals with end-
of-line, left-over, or otherwise non-standard-stock items which typically are handled and
disposed at attractive terms to minimise waste and write-offs.

 Research/research call - the act of gathering information about a market or

customer, that will help progress or enable a sales approach. Often seen as a job for
telemarketing personnel, but actually more usefully carried out by sales people, especially
where large prospects are concerned (which should really be the only type of prospects
targeted by modern sales people, given the need to recover very high costs of sales people).

 Retention/customer retention - means simply keeping customers and not losing

them to competitors. Modern companies realise that it's far more expensive to find new
customers than keep existing ones, and so put sufficient investment into looking after and
growing existing accounts. Less sensible companies find themselves spending a fortune
winning new customers, while they lose more business than they gain because of poor
retention activity. (The hole in the bucket syndrome, where it leaks out faster than it can be
poured in.)

 Sales cycle - the Sales Cycle term generally describes the time and/or process between
first contact with the customer to when the sale is made. Sales Cycle times and processes vary
enormously depending on the company, type of business (product/service), the effectiveness
of the sales process, the market and the particular situation applying to the customer at the
time of the enquiry. The Sales Cycle time is also referred to as the Sale Gestation Period (ie
from conception to birth - enquiry to sale). The Sales Cycle in a sweet shop is less than a
minute; in the international aviation sector or civil construction market the Sales Cycle can be
many months or even a few years. The funnel diagram and sales development process on the
free resources section show the sales cycle from a different perspective, (and actually prior
to enquiry stage). A typical Sales Cycle for a moderately complex product might be:

1. receive enquiry

2. qualify details

3. arrange appointment

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4. customer appointment
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5. arrange survey

6. conduct survey

7. presentation of proposal and close sale

 Sales forecasts - also called sales projections, these are the predictions that sales
people and sales managers are required to make about future business levels, necessary for
their own organisation to plan and budget everything from stock levels, production, staffing
levels, to advertising and promotion, financial performance and market strategies.

 Sales funnel - describes the pattern, plan or actual achievement of conversion of

prospects into sales, pre-enquiry and then through the sales cycle. So-called because it
includes the conversion ratio at each stage of the sales cycle, which has a funneling effect.
Prospects are said to be fed into the top of the funnel, and converted sales drop out at the
bottom. The extent of conversion success (ie the tightness of each ratio) reflects the quality of
prospects fed into the top, and the sales skill at each conversion stage. The Sales Funnel is a
very powerful sales planning and sales management tool.

 Sales report - a business report of sales results, activities, trends, etc., traditionally
completed by a sales manager, but increasingly now the responsibility of sales people too. A
sales report can be required weekly, monthly, quarterly and annually, and often includes the
need to provide sales forecasts.

 Sales pipeline - a linear equivalent of the Sales Funnel principle. Prospects need to be
fed into the pipeline in order to drop out of the other end as sales. The length of the pipeline is
the sales cycle time, which depends on business type, market situation, and the effectiveness
of the sales process.

 Sector/market sector - a part of the market that can be described, categorised and
then targeted according to its own criteria and characteristics; sectors are often described as
'vertical', meaning an industry type, or 'horizontal', meaning some other grouping that spans a
number of vertical sectors, eg., a geographical grouping, or a grouping defined by age, or size,

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 Segment/market segment - a sub-sector or market niche; basically a grouping that's
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more narrowly defined and smaller than a sector; a segment can be a horizontal sub-sector
across one or more vertical sectors.

 Service contract - a formal document usually drawn up by the supplier by which the
trading arrangement is agreed with the customer. Also known as trading agreements, supply
agreements, and other variations. soft contacts - a networking term (used to differentiate
from 'hard contacts' people and groups) - 'soft contacts' may refer to networks/groups of
loose and flexible nature. See 'hard contacts' and more details about both terms in
networking situations within business networking section.

 Soft sell - an old term referring to a gentle style of selling, not necessarily subtle or
two-way/facilitative/modern, instead 'soft sell' refers simply to the absence of pressure and

 Solutions selling - a common but loosely-used description for a more customer-

orientated selling method than the Seven Steps; dependent on identifying needs to which
appropriate benefits are matched in a package or 'solution'. The term is based on the premise
that customers don't buy products or features or benefits - they buy solutions (to
organizational problems). It's a similar approach to 'needs-creation' selling, which first
became popular in the 1970s-80s. Solutions selling remains relevant and its methods can
usefully be included in the open plan selling style described later here, although modern
collaborative and facilitative methodologies are becoming vital pre-requisites.

