Last week, when we were talking about the effectiveness of "Talk to Chuck" campaign by Charles Schwab & Co., Inc, I stated my points as that this campaign was effective in raising new client assets, however, from the financial statement I found that high net new client assets were not equal to high net income at the same time. For example, in 2001 and 2005, the net new client assets were so near of 73.6 and 75 millions, while the net income of the two years were 199 and 725, with hundreds of millions gap. Therefore, I won't support the further launch of this campaign with such high budget.
Then my team member Billy expressed his disagreement with me that even if new client asset are not strongly related to net income, it was very effective in raising brand awareness and preference, which in the long run would benefit the company in generating profits.
I recalled this when I am reading the assigned Harvard Business School article talking about JTW's business in China. In the introduction of advertising in China, the article talked about the differences of Chinese local clients and international clients that most local clients focused on short term quick return with sensitive budgeting and sales driven goal. To convincing local clients about advertising strategies that aims at long term brand building is more difficult than international clients. Also, the boss is the key person in doing business with local clients in China. It seems that I am a typical example of a local client in dealing with advertising strategy which focuses more on actual income instead of respectively unreliable, and more expensive long term benefits on branding.
I was taught and told to be with long term goals and visions throughout my life since very young, however, it really impressed me when I naturally say the causality that "because A can not generate high net income, so A is not considered." I realize that though subtle, it is the way I think. I guess it is a cultural impact.
However, these really make me think about short term and long term vision of mine. I never doubt the importance of thinking in a long term vision, but it seems I need more experience and study to fully broaden my horizon.
In what other aspects am I thinking or making decisions in a short term vision? For the issues in which I believe I am already long term oriented, can I see further?
This is a life long project with consistent learning and experiencing.
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