The greatest marketing campaign is likely one that you’ve never heard of and are unsure of its origins or even the company behind it.
It’s not Nike, Coke Cola, nor any technology company. The campaign embodied by a single slogan is the mastermind of the Da Beers cartel:
“A Diamond is Forever”
For most of us, especially in Western culture, diamonds are perceived as a rare and highly valuable luxury good. But in reality, these gems have no intrinsic value; their high price tag and status in society are actually the result of fabricated demand and an artificially-restricted low supply.
Beginnings
De Beers was formed back in 1888 by financial types looking to consolidate mining operations. But the story isn’t about the supply, which we’ve seen other cartels control a commodity – think oil and OPEC.
No, De Beers sweeping influence can be felt in the demand it generated through its marketing efforts. De Beers marketing has been so successful, it has become ingrained in our culture as the de facto means by which couples attest to love’s commitment.
Fabricated Demand Through Marketing
Marketing creates awareness and helps to generate perceived value. Besides our basic sustenance needs, every product we purchase is a ‘want’ instead of a ‘need’ and something we purchase because the value we perceive it will bring us.
In the case of diamonds, aside from a few who may incorrectly envision diamonds as an investment, the jewelry is purchased for symbolic purposes. And symbols are important; a symbol is a visible representation of something invisible.
“”It’s the power of using symbols that makes men lords of the earth” – Susanne Langer (1942)
Are Diamonds as a Symbol Good or Bad?
After getting over the shock of first learning of this contrived practice, my thoughts moved to whether this practice was beneficial or harmful. It is not an easy question to answer.
As Dan Ariely pointed out in his phenomenal book ‘Predictably Irrational’, consumers purchase items based on value, quality or availability – and often a combination of all three. Because very few people understand diamond quality or availability, the ‘value’ we assign these objects is rather arbitrary. But, once that value is solidified in our mind, we maintain that established value as an ‘anchor’ point.
As a result, if you personally feel a diamond is money well spent, who’s place is it for anyone to argue against. Further, the diamond engagement ring is one of the most powerful and lasting symbols in our culture, one that’s passed between generations. It is a ubiquitous token which instantly signifies we’re committed to another person – arguable the biggest step in our lives.
However, others would argue that we (and several generations) have been duped into falsely believing that somehow commitment and a gemstone are inseparably linked. Should diamonds really be the automatic road taken to demonstrate ‘true love’, ‘manhood’, or ‘social status’?
What do you think? If a diamond brings us value then is the price worth it, or is has this scam reached it expatriation date?
P.S. Check out this comical video for more on De Beers and diamonds.
Image courtesy of Joshua Earle