 SPIN® and SPIN® Selling - A popular selling method developed by Neil Rackham in
the 1970-80s: SPIN® is an acronym derived from the basic selling process designed and
defined by Rackham: Situation, Problem, Implication, Need, or Need Payoff. More detail about
SPIN® and SPIN® Selling appears in the Consultative Selling and Needs Creation Selling
methods section. Note that SPIN® and SPIN SELLING® methods and materials are subject to
copyright and intellectual property control of the Huthwaite organisations of the US and UK.
SPIN® and SPIN SELLING® methods and materials are not to be used in the provision of
training and development products and services without a licence.

 Steps of the sale - describes the structure of the selling process, particularly the sales
call, and what immediately precedes and follows it. Usually represented as the Seven Steps of
the Sale, but can be five, six, eight or more, depending whose training manual you're reading.

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 Strategic Selling® - when used in upper case and/or in the context of Miller Heiman's
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Strategic Selling® methodology (which features in their books of the same name, first
published in 1985) the Strategic Selling® term is a registered and protected product name
belonging to the American Miller Heiman training organisation - so be warned. LAMP® and
Strategic Selling® methods and materials are subject to copyright and intellectual property
control of Miller Heiman, Inc., and again be warned that LAMP® and Strategic Selling®
methods and materials are not to be used in the provision of training and development
products and services without a licence.

 Strategic selling - you will also hear people (me included) referring to 'strategic
selling' in a generic sense, and not specifically referring to the Miller Heiman methods and
materials. In a generic 'lower case' sense, 'strategic selling' describes a broad methodology
which began to be practised in the 1980s, literally 'strategic' by its nature (the principles
involve taking a strategic view of the prospective customer's organisation, its markets,
customers and strategic priorities, etc), which is described below and referred to as 'open
plan selling'. When using the 'strategic selling' terminology in a training context you must be
careful therefore to avoid confusion or misrepresentation of the Miller Heiman intellectual
property. If in any doubt don't use the 'strategic selling' term in relation to providing sales
training services - call it something else to avoid any possible confusion with the Miller
Heiman products.

 Tangible - in a selling context this describes, or is, an aspect of the product or service
offering that can readily be seen and measured in terms of cost and value (eg., any physical
feature of the product; spare parts; delivery or installation; a regular service visit; a warranty

 Target/sales target - in a sales context this is the issued (or ideally agreed) level of
sales performance for a sales person or team or department over a given period. Bonus
payments, sales commissions, pay reviews, job grading, life and death, etc., can all be
dependent on sales staff meeting sales targets, so all in all sales targets are quite sensitive
things. Targets are established at the beginning of the trading year, and then reinforced with a
system of regular forecasting and reviews (sometimes referred to as 'a good bollocking')
throughout the year.

 Targeting - this has a different meaning to the usual noun sense of target (above).
Targeting is a marketing term - very relevant and important for sales people and sales

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managers too - which refers to the customers at which the selling effort is aimed, hence
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targeting. In this respect the term relates to 'target markets', or 'target sectors'. This is the
customer aspect within 'positioning' of a product or service or proposition. Targeting is
represented by the question: Who will buy the product/service? Deciding targeting on a
company scale is normally the responsibility of a marketing department or agency, but each
sales person and sales team as huge potential to develop and refine their own local targeting -
so as to aim their efforts at the sectors or customers which will produce the greatest results.
For example - and many sales people, especially self-employed providers and traders -
completely ignore the fact that sales generally come more easily from existing or previous
customers than prospective new customers to whom the supplier is completely unknown.
Similarly size of prospective customer is another largely overlooked aspect of targeting. Any
business will naturally have more amenable sectors of potential customers than other parts of
the market. Targeting is the process by which the selling organization maximises its chances
of engaging with the most responsive and profitable customers.

 Telemarketing - any pre-sales activity conducted by telephone, usually by specially

trained telemarketing personnel - for instance, research, appointment-making, product

 telesales - selling by telephone contact alone, normally a sales function in its own
right, i.e., utilising specially trained telesales personnel; used typically where low order values
prevent the use of expensive field-based sales people, and a recognisable product or service
allows the process to succeed.

