The Role of Trade Promotion Policy in Product Consumption of a Provincial Locality

1.1.3. The role of trade promotion policy in product consumption of a provincial locality

The main purpose of provincial trade promotion activities is to bridge trade activities, promote the exchange of goods and services between entities through buying and selling, contributing to creating a favorable business environment for enterprises. Enterprises play a key role in penetrating and dominating the market. However, with the support, orientation, connection, and information about the market and products of trade promotion organizations, domestic and foreign trade enterprises will be much more effective.

- Orientation role.

The province's trade promotion policy helps to orient and regulate the activities of local business entities, ensuring harmonious and sustainable development. The trade promotion policy is a system composed of many policies on economic and social aspects. Therefore, a number of policies on incentives, tax exemptions and reductions, and credit policies contribute to orienting households and production and business establishments to develop priority industries, exploit local potential, and contribute to eliminating the gap between rural and urban areas.

Maybe you are interested!

• Using City Budget Capital to Provide Financial Support for Production and Business Activities, Trade Promotion Activities and Product Consumption
• Trade promotion policy for some key products of Son La province - 1
• Improving the Effectiveness of Trade Promotion (Xttm)
• Target Market Selection and Trade Promotion
• Policy on Development of Free Trade Zones, Industrial Parks, High-Tech Parks.

- The role of encouragement and support. To achieve the policy goal of trade promotion for the consumption of key products of the Province, the State/local authorities have issued many solutions with incentives and financial support and technical measures. Thereby, creating a mechanism to encourage and support socio-economic entities to voluntarily participate in trade promotion activities.

- The role of creating the environment

Trade promotion policies play an important role in creating a favorable business environment for operating entities. At the same time, policies suitable to the conditions of each locality will help and support to enhance capacity.

Trade promotion of organizations and enterprises in business activities. Along with other factors of management organization, operating mechanism, traditional cultural conditions and behavioral relationships of organizations and production and business enterprises will enhance the competitiveness of enterprises and products.

Trade promotion policy is a system of many component policies, including science and technology policy with contents supporting technology transfer and improvement to improve product quality, diversify products, etc. In addition, trade promotion policy, product development strategy, brand building, and improving human resource quality aim to support and create favorable conditions for entities to develop production and business.

- The policy of promoting trade and consumption of products of each locality contributes to promoting trading activities both domestically and internationally. Promoting activities to promote local products at the provincial level is also an opportunity to expand connections and promote local products with other localities in the country, promoting business activities even in foreign markets. Expanding relationships and creating prestige with large distributors such as large supermarkets to thereby get closer to consumers in the capital, building trust and image of the product in the minds of customers. In addition, trade promotion partly aims to push back products of unknown origin as well as not meeting the standards to be introduced to the public.

- The trade promotion policy for product consumption of a provincial locality contributes to increasing consumer awareness of the product as well as knowing the origin of the product . Through trade promotion policies, a strong relationship can be built between manufacturers, distributors and consumers. Consumers can

quickly know and access the province's products, thereby increasing the opportunity to consume products of production and business units in the province.

- Improve and enhance people's lives. Trade promotion policies contribute to job creation and create more income for people. On the one hand, people can consume the goods they produce, on the other hand, they can consume goods produced elsewhere with higher economic benefits than domestically produced goods in some items.

1.2. Principles and basic contents of the trade promotion policy for product consumption of a provincial locality

1.2.1. Some basic principles for trade promotion policy for product consumption of a provincial locality

Principle of unity.

The content of a province's trade promotion policy and trade promotion activities must be unified, based on the viewpoints and guidelines of the Party and State and the viewpoints and goals of socio-economic development of the province.

At the same time, the content and implementation methods of the province's trade promotion policy cannot be independent and separate, but must ensure consistency with the content and implementation methods of general socio-economic development policies and management and development policies of other areas of the province and the whole country.

The province needs to unify the management of trade promotion activities through policies, laws and planning tools. Economic and trade goals must be unified with other goals in management.

Principles of centralism and democracy.

The content of the provincial trade promotion policy and its implementation must ensure transparency, publicity, equality, and simplification of administrative procedures.

government; ensure the legitimate rights and interests of the State and traders of all economic sectors; promote the development of production, business and trade at home and abroad.

Principle of continuity and correct direction

The trade promotion policy of a locality or province should not be spread out but should be based on the potential and goals of the locality to determine the market, products and target customers. Only then can a quality trade promotion policy and effective trade promotion activities be built and implemented.

The development and implementation of trade promotion policies in a province also needs to be carried out continuously for a certain period of time, long enough to have a large enough impact, bringing clear results to the province's trade promotion activities.

At the same time, it is necessary to ensure continuity in monitoring and evaluating the trade promotion policy in order to make timely adjustments. To ensure that the trade promotion policy is on the right track, there must be a system to monitor and evaluate the implementation results.

Principle of efficiency.

Trade promotion policies in a province must be consistent with the actual conditions of the province.

