Question

In: Economics

This ad ran in 1947 by the diamond company De Beers. However, there is no mention...

This ad ran in 1947 by the diamond company De Beers. However, there is no mention of De Beers in the ad, only of diamonds. The ad is meant to increase demand for the entire diamond industry, rather than specifically increasing demand for De Beers diamonds. Why would De Beers run an advertising campaign that doesn’t even mention its name?

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Expert Solution

Answer:
The main reason De Beers run an advertising campaign that doesn't even mention its name because of following reasons:

  • As De Beer is also one of the share holder among the supplier of diamond in the market, so if more people will come to purchase diamond he will also get his share in the market.
  • They wanted to increase the universal set itself who would purchase diamond, so this intern increase the demand for diamond which will increase the price if supply is maintained same and hence they will get benifitted from it.
  • Also if a particular company promotes a particular thing without his brand, people don't see any ill motive behind their logic and gets influence very easily.
  • Last but not the least, market share of De Beer in diamond industry at that time was quite good, so they were sure that anyone who want to purchase diamond will eventually come to his brand because of name and trust that brand holds.

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