 Tender - a very structured formal proposal in response to the issue of an invitation to

tender for the supply of a product or service to a large organization or government
department. Tenders require certain qualifying criteria to be met first by the tendering
organization, which in itself can constitute several weeks or months work by lots of different
staff. Tenders must adhere to strict submission deadlines, contract terms, specifications and
even the presentation of the tender itself, and usually only suppliers experienced in winning
and fulfilling this type of highly controlled supply ever win the business. It is not unknown for
very successful tendering companies to actually help the customer formulate the tender
specification, which explains why it's so difficult to prise the business away from them.

 Territory - the geographical area of responsibility of a sales person or a team or a sales

organization. A generation ago a field-based sales person's territory would commonly be a

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county or state. Now in this globalized age, where so much selling is done online and remotely
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by telephone rather than by expensive face-to-face selling, field-based sales people's
territories are much bigger, and can be entire countries or continental regions.

 Territory planning - the process of planning optimum and most cost-effective

coverage (particularly for making appointments or personal calling) of a sales territory by the
available sales resources, given prospect numbers, density, buying patterns, etc., even if one
territory by one sales person; for one person this used to be called journey planning, and was
often based on a four or six day cycle, so as to avoid always missing prospects who might
never be available on one particular day of the week.

 Trial close - the technique by which a sales person tests the prospect's readiness to
buy, traditionally employed in response to a buying signal, eg: prospect says: "Do you have
them in stock?", to which the sales person would traditionally reply: "Would you want one if
they are?" Use with extreme care, for fear of looking like a clumsy desperate fool. If you see a
buying signal there's no need to jump on it - just answer it politely, and before ask why the
question is important, which will be far more constructive.

 unique/uniqueness - a feature that is peculiar to a product or service or supplier - no

competitor can offer it. See the marketing section for more detail about developing unique
selling propositions. Uniqueness is a much overlooked aspect of selling. The vast majority of
sales organizations focus their efforts on selling 'me too' products and services, where
inevitably discussions tend to concentrate on price differences, whereas the most enlightened
and progressive sales organizations strive to develop unique qualities in the propositions,
which dramatically reduces competitive pressures.

 UPB - unique perceived benefit - now one of the central strongest mechanisms in the
modern selling process, an extension and refinement of the product offer, based on detailed
understanding of the prospect's personal and organizational needs. A UPB is your USP from
the customer's perspective, in other words, what your USP means to your customer, which is
a very different way of approaching selling than from the traditional angle of seller-oriented
USPs. It's essential to discuss your offering in these terms with your customer. The UPB
acronym and concept was developed by The Marketing Guild, who specialise in practical,
innovative, and effective sales and marketing.

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 USP - unique selling point or proposition - this is what makes the product offer
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competitively strong and without direct comparison; generally the most valuable unique
advantage of a product or service, for the market or prospect in question; now superseded by

 Variable - an aspect of the sale or deal that can be changed in order to better meet the
needs of the seller and/or the buyer. Typical variables are price, quantity, lead-time, payment
terms, technical factors, styling factors, spare parts, back-up and breakdown service, routine
maintenance, installation, delivery, warranty. Variables may be real or perceived, and often
the perceived ones are the most significant in any negotiation.

Transportation Terminology

 A shipping transaction Freight: The transported material

 Shipper / Consignor / (Freight) Originator: The shipping party.

 Consignee / Freight Receiver: The receiving party

 Carrier: The firm that provides the transportation service

 Freight bill-of-lading (freight bill): A document serving as a contract between the

shipper and the carrier, specifying the obligations of both parties. In particular, it specifies:

– The Consignee

– The FOB (free-on-board) point, i.e., the point where the freight changes
ownership (origin or destination)

– The FOB terms-of-sale

• Who arranges for transport and carrier

• Who pays for transport (collect, prepaid, prepaid and charged back)

• FOB point

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• Loss & Damage terms and potential insurance
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 Freight Types Bulk cargo: Cargo that is stowed loose on transportation vehicles, a
tank or hold without any packaging; handled by pump, scoop, conveyor or shovel. Ex: grain,
coal, petroleum and chemicals.

 Break-bulk cargo: Cargo in between bulk and containerized, which must be handled
piece-by-piece by terminal workers; often stored in bags or boxes and stacked on pallets.

 Pallet: a small platform, usually 40x48in, on which (cartons of ) goods are towered for
handling in warehouses and transport vehicles.

