Presidential elections are momentous events in any country. Beyond their political relevance, these elections have a significant impact on various aspects of society, including consumer behavior. How can brands adapt to effectively connect with their audience during this crucial period? What changes do we see in consumption?
Paradoxically, the first consumer item during electoral times is communication itself, for example, the debates (heads of government in CABA, candidates for vice president and president) and everything that revolves around it, using various social media platforms. But it also adds dramatic intensity to the suspense that an uncertain outcome brings and the questions that lie ahead in a time already marked by economic instability amid accelerated inflation and exchange rate vertigo. As the $1,000 barrier for the dollar approaches, the feeling of anguish over an improbable future increases. Not in vain, a typical tool of these moments are memes in a humor that Argentines are already accustomed to, after decades of instability.
There is no currency and it feels that way. In principle, the only beneficiaries (obviously the minority) are those who have income denominated in dollars, but it is not a panacea either. There is little point in being “good” in a place that is generally bad and without a defined direction. In other words, instability sweeps away the illusions of even the “winners” of their situation.
Uncertainty breeds caution. One of the main effects of the presidential elections on consumer behavior is the political and economic uncertainty they entail. Changes in political leadership generate a lot of caution in people’s purchasing decisions: from delaying important purchases, especially those related to durable goods or long-term investments. At the same time, in the consumer sectors that can afford it, they hire or pay in advance from vacations to goods that, if they have fixed installments, allow them to beat inflation.
In contexts of uncertainty, consumers value everything that allows them to stretch or quote payment terms, promotions, where possible those that allow them to stock consumer goods that are expected to have high increases due to inflation, and everything that allows them to preserve their capacity. purchasing and consumption.
In this sense, the review of fixed expenses, the search for budget optimization, the evaluation of new, more convenient consumption channels, the use of payment formats and promos, are on the agenda of the Argentine consumer in general and even more so in election times.
Market polarization and segmentation. Another factor to consider is political polarization. Presidential elections often exacerbate political divisions in society, and this can have a direct impact on consumer behavior and brands’ marketing strategies. People tend to align more closely with their political values during election periods, which can lead to more pronounced market segmentation.
Brands should be aware of this segmentation and carefully consider how they approach their audience. Some companies may choose to take a clearer political position, trying to attract ideologically like-minded consumers, while others may choose to remain neutral so as not to alienate any part of the market. The choice of one strategy or another depends largely on the brand, its identity and the values of its audience.
Political and social marketing. The presidential election is a time when political marketing reaches its peak. Political campaigns invest large sums of money in advertising and voter mobilization, and these strategies often extend to the realm of consumption. Political messages take over the media agenda and brands have to create their own spaces to be remembered and memorable, a challenge during election times.
Brand adaptation strategies. In an environment where consumer behavior is influenced by the presidential elections, brands must adapt their communication strategies. This implies:
Monitor the political and economic environment: Staying abreast of political and economic developments is essential to anticipate possible changes in consumer behavior.
Effective segmentation: Understand the political and social divisions in your audience and tailor marketing messages to appeal to specific groups.
Transparency and authenticity: Brands must communicate their values and commitments transparently and authentically.
Flexibility and adaptation: Be able to quickly adjust marketing strategies as political and economic events evolve.
Close and supportive brands. In conclusion, presidential elections have a significant impact on consumer behavior and brands’ marketing strategies. Uncertainty, polarization, and political messaging influence purchasing decisions, and brands must be aware of these factors to effectively connect with their audience during this period.
Adaptation and flexibility are key to maintaining strong relationships with consumers in a changing political environment. The key is to help them and be close in times of uncertainty, where the outlook is not yet defined and where the consumer needs to continue controlling their expenses, resigning as little as possible.
Ximena Díaz Alarcón is Cofounder & CEO of Youniversal.
by Ximena Díaz Alarcón
