Part B1 · Growth, Income and Spending

The Business Cycle

Economies move through expansion, slowdown, recession and recovery. Customer behaviour and the right marketing response change at each stage.

The Business Cycle · Illustrated by Hendra Saputra with AI assistanceSelect the illustration to explore it at a larger size.

The idea

In expansions customers upgrade; in slowdowns they delay and compare; in recessions they trade down and drop second SIMs; in recoveries they return slowly. GDP data arrives late and gets revised, so also watch faster signals: daily top-up values, the share of small packs and fuel and exchange rates.

Use it thoughtfully

  • Name which stage your market is in each quarter.
  • Prepare the next stage's pack mix in advance.
  • Keep the brand visible through downturns.

An example

ILLUSTRATIVE EXAMPLE: Seeing slowing top-up values, a team prepares value packs and an entry-price guarantee one quarter before a downturn deepens.

A question to try

Which stage of the cycle is your market in, and what is your plan for the next stage?

A useful framework is a starting point, not a guarantee. Effects vary with the audience, product and situation. Use truthful evidence, respect customer choice, and test the result.

Connect the ideas

Illustration

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