 Containerized cargo: Cargo filling an entire container that is handled as a single unit.

 Container: A single, rigid, sealed, reusable metal box in which freight is shipped by
vessel, truck or rail. Usually 8x8 ft in width & height, 20 to 55 ft long. Some container types
include: standard, high cube, hard top, open top, ventilated, insulated, refrigerated, etc.

 Dunnage: Wood and packaging materials used to keep cargo in place inside a
container or transportation vehicle.

Freight Units Freight is typically measured by weight:

– Short ton (American) 2000 lbs

– Long ton (English) 2240 lbs

– Metric ton 2204.6 lbs (1000 kgs)

or sometimes by cube, i.e., volume.

 Transportation equipment (vehicles, vessels, etc.) has pre-specified weight and

volume capacities; e.g.,

– Deadweight: The number of long tons that a vessel can transport of cargo,
supplies and fuel.

– TEU (Twenty-foot equivalent unit): Method for specifying a vessel load or

capacity in units of containers that are 20ft long. (e.g., a 3000 TEU vessel can
accommodate - at most - 1500 40ft containers).

– FEU (Forty-foot equivalent unit)

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– Slot: A place for a container on board a container ship (typically, one TEU).
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 Carrier Types Private carrier: Owned and operated by a shipper. Usually refers to
private trucking fleets. More advantageous solution for high density / short distance or
special-need shipments.(e.g., Safeway)

 Common carrier: A for-hire carrier providing services to general public.

– Parcel / express carriers (UPS, FedEx)

– LTL (Less Than Truckload) Trucking (Yellow, Consolidated Freightways)


– TL trucking (Hunt, Schneider)

– CL

– Rail carrier (Norfolk Southern)

– Air carriers (Delta, Flying Tigers)

– Ocean carrier (SeaLand, American President Lines)

• Liner Shipping: vessels sailing between ports on regular schedule, which

is published and available to public.

• Tramp shipping: Vessels calling at different ports upon availability of

cargo (used primarily for bulk shipping)

– Pipeline

 Mediators and Integrators Freight forwarder: An agency that receives freight from
the shipper and then arranges for transportation with one or more carriers for transport to
the consignee. Typically, consolidates freight from many shippers to obtain better rates. Also,
often provide pickup and delivery services, as well as other shipping services: packaging,
temporary storage, customs clearing.

 Transportation Broker: An agency that obtains negotiated large-volume

transportation rates from carriers and resells this capacity to shippers. No additional services
are provided, though.

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 NVOCC (Nonvessel-operating common carrier): Owns no vessels, but provides
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ocean shipping freight-forwarding services.

 Shipper’s Association: Not-for-profit association of shippers using collective

bargaining and freight consolidation to obtain lower, high-volume transportation rates.
Avoids premium charge paid to forwarders. Only non-competitive shippers may associate,
due to monopoly restrictions.

 Integrators: Companies providing door-to-door domestic and international air- freight

service. Owns and operate aircraft as well as ground delivery fleet of trucks (e.g., UPS, FedEx,
Emery Worldwide).

 3PL: A third-party, or contract, logistics company, used to outsource logistics services.

It can also handle: Purchasing, Inventory management/warehousing, transportation and
order management (e.g., Schneider Logistics, Ryder Logistics, UPS Logistics)

 Transportation Systems Direct Shipping: Shipment travels directly from consignor

to consignee. Used primarily for TL shipping.

 Dead-head: A portion of a transportation trip in which no freight is conveyed; an

empty move.

 Hub-and-spoke: Large hub terminals are employed for freight consolidation. Medium-
volume services are used for spoke-to-hub collection and hub-to-spoke distribution. Air
freight, parcel shipping, LTL and, more recently, ocean shipping is organized in this manner.

 Pickup and delivery (cartage): Local hauling of freight

Longhaul (or Linehaul): Terminal-to-terminal freight movements

 Milk runs: a vehicle route in which a truck delivers (picks up) freight from (for) a
single terminal to (from) a number of consignees.

 Interline / Intermodal shipment: shipment employing more than one carrier /

transportation mode.


