My topic of study for the past week has been Sub-Saharan Africa. Though the region as a whole was an interesting topic, what captivated me the most was the country of Botswana. Botswana produces the 2^nd highest GDP growth in Sub-Saharan Africa, right after South Africa. What sets Botswana apart from South Africa is that Botswana does not have a mixed economy, but relies upon one main source of income: diamonds.

 

 

 

De Beers, a high-end luxury brand of jewelry known for engagement rings, originated from South Africa. The development of diamonds as a scarce resource was actually a pretty recent development. In the late 1800s when large diamond mines were being discovered by the ton, the British financiers who organized the mines came to the realization that their investments were in danger and that the high price of diamonds depended on their scarcity. In 1888, the major investors of the diamond mines merged together to form De Beers Consolidated Mines, Ltd., in South Africa. This single entity was powerful enough to control the production and create the illusion of the scarcity of diamonds.

 

 Now you’re reading this and you’re wondering, what does this have to do with marketing? I’ll tell you.

 

 

 

During the Depression when people were more worried about putting bread on the table than buying diamonds, the price of diamonds dropped. In order to bring the price up, De Beers had to come up with a strategy that would make people want to buy diamonds but not resell them. Their solution was the engagement ring and the motto “A diamond is forever”. Even though diamonds can be shattered, chipped, discolored, or incinerated into ash, the concept of eternity was branded.

 

De Beers branded the idea to the diamond through relentless marketing in the media, schools, and everyday social life. Three years after the launch of the campaign, it was reported that the sale of diamonds had increased 55% in the United States. De Beers will later on find extreme successes in other countries such as Japan, Germany, and Brazil. Through well-orchestrated advertising and public-relations campaigns, one company was able to change their market with the idea that the larger and finer the diamond, the greater the expression of love.

 

Now that is the power of marketing.

 

 

Marketing flourishes with reinvention and innovation. The competition is fierce for the sound bite length of a consumer’s attention…and that sound bite determines the success of failure of a campaign.

 

As a student of marketing, I make an effort to learn as much as I can from the marketing industry. Several of my peers and I went on a tour today at The Designory, an interactive marketing agency whose broad range of clients include Infiniti, Universal, and Fatburger. Located in downtown Long Beach, the drive there was a bit hectic due to crowd attracted to the Toyota Grand Prix. However, the tour of The Designory made up for all of it.

 

Within those four stories of marketing goodness, it’s difficult to tell the state of the outside economy. When I spoke with Eric, the “talent scout” of the agency, he made a point to emphasize that it was due to good communication and great customer service that sets Designory apart from their competitors. Furthermore, innovative techniques such as making pamphlets where potential clients and interactively explore a new car brings them ahead of the game. (ie. One of their campaigns for Nissan Cube included a CD that and perforated cards that allowed the consumer to interact with the vehicle in 3D)

 

So all in all, innovation and great customer service goes a long way. A company does not need to spend a lot of money in order to be creative. Do not view hard times and lack of finances as a barrier to creativity, but the foundation for creativity.