What is Commercial Promotion?

Commercial Law 2005 stipulates: Commercial Promotion is an activity aimed at promoting and seeking opportunities for the purchase and sale of goods and the provision of services, including promotion activities, commercial advertisements, displays, introductions of goods, services, and trade fairs, and exhibitions.

Commercial promotion is one of the commercial activities conducted by traders. Therefore, it will have general characteristics of commercial activities such as:

- Subject: Mainly traders, which can be Vietnamese traders or foreign traders;- Purpose: To promote and seek opportunities for the purchase and sale of goods and the provision of services to achieve higher efficiency in business activities;- Methods of implementation: Traders can either carry out the activities themselves or hire other traders to do so;- Forms of commercial promotion:- Promotion: This is a method that brings certain benefits to customers such as giving away goods free of charge; selling goods, and providing services at prices lower than previous selling prices or service charges; allowing the trial use of goods without payment, rewarding customers, etc.;- Commercial Advertisement: This is a method of introducing one's business activities of goods and services to customers through images, actions, sounds, voices, writings, symbols, colors, and lights containing commercial advertisement content via mass media, communication means, various signs, boards, tapes, panels, posters, fixed objects, transportation means, or other movable objects;- Display and Introduction of Goods and Services: This is a method of using goods, services, and documents about goods and services to introduce such goods and services to customers by opening showrooms, organizing conferences, seminars, and displaying and introducing on the Internet, etc.;- Trade Fairs and Exhibitions: This is concentrated implementation within a specified time and at a specific location for traders to display and introduce goods and services in order to promote and seek contract opportunities for the purchase and sale of goods and service contracts, which can be conducted domestically or abroad.

Thanks to commercial promotion, consumers are brought closer to business products, creating motivation for enterprises and companies to exist and develop in the market in the most effective manner.

Currently, commercial promotion is a common and practical activity that brings advantages to enterprises and companies in their business expansion strategies, creating competitive advantages among business rivals.

Related documents:

Decree 37/2006/ND-CP on commercial promotion activities

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