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 Definition: In a retail operation, a reduction of price from the full original price or
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suggested retail price of an item offered to end-users is called a discount. Temporary
discounts are often given for a limited time during marketing and sales promotion periods to
create a sense of urgency in consumers to make a purchase. Permanent discounts, also known
as "markdowns," are used to move inventory out of the store in order to make room for new

 Also Known As: price reduction, sale, markdown, rollback, clearance, coupons


 Language is one of the most complex and important tools of International Trade.
As in any complex and sophisticated business, small changes in wording can have a major
impact on all aspects of a business agreement.
Word definitions often differ from industry to industry. This is especially true of global trade.
Where such fundamental phrases as "delivery" can have a far different meaning in the
business than in the rest of the world.

For business terminology to be effective, phrases must mean the same thing throughout the
industry. That is why the International Chamber of Commerce created "INCOTERMS" in 1936.
INCOTERMS are designed to create a bridge between different members of the industry by
acting as a uniform language they can use.

Each INCOTERM refers to a type of agreement for the purchase and shipping of goods
internationally. There are 11 different terms, each of which helps users deal with different
situations involving the movement of goods. For example, the term FCA is often used with
shipments involving Ro/Ro or container transport.

 INCOTERMS also deal with the documentation required for global trade, specifying
which parties are responsible for which documents. Determining the paperwork required to
move a shipment is an important job, since requirements vary so much between countries.
Two items, however, are standard: the commercial invoice and the packing list.

 INCOTERMS were created primarily for people inside the world of global trade.
Outsiders frequently find them difficult to understand. Seemingly common words such as

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"responsibility" and "delivery" have different meanings in global trade than they do in other
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In global trade, "delivery" refers to the seller fulfilling the obligation of the terms of sale or to completing a
contractual obligation. "Delivery" can occur while the merchandise is on a vessel on the high seas and the
parties involved are thousands of miles from the goods. In the end, however, the terms wind up boiling
down to a few basic specifics:

Costs: who is responsible for the expenses involved in a shipment at a given point in the
shipment's journey?
  Control: who owns the goods at a given point in the journey?
Liability: who is responsible for paying damage to goods at a given point in a shipment's

It is essential for shippers to know the exact status of their shipments in terms of ownership
and responsibility. It is also vital for sellers & buyers to arrange insurance on their goods
while the goods are in their "legal" possession. Lack of insurance can result in wasted time,
lawsuits, and broken relationships.

 INCOTERMS can thus have a direct financial impact on a company's business. What is
important is not the acronyms, but the business results. Often companies like to be in control
of their freight. That being the case, sellers of goods might choose to sell CIF, which gives them
a good grasp of shipments moving out of their country, and buyers may prefer to purchase
FOB, which gives them a tighter hold on goods moving into their country.

In this glossary, we'll tell you what terms such as CIF and FOB mean and their impact on the
trade process. In addition, since we realize that most international buyers and sellers do not
handle goods themselves, but work through customs brokers and freight forwarders, we'll
discuss how both fit into the terms under discussion.

 INCOTERMS are most frequently listed by category. Terms beginning with F refer to
shipments where the primary cost of shipping is not paid for by the seller. Terms beginning
with C deal with shipments where the seller pays for shipping. E-terms occur when a seller's
responsibilities are fulfilled when goods are ready to depart from their facilities. D terms
cover shipments where the shipper/seller's responsibility ends when the goods arrive at
some specific point. Because shipments are moving into a country, D terms usually involve the
services of a customs broker and a freight forwarder. In addition, D terms also deal with the

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pier or docking charges found at virtually all ports and determining who is responsible for
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each charge.

Recently the ICC changed basic aspects of the definitions of a number of INCOTERMS,
buyers and sellers should be aware of this. Terms that have changed have a star alongside

EXW (EX-Works)

 One of the simplest and most basic shipment arrangements places the minimum
responsibility on the seller with greater responsibility on the buyer. In an EX-Works
transaction, goods are basically made available for pickup at the shipper/seller's factory or
warehouse and "delivery" is accomplished when the merchandise is released to the
consignee's freight forwarder. The buyer is responsible for making arrangements with their
forwarder for insurance, export clearance and handling all other paperwork.

FOB (Free On Board)

 One of the most commonly used-and misused-terms, FOB means that the
shipper/seller uses his freight forwarder to move the merchandise to the port or designated
point of origin. Though frequently used to describe inland movement of cargo, FOB
specifically refers to ocean or inland waterway transportation of goods. "Delivery" is
accomplished when the shipper/seller releases the goods to the buyer's forwarder. The
buyer's responsibility for insurance and transportation begins at the same moment.

