Modern Marketing Genius
Wednesday, August 22nd, 2007
I told you several months ago that the first known engagement ring was given by Archduke Maximilian of Austria in 1477. And that’s where I left it. Smooth, right? I though I would follow up on that today. Maximilian gave that first diamond engagement ring to Mary of Burgundy. Interestingly enough, at least to me, is that diamond engagement rings did not become popular until the 1930s. De Beer’s started a massive marketing campaign to drive up demand in part because of the large amount of diamonds that were found in South Africa.
This is a classic example of creating demand for a product. Diamonds had been around as jewelry for centuries, and their price was high and sustainable. The in-rush of massive amounts of diamonds would have caused the price to drop as they became more common. That drop would have killed the diamond market, and created havoc with the wealth of many of the world’s richest families who had invested in precious stones. By creating a demand to match and even exceed the new supply, De Beer’s ensured not only their own profits but the fiscal solvency of other businesses, institutions and families.
Sheer marketing genius. Make people think diamond rings are a necessity. Then let them think you are doing them a favor by offering to sell them one at a “real good deal”.
