Chapter 3, Problem 23AA

a)

To determine

The type of advertisement is given- competitive or informative.

Answer to Problem 23AA

Informative advertisement

Explanation of Solution

The above advertisement has not compared its product with any of its competitors instead it has shown the benefits of its product which provides information to the users.

Economics Concept Introduction

Competitive advertisements are an advertising war in which competitor’s product is mentioned to show why their product is inferior compared to the product naming it. Informative advertising is an advertising in an informative manner as it helps to generate good reputation and provide a brief description about the product.

b)

To determine

The audience which advertisement is targeting

Answer to Problem 23AA

An adults are the target audience

Explanation of Solution

The above description of the product states that fantastic fitness water is useful to those who exercise and they have especially mentioned that 64 ounces of fluid per day is required for an average adult. Therefore, they are targeting an audience which is adults.

Economics Concept Introduction

A target audience is a group of consumer to whom the advertising is targeted as the firm thinks this target audience will benefit more from its product and are important source of revenue.