FCA (Free Carrier)

 In this type of transaction, the seller is responsible for arranging transportation, but he
is acting at the risk and the expense of the buyer. Where in FOB the freight forwarder or
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carrier is the choice of the buyer, in FCA the seller chooses and works with the freight
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forwarder or the carrier. "Delivery" is accomplished at a predetermined port or destination
point and the buyer is responsible for Insurance.

FAS (Free Alongside Ship)*

 In these transactions, the buyer bears all the transportation costs and the risk of loss of
goods. FAS requires the shipper/seller to clear goods for export, which is a reversal from past
practices. Companies selling on these terms will ordinarily use their freight forwarder to clear
the goods for export. "Delivery" is accomplished when the goods are turned over to the
Buyers Forwarder for insurance and transportation.

CFR (Cost and Freight)

 This term formerly known as CNF (C&F) defines two distinct and separate
responsibilities-one is dealing with the actual cost of merchandise "C" and the other "F" refers
to the freight charges to a predetermined destination point. It is the shipper/seller's
responsibility to get goods from their door to the port of destination. "Delivery" is
accomplished at this time. It is the buyer's responsibility to cover insurance from the port of
origin or port of shipment to buyer's door. Given that the shipper is responsible for
transportation, the shipper also chooses the forwarder.

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CIF (Cost, Insurance and Freight)

 This arrangement similar to CFR, but instead of the buyer insuring the goods for the
maritime phase of the voyage, the shipper/seller will insure the merchandise. In this
arrangement, the seller usually chooses the forwarder. "Delivery" as above, is accomplished at
the port of destination.

CPT (Carriage Paid To)

 In CPT transactions the shipper/seller has the same obligations found with CIF, with
the addition that the seller has to buy cargo insurance, naming the buyer as the insured while
the goods are in transit.

CIP (Carriage and Insurance Paid To)

 This term is primarily used for multimodal transport. Because it relies on the carrier's
insurance, the shipper/seller is only required to purchase minimum coverage. When this
particular agreement is in force, Freight Forwarders often act in effect, as carriers. The buyer's
insurance is effective when the goods are turned over to the Forwarder.

DAT (Delivered At Terminal

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 This term is used for any type of shipments. The shipper/seller pays for carriage to the
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terminal, except for costs related to import clearance, and assumes all risks up to the point
that the goods are unloaded at the terminal.

DAP (Delivered At Place)

 DAP term is used for any type of shipments. The shipper/seller pays for carriage to the
named place, except for costs related to import clearance, and assumes all risks prior to the
point that the goods are ready for unloading by the buyer.

DDP (Delivered Duty Paid)

 DDP term tend to be used in intermodal or courier-type shipments. Whereby, the

shipper/seller is responsible for dealing with all the tasks involved in moving goods from the
manufacturing plant to the buyer/consignee's door. It is the shipper/seller's responsibility to
insure the goods and absorb all costs and risks including the payment of duty and fees.

Payments Glossary


Automated Clearing House (ACH)

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 A type of payment system designed to allow corporations and consumers to reduce or
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eliminate the use of paper checks when making routine high-volume, low value payments. ACH
systems process large volumes of individual payments electronically. Typical ACH payments
include salaries, consumer and corporate bill payments, interest and dividend, and Social
Security. Examples of private sector ACH providers in the U.S. include VISA, the New York
Clearing House, and the American Clearing House.

Automatic Teller Machine (ATM) Card

 A payment card issued to a person for activating Automated Teller Machines--computer

terminals which allow consumers to make deposits and withdrawals.


Batch Processing
The transmission or processing of a group of related payment instructions.

Book Entry System

An accounting system that permits the transfer of assets (such as securities) without
the physical movement of paper documents or certificates. The U.S. book-entry system
is called the National Book-Entry Securities system or NBES. NBES related transfers
are made via Fedwire on a real-time delivery-vs-payment gross settlement basis.



 A retail payment instrument consisting of a written order from one party (the
drawer) to another party (the drawee, normally a bank) requiring the drawee to pay a
specified sum on demand to the drawer or to a third party specified by a drawer.


 The process of transmitting, reconciling, and in some cases, confirming payments

orders or financial instrument transfer instructions prior to settlement.