Decisions and policies that are planned and implemented need to bring about results commensurate with the resources spent. To achieve good results, it is necessary to improve the quality of management decisions as well as focus on the monitoring and adjustment process during the implementation of policies.

To ensure that trade promotion policies are on track and trade promotion activities are carried out smoothly, it is necessary to conduct assessments that consider past efforts and results.

Using past data will help identify long-term successes or problems. This evaluation should serve the following purposes:

(i) Identify what is happening and will happen during the implementation of the trade promotion policy.

(ii) Measure the quality of the activities performed.

(iii) Identify appropriate operating procedures.

1.2.2. Basic contents of the trade promotion policy for product consumption of a provincial locality

The basic content of a provincial-level local trade promotion policy in general must ensure the following requirements: (i) Ensure clarity and consistency in goals and not eliminate/be eliminated by other policies;

(ii) Ensure feasibility; (iii) Ensure consistency; (iv) Ensure suitability with products and local conditions.

Some basic trade promotion policies include: Financial policies to support trade promotion; Policies to support market access and development; Policies to develop trade promotion capacity of entities; Cooperation and association in trade promotion activities... The main contents of the policies are as follows:

- Viewpoints, policies, strategies and plans of the Province and local departments and branches to implement trade promotion activities:

To carry out trade promotion activities, the Provincial People's Committee needs to develop viewpoints, policies, ideas, goals, and orientations for trade promotion activities in the area in the short and long term; identify product groups, markets, and customer groups to focus on promotion... From there, the Province and localities have the basis to develop specific programs and plans to implement trade promotion.

To carry out the above steps, it is necessary to have budget and time for the activity. This requires the planner to focus on balancing and calculating to choose the most suitable time and budget.

- Financial support policy for trade promotion activities

As analyzed above, to carry out trade promotion activities, one of the important conditions is funding. Therefore, financial support policies for trade promotion activities play a decisive role in the province's trade promotion. Some basic policies are:

(i) Policy on allocating state budget (central and local) for provincial-level trade promotion activities;

(ii) Policy to connect and support businesses to access financial resources to organize trade promotion activities;

(iii) Policy to reduce taxes, fees... for business promotion activities.

- Policy to support market access and development:

Develop plans and programs to organize fairs and trade weeks in and outside the province, call for and support businesses to participate;

Organizing working groups to survey the market, participate in fairs; Policies to support businesses and individuals to participate in trade promotion activities organized by the province or other provinces...

Connect to invite domestic and foreign experts and partners to participate in trade promotion activities in the province to introduce the province's key products.

- Information and communication policy

Each locality supports businesses in promoting their brands and products to domestic and foreign markets through flexible information and communication policies. This can be done annually through

trade fairs, consumer goods weeks... or flexibly linked to important national or provincial events with the support of media tools such as radio and television; through websites of political and social organizations; ....

- Resource policy for XTTM

Policies to improve the quality of human resources for trade promotion play an important role in improving the quantity and quality of human resources through recruitment policies, remuneration policies, and training.

The policies mainly focus on improving the quality of state management officials on trade promotion, for officials planning and implementing trade promotion policies such as improving and supplementing knowledge and skills; policies on supporting training in trade promotion skills for personnel of organizations and enterprises... in the province.

- Policy to attract investment in developing trade promotion infrastructure

Policies on attracting capital and investing in infrastructure development for trade promotion activities such as building exhibition centers, product introduction centers, investing in modernizing trade promotion equipment, etc. in the province.

- Policy on support for trademark registration, brand name and supply chain formation for key products.

Implement product brand development activities; manage key products that have been granted protection certificates; build a product consumption chain model, promote and introduce branded products.

1.3. Factors affecting the planning and implementation of trade promotion policies for product consumption of a provincial locality

1.3.1. Factors affecting policy making

- Law: Law has a direct impact on planning and organizing the implementation of trade promotion policies for product consumption. State

promulgate and use laws and documents specifying laws for management, from legal documents on enterprises, commercial laws, investment laws, etc. It affects the policy making process or in other words, policies need to be based on the study of different legal documents. They have the role of guiding, regulating, and checking the activities of subjects in the market.

- Local socio-economic conditions: Socio-economic conditions, natural conditions, infrastructure, educational level, income, people's lives... are factors that strongly affect policy implementation, thereby directly affecting the quality of the policy. On the other hand, the characteristics of local products also affect the quality of the policy as well as the effectiveness of policy implementation. Therefore, in the process of formulating and implementing policies, it is necessary to pay attention to local characteristics to ensure the effectiveness and efficiency of the policy in practice.

- The characteristics of local production and business entities are an equally important factor in planning trade promotion strategies, because it is necessary to learn about the operations and strategies of entities to identify strengths and weaknesses to learn from, as well as gain experience, adjust and improve trade promotion policies.

- Characteristics of products - markets: Before entering into the planning of trade promotion policies, it is necessary to identify the target market where the locality wants to introduce its products to consumers in the target market, for example in large cities with high population density or exporting to potential foreign markets. In addition, choose products with potential and advantages to include in the trade promotion policy, in order to promote consumer demand as well as to promote and introduce products to establishments.