Vietnam: What is buying-related promotion?

According to Sino-Vietnamese terminology, khuyến mãi (buying-related promotion) and khuyến mại (selling-related promotion) are two terms with different meanings: “mại” means selling, whereas “” means buying. Therefore, selling-related promotion refers to encouraging the sale of goods, typically used to describe the policies of traders aimed at encouraging their employees to promote the marketing of goods and is an internal policy measure of the traders. Meanwhile, buying-related promotion refers to encouraging customers to buy goods and thus is not an internal measure but directly market-oriented.

In commercial activities, buying-related promotion impacts sellers, including sales agents, intermediary customers, and distributors, thereby stimulating the purchase of goods. Thus, buying-related promotion benefits the seller directly.

Popular forms of buying-related promotion include:

- Sales bonuses;

- High value gifts;

- Selective customer conferences and lucky draws…

buying-related promotion is divided into two main activities: consumer promotion and trade promotion.

- Consumer-oriented buying-related promotion : The target is the end consumer, using forms such as discount coupons, product samples, cash discounts, lotteries, and point-of-sale displays. These forms encourage consumers to buy immediately, buy in large quantities, or buy regularly, increasing short-term sales.

- Trade-oriented buying-related promotion , on the other hand, targets marketing intermediaries such as wholesalers, distributors, and retailers. It is carried out in forms such as discounts, sales force rallies, and trade exhibitions to encourage distributors to stock, distribute, and promote the company's products.

Related documents:

Decree 37/2006/ND-CP on commercial promotion activities guiding the Commercial Law

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