Table 1.

Definitions and terminology related tobacco company contracts with retailers.

Term	Description
Buydown	Promotional or time-limited product price reductions (e.g., $1.00 off a pack of Marlboro Cigarettes). With a buydown, the retailer lowers the price of the product by a set amount negotiated with the manufacturer and tracks the number of discounts given, the manufacturer then reimburses the retailer at the end of a set period. Stores without a contract or agreement with manufacturers are unable to provide discounted tobacco products to their consumers
Contract	Agreement between tobacco manufacturers and retailers that entails requirements and incentives from manufacturers to retailers (e.g., Philip Morris’s Retail Leaders Program, RJ Reynolds’ Retail Partners Marketing Plan Contract [RPMPI], Brown & Williamson’s Kool Inner City Point-of-Purchase [POP] Program)
Incentive	Rewards (e.g., free items, monetary gifts, tickets for events or trips) given to retailers for participating in contracts with tobacco manufacturers and abiding by the requirements stipulated
Placement*	The location where a product is positioned for the consumer
Price*	The amount that a consumer pays for a product
Product*	The specific item or good produced by a manufacturer and obtained by a consumer
Promotion*	The advertising efforts used to highlight a product
Requirement	Standards (e.g., 30% of shelf space) or actions expected by tobacco manufacturers of retailers who participate in contracts to receive incentives
Slotting Fee (Slotting payment, Listing fee)	Payments by tobacco manufacturers to retailers in exchange for guaranteed shelf space for new or existing products
Trade promotions	Marketing focused on wholesalers and retailers, instead of focused directly on the consumer through mass media channels

^*Placement, price, product, and promotion form the 4 “P’s” of marketing.