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IAI Actuarial Core Principles · Business Economics · Impact of advertising on sales and demand

All major Indian dairy cooperatives jointly fund a campaign urging consumers to drink more milk, without promoting any single brand. Which type of advertising is this?

This is generic advertising, because it promotes the product category, milk, instead of any one brand. Producers fund it jointly, and the aim is to increase total market demand, shifting the industry demand curve to the right, rather than to win share from each other.

  1. ABrand-specific persuasive advertising
  2. BGeneric advertisingCorrect
  3. CPredatory advertising
  4. DComparative advertising
  5. Defensive brand advertising

Explanation

Generic advertising promotes a whole product category rather than one firm's brand, and is often funded collectively by producers. Here no brand is promoted, so brand-specific or comparative types do not fit. Its aim is to shift the whole market demand curve outward.

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