As we said in our previous two Category Management Glossary Articles here and here that there’s a lot of jargon to sift through and understand. Let’s check out five more acronyms you’ll definitely encounter.
- NIQ – Nielsen IQ
Nielsen IQ is a leading provider of market research, consumer insights, and data analytics. Formerly a part of The Nielsen Company, NIQ spun off as a separate company in 2021.
2. IRI/NPD – Information Resources Inc./National Purchase Diary
Information Resources Inc. and National Purchase Diary are also leading providers of market research, consumer insights, and data analytics. Formerly known as separate entities, in 2022 the companies finalized a merger and are now jointly known as Circana.
Both NIQ and Circana offer valuable resources to support category management professionals in optimizing their strategies and driving business growth. These tools help category management professionals by providing comprehensive data on consumer behavior, market trends, and competitive landscapes. By leveraging these capabilities, businesses can make informed decisions regarding pricing strategies, product assortment, promotions, and overall category management strategies. Having comprehensive data and analytics are instrumental in understanding consumer preferences, identifying growth opportunities, and optimizing business performance.
3. TA/RMA – Trading Area/Retailer Marketing Area
A Trading Area or Retailer Marketing Area refers to the stores a specific retailer operates within a geographic region. It represents the catchment area from which the retailer draws its customers and influences strategic decisions such as store location, target audience, promotional campaigns, and marketing efforts.
4. ROM/CRMA – Rest of Market/Competitive Retailer Marketing Area
The Rest of Market or Competitive Retailer Marketing Area refers to all stores operated within a defined TA/RMA, regardless of which retailer operates them. CRMA includes all stores within the region, while ROM includes all stores except those operated by the specific retailer.
Understanding these regions are crucial for effective category management, as it helps in tailoring assortments, promotions, and pricing strategies to cater to the specific needs and preferences of a retailer’s customer base.
5. YOY/MOM – Year-over-Year/Month-over-Month
Year-over-Year and Month-over-Month are terms used to compare data and performance over different time periods. YOY analysis measures performance or growth between the same months or periods in different years, while MOM analysis focuses on comparing data from consecutive months. These comparisons provide valuable insights into seasonality, trends, and performance variations. By analyzing YOY and MOM data, category management professionals can identify patterns, assess the effectiveness of strategies, and make informed decisions to drive category growth.
Get a handle on analytics!
Expanding your category management expertise involves mastering the acronyms that shape the industry. Understanding data analytics terms is critical to properly leverage powerful tools, make data-driven decisions, and have productive conversations with your colleagues.