Sales promotion is one of the means to attract customers. It is composed of activities that aim to entice broad consumer participation and entails some form of gain in the form of cash or material prizes, free products, or discounts.
As with all matters related to sales of products and services, promotional activities must also be registered with the Department of Trade and Industry, specifically under the Fair Trade and Enforcement Bureau (FTEB).
The first thing to do is to determine whether your activity that promises gain may be considered as sales promo, satisfying the following conditions:
- It should offer consumer products and services which are primarily for personal, family, household, or agricultural purposes. Other items that will fall under the category of food, drugs, devices, cosmetics, and hazardous substances, are under the Food and Drug Administration of the Department of Health.
- It should target a consumer who is a natural person and an end-user of a product or service.
- It must be announced to the public using broadcast media—television, radio, broadsheets, and the Internet.
- It must have a clear duration—a set timeline that will only run for a year. However, promos may be extended to up to six months more, subject to the approval of DTI.
According to the DTI, there are five types of sales promo and each one has a detailed and list of specific requirements that can be found at the DTI website. The Sales Promotion Application Form may be downloaded from this link.
Applications may be done online through NegosyoKonek portal but it will require that the said business is already registered with the said portal.
One must also determine the area where the sales promo will be implemented. Application for such sales promotion will be filed at the DTI Regional Office having jurisdiction over the location of the head office of the business.