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Most of Vanguard's existing customers admire the fact that the company doesn't slam them with pamphlets or brochures in the mail, especially if they have been a loyal customer. Also, Vanguards low-cost position in the industry conflicts with money spent used on advertising. They found that the costs would eventually cut into returns. Although Vanguards philosophy believes growth stems from broadening existing clients, it is crucial to increase brand awareness among non-customers in order to stay above water in the growing financial industry. Spending money on advertising will benefit Vanguard in the long run because they will be acquiring new customers, which will then provide more profits to use for advertising and direct marketing...
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