We live in a market economy made up of two major factors – supply and demand. These two factors determine what is bought and sold and for how much. Qualitatively, demand represents the wants and needs of buyers in an economy. Supply represents the efforts of firms to profit from existing demand. The stronger the demand for a given product, the more potential profit and resulting competition among suppliers there will be in attempting to satisfy demand for the product. If there is no demand for a given product, there will be no supply for the product because firms will not be able to profit.
The most important conclusion to draw from the simple qualitative economic facts above is that demand drives supply. Marketing firms may help a product realize its potential demand, but they cannot create demand. 
Since demand drives supply, if we focus on changing demand, we can change supply. But the reverse is not true: we cannot change demand by focusing on supply.
For example, Hellmann’s® Mayonnaise recently announced that it has switched to “cage-free eggs” in its Light Mayonnaise. In a discussion with advocates about this switch, I suggested that if large animal welfare organizations insisted on engaging in single-issue campaigns (because such campaigns are good fundraisers), then instead of “cage-free egg” campaigns, they would at least be engaging in legitimate animal advocacy to campaign for vegan alternatives in restaurants and brand-name products.
However, the problem with such vegan-oriented single issue campaigns is that they are supply-side advocacy. To use the example above, let’s assume that Hellmann’s® developed a vegan mayonnaise to compete with Vegenaise® and Nayonaise®. Only if there is sufficient demand will it be sufficiently profitable for Hellmann’s® to keep the product on the market and develop it further. If there is not sufficient demand, the vegan product will not be sufficiently profitable and Hellmann’s® will discontinue the vegan product. The marketing and chief executives and stockholders don’t care what sells (e.g. vegan products or animal products), they only care that a product or service sells, i.e. that there is a demand for the product.
So what does this imply for animal advocacy? It obviously implies that we must focus virtually 100% of our time and energy on increasing demand for vegan alternatives to replace animal products. The only way to do that is through vegan education; that is, informing people why they ought to go vegan and how to go vegan. As we create more demand for vegan products through vegan education, suppliers will respond by catering to the new demand.
There can never be enough vegan education. New vegan products can be taken off the shelf for a lack of demand; but people, once genuinely convinced that animals are persons to be fully included in the moral community, and once educated on how to be a vegan, will stay vegan for a lifetime and influence others, thereby increasing demand.
Welfare Activities Versus Vegan Advocacy
It is illegitimate to call welfare reform activities animal “advocacy” because such a paradigm and the resulting activities encourage people to continue consuming animal products. The welfare paradigm and activities are not merely neutral and unproductive; they are harmful and counterproductive. On the surface, welfare activities appear to reduce violence and suffering in their temporary focus on the symptoms of speciesism. But below the surface, welfarist thinking is the very problem of exploitation itself. All animal exploiters, virtually without exception, “take animal welfare very seriously.” This is because the philosophy of animal welfare accepts, as a most basic and dogmatic premise, that nonhuman animals are here for us to exploit.
Welfare activity, because of its inherent ineffectiveness and support of animal exploitation and killing, as both a theoretical and practical matter, is the active promotion of violence.
Vegan advocacy inherently rejects all animal exploitation and the promotion of violence. Such rejection is the essence of vegan advocacy, and is the only advocacy for nonhuman animals.
Four Types of Activities
Below are four types of activities distinguished by whether they address supply or demand, and whether they are vegan or welfare activities.
Type 4 activities are supply-side welfare activities. They generate most of the revenues for the large corporate animal welfare groups like PETA and HSUS, which is one reason they are so common and popular from the standpoint of the welfare groups. They are counterproductive because they indirectly encourage animal product consumption. They also drain resources from demand-side vegan activities.
Examples of Type 4 activities are welfare single-issue campaigns, welfare law campaigns (e.g. Prop 2 in California), welfare reform campaigns, controlled atmosphere killing and cage-free campaigns, gestation crate campaigns, and foie gras prohibition campaigns.
Type 3 activities are demand-side welfare activities. They are counterproductive because they directly encourage animal product consumption, increase demand for animal products, decrease demand for vegan products, and drain resources from demand-side vegan activities.
Examples of Type 3 activities are encouraging or condoning “happy meat” and “cage-free egg” consumption. A typical Type 3 statement is, "If you're going to insist on eating that anyway, at least buy free-range." If we would not say, "If you're going to kill or rape anyway, at least don't beat the victim as many times as you normally do", then we should not say similar things about animal product consumption. Silence is far better than Type 3 statements.
Type 2 activities are supply-side vegan activities. With the exception of owning a vegan business, these activities do little or nothing to decrease demand for animal products or increase demand for vegan products. Owning a vegan business is an excellent advocacy activity. All other supply-side vegan activities, while not necessarily counterproductive, drain resources away from demand-side vegan activities, and in many cases (such as anti-fur campaigns), are counterproductive as they encourage speciesism by their narrow focus.
Examples of Type 2 activities are requesting vegan products from grocers and restaurants (as an advocacy tool; not because you simply want a certain vegan product available); vegan product campaign (e.g. campaigning for Hellmann’s® to develop and market a vegan mayonnaise); owning and operating a vegan restaurant (again, a great form of advocacy, largely because it incorporates Type 1 activities); vegan product development; elimination single-issue campaigns (speciesist and utterly useless unless we've eliminated demand).
Type 1 activities are demand-side vegan activities. They decrease demand for animal products while simultaneously increasing demand for vegan products. Because of their focus on demand and vegan education, demand-side vegan activities are the only activities capable of eventually abolishing animal exploitation.
Examples of Type 1 activities are vegan education (explaining why and how to go vegan through various media and opportunities); abolitionist education (explaining the legal and many other similarities between human chattel slavery and modern nonhuman slavery); vegan food blogs and cooking classes; educating fellow advocates and others about the problems with welfarism and single-issue campaigns.
Important: Unless we are operating a vegan business (which is mostly a supply-side activity), we should spend between 97% and 100% of our animal advocacy time doing Type 1, demand-side vegan activities and the remaining time, if any, doing Type 2 supply-side vegan activities. We should always stay entirely away from harmful Type 3 and 4 welfare activities.
Welfare activities are popular because they accept our society’s violent and speciesist belief that nonhuman animals are here for us to exploit and kill, but they are counterproductive because by such acceptance, they also promote and strengthen the violent and speciesist notion that animals are here for us to exploit and kill. Welfare activities are part of a vicious circle.
 Marketing firms are in the business of realizing the potential demand for products, but the realization they are able to generate consists in making consumers aware of a given product or service along with various psychological methods of stimulating potential consumers’ interest in the product. Marketing a product can only fulfill a product’s potential demand; it cannot create demand. We can market a highly undesirable product or service all we want, but if the product has no inherent demand, the product will not sell.