Clearing Corporation (aka Clearinghouse)

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 A central processing mechanism through which financial institutions agree to
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exchange payment instructions or other financial obligations (e.g. securities). The
institutions settle for items exchanged at a designated time based on the rules and
procedures of the clearing corporation. In some cases, the clearing corporation may
assume significant counterparty, financial, or risk management responsibilities for the
clearing system.

Clearing Account

 Deposit account held by banks and thrift institutions at the Federal Reserve.
Unlike reserve accounts, which institutions are required to maintain, clearing accounts
are held if their required reserve balances are not large enough to cover the dollar
volume of their check clearing and other transfers of funds through the Federal Reserve.


 The process in which the terms of a trade are verified either by market
participants directly or by some central entity.

Correspondent Bank

 A bank that holds deposits for other banks and performs services, such as check
clearing. The deposit balance is a form of payment for services.


 One party to a trade.


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 An entity, often a bank, that safekeeps securities for its customers and may
provide various other services, including clearance and settlement, cash management,
foreign exchange, and securities lending.

Credit Card
A payment card issued to a person for purchasing goods and services and obtaining cash
against a line of credit established by the issuer. Credit cards may be of two types: those
issued by merchants and vendor (such as a store) and those issued by banks (such as
VISA and MasterCard). Cardholders may also be able to receive other bankcard services.

Daylight Overdraft

 A negative position in an institution's Federal Reserve account.


 Failure to complete a funds or securities transfer according to its terms for

reasons that are not technical or temporary, usually as a result of bankruptcy.

Delivery-vs-Payments system (DVP)

 A system that ensures that the final transfer of one asset will simultaneously
occur if, and only if, the final transfer of another asset (or other assets) occurs.


 Facility for holding securities in either a certified or an uncertified

(dematerialized) form. Allows securities transfers through book-entry. Depositories
may also offer funds accounts and permit funds transfers as a means of payment.
Depositories may be privately or publicly operated. The Depository Trust Company
(DTC) is the largest American securities depository and holds the majority of the
equity, corporate bond, and money market instruments issued in the United States.

Depository Institution

 An institution that holds funds or marketable securities, usually under a specific

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Direct Deposit

 Electronic deposits or credit--usually via ACH--to an individual's bank account.

Common uses of direct deposit include payroll payments, Social Security benefits and
income from investments, such as CDs, annuities and mutual funds.

Direct Debit

 Electronic transfer--usually via ACH--out of an individual's checking (or

savings) account to pay recurring bills, such as mortgage payments, insurance
premiums and utility payments.

Electronic Benefits Transfer (EBT)

 A type of EFT (see below) system involving the transfer of public entitlement
payments, such as welfare or food stamps, via direct deposit or point-of-sale
technology (see POS). The recipient can be given an identification card, similar to a
benefit card, and a PIN number to allow them to access the benefits through an
electronic network.

Electronic Commerce (E-Commerce)

 A broad term encompassing the remote procurement and payment by

businesses or consumers of goods and services through electronic systems, such as the

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Electronic Data Interchange (EDI)

 The communication of trade-related information among business partners in a

structured, standardized, machine-readable electronic form.

Electronic Funds Transfer (EFT)

 A generic term describing any transfer of funds between parties or depository

institutions via electronic data systems. Automated Clearing House (ACH) is an
example of EFT.


 An irrevocable and unconditional transfer of payment which occurs during


Financial EDI (FEDI)

 An instrument for settling invoices by initiating payments, processing

remittance data and automating reconciliation, via the exchange of electronic

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Foreign Exchange Settlement Risk (aka Herstatt Risk )

 The potential loss of principal associated with settling transactions sequentially

instead of simultaneously.

Hybrid Settlement System

 A combination of a real-time gross settlement system and a multilateral net

settlement system. Some deferred net settlement systems have incorporated
mechanisms for making irrevocable and unconditional funds transfers during the day
rather than only at the end of the day. In some cases this has resulted in hybrid
systems which combine features, including risk control measures, of gross and net
settlement systems.

Large-Value Transfer System

 A type of wholesale payment system used primarily by financial institutions in

which large values of funds are transferred between parties. Fedwire and CHIPS are
the two large-value transfer systems in the U.S.

Multilateral Netting

 Multilateral netting is an arrangement among three or more parties to net their

obligations. In settlement systems of this type transfers are irrevocable, but are only
final after the completion of end-of-day-settlement.

