1.Ehrenberg (1974) makes reference the “leaky bucket” theory. The bucket is a metaphor for the customer base of a typical brand. For instance: a certain proportion of a brand’s customers constantly defect from the brand or switch to another brand (i.e. leak out the bottom of the bucket), and so for the bucket to remain ‘full’, EITHER the flow of leaking customers needs to be stopped, OR the customers that leak out the bottom need to be replaced by ‘topping’ up the bucket with new customers.
Discuss advertising’s role in curbing the leak and/or topping up the bucket.
Why can’t advertising increase sales by only focusing on convincing existing customers to buy more of the brand?
What is the ATR model that Ehrenberg (1974) discusses? Where does advertising fit in this model?
What is the ATR model that Ehrenberg (1974) discusses in the reading for this week? Where does advertising fit in this model?
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