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Is There a Model That Can Work for Different Types of Businesses?
The base in our equation can be interpreted as being the brand awareness or the brand equity. In models I've seen for Coca-Cola and other big brands, that constant might explain up 90 plus percent of the sales. If you stopped all advertising, profits would go down a few percent. But maybe after 10 years, you might not hear about Coke anymore because there was some decay effect.