Net Debit Cap

 The maximum dollar amount of daylight overdrafts an institution is permitted

to incur in its Federal Reserve account. The exact dollar amount is a multiple--
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determined by the Federal Reserve--of an institution's capital. Under current policy,
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institutions are subject to two caps: a daily cap and a 2-week average cap. Net debit
caps help reduce the credit risk to the Federal Reserve and taxpayers by limiting losses
should an institution fail. In April 1994, as a supplement to the existing net debit cap
policy, Federal Reserve Banks began charging fees to depository institutions for
average daylight overdrafts in deposit accounts with the Federal Reserve.

Net Settlement Systems

 (Also referred to as Deferred Net Settlement Systems). A category of payments

system. A system in which banks continually send payment instructions over a period
of time, with final transfer occurring at the end of the processing cycle. During the
period, a record is kept of net debits and credits.


 A transfer of value.

Payment System

 The mechanism--the rules, institutions, people, markets, and agreements--that

make the exchange of payments possible.

Payment vs. Payment

 A mechanism in a foreign exchange settlement system which ensures that a

final transfer of one currency occurs if and only if a final transfer of the other currency
or currencies takes place

Point-of-Sale (POS) Network

 A network of banks, debit cardholders, and merchants that permit consumers to

electronically make direct payment at the place of purchase. The funds transfer

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directly from the account of the cardholder to the account of the merchant.
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Point-of-Sale (POS) Card

 A payment card issued to a person for purchasing goods and services that
substitutes an electronic transfer of funds for cash, checks, or drafts.

Real-Time Gross Settlement (RTGS) System

 A category of payments system. A system is said to operate in real-time if each

payment is processed as it is initiated--which provides immediate finality--rather than
in batch. This serves to reduce Herstatt Risk. Gross settlement refers to the settlement
of each transfer individually rather than netting. Fedwire uses a real-time gross
settlement system.

Reserve Account

 A non-interest earning balance that depository institutions maintain with the

Federal Reserve Bank or with a correspondent bank to satisfy the Fed's reserve
requirements. Reserve account balances play a central role in the exchange of funds
between depository institutions.

Reserve Requirements

 The percentage of deposits that a bank or other depository institution may not
lend out or invest and must hold either as vault cash or on deposit at a Federal Reserve
Bank. Reserve requirements affect the potential of the banking system to create
transaction deposits.

Retail Payments

 Small-dollar payments made in the goods and services market.

Securities Settlement System

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 The full set of institutional arrangements for confirmation, clearance, and
settlement of securities trades and safekeeping of securities.


 The final step in the transfer of ownership involving the physical exchange of
securities or payment. In a banking transaction, settlement in the process of recording
the debit and credit positions of the parties involved in a transfer of funds; in a
financial instrument transaction, settlement includes both the transfer of securities by
the seller and the payment by the buyer. Settlements can be "gross" or "net." Gross
settlement means each transaction is settled individually. Net settlement means that
parties exchanging payments will offset mutual obligations to deliver identical items,
at a specified time, after which only one net amount of each item is exchanged.

Settlement date

 The date on which the parties to a transaction agree that settlement is to take


 A card-based payment system that stores values for transactions on a computer

chip instead of a magnetic stripe. As the card is used for transactions, the amounts are
subtracted from a balance on the chip. As the balance approaches zero, the chip can be
"reloaded" through a number of methods. These cards are often used in closed-
systems for specific types of purchases but do not have to be so restricted. The chip
also allows the owner to keep a variety of information with them at all times.

Wholesale Payments

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 Large-value payments used primarily in the financial markets.

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 ALEXANDER, L.G., Longman English Grammar, Pearson Education Limited, 1988 (ISBN:

 BLACK, Allison, STIFF, Paul and WALLER, Robert, DEsigning Business Documents.
Monotype Desktop Solutions series, adapated by Chris Burke, from the Monotype Desktop

 ONES; Leo et alli, New International Business English Updated Edition, Cambridge
University Press, 2000 (ISBN: 9780521774697)

 JONES; Leo et alli, New International Business English Updated Edition Workbook,
Cambridge University Press, 2000 (ISBN: 9780521774703)

 LEECH, Geoffrey et alli, Longman Grammar Spoken And Written English, Pearson
Education Limited, 1999 (ISBN: 9780582237254)

346035 - Técnico/a Administrativo/a

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