Blogging and the Economic Environment
Chris Thompson, MBA, is a social recruiting strategist
As more and more B2C companies use blogs as part of their marketing program, it’s important to understand and identify the four different stages in the business cycle. Each stage can have a dramatic effect on consumer spending and companies should adjust their marketing strategy to reflect the current business cycle.
Prosperity
Spending is brisk and consumers are willing to spend more on premium versions of well known brands. During prosperous times, marketers respond by offering new products, higher prices, expanded distribution and promotional efforts. Your blog should be bold, with little concern about value.
Recession
During a recession, consumers focus on basic, functional items that carry a lower price tag. Marketers often lower prices, increase promotions to stimulate demand, and launch special value priced products to appeal to price-conscience consumers. Content on your blog should speak volumes about value and function.
Depression
In a depression, consumer spending will be at its lowest level and marketing will have minimal effects on consumer spending. Fortunately, the federal government will attempt to stimulate and control the business cycle through monetary and fiscal policies to avoid a depression at all costs. During a depression, blogs are ineffective on consumer spending and would be best used to communicate free public services.
Recovery
As the US economy enters into a recovery stage, consumer purchasing power increases but consumers proceed with caution in their purchasing habits. The recovery stage presents unique challenges as business must earn profits while trying to gauge consumer demand.
During this time of recovery, blogging and inbound marketing represents one of the most cost effective marketing tools available. Blogging allows a business to generate a following without spending a lot of capital; it just takes content + SEO + a good blogging platform such as WordPress or Hubspot.
Is your organization capitalizing on the use of blogs during different business cycles? Please comment below or contact Chris directly at thesocialrecruiter@gmail.com
